Daily Tax Update - October 19, 2017: IRS and Treasury Withdraw Political Subdivision Regulations

IRS and Treasury Withdraw Political Subdivision Regulations:  The IRS and Treasury have withdrawn proposed regulations under section 103 regarding the definition of a political subdivision for purposes of tax-exempt bonds. The withdrawal of the proposed regulations follows the release earlier this month of Treasury’s report regarding the reduction of regulatory burdens.

Senate Passes Budget Resolution:  Today, the Senate voted 51-49 to pass a budget containing reconciliation instructions for tax reform. The budget will allow $1.5 trillion for tax reform legislation.

 Miscellaneous Guidance Released:

Revenue Procedure 2017-58 provides the 2018 cost-of-living adjustments for inflation for certain items, including the tax tables. The contribution limit for employees who participate in 401(k) plans and a number of other retirement-savings plans will increase to $18,500.

Notice 2017-64 provides a listing of dollar limitations applicable to qualified retirement plans as adjusted for cost-of-living adjustments for 2018.

Notice 2017-59 provides rules claimants must follow to submit a claim for refund pursuant to the temporary relief provided in section 3.02 of Notice 2017-30, relating to excise taxes imposed on undyed diesel fuel and kerosene for fuel in connection with energy emergencies in Wisconsin.