Rev. Proc. 2018-18—which appears in the Internal Revenue Bulletin 2018-10 (March 5, 2018)—reflects amendments made by the recent tax law (Pub. L. No. 115-97, enacted December 22, 2017) with respect to the annual inflation adjustments for certain tax provisions.
The changes made by Rev. Proc. 2018-18 reflect the amendments made to the tax rate schedules and to other amounts that taxpayers will use in filing their 2018 income tax returns (to be filed in 2019). Rev. Proc. 2018-18 updates inflation adjustments released by the IRS in October 2017.
Read text of Rev. Proc. 2018-18 in IRB 2018-10 [PDF 209 KB]
The IRS in October 2017 released Rev. Proc. 2017-58 [PDF 95 KB] to provide the annual inflation adjustments for more than 50 tax provisions, including the tax rate schedules and other tax amounts for 2018, as adjusted for inflation for 2018.
A few months later, Congress passed the new tax law (Pub. L. No. 115-97). The new tax law not only amends the income tax rates for individual taxpayers, but it also includes many other changes that affect individual taxpayers and business taxpayers. For a comprehensive discussion of the new tax law read KPMG’s report: Tax reform—KPMG report on new tax law [PDF 10 MB]
Because Rev. Proc. 2018-18 amends certain but not all measures under Rev. Proc. 2017-58, these two revenue procedures must be read together.
The IRS subsequently noted in IR-2018-94 (April 13, 2018) that for 2018:
© 2018 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.