Daily Tax Update - October 12, 2016: Proposed Regulations Would Raise User Fees for Offers in Compromise

Proposed Regulations Would Raise User Fees for Offers in Compromise:  Today, the IRS issued proposed regulations that would raise the user fees for a taxpayer submitting an offer in compromise on amounts owed to the IRS.  The current fee of $186 would increase to $300 under the proposal, but the IRS will continue to waive the fee for low-income taxpayers. 

Senate Finance Committee Republicans Urge Delay of Earnings-Stripping Regulations:  Yesterday, six Republican members of the Senate Finance Committee wrote a letter to the Office of Management and Budget director asking to delay approval of the controversial earnings-stripping regulations under section 385 until “the economic impact of these regulations can be fully assessed.”  The senators asked that if the regulations are finalized, cash-pooling transactions, foreign-to-foreign transactions, and domestic-to-domestic transactions be exempted from the rules.