On The Hill
Tax Update (October 5)
| 965 Regulations:
Earlier this week, the Treasury Department and the IRS released Notice 2018-78[i], which provides guidance on basis elections for purposes of the transition tax under section 965. The notice states that basis elections will not be required to be made until 90 days after the publication of final regulations providing guidance on the transition tax. A senior Treasury official confirmed its their goal is to finalize these regulations by the end of the year.
Lobbyist Lunches Still Deductible: Although the decision to eliminate the tax deduction for entertainment was unpopular, Congress decided to spare the 50 percent deduction for meals. That being said, the Treasury Department and the IRS issued Notice 2018-76[ii] providing guidance on the deductibility of expenses for certain business meals as amended by the Tax Cuts and Jobs Act. Ultimately, a lobbyist can still receive a 50% deduction if it’s “ordinary and necessary,” not lavish or extravagant, and the food and beverages are provided to a current or potential business customer, client, consultant, or similar business contact.
Tax Moves: Katie Rudis is leaving Rep. Jim Renacci’s (R-OH-16) office to join Sen. Bill Cassidy’s (R-LA) as his new Tax Counsel. Kathryn Chakmak will be taking over the tax portfolio for Rep. Jason Smith (R-MO-08). She previously serviced as Assistant to the Staff Director for the Ways and Means Committee for the Majority Staff.
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The Week Ahead
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