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May 2018

IRS Warns of Email Scam from Fake Professional Tax Preparer Associations

The IRS says that new phishing emails from scammers are posing as state accounting and professional associations to lure tax pros into volunteering sensitive info. So far, there have been no reports of scammers posing as TSCPA, but we are encouraging all members to be on guard.  

TSCPA Committee Supports Nomination for IRS Commissioner

TSCPA’s Federal Tax Policy Committee issued a letter to the U.S. Senate Finance Committee to support the nomination of a reputable tax professional as Commissioner of Internal Revenue during this critical time of implementing major changes affecting tax administration. The committee supports Charles P. Rettig’s nomination to be the next IRS Commissioner.

IRS Releases New List of Automatic Method Changes

The IRS recently released an advance version of Rev. Proc. 2018-31 (2018-22 IRB 1), which contains the newest list of accounting method changes, updating last year’s list in Rev. Proc. 2017-30 (2017-17 IRB 1131). The new list identifies 10 significant changes to Rev. Proc. 2017-30, of which:

  • Four remove obsolete method changes, in whole or in part.
  • Three make method changes unavailable after December 2017 because of statutory amendments made by the Tax Cuts and Jobs Act (TCJA).
  • Two remove waivers of the five-year limitation on automatic accounting method changes for specific mark-to-market method changes.
  • The last change adds a waiver of the five-year limitation for advance payment method changes following Rev. Proc. 2004-34 (2004-1 C.B. 991).

The revision was previously announced in Notice 2018-35 (2018-18 IRB 520), which allows taxpayers to follow Rev. Proc. 2004-34 until the IRS can complete guidance under Section 451(c), the TCJA codification of that revenue procedure.



Tax Regulations to be Subject to OMB Review

A new agreement gives the Office of Management and Budget significant authority to review certain major tax regulations before they take effect. Rules implementing Section 199A pass-through deduction, Section 163(j) interest expense deduction limitation and global intangible low-taxed income (GILTI) could now be subject to review.

IRS Issues Guidance on Business Interest Expense Limitations

Treasury and the IRS announced plans in Notice 2018-28 to issue proposed rules on the new interest limitations under Section 163(j) incurred by certain large businesses. The new limitation is generally effective for tax years beginning after Dec. 31, 2017. TSCPA’s Federal Tax Policy Committee is considering issuing comments.