Treasury Assistant Secretary David Kautter, speaking at the AICPA National Tax Conference in Washington, DC laid out a number of proposed and final regulations that Treasury expects to release by year end as reported in Tax Notes Today Federal.[1]

Kristen Parillo reported that Mr. Kautter indicated that guidance would be forthcoming by year end or in January 2020 in the following areas that may be of interest to those who read this site:

• Carried interest proposed regulations under IRC §1061;

• Proposed regulations related to the $10,000 limit on deductions for state and local taxes under IRC §164;

• Final regulations on the increased basic exclusion amount under IRC §2010;

• Final regulations on qualified opportunity zones under IRC §§1400Z-1 and 1400Z-2;

• Proposed regulations on computing UBI under §512 for tax exempt organizations’ separate trades and businesses;

• Proposed regulations on withholding under IRC §3402; and

• Final regulations on the business interest limitation under IRC §163(j).[2]

Mr. Kautter noted that the §163(j) final regulation package at this point is over 550 pages long, so we’ll have a lot of reading material when that package is released.[3]

Advisers should note that the Office of Information and Regulatory Affairs of the Office of Management and Budget received a set of proposed regulations from Treasury entitled “Treatment of Payments to Charitable Entities in Return for Consideration [TCJA]” on October 29, 2019 that is shown as “pending review” per the agency.[4]  No additional information is provided, so it is possible these regulations may relate to the state and local tax limitation regulations Mr. Kautter discussed—or this could be another project altogether.

[1] Kristen A. Parillo, “Carried Interest, SALT Among Imminent TCJA Guidance,” Tax Notes Today Federal,

2019 TNTF 221-1, https://www.taxnotes.com/tax-notes-today-federal/tax-cuts-and-jobs-act/carried-interest-salt-among-imminent-tcja-guidance/2019/11/14/2b451 (subscription required)

[2] Kristen A. Parillo, “Carried Interest, SALT Among Imminent TCJA Guidance”

[3] Kristen A. Parillo, “Carried Interest, SALT Among Imminent TCJA Guidance”

[4] RIN: 1545-BP40, Pending Review, RegInfo Mobile application, October 29, 2019