IRS Updates November 4

Bi-Monthly Updates on the IRS

Here is what is happening in the IRS.

Proposed Regulations on Opportunity Zone Tax Incentive Issued      

The Treasury and IRS have issued guidelines regarding Opportunity Zone incentives. Opportunity Zones were created by the Tax Cuts and Jobs Act (TCJA) of 2017 to encourage investment in distressed communities in the US and its territories. The proposed regulations clarify that almost all capital gains in such areas qualify for deferral, when appropriately invested in a Qualified Opportunity Fund. Taxes may be deferred up to Dec. 31, 2026 by making an appropriate investment in a zone, making an election after December 21, 2017, and meeting other requirements.

Tax Professionals Must Renew PTIN

The IRS reminds federal tax return preparers that they must renew their Preparer Tax Identification Numbers (PTINs) for 2019. Current PTINs will expire Dec. 31, 2018.

Annual Advisory Report Issued

The Information Reporting Program Advisory Committee (IRPAC) issued it’s annual 2018 report detailing recommendations to the Internal Revenue Service relevant issues in tax administration. These include TJCA changes, enhancements to electronic filing, Affordable Care Act, and more. Click here to see who makes up the advisory committee or to read the full report.

New Tax Law Affects Next Year’s Returns

The IRS reminds taxpayers to be prepared for next year’s tax changes and avoid surprises at tax time. Publication 5307 details changes individuals and families can expect, including increases in the standard deduction and child tax credit, and suspension of personal exemptions. See how to ensure a smooth processing of your 2018 tax return here.