IRS Issues Proposed Regulations on Foreign Currency Gains: Today the Treasury Department and the IRS released proposed regulations to provide guidance on the treatment of foreign currency gain or loss of a controlled foreign corporation (CFC) under the business needs exclusion from foreign personal holding company income. The proposed regulations would allow taxpayers to elect to use a mark-to-market method of accounting for certain foreign currency gain or loss attributable to section 988 transactions. Comments on the proposed rules are due by March 19.
Tax Foundation Releases Analysis of Final Tax Reform Bill: Today, the right-leaning Tax Foundation released an analysis of the conference agreement on the Tax Cuts and Jobs Act. The Tax Foundation found that the bill would add $448 billion to federal deficits over 10 years after factoring in economic growth. This cost is lower than that predicted by the Joint Committee on Taxation because the Tax Foundation predicts the bill will spur $1 trillion in additional federal revenue and an average increase in GDP growth of 0.29% per year.