Issue Number: 2018-38
Inside This Issue
- Form W-4 Changes on Hold until 2020
- Victims of Hurricane Florence Have until Jan. 31 to File, Pay
- IRS Waives Dyed Fuel Penalty in North Carolina
- Oct. 15 Reminder for Extension Filers
- Technical Guidance
1. Form W-4 Changes on Hold until 2020
Following feedback from the payroll and tax professional communities, the IRS announced the 2019 version of the Form W-4, Employee’s Withholding Allowance Certificate, will be similar to the current 2018 version, while important changes will be incorporated into the 2020 version of Form W-4.
A draft version of the 2019 Form W-4 will be available in coming weeks. The IRS will continue to work closely with the payroll and tax professionals as it makes changes to the 2020 version of the form.
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2. Victims of Hurricane Florence Have until Jan. 31 to File, Pay
Hurricane Florence victims in parts of North Carolina and elsewhere have until Jan. 31 to file certain individual and business tax returns and make certain tax payments. Taxpayers in localities added later to the disaster area, including those in other states, will automatically receive the same filing and payment relief.
The IRS disaster relief page has details on other returns, payments and tax-related actions that qualify for additional time.
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3. IRS Waives Dyed Fuel Penalty in North Carolina
In response to shortages of undyed diesel fuel caused by Hurricane Florence, the IRS will not impose a penalty when dyed diesel fuel is sold for use or used on the highway in the State of North Carolina. This relief, effective Sept. 17-28, 2018, is available to anyone who sells or uses dyed fuel for highway use.
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4. Oct. 15 Reminder for Extension Filers
If your client asked for an extension to file his tax return, remember the deadline is Oct. 15. Learn more in this YouTube video: https://www.youtube.com/watch?v=2cFIHwQadn4.
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5. Technical Guidance
Notice 2018-72 announces Treasury and the IRS intend to amend the section 871(M) regulations to delay the effective/applicability date of certain rules in those final regulations.
Notice 2018-73 provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates used under section 417(e)(3), and the 24-month average segment rates under section 430(h)(2) of the Internal Revenue Code.
Notice 2018-74 modifies the two safe harbor explanations in Notice 2014-74, 2014-50 I.R.B. 937, that may be used to satisfy the requirement under section 402(f) of the Internal Revenue Code that certain information be provided to recipients of eligible rollover distributions.
Revenue Ruling 2018-27 provides various prescribed rates for federal income tax purposes including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate, the adjusted federal long-term tax-exempt rate.
Revenue Procedure 2018-49 modifies Rev. Proc. 2018-29, 2018-22 I.R.B. 634, and Rev. Proc. 2018-31, 2018-22 I.R.B. 637, to allow a taxpayer that early adopted a method of recognizing revenues described in the new financial accounting standards issued by the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) (New Standards) to change its method of accounting for the recognition of income for federal income tax purposes.
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