Federal Tax Regulations Issued in 2016

The table below lists tax regulations issued by the Treasury Department and IRS in 2016 in chronological order.  The links will take you to the text of the regulations (usually in the Federal Register) and other helpful information. 

List of federal tax regulations issued in:  2011     2012     2013   2014      2015    2017

California Franchise Tax Board (FTB) Regulations – see the Interested Parties meetings website of the FTB.

Title of Regulation

[Health care regs noted with “ACA”]

Status

Citation

IRC Sections

Additional Information

Substantiation Requirement for Certain Contributions

 

This 2015 proposed regulation was withdrawn on 1/8/16.

Prop regs

REG-138344-13 (9/17/15)

170

“proposed regulations to implement the exception to the ‘‘contemporaneous written acknowledgement’’ requirement for substantiating charitable contribution deductions of $250 or more. These proposed regulations provide rules concerning the time and manner for donee organizations to file information returns that report the required information about contributions (donee reporting).”

 

WITHDRAWNFR 882 (1/8/16) – IRS received over 1,000 comment letters questioning the need for this regulation and concerns over disclosure of taxpayer ID numbers.

Special Enrollment Examination User Fee for Enrolled Agents

Prop regs

REG-134122-15 (1/26/16)

 

These regs were withdrawn and new prop regs issued in October - REG–134122–15 (10/25/16) (see below)

Reg. 300.4

“proposed amendments to the regulation relating to the user fee for the special enrollment examination to become an enrolled agent. The charging of user fees is authorized by the Independent

Offices Appropriations Act (IOAA) of 1952. This document also contains a notice of public hearing on this proposed regulation. The proposed regulation affects individuals taking the enrolled agent special enrollment examination.”

 

Proposed to increase the user fee exam fee from $11 to $99/part (3 parts). In addition, the outside contractor that administers the exam charges a fee (currently $98 per part).  See FAQ from IRS about current exam fees.

Applicability of Normal Retirement Age Regulations to Governmental Pension Plans

Prop regs

REG-147310-12 (1/27/16)

401

“proposed regulations under section 401(a). These regulations would provide rules relating to the determination of whether the normal retirement age under a governmental plan (within the meaning of section 414(d)) that is a pension plan satisfies the requirements of section 401(a) and whether the payment of definitely determinable benefits that commence at the plan’s normal retirement age satisfies these requirements. These regulations would affect sponsors and administrators of governmental pension plans, as well as participants in such plans.”

Nondiscrimination Relief for Closed Defined Benefit Pension Plans and Additional Changes to the Retirement Plan Nondiscrimination

Prop regs

REG-125761-14 (1/29/16)

401

“proposed regulations that modify the nondiscrimination requirements applicable to certain retirement plans that provide additional benefits to a grandfathered group of employees following certain changes in the coverage of a defined benefit plan or a defined benefit plan formula. The proposed regulations also make certain other changes to the nondiscrimination rules that are not limited to these plans. These regulations would affect participants in, beneficiaries of, employers maintaining, and administrators of tax-qualified retirement plans.”

 Update (4/14/16): “Ann. 2016-16 states that the Treasury Department and the IRS intend to withdraw certain provisions of proposed regulations published on January 29, 2016 (81 FR 4976) relating to nondiscrimination requirements applicable to qualified retirement plans under §401(a)(4).” 

Allocation of Creditable Foreign Taxes

Temp and Prop regs

TD 9748 (2/4/16

 

REG-100861-15 (2/4/16)

704

“temporary regulations that provide guidance relating to the allocation by a partnership of creditable foreign tax expenditures. These temporary regulations are necessary to improve the operation of an existing safe harbor rule that is used for determining whether allocations of creditable foreign tax expenditures are deemed to be in accordance with the partners’ interests in the partnership. The text of these temporary regulations also serves as the text of the proposed regulations set forth in the notice of proposed rulemaking (REG–100861–15) published in the

Proposed Rules section in this issue of the Federal Register. These regulations affect partnerships that pay or accrue foreign income taxes, and their partners.”

Additional Limitation on Suspension of Benefits Applicable to Certain Pension Plans under the Multiemployer Pension Reform Act

Prop regs

REG-101701-16 (2/11/16)

432

“The Multiemployer Pension Reform Act of 2014 (‘‘MPRA’’), which was enacted by Congress as part of the Consolidated and Further Continuing Appropriations Act of 2015, relates to multiemployer defined benefit pension plans that are projected to have insufficient funds, within a specified timeframe, to pay the full plan benefits to which individuals will be entitled (referred to as plans in ‘‘critical and declining status’’). Under MPRA, the sponsor of such a plan is permitted to reduce the pension benefits payable to plan participants and beneficiaries if certain conditions and limitations are satisfied (referred to in MPRA as a ‘‘suspension of benefits’’). One specific limitation governs the application of a suspension of benefits under any plan that includes benefits directly attributable to a participant’s service with any employer that has withdrawn from the plan in a complete withdrawal, paid its full withdrawal liability, and, pursuant to a collective bargaining agreement, assumed liability for providing benefits to participants and beneficiaries equal to any benefits for such participants and beneficiaries reduced as a result of the financial

status of the plan. This document contains proposed regulations that would provide guidance relating to this specific limitation. These regulations affect active, retired, and deferred vested participants and beneficiaries under any such multiemployer plan in critical and declining status as well as employers contributing to, and sponsors and administrators of, those plans.”

Reporting of Original Issue Discount on Tax-Exempt Obligations: Basis and Transfer Reporting by Securities Brokers for Debt Instruments and Options

Final regs

TD 9750 (2/18/16)

6045

6045A

6049

“final regulations relating to information reporting by brokers for transactions involving debt instruments and options, including the reporting of original issue discount (OID) on tax-exempt obligations, the treatment of certain holder elections for reporting a taxpayer’s adjusted basis in a debt instrument, and transfer reporting for section 1256 options and debt instruments. The regulations in this document provide guidance to brokers and payors and to their customers.”

  Correction – FR 24702 (4/27/16)

PATH Act Changes to Section 1445

Final regs

TD 9751 (2/19/16)

897

1445

“final and temporary regulations relating to the taxation of, and withholding on, foreign persons upon certain dispositions of, and distributions with respect to, United States real property interests (USRPIs). The regulations reflect changes made by the Protecting Americans from Tax Hikes Act of 2015 (the PATH Act). In addition, the regulations update certain mailing addresses listed in regulations under sections 897 and 1445. These regulations affect certain holders of USRPIs and withholding agents that are required to withhold tax on certain dispositions of, and distributions with respect to, USRPIs. This document also requests comments on certain other aspects of the PATH Act that apply to dispositions of, and distributions with respect to, USRPIs.”

  Correction – FR 24484 (4/26/16)

Requirements for Type I and Type III Supporting Organizations

Prop regs

REG–118867–10 (2/19/16)

509

“proposed regulations regarding the prohibition on certain contributions to Type I and Type III supporting organizations and the requirements for Type III supporting organizations. The regulations reflect changes to the law made by the Pension Protection Act of 2006. The regulations will affect Type I and Type III supporting organizations and their supported organizations.”

Reporting of Specified Foreign Financial Assets

Final regs

TD 9752 (2/23/16)

6038D

“final regulations providing guidance regarding the requirements for certain domestic entities to report specified foreign financial assets to the Internal Revenue Service. These regulations set forth the conditions under which a domestic entity will be considered a specified domestic entity required to undertake such reporting. These regulations affect certain domestic corporations, partnerships, and trusts.”

 Effective 2/23/16.

 Involves Form 8938.

Definition of Political Subdivision

 

CAUTION – See 2017 list of regs for subsequent action related to Executive Order 13789 (4/21/17).

Prop regs

REG–129067–15 (2/23/16)

103

“proposed regulations that provide guidance regarding the definition of political subdivision for purposes of tax-exempt bonds. The proposed regulations are necessary to specify the elements of a political subdivision. The proposed regulations will affect State and local governments that issue tax-exempt bonds and users of property financed with tax-exempt bonds. Under certain transition rules, however, the proposed definition of political subdivision will not apply for determining whether outstanding bonds are obligations of a political subdivision and will not apply to existing entities for a transition period.”

  Correction – FR 13305 (3/14/16)

Low-Income Housing Credit Compliance-Monitoring Regulations

Final and temp regs

 

Prop regs

TD 9753 (2/25/16)

 

REG–150349–12 (2/25/16)

42

“s final and temporary regulations relating to the compliance-monitoring duties of a State or local housing credit agency for purposes of the low-income housing credit. The final and temporary regulations revise and clarify the requirement to conduct physical inspections and review low-income certifications and other documentation. The final and temporary regulations will affect State or local housing credit agencies.”

Disclosures of Return Information Reflected on Returns to Officers and Employees of the Department of Commerce for Certain Statistical Purposes and Related Activities

Final regs

Removal of temp regs

TD 9754 (2/26/15)

6103

“final regulations that authorize the disclosure of certain items of return information to the Bureau of the Census (Bureau) in conformance with section 6103(j)(1). These regulations finalize temporary regulations that were made pursuant to a request from the Secretary of Commerce. These regulations require no action by taxpayers and have no effect on their tax liabilities. Thus, no taxpayers are likely to be affected by the disclosures authorized by this guidance.”

Utility Allowances Submetering

Final and temp regs

 

Prop regs

TD 9755 (3/3/16)

 

REG–123867–14 (3/3/16)

42

“final and temporary regulations that amend the utility allowance regulations concerning the low-income housing credit. The final regulations clarify the circumstances in which utility costs paid by a tenant based on actual consumption in a submetered rent-restricted unit are treated as paid by the tenant directly to the utility company. The temporary regulations extend the principles of these submetering rules to situations in which a building owner sells to tenants energy that is produced from a renewable source and that is not delivered by a local utility company. The final and temporary regulations affect owners of low-income housing projects that claim the credit, the tenants in those low-income housing projects, and State and local housing credit agencies.”

Awards of Administrative Costs and Attorney's Fees

Final regs

TD 9756 (3/1/16)

7430

“final regulations relating to awards of administrative costs and attorneys’ fees. The final regulations conform the regulations to the amendments made in the Taxpayer Relief Act of 1997 and the IRS Restructuring and Reform Act of 1998. The regulations affect taxpayers seeking attorneys’ fees and costs.”

 Also see Rev. Proc. 2016-17.

Consistent Basis Reporting Between Estate and Person Acquiring Property from Decedent

Temp regs

 

Prop regs

TD 9757 (3/4/16)

 

REG–127923–15 (3/4/16)

6035

“temporary regulations that provide transition rules providing that executors and other persons required to file or furnish a statement under section 6035(a)(1) or (a)(2) before March 31, 2016, need not do so until March 31, 2016. These temporary regulations are applicable to executors and other persons who file after July 31, 2015, returns required by section 6018(a) or (b).”

 Relates to changes made by P.L. 114–41 (7/31/15).

  Relates to few Form 8971 + instructions.

  Also see Notice 2016-19 and Notice 2016-27 which extended the due date for Form 8971 (to 6/30/16).

Financial Crimes Enforcement Network; Amendment to the Bank Secrecy Act Regulations—Reports of Foreign Financial Accounts

Prop regs from FinCEN (not IRS)

RIN 1506–AB26 (3/10/16)

Title 31

§ 1010.306

§ 1010.350

§ 1010.420

“FinCEN, a bureau of the Department of the Treasury (‘‘Treasury’’), is proposing to revise the regulations implementing the Bank Secrecy Act (‘‘BSA’’) regarding Reports of Foreign Bank and Financial Accounts (‘‘FBAR’’). The proposed rule would expand and clarify the exemptions for certain U.S. persons with signature or other authority over foreign financial accounts. In addition, the proposed rule would remove the special rules permitting limited account information to be reported when a U.S. person has financial interest in or signature authority over 25 or more foreign financial accounts. The proposed rule would also make several other changes, including a change to the filing date for FBAR reports due in 2017 and a revision to reflect electronic filing of FBARs.”

   Also see FinCEN Notice 2016-01 (12/16/16) which further extends the date regarding filing of FBAR by those with signature authority over a foreign account but no financial interest in it, to 4/15/18 (from 4/15/17 per Notice 2015-01). This extension is because of the proposed regulations issued 3/10/16. Per Notice 016-01: “This extension applies to the reporting of signature authority held during the 2016 calendar year, as well as all reporting deadlines extended by previous Notices 2015-1, 2014-1, 2013-1, 2012-1 and 2012-2, along with Notices 2011-1, and 2011-2.  For all other individuals with an FBAR filing obligation, the filing due date remains April 15, 2017.”

Limitations on the Importation of Net Built-In Losses

Final regs

TD 9759 (3/28/16)

332

334

337

351

358

362

368

705

755

1367

“final regulations under sections 334(b)(1)(B) and 362(e)(1) of the Internal Revenue Code of 1986 (Code). The regulations apply to certain nonrecognition transfers of loss property to corporations that are subject to certain taxes under the Code. The regulations affect the corporations receiving such loss property. This document also amends final regulations under sections 332 and 351 to reflect certain statutory changes. The regulations affect certain corporations that transfer assets to, or receive assets from, their shareholders in exchange for the corporation’s stock.”

Indirect Stock Transfers and the Coordination Rule Expectation: Transfers of Stock or Securities in Outbound Asset Reorganizations

Final regs

Removal of temp regs

TD 9760 (3/22/16)

367

1248

6038B

“final regulations under sections 367, 1248, and 6038B of the Internal Revenue Code (Code). These regulations finalize the elimination of one of two exceptions to the coordination rule between asset transfers and indirect stock transfers for certain outbound asset reorganizations. The regulations also finalize modifications to the exception to the coordination rule for section 351 exchanges so that it is consistent with the remaining asset reorganization exception. In addition, the regulations finalize modifications to the procedures for obtaining relief for failures to satisfy certain reporting requirements. Finally, the regulations finalize certain changes with respect to transfers of stock or securities by a domestic corporation to a foreign corporation in a section 361 exchange. These regulations primarily affect domestic corporations that transfer property to foreign corporations in certain outbound nonrecognition exchanges.”

Excise Tax: Tractors, Trailers, Trucks, and Tires; Definition of Highway Vehicle

Prop regs

REG-103380-05 (3/31/16)

4041

4051

4052

4061

4071

4072

4073

4081

4221

4482

6416

“proposed regulations relating to the excise taxes imposed on the sale of highway tractors, trailers, trucks, and tires; the use of heavy vehicles on the highway; and the definition of highway vehicle related to these and other taxes. These proposed regulations reflect legislative changes and court decisions regarding these topics. These proposed regulations affect manufacturers, producers, importers, dealers, retailers, and users of certain highway tractors, trailers, trucks, and tires.”

Inversions and Related Transactions

Final and temp regs

 

Prop regs

TD 9761 (4/8/16)

 

REG–135734–14 (4/8/16)

304

367

956

7701

7874

 

“temporary regulations that address transactions that are structured to avoid the purposes of sections 7874 and 367 and certain post-inversion tax avoidance transactions. These regulations affect certain domestic corporations and domestic partnerships whose assets are directly or indirectly acquired by a foreign corporation and certain persons related to such domestic corporations and domestic partnerships. … The final regulations revise and add cross references to coordinate the application of the temporary regulations.”

  Correction – FR 35275 (6/2/16)

  Correction – FR 40810 (6/23/16)

  Correction – FR 46832 (7/19/16)

 

Treasury and White House releases:

IRS LB&I International Practice Service Concept Unit guide released 7/5/16 (53 pages).

Other reports and news:

Partial Withdrawal of Proposed Application of Section 367 to a Section 351 Exchange Resulting From a Transaction Described in Section 304(a)(1); Partial Withdrawal of Proposed Guidance for Determining Stock Ownership

Partial withdrawal of prop regs

REG–135734–14 (4/8/16)

304

3678

7874

“This document withdraws portions of a notice of proposed rulemaking published in the Federal Register on February 11, 2009. The withdrawn portions relate to the application of section 367(b) to transactions described in section 304(a)(1). This document also withdraws portions of a notice of proposed rulemaking published in the Federal Register on January 17, 2014. The withdrawn portions relate to the identification of certain stock of a foreign corporation that is disregarded in calculating ownership of the foreign corporation for purposes of determining whether it is a surrogate foreign corporation for purposes of section 7874.”

Treatment of Certain Interests in Corporations as Stock or Indebtedness

Prop regs

REG–108060–15 (4/8/16)

385

“proposed regulations under section 385 that would authorize the Commissioner to treat certain related-party interests in a corporation as indebtedness in part and stock in part for federal tax purposes, and establish threshold documentation requirements that must be satisfied in order for certain related-party interests in a corporation to be treated as indebtedness for federal tax purposes. The proposed regulations also would treat as stock certain related-party interests that otherwise would be treated as indebtedness for federal tax purposes. The proposed regulations generally affect corporations that issue purported indebtedness to related corporations or partnerships.”

Definition of the Term ‘‘Fiduciary’’; Conflict of Interest Rule—Retirement Investment Advice
 Dept of Labor Rules

Final rule

29 CFR Parts 2509, 2510, and 2550
RIN 1210–AB32

4975 (indirectly)

ERISA and DOL rules

“final regulation defining who is a ‘‘fiduciary’’ of an employee benefit plan under the Employee Retirement Income Security Act of 1974 (ERISA or the Act) as a result of giving investment advice to a plan or its participants or beneficiaries. The final rule also applies to the definition of a ‘‘fiduciary’’ of a plan (including an individual retirement account (IRA)) under the Internal Revenue Code of 1986 (Code). The final rule treats persons who provide investment advice or recommendations for a fee or other compensation with respect to assets of a plan or IRA as fiduciaries in a wider array of advice relationships.”

 Effective 6/7/16. However, “an applicability date of April 10, 2017, is adequate time for plans and their affected financial services and other service providers to adjust to the basic change from non-fiduciary to fiduciary status.” See rules for details.

  Additional background information and link to related rules from DOL.

  See DOL Fact Sheet and FAQs and more FAQs.

  See White House Fact Sheet.

  See DOL blog post of 10/27/16.

Deemed Distributions of Stock and Rights to Acquire Stock

Prop regs

REG–133673–15 (4/13/16)

305

860G

861

1441

1461

1471

1473

6045B

“proposed regulations regarding deemed distributions of stock and rights to acquire stock. The proposed regulations would resolve ambiguities concerning the amount and timing of deemed distributions that are or result from adjustments to rights to acquire stock. The proposed regulations also would provide additional guidance to withholding agents regarding their current withholding and information reporting obligations under chapters 3 and 4 with respect to these deemed distributions. The proposed regulations would affect corporations issuing rights to acquire stock, their shareholders and holders of these rights, and withholding agents with respect to these deemed distributions.”

   Correction – FR 43567 (7/5/16)

Examples of Program-Related Investments

Final regs

TD 9762 (4/25/16)

4944

“final regulations that provide guidance to private foundations on program-related investments. The final regulations provide a series of examples illustrating investments that qualify as program related investments. In addition to private foundations, these final regulations affect foundation managers who participate in the making of program-related investments.”

Determinations of Adjusted Applicable Federal Rates and the Adjusted Federal Long-Term Rates

Final regs

TD 9763 (4/26/16)

382

1288

“final regulations that provide the method to be used to adjust the applicable Federal rates (AFRs) to determine the corresponding rates under section 1288 of the Internal Revenue Code (Code) for tax-exempt obligations (adjusted AFRs) and the method to be used to determine the long-term tax-exempt rate and the adjusted Federal long-term rate under section 382. For tax-exempt obligations, the regulations affect the determination of original issue discount under section 1273 and of total unstated interest under section 483. In addition, the regulations affect the determination of the limitations under sections 382 and 383 on the use of certain operating loss carryforwards, tax credits, and other attributes of corporations following ownership changes.”

Section 6708 Failure to Maintain List of Advisees with Respect to Reportable Transactions

Final regs

TD 9764 (4/28/16)

6708

“s final regulations relating to the penalty under section 6708 for failing to make available lists of advisees with respect to reportable transactions. Section 6708 imposes a penalty upon material advisors for failing to make available to the Secretary, upon written request, the list required to be maintained by section 6112 within 20 business days after the date of such request. The final regulations primarily affect individuals and entities who are material advisors, as defined in section 6111.”

Suspension of Benefits under the Multiemployer Pension Reform Act of 2014

Final regs and removal of temp regs

TD 9765 (4/28/16)

432

“The Multiemployer Pension Reform Act of 2014 (‘‘MPRA’’), which was enacted by Congress as part of the Consolidated and Further Continuing Appropriations Act of 2015, relates to multiemployer defined benefit pension plans that are projected to have insufficient funds, within a specified timeframe, to pay the full plan benefits to which individuals will be entitled (referred to as plans in ‘‘critical and declining status’’). Under MPRA, the sponsor of a plan in critical and declining status is permitted to reduce the pension benefits payable to plan participants and beneficiaries if certain conditions and limitations are satisfied (referred to in MPRA as a ‘‘suspension of benefits’’). MPRA requires the Secretary of the Treasury (Treasury Department), in consultation with the Pension Benefit Guaranty Corporation (PBGC) and the Secretary of Labor (Labor Department), to approve or deny applications by sponsors of these plans to reduce benefits. These regulations affect active, retired, and deferred vested participants and beneficiaries of multiemployer plans that are in critical and declining status as well as employers contributing to, and sponsors and administrators of, those plans.”

Credit for Renewable Electricity Production and Refined Coal Production: Inflation Adjustment Factor and Reference Prices for Calendar Year 2016

Final

FR 25760 (4/2916)

45

“The 2016 inflation adjustment factor and reference prices are used in determining the availability of the credit for renewable electricity production and refined coal production and Indian coal production under section 45.”

Self-Employment Tax Treatment of Partners in a Partnership That Owns a Disregarded Entity

Final and temp regs

 

Prop regs

TD 9766 (5/4/16)

 

REG-114307-15 (5/4/16)

7701

“final and temporary regulations that clarify the employment tax treatment of partners in a partnership that owns a disregarded entity. These regulations affect partners in a partnership that owns a disregarded entity.”

   Correction – FR 43488 (7/5/16)

Additional Limitation on Suspension of Benefits Applicable to Certain Pension Plans under the Multiemployer Pension Reform Act

Final regs

TD 9767 (5/5/16)

432

“The Multiemployer Pension Reform Act of 2014 (‘‘MPRA’’), which was enacted by Congress as part of the Consolidated and Further Continuing Appropriations Act of 2015, relates to multiemployer defined benefit pension plans that are projected to have insufficient funds, within a specified timeframe, to pay the full plan benefits to which individuals will be entitled (referred to as plans in ‘‘critical and declining status’’). Under MPRA, the sponsor of such a plan is permitted to reduce the pension benefits payable to plan participants and beneficiaries if certain conditions and limitations are satisfied (referred to in MPRA as a ‘‘suspension of benefits’’). One specific limitation governs the application of a suspension of benefits under any plan that includes benefits directly attributable to a participant’s service with any employer that has withdrawn from the plan in a complete withdrawal, paid its full withdrawal liability, and, pursuant to a collective bargaining agreement, assumed liability for providing benefits to participants and beneficiaries equal to any benefits for such participants and beneficiaries reduced as a result of the financial status of the plan. This document contains final regulations that provide guidance relating to this specific limitation. These regulations affect active, retired, and deferred vested participants and beneficiaries under any such multiemployer plan in critical and declining status as well as employers contributing to, and sponsors and administrators of, those plans.”

Certified Professional Employer Organizations

Final and temp regs

 

Prop regs

TD 9768 (5/6/16)

 

REG-127561-15 (5/6/16)

7705

“final and temporary regulations relating to certified professional employer organizations (CPEOs). The Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 requires the IRS to establish a voluntary certification program for professional employer organizations. These final and temporary regulations contain the requirements a person must satisfy in order to become and remain a CPEO. The final and temporary regulations will affect persons that apply to be CPEOs and are certified by the IRS as meeting the applicable requirements.”

  Correction – FR 45012 (7/12/16).

Treatment of Certain Domestic Entities Disregarded as Separate from Their Owners as Corporations as Corporations for Purposes of Section 6038A

Prop regs

REG-127199-15 (5/10/16)

6038A

7701

“proposed regulations that would treat a domestic disregarded entity wholly owned by a foreign person as a domestic corporation separate from its owner for the limited purposes of the reporting, record maintenance and associated compliance requirements that apply to 25 percent foreign-owned domestic corporations under section 6038A. These changes are intended to provide the IRS with improved access to information that it needs to satisfy its obligations under U.S. tax treaties, tax information exchange agreements and similar international agreements, as well as to strengthen the enforcement of U.S. tax laws.”

Removal of Allocation Rule for Disbursements from Designated Roth Accounts to Multiple Destinations

Final regs

TD 9769 (5/18/16)

402A

“final regulations eliminating the requirement that each disbursement from a designated Roth account that is directly rolled over to an eligible retirement plan be treated as a separate distribution from any amount paid directly to the employee and therefore separately subject to the rule in section 72(e)(2) of the Internal Revenue Code (the Code) allocating pretax and after-tax amounts to each distribution. As a result of this change, if disbursements are made from a taxpayer’s designated Roth account to the taxpayer and also to the taxpayer’s Roth IRA or designated Roth account in a direct rollover, then pretax amounts will be allocated first to the direct rollover, rather than being allocated pro rata to each destination. Also, a taxpayer will be able to direct the allocation of pretax and after-tax amounts that are included in disbursements from a designated Roth account that are directly rolled over to multiple destinations, applying the same allocation rules to distributions from designated Roth accounts that apply to distributions from other types of accounts. These regulations affect participants in, beneficiaries of, employers maintaining, and administrators of designated Roth accounts under tax-favored retirement plans.”

  Effective 5/18/16.

Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees

 

NOTE: These are not tax regulations. They are from the Dept. of Labor and modify the overtime rules. They likely affect many accounting firms.

 

These regs take up 162 pages of the 5/23/16 Federal Register.

Final rule

RIN 1235-AA11 (5/23/16)

 

Also see guidance on enforcement authority.

 

DOL links:

Dept. of Labor rules (not tax)

 

Effective 12/1/16.

“The Fair Labor Standards Act (FLSA or Act) guarantees a minimum wage for all hours worked during the workweek and overtime premium pay of not less than one and one-half times the employee’s regular rate of pay for hours worked over 40 in a workweek. While these protections extend to most workers, the FLSA does provide a number of exemptions. In this Final Rule, the Department of Labor (Department) revises final regulations under the FLSA implementing the exemption from minimum wage and overtime pay for executive, administrative, professional, outside sales, and computer employees. These exemptions are frequently referred to as the “EAP” or “white collar” exemptions. To be considered exempt under part 541, employees must meet certain minimum requirements related to their primary job duties and, in most instances, must be paid on a salary basis at not less than the minimum amounts specified in the regulations.”

  “In this Final Rule the Department updates the standard salary level and total annual compensation requirements to more effectively distinguish between overtime-eligible white collar employees and those who may be exempt, thereby making the exemption easier for employers and employees to understand and ensuring that the FLSA’s intended overtime protections are fully implemented. The Department sets the standard salary level for exempt EAP employees at the 40th percentile of weekly earnings of full-time salaried workers in the lowest-wage Census Region. The Department also permits employers to satisfy up to 10 percent of the standard salary requirement with nondiscretionary bonuses, incentive payments, and commissions, provided these forms of compensation are paid at least quarterly. The Department sets the total annual compensation requirement for an exempt Highly Compensated Employee (HCE) equal to the annualized weekly earnings of the 90th percentile of full-time salaried workers nationally. The Department also adds a provision to the regulations that automatically updates the standard salary level and HCE compensation requirements every three years by maintaining the earnings percentiles set in this Final Rule to prevent these thresholds from becoming outdated. Finally, the Department has not made any changes in this Final Rule to the duties tests for the EAP exemption.”

Certain Transfers of Property to Regulated Investment Companies and Real Estate Investment Trusts

 

CAUTION – See 2017 list of regs for subsequent action related to Executive Order 13789 (4/21/17).

Final and temp regs

 

Prop regs

TD 9770 (6/8/16)

 

REG–126452–15 (6/8/16)

337

“final and temporary regulations effecting the repeal of the General Utilities doctrine by the Tax Reform Act of 1986 and preventing abuse of the Protecting Americans from Tax Hikes Act of 2015. The temporary regulations impose corporate level tax on certain transactions in which property of a C corporation becomes the property of a REIT. The temporary regulations affect RICs, REITs, C corporations the property of which becomes the property of a RIC or a REIT, and their shareholders”

  Effective 6/7/16.

  Correction – FR 41800 (6/28/16)

Guidance Concerning the Exclusion of Discharge of Indebtedness Income of a Grantor Trust or a Disregarded Entity

Final regs

TD 9771 (6/10/16)

108

“final regulations relating to the exclusion from gross income of discharge of indebtedness income of a grantor trust or an entity that is disregarded as an entity separate from its owner. These final regulations provide rules regarding the term ‘‘taxpayer’’ for purposes of applying the exclusion from gross income of discharge of indebtedness income of a grantor trust or a disregarded entity. These final regulations affect grantor trusts, disregarded entities, and their owners.”

 Effective for “discharge of indebtedness income occurring on or after June 10, 2016.”

Expatriate Health Plans, Expatriate Health Plan Issuers, and Qualified Expatriates; Excepted Benefits; Lifetime and Annual Limits; and Short-Term, Limited-Duration Insurance

 

[ACA]

Prop regs

REG–135702–15 (6/10/16)

162

5000A

6055

6056

4377

7805

9801

9815

9831

9833

 

“proposed regulations on the rules for expatriate health plans, expatriate health plan issuers, and qualified expatriates under the Expatriate Health Coverage Clarification Act of 2014 (EHCCA). This document also includes proposed conforming amendments to certain regulations to implement the provisions of the EHCCA. Further, this document proposes standards for travel insurance and supplemental health insurance coverage to be considered excepted benefits and revisions to the definition of short-term, limited-duration insurance for purposes of the exclusion from the definition of individual health insurance coverage. These proposed regulations affect expatriates with health coverage under expatriate health plans and sponsors, issuers and administrators of expatriate health plans, individuals with and plan sponsors of travel insurance and supplemental health insurance coverage, and individuals with short-term, limited-duration insurance. In addition, this document proposes to amend a reference in the final regulations relating to prohibitions on lifetime and annual dollar limits and proposes to require that a notice be provided in connection with hospital indemnity and other fixed indemnity insurance in the group health insurance market for it to be considered excepted benefits.”

Modification of Treatment of Certain Health Organizations

Final regs

TD 9772 (6/22/16)

833

“final regulations that provide guidance to Blue Cross and Blue Shield organizations, and certain other organizations, on computing and applying the medical loss ratio and the consequences for not meeting the medical loss ratio threshold. The final regulations reflect the enactment of a technical correction to section 833(c)(5) by the Consolidated and Further Continuing Appropriations Act of 2015. The final regulations affect Blue Cross and Blue Shield organizations, and certain other organizations involved in providing health insurance.”

 Effective 6/22/16.

Application of Section 409A to Nonqualified Deferred Compensation Plans

Prop regs

REG-123854-12 (6/22/16)

409A

“proposed regulations that would clarify or modify certain specific provisions of the final regulations under section 409A (TD 9321, 72 FR 19234). This document also withdraws a specific provision of the notice of proposed rulemaking (REG–148326–05) published in the Federal Register on December 8, 2008 (73 FR 74380) regarding the calculation of amounts includible in income under section 409A(a)(1) and replaces that provision with revised proposed regulations. These proposed regulations would affect participants, beneficiaries, sponsors, and administrators of nonqualified deferred compensation plans.”

  Correction – FR 51413 (8/4/16)

Deferred Compensation Plans of State and Local Governments and Tax-Exempt Entities

Prop regs

REG-147198-07 (6/22/16)

457

“proposed regulations prescribing rules under section 457 for the taxation of compensation deferred under plans established and maintained by State or local governments or other tax exempt organizations. These proposed regulations include rules for determining when amounts deferred under these plans are includible in income, the amounts that are includible in income, and the types of plans that are not subject to these rules. The proposed regulations would affect participants, beneficiaries, sponsors, and administrators of certain plans sponsored by State or local governments or tax-exempt organizations that provide for a deferral of compensation.”

Country-by-Country Reporting

Final regs

TD 9773 (6/30/16)

6038

“final regulations that require annual country-by-country reporting by certain United States persons that are the ultimate parent entity of a multinational enterprise group. The final regulations affect United States persons that are the ultimate parent entity of a multinational enterprise group that has annual revenue for the preceding annual accounting period of $850,000,000 or more.”

  Effective 6/30/16.

  Correction FR 64061 (9/19/16)

Method of Accounting for Gains and Losses on Shares in Money Market Funds: Broker Returns with Respect to Sales of Shares in Money Market Funds

Final regs

TD 9774
 (7/8/16)

446

6045

“final regulations that provide a simplified method of accounting for gains and losses on shares in money market funds (MMFs). The final regulations also provide guidance regarding information reporting requirements for shares in MMFs. The final regulations respond to Securities and Exchange Commission (SEC) rules that change the amount for which certain MMF shares are distributed, redeemed, and repurchased. The final regulations affect MMFs and their shareholders.”

 Effective for tax years ending on or after 7/8/16. “For taxable years ending on or after July 28, 2014, and beginning before July 8, 2016, however, shareholders of MMFs may rely either on this section or on § 1.446– 7 of the 2014 proposed regulations REG–107012–14 (79 FR 43694).”

 See Rev Proc 2016-39 for procedures on how to change to the net asset value (NAV) method.

  See AICPA Tax Adviser article (7/7/16).

  Correction – FR 65541 (9/23/16)

Premium Tax Credit

 

[ACA]

Prop regs

 

Comments due by 9/6/16

REG-109086-15 (7/8/16)

36B

5000A

6011

“proposed regulations relating to the health insurance premium tax credit (premium tax credit) and the individual shared responsibility provision. These proposed regulations affect individuals who enroll in qualified health plans through Health Insurance Exchanges (Exchanges, also called Marketplaces) and claim the premium tax credit, and Exchanges that make qualified health plans available to individuals and employers. These proposed regulations also affect individuals who are eligible for employer-sponsored health coverage and individuals who seek to claim an exemption from the individual shared responsibility provision because of unaffordable coverage. Although employers are not directly affected by rules governing the premium tax credit, these proposed regulations may indirectly affect employers through the employer shared responsibility provisions and the related information reporting provisions.”

  Correction – FR 63154 (9/14/15)

Requirement to Notify the IRS of Intent to Operate as a Section 501(c)(4) Organization

Final and temp regs

 

Prop regs

 

Comments due by 10/11/16

TD 9775 (7/12/16)

 

REG-101689-16 (7/12/16)

506

“final and temporary regulations relating to the requirement, added by the Protecting Americans from Tax Hikes Act of 2015, that organizations must notify the IRS of their intent to operate under section 501(c)(4). The regulations affect organizations described in section 501(c)(4) (section 501(c)(4) organizations) that are organized after December 18, 2015, and certain section 501(c)(4) organizations existing on that date.”

  Correction – FR 65542 (9/23/16)

Income Inclusion When Lessee Treated as Having Acquired Investment Credit Property

Final and temp regs

 

Prop regs

TD 9776 (7/22/16)

 

REG-102516-15 (7/22/16)

50

“temporary regulations that provide guidance regarding the income inclusion rules under section 50(d)(5) that are applicable to a lessee of investment credit property when a lessor of such property elects to treat the lessee as having acquired the property. These temporary regulations also provide rules to coordinate the section 50(a) recapture rules with the section 50(d)(5) income inclusion rules. In addition, these temporary regulations provide rules regarding income inclusion upon a lease termination, lease disposition by a lessee, or disposition of a partner’s or S corporation shareholder’s entire interest in a lessee partnership or S corporation outside of the recapture period. Accordingly, these regulations will affect lessees of investment credit property when the lessor of such property makes an election to treat the lessee as having acquired the property and an investment credit is determined under section 46 with respect to such lessee.”

  Correction – FR 65541 (9/23/16)

Arbitrage Guidance for Tax-Exempt Bonds

Final regs

TD 9777 (7/18/16)

141

148

150

“final regulations on the arbitrage restrictions under section 148 applicable to tax-exempt bonds and other tax-advantaged bonds issued by State and local governments. These final regulations amend existing regulations to address certain market developments, simplify certain provisions, address certain technical issues, and make existing regulations more administrable. These final regulations affect State and local governments that issue tax-exempt and other tax-advantaged bonds.”

  Correction – FR 57459 (8/23/16)

  Correction – FR 57458 (9/23/16)

Participation of a Person Described in Section 6103(n) in a Summons Interview Under the Internal Revenue Code

 

CAUTION – See 2017 list of regs for subsequent action related to Executive Order 13789 (4/21/17).

Final regs

Removal of temp regs

TD 9778 (7/13/16)

7602

“final regulations modifying regulations under section 7602(a) relating to administrative summonses. Specifically, these final regulations clarify that persons with whom the IRS or the Office of Chief Counsel (Chief Counsel) contracts for services described in section 6103(n) and its implementing regulations may be included as persons designated to receive summoned books, papers, records, or other data and, in the presence and under the guidance of an IRS officer or employee, participate fully in the interview of a witness summoned by the IRS to provide testimony under oath. These regulations may affect taxpayers, a taxpayer’s officers or employees, and any third party who is served with a summons, as well as any other person entitled to notice of a summons.”

Guidance Concerning Device and Active Trade or Business

Prop regs

 

Comments due by 10/13/16

REG-134016-15 (7/15/16)

355

“The proposed regulations would clarify the application of the device prohibition and the active business requirement of section 355. The proposed regulations would affect corporations that distribute the stock of controlled corporations, their shareholders, and their security holders.”

Annual Information Return/Reports

Notice of proposed forms revision (149 pages)

 

Comments due by 10/4/16

Issued by IRS, DOL and PBGC (7/21/16)

Form 5500

“proposed changes to the Form 5500 Annual Return/Report forms, including the Form 5500, Annual Return/Report of Employee Benefit Plan (Form 5500 Annual Return/Report), and the Form 5500–SF, Short Form Annual Return/ Report of Small Employee Benefit Plan (Form 5500–SF). The annual returns/ reports are filed for employee pension and welfare benefit plans under the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code (Code). The proposed revisions in this Notice reflect efforts of the Department of Labor, the Internal Revenue Service, and the Pension Benefit Guaranty Corporation (collectively Agencies) to improve employee benefit plan reporting for filers, the public, and the Agencies by modernizing financial information filed regarding plans; updating fee and expense information on plan service providers with a focus on harmonizing annual reporting requirements with the Department of Labor’s final disclosure requirements enhancing mineability of data filed on annual return/reports; requiring reporting by all group health plans covered by Title I of ERISA, including adding a new Schedule J (Group Health Plan Information); and improving compliance under ERISA and the Code through selected new questions regarding plan operations, service provider relationships, and financial management of the plan.”

  Fact Sheet (7/11/16) from DOL and EBSA.

Requests for Information: Coverage for Contraceptive Services

Info request

CMS-9931-NC (7/22/16)

9815

“request for information on whether there are alternative ways (other than those offered in current regulations) for eligible organizations that object to providing coverage for contraceptive services on religious grounds to obtain an accommodation, while still ensuring that women enrolled in the organizations’ health plans have access to seamless coverage of the full range of Food and Drug Administration-approved contraceptives without cost sharing. This information is being solicited in light of the Supreme Court’s opinion in Zubik v. Burwell, 136 S. Ct. 1557 (2016). The Departments of Health and Human Services (HHS), Labor, and the Treasury (collectively, the Departments) invite public comments via this request for information.”

Property Transferred in Connection with the Performance of Services

Final regs

TD 9779 (7/26/16)

83

“final regulations relating to property transferred in connection with the performance of services. These final regulations affect certain taxpayers who receive property transferred in connection with the performance of services and make an election to include the value of substantially nonvested property in income in the year of transfer.”

Reporting for Qualified Tuition and Related Expenses Education Tax Credits

Prop regs

 

Comments due by 10/31

REG-131418-14 (8/2/16)

25A

6050S

6724

“proposed regulations that revise the rules for reporting qualified tuition and related expenses under section 6050S on a Form 1098–T, ‘‘Tuition Statement,’’ and conforms the regulations to the changes made to section 6050S by the Protecting Americans from Tax Hikes Act of 2015. This document also seeks to amend the regulations on the education tax credits under section 25A generally as well as to conform the regulations to changes made to section 25A by the Trade Preferences Extension Act of 2015 and the Protecting Americans from Tax Hikes Act of 2015. The proposed regulations affect certain higher educational institutions required to file Form 1098–T and taxpayers eligible to claim an education tax credit.”

  Correction FR 65983 (9/26/16)

  2016 Form 1098-T

  Draft 2017 Form 1098-T  + instructions (7/8/16)

Reporting of Catastrophic Health Coverage and Other Issues Under Section 6055

 

[ACA]

Prop regs

 

Comments due by 10/3/16

REG-103058-16 (8/2/16)

6055

6724

“proposed regulations relating to information reporting of minimum essential coverage under section 6055. Health insurance issuers, certain employers, and others that provide minimum essential coverage to individuals must report to the IRS information about the type and period of coverage and furnish related statements to covered individuals. These proposed regulations affect health insurance issuers, employers, governments, and other persons that provide minimum essential coverage to individuals.”

Estate, Gift, and Generation-skipping Transfer Taxes: Restrictions on Liquidation of an Interest

 

CAUTION – See 2017 list of regs for subsequent action related to Executive Order 13789 (4/21/17).

Prop regs

 

Comments due by 11/2/16

REG-163113-02 (8/4/16)

2701

2704

“proposed regulations concerning the valuation of interests in corporations and partnerships for estate, gift, and generation-skipping transfer (GST) tax purposes. Specifically, these proposed regulations concern the treatment of certain lapsing rights and restrictions on liquidation in determining the value of the transferred interests. These proposed regulations affect certain transferors of interests in corporations and partnerships and are necessary to prevent the undervaluation of such transferred interests.”

  Correction – FR 68378 (10/4/16)

  AICPA resources

Election into the Partnership Audit Regime Under the Bipartisan Budget Act of 2015

Temp regs

 

Prop regs

 

Comments due 10/4/16

TD 9780
(8/5/16)

 

REG–105005–16 (8/5/16)

9100

“temporary regulations pursuant to section 1101(g)(4) of the Bipartisan Budget Act of 2015 regarding an election to apply the new partnership audit regime enacted by that act to certain returns of a partnership. The regulations provide the time, form, and manner for making this election. The regulations affect any partnership that wishes to elect to have the new partnership audit regime apply to its returns filed for certain taxable years beginning before January 1, 2018.”

Preparer Tax Identification Number User Fee Update

Final regs

 

Removal of temp regs

TD 9781 (8/10/16)

300.13

“final regulations relating to the imposition of certain user fees on tax return preparers. The final regulations supersede and adopt the text of temporary regulations that reduced the user fee to apply for or renew a preparer tax identification number (PTIN) from $50 to $33. The final regulations affect individuals who apply for or renew a PTIN. The Independent Offices Appropriations Act of 1952 authorizes the charging of user fees.”

 Effective for applications and renewals filed on or after 9/9/16.

Tax on Certain Foreign Procurement

Final regs

TD 9782 (8/18/16)

5000C

6114

“final regulations under section 5000C relating to the 2 percent tax on payments made by the U.S. government to foreign persons pursuant to certain contracts. The regulations affect U.S. government acquiring agencies and foreign persons providing certain goods or services to the U.S. government pursuant to a contract. This document also contains final regulations under section 6114, with respect to foreign persons claiming an exemption from the 2 percent tax under an income tax treaty.”

  Also see Form W-14 and instructions.

User Fees for Installment Agreements

Prop regs

 

Comments due 10/6/16

REG-108792-16 (8/22/16)

300.1

300.2

“proposed amendments to the regulations that provide user fees for installment agreements. The proposed amendments affect taxpayers who wish to pay their liabilities through installment agreements. The proposed effective date for these proposed amendments to the regulations is January 1, 2017.”

 Generally, starting 1/1/17, the fee increases from $120 to $225. A reduced fee may apply in specified situations.  At this same date, the fee for restructuring or reinstating an installment agreement increases from $50 to $89 ($43 for low-income taxpayers).

  Note – see below (12/2/16) – regs finalized TD 9798.

Administrative Exemption on Value Increased for Certain Articles

Interim final rule

 

Comments due by 9/26/16

RIN 1515-AE09 (8/26/16)

19 CFR Parts 10, 128, 143, and 145

“amends the U.S. Customs and Border Protection regulations to implement section 901 of the Trade Facilitation and Trade Enforcement Act of 2015 by raising from $200 to $800 the value of certain articles that may be imported by one person on one day free of duty and tax. This document also makes clarifying and conforming amendments to the regulations.”

  Effective 8/26/16,

Modifications to Minimum Present Value Requirements for Partial Annuity Distribution Options under Defined Benefit Pension Plans

Final regs

TD 9783
 (9/9/16)

417

“final regulations providing guidance relating to the minimum present value requirements applicable to certain defined benefit pension plans. These regulations change the regulations regarding the minimum present value requirements for defined benefit plan distributions to permit plans to simplify the treatment of certain optional forms of benefit that are paid partly in the form of an annuity and partly in a single sum or other more accelerated form. These regulations affect participants, beneficiaries, sponsors, and administrators of defined benefit pension plans.”

Savings Arrangements Established by States for Non-Governmental Employees

Final rule

RIN 1210-AB71 (8/30/16)

Dept of Labor

 

ERISA

“describes circumstances in which state payroll deduction savings programs with automatic enrollment would not give rise to the establishment of employee pension benefit plans under the Employee Retirement Income Security Act of 1974, as amended (ERISA). This document provides guidance for states in designing such programs so as to reduce the risk of ERISA preemption of the relevant state laws. This document also provides guidance to private-sector employers that may be covered by such state laws. This rule affects individuals and employers subject to such state laws.”

 Effective 10/31/16.

Definition of Real Estate Investment Trust Real Property

Final regs

TD 9784 (8/31/16)

856

 

“final regulations that clarify the definition of real property for purposes of the real estate investment trust provisions of the Internal Revenue Code (Code). These final regulations provide guidance to real estate investment trusts and their shareholders.”

  Correction – FR 68934 (10/5/16)

Definition of Terms Relating to Marital Status

Final regs

TD 9785
(9/2/16)

7701

“final regulations that reflect the holdings of Obergefell v. Hodges, 576 U.S. ___, 135 S. Ct. 2584 (2015), Windsor v. United States, 570 U.S. ___, 133 S. Ct. 2675 (2013), and Revenue Ruling 2013–17 (2013–38 IRB 201), and that define terms in the Internal Revenue Code describing the marital status of taxpayers for federal tax purposes.”

Passports

Final rule

RIN 1400-AD97 (9/2/16)

Public Notice 9678 (State Dept)

22 CFR 51.60 (State Dept guidance)

“This final rule provides various changes and updates to the Department of State passport rules as a result of the passage of two laws: International Megan’s Law to Prevent Child Exploitation and Other Sexual Crimes Through Advanced Notification of Traveling Sex Offenders (IML); and the Fixing America’s Surface Transportation Act (FAST Act). The final rule incorporates statutory passport denial and revocation requirements for certain covered sex offenders under the IML, those persons with a seriously delinquent tax debt as defined by the FAST Act, and/or those persons who submit a passport application without a correct and valid Social Security number.”

Guidance under Section 851 Relating to Investments in Stock and Securities

Prop reg

 

Comments due by 12/27/16

REG-123600-16 (9/28/16)

851

“guidance relating to the income test and the asset diversification requirements that are used to determine whether a corporation may qualify as a regulated investment company (RIC) for federal income tax purposes. These proposed regulations provide guidance to corporations that intend to qualify as RICs.”

Federal Acquisition Regulation; Prohibition on Contracting With Corporations With Delinquent Taxes or a Felony Conviction

Final rule

RIN 9000–AN05 (9/30/16)

--

“DoD, GSA, and NASA have adopted as final, without changes, an interim rule amending the Federal Acquisition Regulation (FAR) to implement sections of the Consolidated and Further Continuing Appropriations Act, 2015, to prohibit the Federal Government from entering into a contract with any corporation having a delinquent Federal tax liability or a felony conviction under any Federal law, unless the agency has considered suspension or debarment of the corporation and has made a determination that this further action is not necessary to protect the interests of the Government.”

Credit for Increasing Research Activities

Final regs

TD 9786 (10/4/16)

41

“final regulations concerning the application of the credit for increasing research activities. These final regulations provide guidance on software that is developed by (or for the benefit of) the taxpayer primarily for internal use by the taxpayer (internal use software). These final regulations also include examples to illustrate the application of the process of experimentation requirement to software. These final regulations will affect taxpayers engaged in research activities involving software.”

  Correction – FR 76496 (11/3/16)

Disguised Sales

Final regs

TD 9787 (10/5/16)

704

707

752

“final regulations under sections 707 and 752. The final regulations under section 707 provide guidance relating to disguised sales of property to or by a partnership and the final regulations under section 752 provide guidance relating to allocations of excess nonrecourse liabilities of a partnership to partners for disguised sale purposes. The final regulations affect partnerships and their partners.”

Liabilities Recognized as Recourse Partnership Liabilities Under Section 752

 

CAUTION – See 2017 list of regs for subsequent action related to Executive Order 13789 (4/21/17).

Final and temp regs

 

Prop regs

Comments due by 1/3/17

TD 9788 (10/5/16)

 

REG-122855-15 (10/5/16)

707

752

“final and temporary regulations concerning how liabilities are allocated for purposes of section 707 and when certain obligations are recognized for purposes of determining whether a liability is a recourse partnership liability under section 752. These regulations affect partnerships and their partners”

  Correction FR 80587 (11/16/16)

  Correction FR 80994 (11/17/16)

  Correction FR 80993 (11/17/16)

User Fees for Offers in Compromise

Prop regs

Comments due by 11/16/16

REG-108934-16 (10/13/16)

300.3

“The proposed amendments affect taxpayers who wish to pay their liabilities through offers in compromise. The proposed effective date for these proposed amendments to the regulations is for offers in compromise submitted on or after February 27, 2017.”

 Prior to 2/27/17, the fee is $186. After 2/26/17, the fee is $300.

Election to Take Disaster Loss Deduction for Preceding Year

Final and Temp Regs

 

Prop Regs

Comments due by 1/12/17

TD 9789 (10/14/16)

 

REG-150992-13 (10/14/16)

165

“final and temporary regulations relating to the election to accelerate the timing of a loss sustained by a taxpayer attributable to a federally declared disaster.”

  Extends the due date for electing whether to take the loss in the year it occurred or the prior return to 6 months after the unextended due date for filing a return for the disaster year. An “election may be revoked on or before the date that is ninety (90) days after the due date for making the election.” Effective 10/13/16.

  The regulations include an expiration date: “(j) Expiration date. The section expires October 13, 2019.”

  Also see Rev. Proc. 2016-53 (comments on this due by 1/11/17).

Treatment of Certain Interests in Corporations as Stock or Indebtedness

 

CAUTION – See 2017 list of regs for subsequent action related to Executive Order 13789 (4/21/17).

Final and Temp Regs

 

Prop regs

 

Comments due by 1/19/17

TD 9790 (10/21/16)

 

Reg-130314-16 (10/21/16)

385

752

1275

“final and temporary regulations under section 385 that establish threshold documentation requirements that ordinarily must be satisfied in order for certain related-party interests in a corporation to be treated as indebtedness for federal tax purposes, and treat as stock certain related-party interests that otherwise would be treated as indebtedness for federal tax purposes. The final and temporary regulations generally affect corporations, including those that are partners of certain partnerships, when those corporations or partnerships issue purported indebtedness to related corporations or partnerships.”

  Correction FR 8169 (1/24/17)

  Correction FR 8165 (1/24/17)

Special Enrollment Examination User Fee for Enrolled Agents

Prop reg and withdrawal of prop reg

REG–134122–15 (10/25/16)

300.4

“This document withdraws a proposed regulation relating to the user fee for the special enrollment examination to become an enrolled agent. This document also proposes a new regulation to increase the user fee for the examination to recover the cost to the IRS of overseeing the administration of the examination. The withdrawal and proposal affect individuals taking the enrolled agent special enrollment examination.”

  The proposed new fee is $81/part (3 parts). This does not include fees charged by the exam administrator (currently $98/part). The regs withdrawn by this new proposed regs (REG-134122-15 (1/26/16)) would have increased the fee from $11/part to $99/part.

  IRS FAQs on EAs.

Excepted Benefits; Lifetime and Annual Limits; and Short-Term, Limited-Duration Insurance

Final rules

TD 9791 (10/31/16)

9801

9815

9831

9833

“final regulations regarding the definition of short-term, limited-duration insurance for purposes of the exclusion from the definition of individual health insurance coverage, and standards for travel insurance and supplemental health insurance coverage to be considered excepted benefits. This document also amends a reference in the final regulations relating to the prohibition on lifetime and annual dollar limits.”

United States Property Held by Controlled Foreign Corporations in Transactions Involving Partnerships; Rents and Royalties Derived in Active Conduct of Trade or Business

Final regs

TD 9792 (11/3/16)

954
956

“final regulations that provide rules regarding the treatment as United States property of property held by a controlled foreign corporation (CFC) in connection with certain transactions involving partnerships. In addition, the final regulations provide rules for determining whether a CFC is considered to derive rents and royalties in the active conduct of a trade or business for purposes of determining foreign personal holding company income (FPHCI), as well as rules for determining whether a CFC holds United States property as a result of certain related party factoring transactions. This document finalizes proposed regulations, and withdraws temporary regulations, published on September 2, 2015. It also finalizes proposed regulations, and withdraws temporary regulations, published on June 14, 1988. The final regulations affect United States shareholders of CFCs.”

  Correction – FR 95470 (12/28/16)

  Correction – FR 95471 (12/28/16)

Treatment of Related Person Factoring Income: Certain Investments in United States Property; and Stock Redemptions through Related Corporations

Partial withdrawal of prop regs

REG-122387-16 (11/3/16)

956

“This document withdraws portions of a notice of proposed rulemaking (INTL–49–86, subsequently converted to REG–209001–86) published in the Federal Register (53 FR 22186) on June 14, 1988, (the 1988 NPRM). The withdrawn portions relate to stock redemptions through related corporations, the application of section 956 to United States property indirectly held by a controlled foreign corporation (CFC), and certain related party factoring transactions, as well as the definition of the term ‘‘obligation’’ for purposes of section 956.”

United States Property Held by Controlled Foreign Corporations Through Partnerships with Special Allocations

Prop regs

REG-114734-16 (11/3/16)

956

“proposed regulations that provide rules regarding the determination of the amount of United States property treated as held by a controlled foreign corporation (CFC) through a partnership. The proposed regulations affect United States shareholders of CFCs.”

  Correction – FR 95541 (12/28/16)

Removal of the 36-month Non-payment Testing Period Rule

Final regs

TD 9793 (11/10/16)

6050P

“final regulations that remove the rule that a deemed discharge of indebtedness for which a Form 1099–C, ‘‘Cancellation of Debt,’’ must be filed occurs at the expiration of a 36-month non-payment testing period. The Treasury Department and the IRS are concerned that the rule creates confusion for taxpayers and does not increase tax compliance by debtors or provide the IRS with valuable third-party information that may be used to ensure taxpayer compliance. The final regulations affect certain financial institutions and governmental entities.”

  Effective 11/10/16.

  Background – see 4/1/13 comment letter from AICPA.

Fractions Rule

Prop regs

REG-136978-12 (11/23/16)

514

“proposed regulations relating to the application of section 514(c)(9)(E) to partnerships that hold debt-financed real property and have one or more (but not all) qualified tax-exempt organization partners within the meaning of section 514(c)(9)(C). The proposed regulations amend the current regulations under section 514(c)(9)(E) to allow certain allocations resulting from specified common business practices to comply with the rules under section 514(c)(9)(E). These regulations affect partnerships with qualified tax-exempt organization partners and their partners.”

Minimum Present Value Requirements for Defined Benefit Plan Distributions

Prop regs

REG-107424-12 (11/25/16)

417

“proposed regulations providing guidance relating to the minimum present value requirements applicable to certain defined benefit pension plans. These proposed regulations would provide guidance on changes made by the Pension Protection Act of 2006 and would provide other modifications to these rules as well. These regulations would affect participants, beneficiaries, sponsors, and administrators of defined benefit pension plans.”

Dollar-Value Last-In, First-Out Regulations: Inventory Price Index Computation Method Pools

Prop regs

REG-125946-10 (11/28/16)

472

“proposed regulations that relate to the establishment of dollar-value last-in, first-out (LIFO) inventory pools by certain taxpayers that use the inventory price index computation (IPIC) pooling method. The proposed regulations provide rules regarding the proper pooling of manufactured or processed goods and wholesale or retail (resale) goods. The proposed regulations would affect taxpayers who use the IPIC pooling method and whose inventory for a trade or business consists of manufactured or processed goods and resale goods.”

Publication of Tier 2 Tax Rates

Notice

FR 86071 (11/29/16)

3241

“Tier 2 Tax Rates: The tier 2 tax rate for 2017 under section 3201(b) on employees is 4.9 percent of compensation. The tier 2 tax rate for 2017 under section 3221(b) on employers is 13.1 percent of compensation. The tier 2 tax rate for 2017 under section 3211(b) on employee representatives is 13.1 percent of compensation.”

  “Tier 2 taxes on railroad employees, employers, and employee representatives are one source of funding for benefits under the Railroad Retirement Act.”

Treatment of Certain Domestic Entities Disregarded as Separate from Their Owners as Corporations for Purposes of Section 6038A

Final regs

TD 9796 (12/13/16)

6038A

“final regulations that treat a domestic disregarded entity wholly owned by a foreign person as a domestic corporation separate from its owner for the limited purposes of the reporting, record maintenance and associated compliance requirements that apply to 25 percent foreign-owned domestic corporations under section 6038A.”

   Also see Forms and instructions: Form 5471  and  Form 5472.

Consistent Basis Reporting Between Estate and Person Acquiring Property from Decedent

Final regs

Removal of temp regs

TD 9797 (12/2/16)

6035

 

“final regulations that provide transition rules providing that executors and other persons required to file or furnish a statement under section 6035(a)(1) or (2) regarding the value of property included in a decedent’s gross estate for federal estate tax purposes before June 30, 2016, need not have done so until June 30, 2016. These final regulations are applicable to executors and other persons who file federal estate tax returns required by section 6018(a) or (b) after July 31, 2015.”

  Effective on 12/2/16.

User Fees for Installment Agreements

Final regs

TD 9798

(12/2/16)

300.1

“final regulations that provide user fees for installment agreements. The final regulations affect taxpayers who wish to pay their liabilities through installment agreements.”

  Effective on 12/2/16.

Tax Return Preparer Due Diligence Penalty under Section 6695(g)

Final and temp regs

 

Prop regs

TD 9799 (12/5/16)

 

REG 102952-16 (12/5/16)

6695

“temporary regulations that modify existing regulations related to the penalty under section 6695(g) of the Internal Revenue Code (Code) relating to tax return preparer due diligence. These temporary regulations implement recent law changes that expand the tax return preparer due diligence penalty under section 6695(g) so that it applies to the child tax credit (CTC), additional child tax credit (ACTC), and the American Opportunity Tax Credit (AOTC), in addition to the earned income credit (EIC). The temporary regulations affect tax return preparers.”

  Effective on 12/5/16.

  Note: The IRS already issued a draft Form 8867 (form + instructions in July and Sept. 2016, respectively) that includes due diligence questions and instructions for the Child Credit and American Opportunity Tax Credit which were added to 6695(g) by the PATH act (PL 114-113 (12/18/15).

Income and Currency Gain or Loss with Respect to a Section Qualified Business Unit

 

CAUTION – See 2017 list of regs for subsequent action related to Executive Order 13789 (4/21/17).

Final regs

TD 9794 (12/8/16)

861

985

987

988

989

“final regulations that provide guidance under section 987 regarding the determination of the taxable income or loss of a taxpayer with respect to a qualified business unit (QBU) subject to section 987, as well as the timing, amount, character, and source of any section 987 gain or loss. Taxpayers affected by these regulations are corporations and individuals that own QBUs subject to section 987. In addition, published elsewhere in this issue of the Federal Register, temporary and proposed regulations (the temporary regulations) are being issued under section 987 to address aspects of the application of section 987 not addressed in these final regulations.”

   See Notice 2017-57 (10/2/17) – Treasury and IRS intend to amend the §987 regulations (TD 9794 (12/8/16)) to defer the effective date by one year. This relates to EO 13789 (4/21/17), Notice 2017-38 listing regulations that Treasury was reconsidering per the EO and Treasury’s final report on the EO released 10/2/17.

 

Recognition and Deferral of Section 987 Gain or Loss

Final and temp regs

 

Prop regs

TD 9795 (12/8/16)

 

REG–128276–12 (12/8/16)

987

988

“temporary regulations under section 987 relating to the recognition and deferral of foreign currency gain or loss under section 987 with respect to a qualified business unit (QBU) in connection with certain QBU terminations and certain other transactions involving partnerships. This document also contains temporary regulations under section 987 providing: an annual deemed termination election for a section 987 QBU; an elective method, available to taxpayers that make the annual deemed termination election, for translating all items of income or loss with respect to a section 987 QBU at the yearly average exchange rate; rules regarding the treatment of section 988 transactions of a section 987 QBU; rules regarding QBUs with the U.S. dollar as their functional currency; rules regarding combinations and separations of section 987 QBUs; rules regarding the translation of income used to pay creditable foreign income taxes; and rules regarding the allocation of assets and liabilities of certain partnerships for purposes of section 987. Finally, this document contains temporary regulations under section 988 requiring the deferral of certain section 988 loss that /arises with respect to related-party loans.”

  See Notice 2017-57 (10/2/17) – Treasury and IRS intend to amend the §987 regulations (TD 9794 (12/8/16)) to defer the effective date by one year. This relates to EO 13789 (4/21/17), Notice 2017-38 listing regulations that Treasury was reconsidering per the EO and Treasury’s final report on the EO released 10/2/17.

Covered Asset Acquisitions

Temp regs

 

Prop regs

TD 9800 (12/7/16)

 

REG 129128–14 (12/7/16)

901

“temporary Income Tax Regulations under section 901(m) with respect to transact/ions that generally are treated as asset acquisitions for U.S. income tax purposes and either are treated as stock acquisitions or are disregarded for foreign income tax purposes. These regulations are necessary to provide guidance on applying section 901(m).”

Issue Price Definition for Tax-Exempt Bond

Final regs

TD 9801 (12/9/16)

148

“final regulations on the definition of issue price for purposes of the arbitrage investment restrictions that apply to tax-exempt bonds and other tax-advantaged bonds. These final regulations affect State and local governments that issue tax-exempt bonds and other tax-advantaged bonds.”

Disclosures of Return Information Reflected on Returns to Officers and Employees of the Department of Commerce for Certain Statistical Purposes and Related Activities 

Temp regs

 

Prop regs

TD 9802 (12/9/16)

 

REG–133353–16 (12/9/16)

6103

“temporary regulations that authorize the disclosure of certain items of return information to the Bureau of the Census (Bureau) in conformance with section 6103(j)(1). These temporary regulations are made pursuant to a request from the Secretary of Commerce. These temporary regulations also provide clarifying language for an item of return information and remove duplicative paragraphs contained in the existing regulations. These temporary regulations require no action by taxpayers and have no effect on their tax liabilities. Thus, no taxpayers are likely to be affected by the disclosures authorized by this guidance.”

  Correction FR 7753 (1/23/17)

Electronic Filing of the Report of Health Insurance Provider Information

 

 [ACA]

Prop regs

REG–123829–16 (12/9/16)

Reg 57.3 and 57.10

“proposes to amend the Health Insurance Providers Fee regulations to require certain covered entities engaged in the business of providing health insurance for United States health risks to electronically file Form 8963, ‘‘Report of Health Insurance Provider Information.’’ These proposed regulations affect those entities.”

Health Insurance Providers Fee

 

  [ACA]

Prop regs

REG–134438–15 (12/9/16)

Reg 57.3 and 57.10

“proposed regulations that would modify the current definition of ‘‘net premiums written’’ for purposes of the fee imposed by section 9010 of the Patient Protection and Affordable Care Act, as amended. The proposed regulations will affect persons engaged in the business of providing health insurance for United States health risks.”

Treatment of Certain Transfers of Property to Foreign Corporations

 

CAUTION – See 2017 list of regs for subsequent action related to Executive Order 13789 (4/21/17).

Final regs

TD 9803 (12/16/16)

367

884

1248

6038B

 

“final regulations relating to certain transfers of property by United States persons to foreign corporations. The final regulations affect United States persons that transfer certain property, including foreign goodwill and going concern value, to foreign corporations in nonrecognition transactions described in section 367. The regulations also combine certain sections of the existing regulations under section 367(a) into a single section. This document also withdraws certain temporary regulations.”

Premium Tax Credit Regulation VI

 

 [ACA]

Final regs

TD 9804 (12/19/16)

36B

5000A

6011

“final regulations relating to the health insurance premium tax credit (premium tax credit). These final regulations affect individuals who enroll in qualified health plans through Health Insurance Exchanges (Exchanges, also called Marketplaces) and claim the premium tax credit, and Exchanges that make qualified health plans available to individuals and employers. These final regulations also affect individuals who are eligible for employer-sponsored health coverage.”

  Effective 12/19/16.

Guidance Under Section 355(e) Regarding Predecessors, Successors, and Limitation on Gain Recognition; Guidance Under Section 355(f)

Temp regs

 

Prop regs

TD 9805 (12/19/16)

 

REG–140328–15 (12/19/16)

355

“temporary regulations that provide guidance regarding the distribution by a distributing corporation of stock or securities of a controlled corporation without the recognition of income, gain, or loss. The temporary regulations provide guidance in determining whether a corporation is a predecessor or successor of a distributing or controlled corporation for purposes of the exception under section 355(e) to the nonrecognition treatment afforded qualifying distributions, and they provide certain limitations on the recognition of gain in certain cases involving a predecessor of a distributing corporation. The temporary regulations also provide rules regarding the extent to which section 355(f) causes a distributing corporation (and in certain cases its shareholders) to recognize income or gain on the distribution of stock or securities of a controlled corporation. These temporary regulations affect corporations that distribute the stock or securities of controlled corporations and the shareholders or security holders of those distributing corporations.”

  Correction FR 8811 (1/31/17)

Definitions and Reporting Requirements for Shareholders of Passive Foreign Investment Companies

Final regs and removal of temp regs

TD 9806 (12/28/16)

1291

1298

6038

6046

 

“final regulations that provide guidance on determining ownership of a passive foreign investment company (PFIC) and on certain annual reporting requirements for shareholders of PFICs to file Form 8621, ‘‘Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund.’’ In addition, the final regulations provide guidance on an exception to the requirement for certain shareholders of foreign corporations to file Form 5471, ‘‘Information Return of U.S. Persons with Respect to Certain Foreign Corporations.’’ The regulations finalize proposed regulations and withdraw temporary regulations published on December 31, 2013. The final regulations affect United States persons that own interests in PFICs, and certain United States shareholders of foreign corporations.”

Mortality Tables for Determining Present Value under Defined Benefit Pension Plans

Prop regs

REG–112324–15 (12/29/16)

430

431

433

“proposed regulations prescribing mortality tables to be used by most defined benefit pension plans. The tables specify the probability of survival year-by-year for an individual based on age, gender, and other factors. This information is used (together with other actuarial assumptions) to calculate the present value of a stream of expected future benefit payments for purposes of determining the minimum funding requirements for the plan. These mortality tables are also relevant to determining the minimum required amount of a lump-sum distribution from such a plan. In addition, this document contains proposed regulations to update the requirements that a plan sponsor must meet in order to obtain IRS approval to use mortality tables specific to the plan for minimum funding purposes (instead of the generally applicable mortality tables). These regulations affect participants in, beneficiaries of, employers maintaining, and administrators of certain retirement plans.”

Nuclear Decommissioning Funds

Prop regs

REG–112800–16 (12/29/16)

468A

“proposed changes to the regulations under section 468A relating to deductions for contributions to trusts maintained for decommissioning nuclear power plants and the use of the amounts in those trusts to decommission nuclear plants. The proposed regulations revise certain provisions to: Address issues that have arisen as more nuclear plants have begun the decommissioning process; and clarify provisions in the current regulations regarding self-dealing and the definition of substantial completion of decommissioning.”

Information Returns; Winnings from Bingo, Keno, and Slot Machines

Final regs

TD 9807 (12/30/16)

6041

“final regulations under section 6041 regarding the filing of information returns to report winnings from bingo, keno, and slot machine play. The rules update the existing requirements regarding the filing, form, and content of such information returns; allow for an additional form of payee identification; and provide an optional aggregate reporting method. The final regulations affect persons who pay winnings of $1,200 or more from bingo and slot machine play, $1,500 or more from keno, and recipients of such payments.”

  Effective 12/30/16.

Withholding on Payments of Certain Gambling Winnings 

Prop regs

REG–123841–16 (12/3016)

3402(g)

3406

“proposed regulations under section 3402(q) with respect to withholding on certain payments of gambling winnings from horse races, dog races, and jai alai and on certain other payments of gambling winnings. The proposed regulations affect both payers and payees of the gambling winnings subject to withholding under section 3402(q).”

This page last updated October 8, 2017

SJSU Logo

Page maintained by Professor Annette Nellen.
Last Modified: Oct 8, 2017