IRS

IRS Faces Huge Backlog After Government Shutdown

The IRS is facing a considerable backlog after the shutdown, as employees returned to an estimated 5 million unanswered pieces of mail after the 35-day hiatus, Forbes reports. This is a wrench in the cog of an already hectic tax season, with the agency stretched because of changes in code from the Tax Cuts and Jobs Act and a revised 1040 form that has at least six additional schedules. The recent furlough, compounded with customer service questions on these changes, is expected to delay the agency considerably this tax season. While it’s currently back to business for the IRS, there is no guarantee of continued funding with another shutdown looming, as the government was only guaranteed budgeting for three weeks. 

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IRS Proposal Protects Large Gifts from Estate Tax

The IRS last week issued a proposal to suspend the estate tax on large gifts made between 2018 and 2025 that are currently exempt from the gift tax, Bloomberg reports. The proposed regulations are intended to protect those who made large gifts during a period when higher exclusion amounts applied. The IRS has scheduled a public hearing on March 19, 2019, to solicit input on the proposal. Comments can also be sent electronically via the Federal eRulemaking portal at http://www.regulations.gov (IRS REG-106706-18), or by mail at CC:PA:LPD:PR (REG-106706-18), Room 5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044.
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