Overview
IRS Releases Guidance for Grantors and Contributors to Tax-Exempt Organizations: Today the IRS released Revenue Procedure 2018-32, which, among other things, sets forth the extent to which grantors and contributors may rely on the listing of an organization in IRS databases of organizations eligible to receive tax-deductible contributions under section 170 for purposes of determining whether the grants or contributions to such organizations may be deductible under section 170 and for certain other purposes. The revenue procedure also provides safe harbors for determining that a grantor’s or contributor’s grant or contribution will not cause the grantor or contributor to be considered to be responsible for, or aware of, an act that results in an organization’s loss of public charity classification and for determining that a grant or contribution is considered an unusual grant.
IRS Releases Withholding Calculator for Taxpayers Who Typically Itemize Deductions: The IRS has released a withholding calculator on its website, encouraging taxpayers who typically itemized their deductions in prior years to use the calculator to make sure their employers are withholding the appropriate amount of tax from their paychecks. Taxpayers who have itemized in the past may be affected by changes to the Internal Revenue Code made by P.L. 115-97 (generally referred to as the “Tax Cuts and Jobs Act”).
Miscellaneous Guidance:
Revenue Ruling 2018-16 provides various prescribed rates for federal income tax purposes including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate, the adjusted federal long-term tax-exempt rate. These rates are determined as prescribed by Section 1274.