Overview
TIGTA Reports IRS is Not Prepared to Enforce FATCA: Today, the Treasury Inspector General for Tax Administration (TIGTA) released a report finding that the IRS has taken limited or no action on a majority of the planned activities outlined in the FATCA Compliance Roadmap. As a result, the IRS has been unable to monitor compliance with reporting requirements by foreign financial institutions (FFIs) sufficiently and match data provided by FFIs to enforce FATCA requirements for individual taxpayers.
Fed Study States Growth Benefits of Tax Cuts May Be Overstated: Today, a letter released by the Federal Reserve Bank of San Francisco states that the growth forecasts from the tax cuts enacted as part of the Tax Cuts and Jobs Act (TCJA) may be overly optimistic, because such fiscal stimulus is less effective when the economy is expanding compared with the benefits when tax cuts are enacted during a recession. While the Congressional Budget Office estimated that the TCJA would boost GDP growth by around 1.3 percentage points for 2018, the authors of the economic letter stated that marginal consumption and spending multiplier research suggest a smaller effect, ranging from no effect at all to 1 percentage point.