Federal Tax Regulations Issued in 2012

Title of Regulation

Status

Citation

IRC Sections

Additional Information

Allocation and Apportionment of Interest Expense

Temporary and proposed regulations

TD 9571 (1/17/12)

REG–113903–10

861

"guidance concerning the allocation and apportionment of interest expense by corporations owning a 10 percent or greater interest in a partnership, as well as the allocation and apportionment of interest expense using the fair market value method. These temporary regulations also update the interest allocation regulations to conform to the statutory changes made by section 216 of the legislation commonly referred to as the Education Jobs and Medicaid Assistance Act (EJMAA), enacted on August 10, 2010, affecting the affiliation of certain foreign corporations for purposes of section 864(e). These regulations affect taxpayers that allocate and apportion interest expense."

Correction – FR page 9844 (2/21/12)

Dividend Equivalents From Sources Within the United States

Temp and proposed regs

TD 9572 (1/23/12)

863

871

881

1441

" relating to dividend equivalents for purposes of section 871(m) of the Internal Revenue Code (Code). The regulations provide guidance to nonresident aliens and foreign corporations that hold notional principal contracts (NPCs) providing for payments determined by reference to payments of dividends from sources within the United States."

Correction – FR page13968 (3/8/12)

Correcting Amendment – FR 53141 (8/321/12)

Damages Received on Account of Personal Physical Injuries or Physical Sickness

Final regs

TD 9573 (1/23/12)

104

"amend the Income Tax Regulations (26 CFR part 1) to reflect amendments made to section 104(a)(2) of the Internal Revenue Code (Code) by section 1605(a) and (b) of the Small Business Job Protection Act of 1996, Public Law 104–188, 110 Stat. 1838 (the 1996 Act)."

Dividend Equivalents from Sources within the United States

Temp and proposed regs

RIN 1545–BK53 (1/23/12)

REG–157714–06 (1/23/12)

863

871

881

1441

1461

"temporary regulations relating to dividend equivalents for purposes of section 871(m) of the Internal Revenue Code (Code). The regulations provide guidance to nonresident aliens and foreign corporations that hold notional principal contracts (NPCs) providing for payments determined by reference to payments of dividends from sources within the United States."

Correction – FR page 5700 (2/6/12)

Section 482; Methods to Determine Taxable Income in Connection With a Cost Sharing Arrangement

Correction to TD 9568 (12/23/11)

Correction to TD 9568 (12/23/11)

482

Correction FR  page 3606 (1/25/12)

Information Reporting by Passport Applicants

Proposed regs

REG–208274–86 (1/26/12)

6039E

"proposed regulations that provide information reporting rules for certain passport applicants. These regulations do not provide information reporting rules for individuals applying to become permanent residents (green card holders). This document also withdraws the notice of proposed rulemaking (57 FR 61373) published in the Federal Registeron December 24, 1992."

Longevity Annuity Contracts

Proposed regs

REG–115809–11 (2/3/12)

401

403

408

408A

6047

"purchase of longevity annuity contracts under tax-qualified defined contribution plans under section 401(a) of the Internal Revenue Code (Code), section 403(b) plans, individual retirement annuities and accounts (IRAs) under section 408, and eligible governmental section 457 plans. These regulations will provide the public with guidance necessary to comply with the required minimum distribution rules under section 401(a)(9). The regulations will affect individuals for whom a longevity annuity contract is purchased under these plans and IRAs (and their beneficiaries), sponsors and administrators of these plans, trustees and custodians of these IRAs, and insurance companies that issue longevity annuity contracts under these plans and IRAs."

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

Proposed regs

REG–110980–10 (2/3/12)

417

"guidance relating to the minimum present value requirements applicable to certain defined benefit pension plans. These proposed regulations would 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 more accelerated form. These regulations would affect sponsors, administrators, participants, and beneficiaries of defined benefit pension plans."

Correction – FR page 14321 (3/9/12)

Application for Recognition as a 501(c)(29) Organization

Temporary regs

and

Prop. regs

TD 9574 (2/7/12)

REG–135071–11 (2/7/12)

501

"temporary regulations authorizing the IRS to prescribe the procedures by which certain entities may apply to the IRS for recognition of exemption from Federal income tax. These regulations affect qualified nonprofit health insurance issuers, participating in the Consumer Operated and Oriented Plan program established by the Centers for Medicare and Medicaid Services, that seek exemption from Federal income tax under the Internal Revenue Code."

Taxable Medical Devices

Proposed regs

REG–113770–10 (2/7/12)

4191

"proposed regulations that provide guidance on the excise tax imposed on the sale of certain medical devices under section 4191 of the Internal Revenue Code, enacted by the Health Care and Education Reconciliation Act of 2010 in conjunction with the Patient Protection and Affordable Care Act. The proposed regulations affect manufacturers, importers, and producers of taxable medical devices."

Final regs issued 12/7/12 TD 9604 (and see below)

Summary of Benefits, Coverage and Uniform Glossary

Final rule

TD 9575

(2/14/12)

"final regulations regarding the summary of benefits and coverage and the uniform glossary for group health plans and health insurance coverage in the group and individual markets under the Patient Protection and Affordable Care Act. This document implements the disclosure requirements under section 2715 of the Public Health Service Act to help plans and individuals better understand their health coverage, as well as other coverage options. A guidance document published elsewhere in this issue of the Federal Registerprovides further guidance regarding compliance."

Additional information from 2/14/12 Fed Reg - here

DOL Template SBC form

DOL website on SBC and unifrom glossary

CMS.gov website on SBC and uniform glossary

Definition of a Taxpayer

Final regs

TD 9576 (2/14/12)

706

901

"guidance relating to the determination of who is considered to pay a foreign income tax for purposes of the foreign tax credit. These regulations provide rules for identifying the person with legal liability to pay the foreign income tax in certain circumstances. These regulations affect taxpayers claiming foreign tax credits."

Foreign Tax Credit Splitting Events

Final and Temp regs

Prop regs

TD 9577 (2/14/12)

REG–132736–11 (2/14/12)

704

909

Address "a new provision of the Internal Revenue Code (Code) that addresses situations in which foreign income taxes have been separated from the related income. These regulations are necessary to provide guidance on applying the new statutory provision, which was enacted as part of legislation commonly referred to as the Education Jobs and Medicaid Assistance Act (EJMAA) on August 10, 2010. These regulations affect taxpayers claiming foreign tax credits."

Section 482; Methods To Determine Taxable Income in Connection With a Cost Sharing Arrangement

Correction to final regs published 12/22/11

TD 9568 (2/14/12)

482

"This correction is effective on February 14, 2012 and is applicable beginning December 22, 2011."

12/22/11 - TD 9568

Additional correction issued 2/14/12 - here

Group Health Plans and Health Insurance Issuers Relating to Coverage of Preventive Services under Patient Protection and Affordable Care Act

Final rules

TD 9578 (2/15/12)

9815

"finalize, without change, interim final regulations authorizing the exemption of group health plans and group health insurance coverage sponsored by certain religious employers from having to cover certain preventive health services under provisions of the Patient Protection and Affordable Care Act."

Furnishing Identifying Number of Tax Return Preparer

Prop regs

REG–124791–11 (2/15/12)

6109

"guidance on the eligibility of tax return preparers to obtain a preparer tax identification number (PTIN). These proposed regulations expand the list of tax return preparers who may obtain and renew a PTIN. The proposed regulations additionally provide guidance concerning those tax forms submitted to the Internal Revenue Service that are considered returns of tax or claims for refund of tax for purposes of the requirement to obtain a PTIN and related provisions."

Information Reporting by Foreign Financial Institutions and Withholding on Certain Payments, etc.

Prop regs

REG–121647–10 (2/15/12)

1471

1472

1473

1474

" regarding information reporting by foreign financial institutions (FFIs) with respect to U.S. accounts and withholding on certain payments to FFIs and other foreign entities. These regulations affect persons making certain U.S.-related payments to FFIs and other foreign entities and payments by FFIs to other persons."

See changes published in Announcement 2012-42.

Source of Income From Qualified Fails Charges

Final regs and removal of temp regs

TD 9579 (2/21/12)

863

" prescribe the source of income received on a qualified fails charge under section 863 of the Internal Revenue Code (Code). The regulations finalize proposed regulations and withdraw temporary regulations published on December 8, 2010, and affect persons that pay or are entitled to receive qualified fails charges, including withholding agents."

Rewards and Awards for Information Relating to Violations of Internal Revenue Laws

Final regs

TD 9580 (2/22/12)

7623

Relate "to the payment of rewards under section 7623(a) of the Internal Revenue Code for detecting underpayments or violations of the internal revenue laws and whistleblower awards under section 7623(b). The guidance is necessary to clarify the definition of proceeds of amounts collected and collected proceeds under section 7623. This regulation provides needed guidance to the general public as well as officers and employees of the IRS who review claims under section 7623."

Public Inspection of Material Relating to Tax-Exempt Organizations

Final regs

TD 9581 (2/29/12)

6104

6110

"pertaining to the public inspection of material relating to tax exempt organizations and final regulations pertaining to the public inspection of written determinations and background file documents. These regulations are necessary to clarify rules relating to information and materials made available by the IRS for public inspection under the Internal Revenue Code (Code). The final regulations affect certain organizations exempt from Federal income tax, organizations that were exempt but are no longer exempt from Federal income tax, and organizations that were denied tax exempt status."

Updating of Employer Identification Numbers

Proposed regs

REG–135491–10 (3/14/12)

6109

"rules requiring any person assigned an employer identification number (EIN) to provide updated information to the IRS in the manner and frequency prescribed by forms, instructions, or other appropriate guidance. These proposed regulations affect persons with EINs and will enhance the IRS’s ability to maintain accurate information as to persons assigned EINs."

Final regs issued 5/6/13 - TD 9617.

Apportionment of Tax Items Among the Members of a Controlled Group of Corporations

Addition to regs

CFR Correction (3/28/12)

1561

Text and examples added.to CFR.

Estate Tax; Estates of Decedents Dying After August 16, 1954

Addition to regs

CFR Correction (3/30/12)

2053

3 examples added

Guidance under Sections 642 and 643 (Income Ordering Rules)

Final regs

TD 9582 (4/16/12)

642

643

"Federal tax consequences of an ordering provision in a trust, a will, or a provision of local law that attempts to determine the tax character of the amounts paid to a charitable beneficiary of the trust or estate. The final regulations also make conforming amendments to the regulations under section 643(a)(5). The final regulations affect estates, charitable lead trusts (CLTs), and other trusts making payments or permanently setting aside amounts for a charitable purpose."

Deferral of Loss on Transactions between Members of a Controlled Group

Final regs

TD 9583 (4/16/12)

267

"deferral of losses on the sale or exchange of property between members of a controlled group and provides guidance as to the time for taking into account those losses. These regulations affect corporations that are members of a controlled group."

Allocation of Earnings and Profits in Tax-Free Transfers from One Corporation to Another

Prop regs

REG–141268–11 (4/16/12)

312

"clarify the regulations under section 312 regarding the allocation of earnings and profits in tax-free transfers from one corporation to another. The proposed regulations affect corporations involved in these transfers and their shareholders."

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

Prop regs

REG–139991–08 (4/16/12)

337

"guidance concerning certain transfers of property from a C corporation to a Regulated Investment Company (RIC) or a Real Estate Investment Trust (REIT) and will affect the parties to such transactions."

Fees on Health Insurance Policies and Self-Insured Plans for the Patient-Centered Outcomes Research Trust Fund

Prop regs

REG–136008–11 (4/17/12)

6011

6071

6091

6302

4375

4376

"proposed regulations that implement and provide guidance on the fees imposed by the Patient Protection and Affordable Care Act on issuers of certain health insurance policies and plan sponsors of certain self-insured health plans to fund the Patient-Centered Outcomes Research Trust Fund. These proposed regulations affect the issuers and plan sponsors that are directed to pay those fees."

Guidance on Reporting Interest Paid to Nonresident Aliens

Final regs

TD 9584 (4/19/12)

6049

"reporting requirements for interest that relates to deposits maintained at U.S. offices of certain financial institutions and is paid to certain nonresident alien individuals. These regulations will affect commercial banks, savings institutions, credit unions, securities brokerages, and insurance companies that pay interest on deposits."

Examples of Program-Related Investments

Prop regs

REG–144267–11 (4/19/12)

4944

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

Treatment of Gain Recognized With Respect to Stock in Certain Foreign Corporations Upon Distributions

Final regs and removal of temp regs

TD 9585 (4/24/12)

1248

"characterization of gain recognized with respect to stock in certain foreign corporations upon distributions. The regulations finalize proposed regulations and remove temporary regulations that characterize gain recognized with respect to stock in foreign corporations upon distributions as a deemed dividend in certain situations. The regulations affect certain persons that recognize gain with respect to stock in connection with the receipt of a distribution of property from a foreign corporation."

Removal of Regulations Requiring 3% Withholding by Government Entities

Final regs

TD 9586 (4/25/12)

REG–151687–10 (4/25/12)

6051

6071

6302

"removes the final regulations contained in TD 9524 relating to withholding by government entities on payments to persons providing property or services, and makes conforming amendments to regulations to reflect the removal of these regulations. The final regulations are removed because the 3% Withholding Repeal and Job Creation Act repealed the provision of the Internal Revenue Code underlying the final regulations before the provision became effective. The guidance affects government entities that would have been required to withhold and report tax from payments to persons providing property or services and also affects the persons receiving payments for property or services from these government entities."

Proposed regs under �3402(t) repealed.

Local Lodging Expenses

Prop regs

REG–137589–07 (4/25/12)

162

262

"deductibility of expenses for lodging when not traveling away from home (local lodging). The regulations affect taxpayers who pay or incur expenses for local lodging."

The proposed regs would allow local lodging to be considered an ordinary and necessary business expense if based on all facts and circumstances it was incurred in carrying the trade or business. Per the preamble: "One factor is whether the taxpayer incurs the expense because of a bona fide condition or requirement of employment imposed by the taxpayer’s employer."  Thus, if an employer holds an employee retreat in town and requires the employees to stay overnight, the expenses are deductible and are not taxable to the employees.

A safe harbor is provided where the lodging expense is deemed to be ordinary and necessary if the following four requirements are met:

(1) "lodging is necessary for the individual to participate fully in or be available for a bona fide business meeting, conference, training activity, or other business function;

(2) The lodging is for a period that does not exceed five calendar days and does not recur more frequently than once per calendar quarter;

(3) If the individual is an employee, the employee’s employer requires the employee to remain at the activity or function overnight; and

(4) The lodging is not lavish or extravagant under the circumstances and does not provide any significant element of personal pleasure, recreation, or benefit."

Regulations Pertaining to the Disclosure of Return Information To Carry Out Eligibility Requirements for Health Insurance Affordability Programs

Prop regs

REG–119632–11 (4/30/12)

6103

Address "disclosure of return information under section 6103(l)(21) of the Internal Revenue Code, as enacted by the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010. The regulations define certain terms and prescribe certain items of return information in addition to those items prescribed by statute that will be disclosed, upon written request, under section 6103(l)(21) of the Internal Revenue Code."

Section 42 Qualified Contract Provisions

Final regs

TD 9587 (5/3/12)

42

"guidance concerning taxpayers’ (that is, owners’) requests to housing credit agencies to obtain a qualified contract (as defined in section 42(h)(6)(F) of the Internal Revenue Code) for the acquisition of a low-income housing credit building. Section 42(h)(6)(F) requires the Secretary to prescribe such regulations as may be necessary or appropriate to carry out the provisions of section 42(h)(6)(F), including regulations to prevent the manipulation of the qualified contract amount. The regulations will affect owners requesting a qualified contract, potential buyers, and low-income housing credit agencies responsible for the administration of the low-income housing credit program."

Allocation of Mortgage Insurance Premiums

Final regs and removal of temp regs

TD 9588 (5/7/12)

163

"explain how to allocate prepaid qualified mortgage insurance premiums to determine the amount of the prepaid premium that is treated as qualified residence interest each taxable year. The final regulations reflect changes to the law made by the Tax Relief and Health Care Act of 2006, the Mortgage Forgiveness Debt Relief Act of 2007, and the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. The regulations affect taxpayers who pay prepaid qualified mortgage insurance premiums."

Modifications to Definition of United States Property

Final and temp regs

Proposed regs

TD 9589 (5/11/12)

REG–107548–11 (5/11/12)

956

"the treatment of upfront payments made pursuant to certain notional principal contracts for U.S. federal income tax purposes. The temporary regulations provide that certain obligations of United States persons arising from upfront payments made by controlled foreign corporations pursuant to contracts that are cleared by a derivatives clearing organization or clearing agency do not constitute United States property. These regulations affect United States shareholders of controlled foreign corporations that make such payments."

Health Insurance Premium Tax Credit

Final regs

TD 9590 (5/23/12)

36B

6011

6012

"final regulations relating to the health insurance premium tax credit enacted by the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010, as amended by the Medicare and Medicaid Extenders Act of 2010, the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011, the Department of Defense and Full-Year Continuing Appropriations Act, 2011, and the 3% Withholding Repeal and Job Creation Act. These final regulations provide guidance to individuals who enroll in qualified health plans through Affordable Insurance Exchanges (Exchanges) and claim the premium tax credit, and to Exchanges that make qualified health plans available to individuals and employers."

"Under section 36B(c)(1) and the proposed regulations, in general a taxpayer is an applicable taxpayer for a taxable year only if the taxpayer’s household income for the taxable year is at least 100 percent but not more than 400 percent of the FPL [Federal Poverty Line] for the taxpayer’s family size."

Correction – FR 41048 and FR 41048 (7/12/12)

Correction – FR 41270 (7/13/12)

Controversy exists on whether the credit should be available to someone who is covered by a federal exchange, such as because their state opted not to have a state exchange. This interpretation also has an effect on the employer-mandate (when an employee is receiving a credit). For more on this issue, see:

• 7/31/13 hearing of the House Committee on Oversight & Government - Oversight of IRS’s Legal Basis for Expanding ObamaCare’s Taxes and Subsidies
• 7/31/13 explanation from Treasury
• Adler and Cannon, Taxation Without Representation: The Illegal IRS Rule to Expand Tax Credits Under the PPACA, 7/16/13

Property Transferred in Connection with Performance of Services under Section 83

Prop regs

REG–141075–09 (5/30/12)

83

"proposed regulations relating to property transferred in connection with the performance of services under section 83 of the Internal Revenue Code (Code). These proposed regulations affect certain taxpayers who received property transferred in connection with the performance of services."

Provide clarification on when a substantial risk of forfeiture exists and whether the likelihood that a condition related to the purpose of the transfer needs to be considered to know if a substantial risk of forfeiture exists.

Correction – FR 36229 (6/18/12)

Regulations Revising Rules Regarding Agency for Consolidated Group

Prop regs

REG–142561–07 (5/30/12)

1502

"provide guidance concerning the identity and authority of the agent for the consolidated group (agent for the group). These proposed regulations affect all consolidated groups."

Surrogate Foreign Corporations

Final regs

TD 9591 (6/12/12)

7874

"whether a foreign corporation is treated as a surrogate foreign corporation. The final regulations affect certain domestic corporations and partnerships (and certain parties related thereto), and foreign corporations that acquire substantially all of the properties of such domestic corporations or partnerships.

Substantial Business Activities

Temp and prop regs

TD 9592 (6/12/12)

REG 107889–12] (6/12/12)

7874

"whether a foreign corporation has substantial business activities in a foreign country. These regulations affect certain domestic corporations and partnerships (and certain parties related thereto), and foreign corporations that acquire substantially all of the properties of such domestic corporations or partnerships."

"IRS and the Treasury Department believe the facts and circumstances test of the 2009 temporary regulations should be replaced with a bright-line rule describing the threshold of activities required for an expanded affiliated group to have substantial business activities in the relevant foreign country. The IRS and the Treasury Department believe that such a rule will provide more certainty in applying section 7874 to particular transactions than the 2009 temporary regulations and will improve the administrability of this provision."

Correction – FR 39452 (7/3/12)

Basis of Indebtedness of S Corporations to their Shareholders

Prop regs

REG–134042–07 (6/12/12)

108

1366

1367

"proposed regulations relating to basis of indebtedness of S corporations to their shareholders. These proposed regulations provide that S corporation shareholders increase their basis of indebtedness of the S corporation to the shareholder only if the indebtedness is bona fide. The proposed regulations affect shareholders of S corporations."

Correction – FR 39655 (7/5/12)

Portability of a Deceased Spousal Unused Exclusion Amount

Temp and prop regs

TD 9593 (6/18/12)

REG–141832–11 (6/18/12)

2010

2505

"guidance on the estate and gift tax applicable exclusion amount, in general, as well as on the applicable requirements for electing portability of a deceased spousal unused exclusion (DSUE) amount to the surviving spouse and on the applicable rules for the surviving spouse’s use of this DSUE amount. The statutory provisions underlying the portability rules were enacted as part of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. The portability rules affect married spouses where the death of the first spouse to die occurs on or after January 1, 2011."

Permission for Election to Treat Liquidation of Target, Followed by Recontribution to New Target, as Cross-Chain Reorganization

Final regs

And removal of temp regs

TD 9594 (6/20/12)

1502

"modify the election under which a consolidated group can avoid immediately taking into account an intercompany item after the liquidation of a target corporation. These regulations apply to corporations filing consolidated income tax returns."

Prohibited Payment Option under Single-Employer Defined Benefit Plan of Plan Sponsor In Bankruptcy

Prop regs

REG–113738–12 (6/21/12)

411

"guidance under the anti-cutback rules of section 411(d)(6) of the Internal Revenue Code, which generally prohibit plan amendments eliminating or reducing accrued benefits, early retirement benefits, retirement-type subsidies, and optional forms of benefit under qualified retirement plans. These proposed regulations would provide an additional limited exception to the anticutback rules to permit a plan sponsor that is a debtor in a bankruptcy proceeding to amend its single employer defined benefit plan to eliminate a single-sum distribution option (or other optional form of benefit providing for accelerated payments) under the plan if certain specified conditions are satisfied. These proposed regulations would affect administrators, employers, participants, and beneficiaries of such a plan."

Final regs issued 11/8/12 TD 9601 (see below)

Reporting and Notice Requirements for Deferred Vested Benefits

Prop regs

REG–153627–08 (6/21/12)

6057

6081

"guidance relating to automatic extensions of time for filing certain employee plan returns by adding the Form 8955–SSA, ‘‘Annual Registration Statement Identifying Separated Participants With Deferred Vested Benefits,’’ to the list of forms that are covered by the Income Tax Regulations on automatic extensions. The proposed regulations would also provide guidance on applicable reporting and participant notice rules that require certain plan administrators to file registration statements and provide notices that set forth information for deferred vested participants. These regulations would affect administrators of, employers maintaining, participants in, and beneficiaries of plans that are subject to the reporting and participant notice requirements."

Correction – FR 42462 (7/19/12)

Treatment of Overall Foreign and Domestic Losses

Final regs

And removal of temp regs

TD 9595 (6/22/12)

904

1502

Relates to "the recapture of overall domestic losses that was enacted as part of the American Jobs Creation Act of 2004 (AJCA). These regulations provide guidance regarding these changes, as well as updated guidance with respect to overall foreign losses and separate limitation losses, and affect individuals and corporations claiming foreign tax credits."

Disregarded Entities and the Indoor Tanning Services Excise Tax

Final and Temp regs

Prop regs

TD 9596 (6/25/12)

REG–125570–11 (6/25/12)

1361

7701

Deals with "disregarded entities (including qualified subchapter S subsidiaries) and the indoor tanning services excise tax. These regulations affect disregarded entities responsible for collecting the indoor tanning services excise tax and owners of those disregarded entities."

Correction – FR 43157 (7/24/12)

Overall Foreign Loss Recapture on Property Dispositions

Prop regs

REG–134935–11 (6/26/12)

904

"guidance regarding the coordination of the rules for determining high-taxed income with capital gains adjustments and the allocation and recapture of overall foreign losses and overall domestic losses, as well as the coordination of the recapture of overall foreign losses on certain dispositions of property and other rules concerning overall foreign losses and overall domestic losses. These regulations affect individuals and corporations claiming foreign tax credits."

Additional Requirements for Charitable Hospitals

Prop regs

REG–130266–11 (6/26/12)

501

"guidance regarding the requirements for charitable hospital organizations relating to financial assistance and emergency medical care policies, charges for certain care provided to individuals eligible for financial assistance, and billing and collections. The regulations reflect changes to the law made by the Patient Protection and Affordable Care Act of 2010. The regulations will affect charitable hospital organizations."

Correction – FR 47787 (8/10/12)

Deductions for Entertainment Use of Business Aircraft

Final regs

TD 9597 (8/1/12)

61

274

Address the "use of business aircraft for entertainment. These final regulations affect taxpayers that deduct expenses for entertainment, amusement, or recreation provided to specified individuals. The final regulations reflect statutory amendments under the American Jobs Creation Act of 2004 (AJCA) and the Gulf Opportunity Zone Act of 2005 (GOZA)."

Correction – FR 50373 (8/21/12)

Reimbursed Entertainment Expenses

Prop regs

REG–101812–07 (8/1/12)

274

Explain "the exception to the deduction limitations on certain expenditures paid or incurred under reimbursement or other expense allowance arrangements. These proposed regulations affect taxpayers that pay or receive advances, allowances, or reimbursements under reimbursement or other expense allowance arrangements. These proposed regulations clarify the rules for these arrangements."

Utility Allowances Submetering

Prop regs

REG–136491–09 (8/7/12)

42

"amend the utility allowance regulations concerning the low-income housing tax credit. The proposed regulations update the utility allowance regulations to clarify that 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 proposed 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."

Allocation of Costs under the Simplified Methods

Prop regs

REG–126770–06 (9/5/12)

263A

"proposed regulations on allocating costs to certain property produced by the taxpayer or acquired by the taxpayer for resale. The proposed regulations affect taxpayers that are producers or resellers of property that are required to capitalize certain costs to the property and that allocate costs under the simplified production method or the simplified resale method. The proposed regulations provide rules for the treatment of negative additional costs."

Integrated Hedging Transactions of Qualifying Debt

Final, temp and prop regs

TD 9598 (9/6/12)

REG–138489–09 (9/6/12)

988

"address certain integrated transactions that involve a foreign currency denominated debt instrument and multiple associated hedging transactions. The regulations provide that if a taxpayer has identified multiple hedges as being part of a qualified hedging transaction, and the taxpayer has terminated at least one but less than all of the hedges (including a portion of one or more of the hedges), the taxpayer must treat the remaining hedges as having been sold for fair market value on the date of disposition of the terminated hedge."

Correction – FR 57013 (9/17/12)

Property Traded on an Established Market

Final regs

TD 9599 (9/13/12)

1271

1273

1274

1275

"apply to determine when property is traded on an established market (that is, publicly traded) for purposes of determining the issue price of a debt instrument. The regulations amend the current regulations to clarify the circumstances that cause property to be publicly traded. The regulations also amend the current regulations for reopenings of debt instruments, potentially abusive situations, and the definition of qualified stated interest. The regulations provide guidance to issuers and holders of debt instruments."

Application of Section 172(h) Including Consolidated Groups

Prop regs

REG–140668–07  (9/17/12)

172

1502

"proposed regulations under section 172(h) and section 1502 of the Internal Revenue Code. These proposed regulations provide guidance regarding the treatment of corporate equity reduction transactions (CERTs), including the treatment of multiple step plans for the acquisition of stock and CERTs involving members of a consolidated group. These proposed regulations also provide guidance regarding certain elections relating to the carryback of consolidated net operating losses (CNOLs) to separate return years. These proposed regulations will affect C corporations and corporations filing consolidated returns."

Correction FR 64768 (10/23/12).

Regulations Governing Practice Before Internal Revenue Service [Circular 230]

Prop regs

REG–138367–06 (9/17/12)

Circular 230

Various changes – see edited Circular 230 showing the changes - HERE

Reliance Standards for Making Good Faith Determinations

Prop regs

REG–134974–12 (9/24/12)

4942

4945

"standards for making a good faith determination that a foreign organization is a charitable organization, grants to which may be qualifying distributions and not taxable expenditures. The regulations will affect private foundations seeking to make such good faith determinations."

New Markets Tax Credit Non-Real Estate Investments

Final regs

TD 9600 (9/28/12)

45D

"final regulations modifying the new markets tax credit program to facilitate and encourage investments in non-real estate businesses in low-income communities. The final regulations affect taxpayers claiming the new markets tax credit and businesses in low-income communities relying on the program."

Prohibited Payment Option under Single-Employer Defined Benefit Plan of Plan Sponsor in Bankruptcy

Final regs

TD 9601 (11/8/12)

411

"guidance under the anti-cutback rules of section 411(d)(6) of the Internal Revenue Code, which generally prohibit plan amendments eliminating or reducing accrued benefits, early retirement benefits, retirement-type subsidies, and optional forms of benefit under qualified retirement plans. These regulations provide an additional limited exception to the anti-cutback rules to permit a plan sponsor that is a debtor in a bankruptcy proceeding to amend its single-employer defined benefit plan to eliminate a single-sum distribution option (or other optional form of benefit providing for accelerated payments) under the plan if certain specified conditions are satisfied. These regulations affect administrators, employers, participants, and beneficiaries of such a plan."

Incentives for Nondiscriminatory Wellness Programs in Group Health Plans

Prop regs

REG–122707–12 (11/26/12)

9802

9815

9833

"proposes amendments to regulations, consistent with the Affordable Care Act, regarding nondiscriminatory wellness programs in group health coverage. Specifically, these proposed regulations would increase the maximum permissible reward under a health-contingent wellness program offered in connection with a group health plan (and any related health insurance coverage) from 20 percent to 30 percent of the cost of coverage. The proposed regulations would further increase the maximum permissible reward to 50 percent for wellness programs designed to prevent or reduce tobacco use. These regulations also include other proposed clarifications regarding the reasonable design of health-contingent wellness programs and the reasonable alternatives they must offer in order to avoid prohibited discrimination."

Net Investment Income Tax

Prop regs

REG–130507–11 (12/5/12)

469

1411

"proposed regulations that provide guidance under section 1411 of the Internal Revenue Code (Code). Section 1402(a)(1) of the Health Care and Education Reconciliation Act of 2010 added new section 1411 to the Code effective for taxable years beginning after December 31, 2012. The proposed regulations affect individuals, estates, and trusts."

FAQs from IRS - http://www.irs.gov/uac/Newsroom/Net-Investment-Income-Tax-FAQs

Comments from ABA Tax Section (4/5/13)

Rules Relating to Additional Medicare Tax

Prop regs

REG–130074–11 (12/5/12)

1401

3101

3102

3202

6011

6205

6402

6413

"proposed regulations relating to Additional Hospital Insurance Tax on income above threshold amounts (‘‘Additional Medicare Tax’’), as added by the Affordable Care Act. Specifically, these proposed regulations provide guidance for employers and individuals relating to the implementation of Additional Medicare Tax. This document also contains proposed regulations relating to the requirement to file a return reporting Additional Medicare Tax, the employer process for making adjustments of underpayments and overpayments of Additional Medicare Tax, and the employer and employee processes for filing a claim for refund for an overpayment of Additional Medicare Tax."

Correction – FR 6781 (1/31/13)

FAQs from IRS - http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Questions-and-Answers-for-the-Additional-Medicare-Tax

Fees on Health Insurance Policies and Self-Insured Plans for Patient-Centered Outcomes Research Trust Fund

Final regs

TD 9602 (12/6/12)

6011

6071

6091

6302

4375

4376

4377

"implement and provide guidance on the fees imposed by the Patient Protection and Affordable Care Act on issuers of certain health insurance policies and plan sponsors of certain self-insured health plans to fund the Patient-Centered Outcomes Research Trust Fund. These final regulations affect the issuers and plan sponsors that are directed to pay those fees."

Deduction for Qualified Film and Television Production Costs

Final regs and removal of temp regs

TD 9603 (12/7/12)

181

"deductions for the cost of producing qualified film and television productions. These final regulations reflect changes to the law made by the Tax Extenders and Alternative Minimum Tax Relief Act of 2008 and affect taxpayers that produce films and television productions within the United States."

Taxable Medical Devices

Final regs

TD 9604 (12/7/12)

4191

4216

4221

6416

"guidance on the excise tax imposed on the sale of certain medical devices, enacted by the Health Care and Education Reconciliation Act of 2010 in conjunction with the Patient Protection and Affordable Care Act. The final regulations affect manufacturers, importers, and producers of taxable medical devices."

Correction – FR 15878 (3/13/13)

Correction – FR 15877 (3/13/13)

Also see Notice 2012-77

Guidance Regarding Deduction and Capitalization of Expenditures Related to Tangible Property

Modification to TD 9564

Modification to TD 9564 (12/17/12)

TD 9564 (12/27/11)

162

167

168

263

"These amendments change the applicability dates of the temporary regulations to taxable years beginning on or after January 1, 2014, while permitting taxpayers to choose to apply the temporary regulations for taxable years beginning on or after January 1, 2012. The amendments to the temporary regulations will affect all taxpayers that acquire, produce, or improve tangible property."

Correction – FR 75016 (12/19/12)

Notice 2012-73 – additional guidance on effective date of regs – can chose to apply for tax years beginning on or after 1/1/14

Awards for Information Relating to Detecting Underpayments of Tax or Violations of Internal Revenue Laws (Whistleblower)

Prop regs

REG–141066–09 (12/18/12)

6103

7623

"comprehensive guidance for the award program authorized under Internal Revenue Code (Code) section 7623, as amended. The regulations provide guidance on submitting information regarding underpayments of tax or violations of the internal revenue laws and filing claims for award, as well as on the administrative proceedings applicable to claims for award under section 7623. The regulations also provide guidance on the determination and payment of awards, and provide definitions of key terms used in section 7623. Finally, the regulations confirm that the Director, officers, and employees of the Whistleblower Office are authorized to disclose return information to the extent necessary to conduct whistleblower administrative proceedings. The regulations provide needed guidance to the general public as well as officers and employees of the IRS who review claims under section 7623."

Correction – FR 8062 (2/5/13)

Payout Requirements for Type III Supporting Organizations That Are Not Functionally Integrated

Final, Temp and prop regs

TD 9605 (12/28/12)

REG 155929–06 (12/28/12)

509

"requirements to qualify as a Type III supporting organization that is operated in connection with one or more supported organizations. The regulations reflect changes to the law made by the Pension Protection Act of 2006. The regulations will affect Type III supporting organizations and their supported organizations."

Correction – FR 9802 (2/12/13)

Use of Controlled Corporations to Avoid the Application of Section 304

Final regs and removal of temp regs

TD 9606 (12/26/12)

304

"final regulations addressing sales of stock between related corporations. The regulations finalize proposed regulations and remove temporary regulations that apply to certain sales of stock that are recharacterized as contributions and redemptions, but that are structured with a principal purpose of redesignating the issuing corporation or the acquiring corporation. The regulations affect persons treated as receiving distributions in redemption of stock as a result of such transactions."

Partners Distributive Share

Final regs

TD 9607 (12/28/12)

704

"application of the substantiality de minimis rule. In the interest of sound tax administration, this rule is being made inapplicable. These final regulations affect partnerships and their partners."

Correction – FR 3325 (1/16/13)

Disclosure or Use of Information by Preparers of Returns

Final regs and removal of temp regs

TD 9608 (12/28/12)

7216

"rules relating to the disclosure or use of tax return information by tax return preparers. These regulations provide updated guidance affecting tax return preparers regarding the use of information related to lists for solicitation of tax return business; the disclosure or use of statistical compilations of data under section 7216 of the Internal Revenue Code (Code) by a tax return preparer in connection with, or in support of, a tax return preparer’s tax return preparation business; and the disclosure or use of information for the purpose of performing conflict reviews."

Correction – FR 3325 (1/16/13)

Also see:

  Rev. Proc. 2013-14 – modifies and supercedes Rev. Proc. 2008-35

  Rev. Proc. 2013-19 – “Any consent to disclose or consent to use tax return information that a tax return preparer obtains during calendar year 2013 with respect to a taxpayer filing a return in the Form 1040 series may contain either  the mandatory language in section 4.04 of  Rev. Proc. 2008-35 or the mandatory language in section 5.04 of Rev. Proc. 2013-14. Any consent to disclose or consent to use  tax return information obtained on or after January 1, 2014, must contain the mandatory language in Rev. Proc. 2013-14.”