Federal Tax Regulations Issued in 2019

The table below lists tax regulations issued by the Treasury Department and IRS in 2018.  The links will take you to the text of the regulations (usually in the Federal Register) and other helpful information. 

List of regulations issued in: 2018  2017   2016   2015    2014     2013     2012      2011

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

 

Title of Regulation

 

Status

Citation

IRC Sections

Additional Information

Centralized Partnership Audit Regime

Final regs

TD 9844 (2/27/19)

 

Advance release (12/28/18)

 

*delay likely due to gov’t shutdown

6221

6222

6225

6226

6227

6231

6232

6233

6234

6235

6241

“final regulations implementing the centralized partnership audit regime. These final regulations affect partnerships for taxable years beginning after December 31, 2017 and ending after August 12, 2018, as well as partnerships that make the election to apply the centralized partnership audit regime to partnership taxable years beginning on or after November 2, 2015, and before January 1, 2018.”

Effective 2/27/19.

 

Regulations Regarding the Transition Tax Under Section 965 and Related Provisions

 

TCJA

Final regs

TD 9846 (2/5/19)

962

965

986

“final regulations implementing section 965. Section 965 was amended by the Tax Cuts and Jobs Act, which was enacted on December 22, 2017. This document finalizes the proposed regulations published on August 9, 2018. The final regulations affect United States persons with direct or indirect ownership interests in certain foreign corporations.”

Effective 2/5/19.

Qualified Business Income Deduction

 

TCJA

Final regs

TD 9847 (2/8/19)

 

Advance release by IRS (1/18/19)

 

Corrected regs released by the IRS on 2/1/19 – see note to right* [the version in Fed Reg appears to be the corrected version – see TD 9847 link above]

199A

643(f)

“final regulations concerning the deduction for qualified business income under section 199A. The regulations will affect individuals, partnerships, S corporations, trusts, and estates engaged in domestic trades or businesses. The regulations also contain an anti-avoidance rule under section 643 to treat multiple trusts as a single trust in certain cases, which will affect trusts, their grantors, and beneficiaries. This document also requests additional comments on certain aspects of the deduction.”

Also issued:

  • Rev. Proc. 2019-11 (1/18/19) with guidance on determining W-2 wages for 199A purposes,
  • Notice 2019-07 (1/18/19) which is a proposed revenue procedure on a safe harbor where certain real estate activities are considered a trade or business for §199A purposes. Note: This is a safe harbor meaning if you meet it, no questions asked. But it is not the only way to show that a rental activity is a trade or business so be sure to check on the extensive case law on this which often finds rentals of real property (other than a triple net lease) to be a trade or business where there is a profit motive and regular and continuous work by the owner or done by an agent on his behalf.
  • Proposed regs under §199A (see next),
  • IR-2019-04 (1/18/19).

*Correction of final regs at 2/1/19 – per the IRS: “corrections include, among other edits, corrections to the definition and computation of excess section 743(b) basis adjustments for purposes of determining the unadjusted basis immediately after an acquisition of qualified property, as well as corrections to the description of an entity disregarded as separate from its owner for purposes of section 199A and §§1.199A-1 through 1.199A-6.”

Effective date: Generally, 2/8/19. “However, taxpayers may rely on the rules set forth in §§ 1.199A–1 through 1.199A–6, in their entirety, or on the proposed regulations under §§ 1.199A–1 through 1.199A–6 issued on August 16, 2018, in their entirety, for taxable years ending in calendar year 2018.” Note though that the anti-abuse provisions in the regs are generally effective for tax years ending after the TCJA enactment date (12/22/17).

Observation: The final regs include new 1.199A-3(b)(1)(vi) that states that QBI is reduced by deductions attributable to the trade or business, such as the deduction for half of SE tax, self-employed health insurance and 404 contributions, and perhaps other items. Although this is specified in the final regs and not the proposed regs, arguably, it is in the statute itself so must be followed whether a taxpayer follows the proposed or final regs for 2018. For more on the rationale for this observation, see blog post of 2/28/19.

Qualified Business Income Deduction

 

TCJA

Prop regs

REG-134652-18 (2/8/19)

 

Advance release by IRS (1/18/19)

199A

“proposed regulations concerning the deduction for qualified business income under section 199A of the Internal Revenue Code (Code). The proposed regulations will affect certain individuals, partnerships, S corporations, trusts, and estates. The proposed regulations provide guidance on the treatment of previously suspended losses that constitute qualified business income. The proposed regulations also provide guidance on the determination of the section 199A deduction for taxpayers that hold interests in regulated investment companies, charitable remainder trusts, and split-interest trusts.”

Low-Income Housing Credit Compliance-Monitoring Regulations

Final regs

Removal of temp regs

TD 9848 (2/26/19)

42

“final regulations that amend the compliance monitoring regulations concerning the low-income housing credit under section 42 of the Internal Revenue Code (Code). These final regulations revise and clarify the requirement to conduct physical inspections and review low- income certifications and other documentation. The final regulations will affect owners of low-income housing projects that claim the credit, the tenants in those low-income housing projects, and the State and local housing credit agencies that administer the credit.”

Effective 2/26/19.

Deduction for Foreign-Derived Intangible Income and Global Intangible Low-Taxed Income

 

TCJA

Prop regs

REG-104464-18 (3/6/19)

250

962

1502

6038

6038A

“proposed regulations that provide guidance to determine the amount of the deduction for foreign-derived intangible income and global intangible low-taxed income. This document also contains proposed regulations coordinating the deduction for foreign-derived intangible income and global intangible low-taxed income with other provisions in the Internal Revenue Code.”

Also see IR-2019-27 (3/5/19).

Eliminating Unnecessary Tax Regulations

Final regs

TD 9849 (3/14/19)

See TD 9849 list of 296 regulations removed

“final regulations that remove from the Code of Federal Regulations 296 regulations that are no longer necessary because they do not have any current or future applicability under the Internal Revenue Code and amend 79 regulations to reflect the removal of the 296 regulations. The removal and amendment of these regulations may affect various categories of taxpayers by simplifying the Code of Federal Regulations.”

Relates to Executive Order 13789 (4/21/17).

For additional information, see bottom of this website on the 2017 federal regulations.

Utility Allowance Submetering

Final regs

Removal of temp regs

TD 9850 (3/4/19)

42

“final regulations that amend the utility allowance regulations concerning the low-income housing credit under section 42. These final regulations extend the principles of the current submetering rules. The current rules address situations in which a building owner purchases a utility from a utility company and then separately charges the tenants for the utility. In those situations, if the utility costs paid by a tenant are based on actual consumption in the tenant’s submetered, rent-restricted unit and if certain other requirements are satisfied, then the charges for the utility are treated as paid by the tenant directly to the utility company, even though the payment passes through the building owner. The final regulations extend these principles and apply to situations in which a building owner sells to tenants energy that is produced from a renewable source and that the owner did not purchase from or through a local utility company. The final regulations affect owners of low-income housing projects that claim the credit, the tenants in those low-income housing projects, and the State and local housing credit agencies that administer the credit.”

Guidance under Section 851 Relating to Investments in Stock and Securities

Final regs

TD 9851

(3/19/19)

851

“final regulations relating to the income test used to determine whether a corporation may qualify as a regulated investment company (RIC) for Federal income tax purposes. These final regulations provide guidance to corporations that intend to qualify as RICs.”

Information Reporting for Certain Life Insurance Contract Transactions and Modifications to the Transfer for Valuable Consideration Rules

 

TCJA

Prop regs

REG-103083-18 (3/25/19)

101

6050Y

“proposed regulations providing guidance on new information reporting obligations under section 6050Y related to reportable policy sales of life insurance contracts and payments of reportable death benefits.   The proposed regulations also provide guidance on the amount of death benefits excluded from gross income under section 101 following  a reportable policy  sale.  The proposed regulations affect parties involved in certain life insurance contract transactions, including reportable policy sales, transfers of life insurance contracts to foreign persons, and payments of reportable death benefits. “

IR-2019-54 (3/22/19)

Partnership Transactions Involving Equity Interests of a Partner

Prop regs

REG-135671-17 (3/25/19)

337

 

“proposed regulations to amend final regulations that prevent a corporate partner from avoiding corporate-level gain through transactions with a partnership involving equity interests of the partner or certain related entities. These regulations affect partnerships and their partners.”

Verification and Certification Requirements for Certain Entities and Reporting by Foreign Financial Institutions

Final regs

TD 9852 (3/25/19)

1471

1472

“finalizes (with limited revisions) certain proposed regulations. The final regulations provide compliance requirements and verification procedures for sponsoring entities of foreign financial institutions (FFIs) and certain non-financial foreign entities (NFFEs), trustees of certain trustee-documented trusts, registered deemed-compliant FFIs, and financial institutions that implement consolidated compliance programs (compliance FIs). These final regulations affect certain financial institutions and NFFEs.”

  Corrections: FR 13121 (4/4/19)

Reportable Transactions Penalties

Final regs

TD 9853 (3/26/19)

6707A

“final regulations that provide guidance regarding the amount of the penalty under section 6707A for failure to include on any return or statement any information required to be disclosed under section 6011 with respect to a reportable transaction. The final regulations are necessary to clarify the amount of the penalty under section 6707A, as amended by the Small Business Jobs Act of 2010. The final regulations will affect any taxpayer who fails to properly disclose participation in a reportable transaction.”

Certain Transfers of Property to Real Estate Investment Trusts

Prop regs

REG-113943-17 (3/26/19)

337

 

“withdraws a portion of a notice of proposed rulemaking published in the Proposed Rules section of the Federal Register on June 8, 2016 [REG–126452–15 (6/8/16)]. If adopted, the proposed rules would have provided guidance for transactions in which property of a C corporation becomes the property of a REIT following certain corporate distributions of controlled corporation stock. This document also contains a notice of proposed rulemaking that provides revised guidance on the same subject. These proposed regulations would affect REITs, C corporations the property of which becomes property of a REIT, and their respective shareholders.”

Updating Section 301 Regulations to Reflect Statutory Changes

Prop regs

REG-121694-16 (3/26/19)

301

356

368

902

“proposed regulations under section 301. The proposed regulations would update existing regulations under section 301 to reflect statutory changes made by the Technical and Miscellaneous Revenue Act of 1988, which changes provide that the amount of a distribution of property made by a corporation to its shareholder is the fair market value of the distributed property. The proposed regulations would affect any shareholder who receives a distribution of property from a corporation.”

Withdrawn - Allocation of Consideration and Allocation and Recovery of Basis in Transactions Involving Corporate Stock or Securities

Prop regs withdrawal

REG–143686–07 (3/28/19)

301

302

304

351

354

355

356

358

368

861

1001

1016

“document withdraws a notice of proposed rulemaking containing proposed regulations under numerous sections of the Internal Revenue Code (Code). The proposed regulations being withdrawn would have provided guidance on the recovery of stock basis in distributions of property made by a corporation to a shareholder and certain transactions treated as dividend-equivalents, as well as guidance regarding the determination of gain and the basis of stock or securities received in certain transactions. The proposed regulations being withdrawn would have affected shareholders and security holders of corporations.”

“DATES: As of March 28, 2019, the notice of proposed rulemaking that was published in the Federal Register (74 FR 3509) on January 21, 2009, with corrections published in the Federal Register (74 FR 9575) on March 5, 2009, is withdrawn.”

“The Treasury Department and the IRS continue to believe that under current law, the results of a section 301 distribution should derive from the consideration received by a shareholder in respect of each share of stock, notwithstanding designations otherwise. See Johnson v. United States, 435 F.2d 1257 (4th Cir. 1971). The Treasury Department and the IRS also continue to believe that, under current law, with respect to redemptions governed by section 302(d), any unrecovered basis in the redeemed stock of a shareholder may be shifted to other stock only if such an adjustment is a proper adjustment within the meaning of § 1.302–2(c). Not all shifts of a redeemed shareholder’s unrecovered basis result in proper adjustments, and certain basis adjustments can lead to inappropriate results. See, e.g., Notice 2001–45, 2001– 33 I.R.B. 129.”

Corporate Reorganizations; Guidance on the Measurement of Continuity of Interest 

Withdraw prop regs of December 2011

REG-124627-11 (4/1/19)

368

“This document withdraws a notice of proposed rulemaking that would have provided guidance on how to determine whether certain transactions satisfy the continuity of interest (COI) requirement under § 1.368–1(e), applicable to certain corporate reorganizations described in section 368. The proposed regulations being withdrawn would have affected corporations and their shareholders.”

Also see Rev. Proc. 2018-12.

Arbitrage Investment Restrictions on Tax-Exempt Bonds

Final regs

TD 9854 (4/9/19)

148

“final regulations regarding the arbitrage investment restrictions under section 148 applicable to tax-exempt bonds and other tax-advantaged bonds issued by State and local governments. The final regulations clarify existing regulations regarding the definition of ‘‘investment- type property’’ by expressly providing an exception for investment in capital projects that are used in furtherance of the public purposes of the bonds. The final regulations affect State and local governmental issuers of these bonds and potential investors in capital projects financed with these bonds.”

Regulations To Prescribe Return and Time for Filing for Payment of Taxes and to Update the Abatement Rules for Taxes

 

TCJA

Final regs

TD 9855 (4/9/19)

4963

6011

6071

“final regulations specifying which return to use to pay certain excise taxes and the time for filing the return. The regulations also implement the statutory addition of two excise taxes to the first- tier taxes subject to abatement. These regulations affect applicable tax-exempt organizations and their related organizations, applicable educational institutions, sponsoring organizations that maintain certain donor advised funds, fund managers of such sponsoring organizations, and certain donors, donor advisors, and persons related to a donor or donor advisor of a donor advised fund.”

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 9856 (4/9/19)

6103

“final regulation that authorizes the disclosure of specified items of return information to the Bureau of the Census (Census Bureau). This regulation finalizes a proposed regulation cross- referencing a temporary regulation that was made pursuant to a request from the Secretary of Commerce. This final regulation requires no action by taxpayers and has no effect on their tax liabilities. No taxpayers are likely to be affected by the disclosures authorized by this guidance.”

This page last updated April 9, 2019

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Page maintained by Professor Annette Nellen.
Last Modified: Apr 9, 2019