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:
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