Overview
Treasury and IRS Issue Guidance on Private College Excise Tax: Notice 2018-55 announces that Treasury and the IRS intend to issue proposed regulations clarifying the calculation of net investment income under the newly enacted excise tax on certain private colleges and universities. The Notice states that, under the proposed regulations, institutions generally will be able to receive a step-up in basis of assets to their fair market value on December 31, 2017 for purposes of calculating net investment income. Losses from sales or other dispositions of property generally will be allowed only to the extent of gains from sales or other dispositions, and there will be no capital loss carryovers or carrybacks. Treasury and the IRS expect that related organizations (within the meaning of section 4968(d)(2)) generally will be able to offset overall net gains of one organization with overall net losses of another, but request comments on this issue.
TIGTA Releases Semiannual Report to Congress: The Treasury Inspector General for Tax Administration (TIGTA) publicly released its Semiannual Report to Congress, describing TIGTA’s activities during the six-month period ending March 31, 2018.