[co-author: Lai Lam]

After missing a series of self-imposed deadlines, GOP leaders have finally unveiled the FY 2018 omnibus spending legislation. The package, coming in at $1.3 trillion, will fund the federal government through the remainder of fiscal year 2018. Congress must pass the omnibus by March 23 to avoid a government shutdown. At this writing, the House is looking to take its vote on either Thursday or Friday.

Below are some quick highlights.

Tax Provisions

• So-called “grain glitch fix” – Sec. 199A
• Extension of the Low-Income Housing Tax Credit – expires in 3 year
• A set of technical corrections from all bills prior to the 2017 Tax Act – including corrections to the partnership audit rules passed in 2015

IRS Funding

• Top Line: $11.4 billion for the agency – $320 million of that amount must be used for the implementation of the 2017 Tax Act
• Taxpayer Services: $2.51 billion for IRS taxpayer services
• Enforcement: $4.9 billion for enforcement
• Operations Support: $3.6 billion for operations support
• Business Systems Modernization: $110 million for business systems modernization
• Administrative Provisions:
  • Mandatory employee training program on taxpayers’ rights
  • A requirement that the IRS send notices to employers with regards to address change requests and to give special consideration to offers in compromise for taxpayers who have been victims of payroll tax preparer fraud
  • A prohibition on using agency funds to target groups for regulatory scrutiny based on their ideological beliefs
  • A prohibition on using agency funds to give bonuses to employees or hiring former employees without considering conduct and compliance with Federal tax law
  • A prohibition on using agency funds for pre-populated returns
  • A prohibition on the Department from finalizing any regulation related to the standards used to determine the tax-exempt status of a 501(c)(4) organization

Others

• Extension of the National Flood Insurance Program through July 31, 2018
• Extension of the FAA through September 30, 2018
• Approximately $4 billion to combat the opioid epidemic

Funding details for major departments and agencies are available here.