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TAX ALERT – Stats Provided by the IRS Commissioner at the AICPA National Tax Conference

In the 13 months from the enactment of TCJA on December 22nd, 2017 to the start of the 2018 tax filing season in January 2019, the IRS:

  • Updated over 500 forms, instructions, and publications
  • Added 40 new forms, with instructions
  • Updated 140 software systems used to process returns

In the 23 months since its passage, some form of guidance was issued with respect to every one of the 119 sections of the act including:

  • 37 proposed regulations
  • 13 final regulations
  • 32 revenue procedures
  • 5 revenue rulings
  • 54 notices
  • 142 news releases
  • 81 tax tips
  • 21 FAQs
  • 10 fact sheets
  • 2 statements

In summary, since its passage:

  • 397 items were released
  • With an average of 17 pieces per month
  • 4.25 per week
  • 3 more regulations expected by early 2020

In addition to the changes related to the TCJA, the IRS changed the instructions for the preparation of Schedule K-1s for Form 1065 and Form 1120S.  Preparers are required to compute and retain the cumulative tax basis for the owners of the pass-through entities.  This adds another layer of time and complexity in complying with the tax rules. (See separate article regarding tax basis reporting).

We have been reading, attending classes and revising our processes to maintain our goal of excellence in product delivery.  We have started our planning for the 2020 busy season.  With the new rules and guidance, the delivery of your returns may be slightly delayed in our goal to produce a complete and accurate return.  Please contact us with your questions.  Everyone was affected by this tax act.