Legislative update
On Dec. 20, the president signed two large spending bills funding the government, including the IRS, through Sept. 30, 2020, the end of the fiscal year.
Highlights of the tax provisions include:
- Repeal of some unpopular Affordable Care Act provisions, such as the medical device and high-cost employer-sponsored excise taxes.
- Some fixes to the Tax Cuts and Jobs Act of 2017 (TCJA), repealing the parking tax imposed on nonprofits and the kiddie tax imposed on death benefits received by gold star families. However, the bill does not provide a much-requested fix to the lengthened period for amortization of qualified improvement property that was enacted under the TCJA.
- Sweeping changes to retirement savings included in the Setting Every Community Up for Retirement Enhancement Act of 2019, such as raising the age for minimum required distributions to participants from individual retirement accounts (IRAs) from 70 1/2 to 72 and allowing IRA contributions after age 70 1/2.
- Extension of certain expiring provisions generally through the end of 2020.
- Disaster relief provisions.
The U.S. Department of the Treasury and the IRS have received several letters from members of Congress regarding IRS enforcement and guidance. The IRS received letters expressing concern regarding recent guidance issued on virtual currency. Members also wrote to Treasury in favor of increased resources for IRS enforcement and criminal investigations.
