Overview
IRS Issues Proposed Regulations on Basic Exclusion Amount for Estate and Gift Taxes: Today, the Treasury Department and the IRS issued proposed regulations addressing the effect of changes resulting from the Tax Cuts and Jobs Act to the basic exclusion amount for estate and gift taxes.
Tax Court Rules on Computation of Section 2056 Marital Deduction: Today, the US Tax Court issued an opinion ruling 1) that a decedent’s estate is not required to reduce the marital deduction by the amounts of federal estate and state death taxes it owes and 2) that the estate may not increase the marital deduction by the amount of postdeath income generated by marital deduction property. This opinion supplements the Tax Court’s previously filed opinion in Estate of Turner v. Comm’r, 138 T.C. 306 (2012), supplementing T.C. Memo. 2011-209.
Taxpayer Wins in Tax Court in Section 911 Case: Today, the US Tax Court issued an opinion finding that a taxpayer working in Iraq as a security specialist was able to exclude portions of his wages under the section 911 foreign earned income exclusion provision, because the taxpayer had a tax home and bona fide residence in Iraq.
IRS Updates List of Disaster Relief Postponed Acts: Today, the Treasury Department and the IRS issued Revenue Procedure 2018-58, which updates the list of time-sensitive tax actions and deadlines that may be postponed for taxpayers affected by a federally-declared disaster, a terroristic or military action, or individuals serving in a combat zone.
IRS Extends Relief for Withholding Requirements for Payments From IRAs to State Unclaimed Property Funds: Today, the Treasury Department and the IRS issued Notice 2018-90, which extends the transition relief provided by Rev. Rul. 2018-17 so that a person will not be treated as failing to comply with the withholding and reporting requirements with respect to payments made before the earlier of January 1, 2020, or the date it becomes reasonably practicable for the person to comply with those requirements.
Miscellaneous Guidance:
Notice 2018-86 provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates used under section 417(e)(3), and the 24-month average segment rates under section 430(h)(2). In addition, the notice provides guidance as to the interest rate on 30-year Treasury securities under section 417(e)(3)(A)(ii)(II) as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate under section 431(c)(6)(E)(ii)(I), as reflected by the application of section 430(h)(2)(C)(iv).