Daily Tax Update - April 3, 2017: TIGTA Report Finds IRS Overpaid, Underpaid Staff

TIGTA Report Finds IRS Overpaid, Underpaid Staff:  A report released by the Treasury Inspector General for Tax Administration (TIGTA) estimates that the IRS overpaid more than 600 employees by approximately $4.2 million and underpaid more than 900 employees by approximately $2.7 million.  These errors were generally due to the complexities associated with setting pay when employees move between the pay systems for managerial and nonmanagerial employees.

Miscellaneous Guidance:  Today the IRS released Rev. Proc. 2017-31, which updates Rev. Proc. 2016-56 (published in December 2016) to add Belgium, Colombia, and Portugal to the list of countries with which Treasury and the IRS have determined that it is appropriate to have an automatic exchange relationship with respect to bank deposit interest income information under Treas. Reg. §§1.6049-8(a) and 1.6049-4(b)(5).