Overview
Guidance Issued on Nondeductible Penalties: Treasury and the IRS issued Notice 2018-23 which provides transitional guidance under sections 162(f) and 6050X and describes proposed regulations that Treasury and the IRS intend to publish. Section 6050X was enacted, and section 162(f) was amended, by P.L. 115-97 enacted in December 2017. The notice provides transitional relief for reporting under section 6050X (generally delaying the effective date for such reporting) and guidance regarding the identification requirement under section 162(f)(2)(A)(ii).
Proposed Regulations Would Narrow Participation in Summons Process: Treasury and the IRS issued proposed regulations under section 7602(a). Current regulations generally permit any person authorized to receive returns and return information to receive and review summoned books, papers, and other data, and participate in a summons interview. The proposed regulations significantly narrow the scope of the current regulations by excluding non-government attorneys from receiving summoned books, papers, records, or other data or from participating in the interview of a witness summoned by the IRS to provide testimony under oath, with a limited exception.
Final Regulations Issued Relating to Group Research Credit: Treasury and the IRS issued final regulations relating to the allocation of the credit for increasing research activities to corporations and trades or businesses under common control. The final regulations adopt without change regulations proposed in 2015.
TIGTA Releases Report on Uncertain Tax Position Schedule: The Treasury Inspector General for Tax Administration (TIGTA) released a report titled The Uncertain Tax Position Statement Does Not Contain Sufficient Information to Be Useful in Compliance Efforts. The report states that, in response to the recommendation of TIGTA, IRS management plans to, in coordination with Treasury, consider the feasibility of modifying Schedule UTP to include information needed to be more useful for its intended purpose.