Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of January 21 – 25, 2019. Tax news is very limited because of the government shutdown:

January 22, 2019: The IRS issued a news release cancelling a public hearing on proposed regulations relating to user fees for enrolled agents and enrolled retirement plan agents, due to the partial federal government shutdown.

January 22, 2019: The IRS issued final instructions for Form 461, dealing with limitations on business losses under section 461(l) of the Code, enacted as part of the Tax Cuts and Jobs Act.

January 22, 2019: The IRS issued final instructions for Form 965-A, dealing with individual taxpayers’ transition tax obligations under section 965 of the Code, enacted as part of the Tax Cuts and Jobs Act.

January 22, 2019: The IRS issued final instructions for Form 965-B, dealing with corporations’ and REITs’ transition tax obligations under section 965 of the Code, enacted as part of the Tax Cuts and Jobs Act.

January 23, 2019: The IRS issued final instructions for the 2018 version of Form 1065 Schedule D, dealing with reporting of capital gains and losses on partnership returns, to reflect changes made by the Tax Cuts and Jobs Act.

January 25, 2019: The IRS issued a news release reminding taxpayers to seek information regarding their eligibility for the earned income tax credit.

Special thanks to Le Chen in our DC office for this week’s roundup.

As we previously discussed, the United States Tax Court (Tax Court) closed its doors on December 28, 2018, until further notice. However, trial sessions scheduled for the weeks of January 7, and 14, 2019, were to proceed as scheduled. The Tax Court has updated its website to confirm that the trial sessions scheduled for the week of January 14, 2019, will proceed as scheduled, but that trial sessions scheduled for the week of January 28, 2019, in El Paso, Los Angeles, New York, Philadelphia, San Diego, and Lubbock are canceled. A decision regarding the trial sessions for the week of February 4, 2019, will be made on or before January 18, 2019.

As a result of the shutdown, the Tax Court did not issue any Orders or Opinions from December 31, 2018, to January 9, 2019. It started issuing Orders again on January 10, 2019, but no Opinions have been issued since December 27, 2018.

Practice Point: In addition to its impact on governmental agencies, the government shutdown continues to disrupt judicial operations. Some federal courts have continued to issue opinions during this time but activity in many cases has been postponed or canceled.

The United States Tax Court (Tax Court) has announced that it will be shutting down starting today, December 28, 2018 at 11:59 p.m., and will remain closed until further notice. However, trial sessions scheduled for the weeks of January 7 and 14, 2019, will proceed as scheduled. Electronic filing and electronic access to the Tax Court’s docket system will remain available and taxpayers may comply with statutory deadlines for documents required to be paper filed by timely mailing such documents using approved delivery services. Further updates will be provided on the Tax Court’s website.

Practice Point: The government shutdown continues to impact government agencies and the judicial system. For a detailed discussion of the impact of the shutdown on the Internal Revenue Service, see here.

The Internal Revenue Service (IRS) has posted the following regarding the impact of the government shutdown on IRS employees:

This message applies to all IRS employees.

Due to the lapse in federal appropriations, the Internal Revenue Service began an IRS-wide furlough January 20, 2018. All IRS employees with the exception of those notified and deemed “excepted” employees are furloughed. Those furloughed (or “non-excepted) are being placed in a non-pay and non-duty status until further notice. To achieve an orderly shutdown, all furloughed employees must contact their supervisors for procedures to account for government-issued equipment, personal effects requiring retrieval and to transition to furlough status. Employees are allotted up to four (4) hours for orderly shutdown activities.

For continuing information on the furlough, IRS employees are encouraged to monitor this page, news outlets, OPM.gov and the 24/7 Emergency Hotline — 866-743-5748. For TTY access (Federal Relay Service), call 800-877-8339.

We’ll update this page as new information becomes available.

As a reminder, the Employee Assistance Program is available for all IRS employees and their immediate family members at any time, day or night, by calling 800-977-7631 (TDD: 800-697-0353). This no-cost counseling service could help address stress and other issues you and your family may face.

According to its website, the US Tax Court remains open for business today and will continue normal operations for as long as funding permits. Trial sessions scheduled for this week will proceed as scheduled.

Discussions are underway in Congress to reopen the government, but even if an agreement is reached, additional funding may be required in the coming weeks to avoid another shutdown.

Practice Point: Taxpayers and advisors with active matters before the IRS should be aware that it may be difficult, if not impossible, to interact with IRS employees during the shutdown. The shutdown may push back timelines related to the conduct of examinations and matters in litigation.