IRS to Issue Guidance on SALT Workarounds, Raises Issue of Substance over Form
The IRS has now fired its first salvo in the SALT workaround controversy. Notice 2018-54 announces the IRS’s intention to propose regulations to deal with some types of SALT workarounds.
In one sense this notice gives us little information about exactly what can and cannot pass muster when taxpayers make charitable contributions that reduce their state income taxes in an effort to shift from a nondeductible expense (state and local taxes in excess of $10,000) to fully deductible items (charitable contributions). But it does indicate that the IRS does not plan to sit by quietly and not issue guidance in this area.
Image copyright olegdudko / 123RF Stock Photo
Read More