Daily Tax Update - September 29, 2016: Senators Introduce Bill to Block Proposed Estate Tax Rules

Senators Introduce Bill to Block Proposed Estate Tax Rules:  Senators Marco Rubio (R-FL), Jerry Moran (R-KS), and Jeff Flake (R-AZ) introduced S. 3436, which would prohibit the Treasury Department from implementing its proposed regulations on estate valuation discounts, issued in August.  Companion legislation was introduced in the US House of Representatives last week (H.R. 6100).  

IRS Releases 2017 Work Plan for Tax Exempt and Government Entities:  The IRS released its Tax Exempt and Government Entities FY 2017 Work Plan.  In particular, the work plan indicates that, with respect to examinations of tax exempt organizations, the IRS will “utilize data sources to identify organizations at risk for inurement and private benefit issues and to identify anomalies on returns filed by private foundations.”  

Miscellaneous Guidance:
Today the IRS released Rev. Proc. 2016-51, which updates the comprehensive system of correction programs for sponsors of retirement plans that are intended to satisfy the requirements of sections 401(a), 403(a), 403(b), 408(k), or 408(p), but that have not met these requirements for a period of time.  This system, the Employee Plans Compliance Resolution System, permits plan sponsors to correct these failures and thereby continue to provide their employees with retirement benefits on a tax-favored basis.