Congress Must Fix Retail Glitch, IRS Says in New Final Rules (2)

The IRS rejected calls from businesses and lobbyists to fix a prominent drafting error in the 2017 tax overhaul administratively or refrain from enforcing it, according to final rules for the law’s full expensing provision released Sept. 13.

“A legislative change must be enacted” to correct what’s often referred to as the “retail glitch,” officials wrote in the 169-page package of final regulations. The proposed version of these rules, (REG-104397-18) issued in August 2018, didn’t address the error.

Internal Revenue Service and Treasury Department officials have repeatedly signaled that the matter is beyond their authority, amid ...