A May 18th report by the Office of Personnel Management covers significant proposed IRS regulations and changes, including:
1) Changes to the deductibility of certain investment advisory and other expenses of trusts and estates, specifically whether such expenses are subject to the 2% floor for miscellaneous itemized expenses under section 67(a) or are fully deductible under the section 67(e) exception for administration expenses that would not have been incurred if the property was not held in the trust or estate.
2) Proposed regulations under sections 6662, 6662A and 6664 regarding accuracy-related penalties.
3) Proposed regulations regarding the dependency exemption under section 152 that incorporate the uniform definition of a qualifying child, provide or clarify other applicable rules, and make coordinating changes in the regulations under sections 2 (head of household), 63 (standard deduction), and 151 (personal exemptions).
The OMB report was prepared in accordance with President Obama's 2011 Executive Order 13563, which is an extension of President Clinton's 1993 Executive Order 12866. Accordingly, the IRS will continue this process with an annual review of 10% of the agency's regulations. See, OMB REPORT SAYS IRS SEEKS RECOMMENDATIONS ON REG CHANGES, 2011 TNT 103-37.
Hat Tip: Tax Analysts
Posted by Isaac Pflaum, Managing Editor, Wealth Strategies Journal.
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