IRS Issues Guidance on Basis Elections for Section 965: Today, the Treasury Department and the IRS released Notice 2018-78 which provides guidance on basis elections for purposes of the transition tax under section 965. The notice states that basis elections will not be required to be made until 90 days after the publication of final regulations providing guidance on the transition tax.

New NAFTA Deal Reached: Yesterday, the United States, Canada, and Mexico reached a revised NAFTA agreement.

The text of the agreement relating to tax matters does not affect the rights and obligations of any Party under any tax convention.

TIGTA Issues Report on Tax Noncompliance on Tip Income: On Friday, The Treasury Inspector General for Tax Administration (TIGTA) issued a report that identified 15,771 employers with a total of $6.3 billion in projected unreported tip income for tax year 2016.

Miscellaneous European Council Proposals Regarding the Value Added Tax and Money Laundering:Proposal for a Council Directive amending Directive 2006/112/EC on the common system of VAT as regards the temporary application of a generalized reverse charge mechanism in relation to supplies of goods and services above a certain threshold.

Proposal for a Council Directive amending Directive 2006/112/EC on the common system of VAT as regards the period of application of the optional reverse charge mechanism in relation to supplies of certain goods and services susceptible to fraud and of the Quick Reaction Mechanism against VAT fraud.

Proposal for a Council Directive amending Directive 2006/112/EC as regards harmonizing and simplifying certain rules in the VAT system and introducing the definitive system for the taxation of trade between Member States.

Proposal for a Council Directive amending Directive 2006/112/EC, as regards rates of VAT applied to books, newspapers, and periodicals.

EU Finance Ministers discuss proposal to step up the fight against money laundering.