Source: Senate Finance Committee ltr dated 8/16/18 to IRS
Fourteen members of the Senate Finance Committee have written to the Treasury / IRS stating that they will introduce technical corrections legislation dealing with three areas of the Tax Cuts and Jobs Act of 2017 (TCJA) that they feel the IRS has misinterpreted:
- Qualified leasehold/restaurant/retail improvements: The letter stated that it was Congress’ intent that such property should qualify for bonus depreciation (whereas at this moment it doesn’t under current TCJA);
- Net operating losses: Changing application of the new law to years beginning after 12/31/2017;
- Sexual harassment/abuse law suit: Allow attorney fees as a deduction for settlements arising out of such actions.
ALL OF THE ABOVE ARE NOT YET LAW. If/when Congress passes the technical corrections act dealing with the above subjects, the IRS will have a clear picture of Congressional intent as it applies to these areas of the TCJA.
