TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION

Office of Audit

Highlights

REVIEW OF THE ISSUANCE PROCESS FOR NOTICE 2018-54

Final Report issued on February 22, 2019

Highlights of Reference Number:  2019-14-019 to the Commissioner of Internal Revenue.

IMPACT ON TAXPAYERS

On December 22, 2017, the President signed Public Law 115-97, commonly referred to as the Tax Cuts and Jobs Act (TCJA).  The TCJA made significant changes to the tax code affecting individuals, businesses, and tax‑exempt organizations.  One such change limits individual taxpayer deductions for State and local taxes to $10,000 a year ($5,000 a year for married filing separate taxpayers).  TIGTA estimates that this change could affect more than 10 million taxpayers in Tax Year 2018.

WHY TIGTA DID THE AUDIT

TIGTA initiated this audit based on a request from the Chairman of the U.S. House of Representatives Committee on Ways and Means concerning the prioritization and issuance of IRS Notice 2018-54, Guidance on Certain Payments Made in Exchange for State and Local Tax Credits.  The overall objective of this audit was to evaluate the process used to prioritize and issue IRS Notice 2018-54.

WHAT TIGTA FOUND

TIGTA determined ******************************************************************************7*********************************************************************************************************** ************************************************************************************7**.  In addition, TIGTA found that ****************************************7************************************************* ****************************7***************************.

****************************************************************************************************7*************************************************************************** TIGTA found that ****************************************************************************************************7************************************************************************************************************* ****************************************************************************************************7************************************************************************************************************** *****************************************************7***********************************************

****************************************************************************************************7*************************************************************************************************************** ****************************************************************************************************7************************************************************************************************************** *************7************* approved ****7**** Notice 2018-54, and the IRS issued it *******7******* to the public.

***************************************************************************************************7*************************************************************************************************************** ***************************************************************************************************7*************************************************************************************************************** *************7************.  Given the potential impact on millions of taxpayers, TIGTA found the review and approval process for Notice 2018-54 to be reasonable.

WHAT TIGTA RECOMMENDED

TIGTA made no recommendations as a result of the work performed during this review.

 

Redaction Legend:

7 = Information Reflecting the Bureau’s Decisionmaking Process

 

READ THE FULL REPORT

To view the report, including the scope, methodology, and full IRS response, go to:

https://www.treasury.gov/tigta/auditreports/2019reports/201914019fr.pdf.

Phone Number   /  202-622-6500

E-mail Address  /  TIGTACommunications@tigta.treas.gov

Website             /  http://www.treasury.gov/tigta