Overview
Senate Appropriations Committee Advances Funding Bill: Today, the Senate Appropriations Committee advanced a bill with $11.263 billion in funding for the IRS. The bill provides that $77 million is to be dedicated to the implementation of tax reform. The bill also includes prohibitions on funds for (i) bonuses or to rehire former employees unless employee conduct and tax compliance is given consideration; (ii) the IRS to target groups for regulatory scrutiny based on their ideological beliefs; (iii) the IRS to target individuals for exercising their First Amendment rights; and (iv) the production of inappropriate videos and conferences.
Miscellaneous Guidance: Today, Treasury and the IRS issued Revenue Procedure 2018-35, providing a new automatic method change for certain taxpayers to change their method of accounting for citrus replanting costs so as not apply section 263A to those costs.