The Washington Report
October 03, 2018
President Signs Bill Funding Government Through December 2018 Into Law
On September 28, 2018, President Trump signed a fiscal year 2019 $853 billion appropriations bill (H.R. 6157) into law. The law funds the Departments of Defense, Labor, and Health and Human Services, as well as various other government operations. The law includes a short-term continuing resolution providing funding through December 7, 2018, thus avoiding a government shutdown this month. The House passed the bill on September 26, 2018, and the Senate approved the legislation on September 18.
H.R. 6157 is available here.
House Approves Bills as Part of “Tax Reform Package 2.0”; Senate Passage Uncertain
On September 27, 2018, the House passed two of three bills (H.R. 6756 and H.R. 6757) that are part of a three-measure tax reform package. The House approved the third bill of the package (H.R. 6760) on September 28. Senate passage is uncertain for all bills. However, H.R. 6757 includes retirement provisions that have received previous bipartisan support.
H.R. 6756 – The American Innovation Act of 2018:
Among other provisions, the bill would provide tax incentives to offset start-up business costs. According to the legislative summary, the bill would “make it easier and less costly for an entrepreneur to start a new business by providing for more deductions of start-up and organizational costs in the business’s first year and preserving start-up losses and start-up credits by exempting them from the limitations on use that otherwise could apply after an ownership change.” The bill passed with a 260–156 vote.
H.R. 6757 – The Family Savings Act of 2018:
The bill would amend the tax code to modify requirements for tax-favored savings accounts and employer-provided retirement plans. The Congressional Budget Office indicates that the largest provisions include changes to the rules governing multiple and pooled employer retirement plans, the creation of new tax-preferred “Universal Savings Accounts,” to which an individual would be able to contribute up to $2,500 each year, and an exemption from required minimum distribution rules for individuals with account balances below certain amounts. The bill would also make modifications to Section 529 plans. The bill passed with a 240–177 vote.
H.R. 6760 – The Protecting Family and Small Business Tax Cuts Act of 2018:
The bill would make permanent certain provisions of the Tax Cuts and Jobs Act of 2017 impacting individuals, families, and small businesses. The bill passed with a 220–191 vote.
H.R. 6756 is available here.
A legislative summary of H.R. 6756 is available here.
H.R. 6757 is available here.
A legislative summary of H.R. 6757 is available here.
H.R. 6760 is available here.
A legislative summary of H.R. 6760 is available here.
IRS Releases Revenue Procedure Updating EPCRS
On September 28, 2018, the Internal Revenue Service (IRS) released Revenue Procedure 2018-52 which modifies certain aspects of the Employee Plans Compliance Resolution System (EPCRS). EPCRS is a comprehensive system of correction programs for sponsors of qualified retirement plans that have failed to meet certain qualification requirements. The latest Revenue Procedure, which supersedes the previous Revenue Procedure 2016-51, establishes new electronic submission guidelines which must be used to file Voluntary Correction Program (VCP) submissions and pay user fees. Beginning on April 1, 2019, the IRS will no longer accept paper VCP submissions or user fees paid with a paper check. All VCP submissions and user fees must be submitted using the Pay.gov website. During the transition period from January 1, 2019, through March 31, 2019, plan sponsors may choose whether to file by paper or by using the Pay.gov website. While the new Revenue Procedure updates how VCP submissions are filed with the IRS, the required components of a VCP submission (e.g., the IRS forms, disclosures, attachments, and samples of corrective calculations) generally remain unchanged.
IRS Revenue Procedure 2018-52 is available here.
The Pay.gov website is available here.
IRS Revenue Procedure 2016-51 is available here.
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