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Proposed bill would freeze IRS funding at 2016 level

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After the passage of a Continuing Resolution on April 28 that funds the government for an additional week, Congress has turned its attention to the Consolidated Appropriations Act of 2017, which would fund the government through the fiscal year. The bill provides $11.2 billion for the IRS — freezing agency funding at the fiscal year 2016 enacted level. Among other IRS-related prohibitions, the bill forbids proposed regs related to political activities and the tax-exempt status of Sec. 501(c)(4) organizations.

Court grants anonymity to whistleblower, but it might not last

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The U.S. Tax Court granted a whistleblower’s motion to proceed anonymously in his whistleblower case. The basis: The social interests of protecting his identity as a confidential informant exceeded those of the people’s right to know. But the Court said that, as the whistleblower action proceeds, the balance of social interests may change and his anonymity could be lost. The IRS Whistleblower Office pays awards to people who provide “specific and credible information” on tax cheaters. (148 TC No. 7)

Auto racing team gets a green flag

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When businesses dispose of assets, gain or loss must generally be recognized on tax returns, depending on the nature of the disposition (by sale, exchange, or involuntary conversion). In a private letter ruling, the IRS approved how a Formula 1 auto racing team handled its auto parts disposition for gain and loss purposes. Due to the unique nature of auto racing, the IRS ruled that each part used to build race cars for each specific race was the appropriate asset to be valued for disposition purposes. (PLR 201710006)

Fast Track Settlement program established for small business and self-employed taxpayers

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In a Revenue Procedure, the IRS has formally created the Small Business/Self Employed (SB/SE) Fast Track Settlement program to provide an expedited format for resolving disputes with SB/SE taxpayers. It can be used to resolve both factual and legal issues, and may be initiated at any time after an issue is fully developed. One of the goals of the program is that the entire process be completed within 60 days after acceptance into the program. (Rev. Proc. 2017-25)