Memo #
31797

ICI Submits Recommendations for 2019-2020 Treasury/IRS Priority Guidance Plan
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[31797]

June 10, 2019 TO: ICI Members
Tax Committee SUBJECTS: FATCA
Tax RE: ICI Submits Recommendations for 2019-2020 Treasury/IRS Priority Guidance Plan

 

The Institute submitted the attached letter, requesting that the Treasury Department and Internal Revenue Service (IRS) include guidance on certain tax issues on their 2019-2020 Priority Guidance Plan.[1] Many of our recommendations related to the implementation of the Tax Cut and Jobs Act of 2017 (TCJA) have previously been addressed in the form of a notice or proposed regulations, so we urged the Treasury Department and IRS to issue or finalize such guidance in a timely manner.

The non-TCJA related requests for guidance are largely based on prior recommendations but with changes in the order to indicate priority. The only items removed from last year’s requests for guidance are “Section 851 investments in CFCs and PFICs”[2]  and “Section 965 transition tax on deferred foreign income”[3] because they have been resolved.

The priority requests for guidance included in the main section of the letter, include:

  1. Pass-through of Section 199A deduction for RIC shareholders;
  2. Section 451(b);
  3. Section 163(j) interest expense limitation;
  4. UMBS TBA contracts and diversification under Section 817(h);
  5. Check-the-box election;
  6. Taxable mortgage pools;
  7. Qualified interest income;
  8. Foreign tax recoveries from the EU;
  9. FATCA; and
  10. Money market fund reform

Several items that were included as a priority item on prior requests for guidance, but which remain outstanding have been moved to Enclosure A “Additional Recommendations,” including:

  1. Items Related to 2010 RIC Modernization Act;
  2. Cost Basis Reporting;
  3. FBAR;
  4. Ownership Tracking Requirements; and
  5. Electronic Filing 

The letter includes only tax items; the Institute submitted a separate letter with recommendations regarding retirement plan issues.[4]

 

Katie Sunderland
Assistant General Counsel

 

Attachment

endnotes

[1] Notice 2019-30 is available at https://www.irs.gov/pub/irs-drop/n-19-30.pdf.

[2] See Institute Memorandum No. 31668, dated March 18, 2019, which can be found at: https://www.ici.org/my_ici/memorandum/memo31668 and Institute Memorandum No. 31728, dated April 24, 2019, which can be found at: https://www.ici.org/my_ici/memorandum/memo31728.

[3] See Institute Memorandum No. 31380, dated September 10, 2019, which can be found at: https://www.ici.org/my_ici/memorandum/memo31380.

[4] See Institute Memorandum No. 31795, dated June 10, 2019, which can be found at: https://www.ici.org/my_ici/memorandum/memo31795