Bloomberg, Treasury, IRS to Release Wave of New Guidance in Coming Months:

Guidance documents on bonus depreciation, tax-exempt status, and international topics are among a barrage expected in the coming months from the Treasury Department and IRS, Ken Kies, assistant Treasury secretary for tax policy, told tax executives.

The IRS is prioritizing guidance to implement the GOP tax-and-spending law, Kies said Thursday at a Tax Council annual meeting in Washington. Overtime and tips tax breaks, so-called Trump accounts, and the clean fuel tax credit are a few others that are incoming. Kies is also serving as acting IRS chief counsel.

“Some reports have suggested that having an acting chief counsel at the IRS makes it harder to plan for regulatory and litigation strategy as well as to address compliance and other backlogs,” Kies said. “These concerns are all misplaced.”

The IRS has had a tumultuous year, with about half its top leadership departing, a revolving door of commissioners, and a quarter of its workers leaving amid the Trump administration’s effort to downsize the federal government. The government shutdown came as the agency was preparing for the first tax-filing season under the new GOP law.

“Despite the shutdown, the IRS kept personnel in place and working to ensure that preparations continued for filing season,” Kies said.

In the coming weeks, the IRS will release guidance on the foreign tax credit haircut and other international priorities, Kies said. He also said negotiations on the global minimum tax are on track to be finalized by the end of the year.

Other guidance projects are in the works that align with presidential priorities, he said.

The IRS plans to release guidance on the Johnson Amendment, which bans churches and other nonprofits from political activity. In a July court filing, the agency signaled a shift in its stance on the rule.

The agency is also working on guidance related to racial discrimination in schools—echoing an early executive order from President Donald Trump against “illegal” diversity, equity, and inclusion practices—and undocumented immigrants using refundable tax credits.

“We are seriously investigating misuse by 501(c)(3) tax-exempt status by groups supporting violent activity,” Kies said.

Kies bucked reports that the turmoil at the top of the agency has affected its work. Treasury Secretary Scott Bessent and Social Security Administration Commissioner Frank Bisignano are serving double duty as acting IRS commissioner and CEO, respectively.

Kies said he plans to continue as acting chief counsel until the Senate confirms a replacement. Trump had nominated Donald Korb for the role but rescinded the nomination days before a vote on it after far-right activist Laura Loomer questioned Korb’s party loyalty.

Loomer in a social media post this week alleged that Kevin Salinger, deputy assistant secretary for tax policy, was too supportive of Democrats. Kies specifically thanked Salinger, “who works tirelessly to faithfully implement President Trump’s agenda.”

To contact the reporter on this story: Erin Schilling in Washington at eschilling@bloombergindustry.com