IRS 2018-2019 Priority Guidance Plan

On November 8, 2018, the IRS released a Priority Guidance Plan for the period July 1, 2018 – June 30, 2019.

This plan outlines the areas that the IRS intends to provide formal guidance on for the rest of 2018 and first half of 2019.

239 guidance projects are included, and the Plan will be updated as new items are added. At this point, five of the guidance items relate to affordable housing.

1. Regulations under Section 42 regarding the LIHTC average income test (this is guidance that the industry is especially eager to receive);
2. Guidance regarding Opportunity Zones (OZs);
   1. Early OZ guidance has already been published:
      1. October 29, 2018 – Regulation 115420-18; and
      2. November 5, 2018 – IRB 2018-45 as Revenue Ruling 2018-29.
   2. Final regulation under Section 42 relating to compliance monitoring by the allocating agencies including issues identified in Notice 2012-18. Proposed and temporary regulations were issued on February 25, 2016. This regulation will relate to HFA property inspection requirements;
   3. Final Section 42 Utility Allowance regulation. Proposed and temporary regulations were published on March 3, 2016; and
   4. Guidance on tax-exempt private activity bonds under Section 142 of the Internal Revenue Code.

In addition to this anticipated guidance from the IRS, it is expected that Congressional action with regard to the LIHTC program will also occur in 2019 – should be a busy year.