ABA Flags Several Priority Issues in Need of IRS Guidance

The American Bankers Association last week submitted recommendations to the Internal Revenue Service on tax issues that are in need of interpretive guidance for the upcoming fiscal year. The IRS and Treasury solicit suggestions at least once a year, and publish a listing of priority guidance that reflects taxpayer input.

Among other things, ABA called for guidance on the tax consequences of transitioning from Libor, and information reporting requirements related to interest on modified mortgages. ABA also called on the IRS to update tax regulatory guidance on bad debts and the conformity method and finally, to provide clarification regarding basis reporting in connection with a decedent’s estate.