Federal Tax Regulations Issued in 2018

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.

For more information on the regulations including comments submitted on proposed regulations, visit http://www.regulations.gov.
Federal Register - https://www.govinfo.gov/app/collection/FR/
IRS Items from the Federal Register - https://www.federalregister.gov/agencies/internal-revenue-service
IRS archival content - https://www.irs.gov/privacy-disclosure/tax-code-regulations-and-official-guidance
IRS Electronic Reading Room (FOIA) - https://www.irs.gov/privacy-disclosure/foia-library
Overview to IRS Guidance - https://www.irs.gov/newsroom/understanding-irs-guidance-a-brief-primer
Office of Information and Regulatory Affairs (OIRA) in OMB - https://www.reginfo.gov/public/

Check status of regulations - https://www.reginfo.gov/public/do/eoPackageMain
Treasury regulations under review and whether “economically significant” - click

IRS website on Affordable Care Act provisions and links to regulations and other guidance - https://www.irs.gov/affordable-care-act/affordable-care-act-tax-provisions

List of regulations issued in: 2019 2017 2016 2015 2014 2013 2012 2011

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

See information below for April on a new MOA that modifies the longstanding review process for tax regulations.

Title of Regulation	Status	Citation	IRC Sections	Additional Information
SEC Guidance on Accounting Impacts of the Tax Cuts and Jobs Act TCJA	Rules See 12/22/17 press release + Chairman Statement.	SAB No. 118 8-K C&DI 110.02		SAB No. 118 “expresses views of the staff regarding application of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 740, Income Taxes (“ASC Topic 740”), in the reporting period that includes December 22, 2017 — the date on which the Tax Cuts and Jobs Act was signed into law.”
Election Out of the Centralized Partnership Audit Regime Note: These rules apply to partnerships with 100 or fewer partners but not to partnerships with certain types of partners such as other partnerships or trusts. See IRC §6221 and the final regs for details.	Final reg	TD 9829 (1/2/18)	6221	“This document contains final regulations regarding the implementation of certain portions of section 1101 of the Bipartisan Budget Act of 2015 (BBA), which was enacted into law on November 2, 2015. Section 1101 of the BBA repeals the current rules governing partnership audits and replaces them with a new centralized partnership audit regime that, in general, assesses and collects tax at the partnership level. This document provides final regulations for electing out of the centralized partnership audit regime. The final regulations affect partnerships for taxable years beginning after December 31, 2017. “ Effective 1/2/18.
Centralized Partnership Audit Regime: Adjusting Tax Attributes	Prop regs	REG-118067-17 (2/2/18)	704 705 6225 6226	“proposed regulations implementing section 1101 of the Bipartisan Budget Act of 2015, which was enacted into law on November 2, 2015. The Bipartisan Budget Act repeals the current rules governing partnership audits and replaces them with a new centralized partnership audit regime that, in general, determines, assesses and collects tax at the partnership level. These proposed regulations provide rules addressing how partnerships and their partners adjust tax attributes to take into account partnership adjustments under the centralized partnership audit regime.”
Eliminating Unnecessary Tax Regulations	Proposed rule	REG-132197-17 (2/15/18)	various	“Pursuant to the policies stated in Executive Orders 13777 and 13789 (the executive orders), the Treasury Department and the IRS conducted a review of existing regulations, with the goal of reducing regulatory burden for taxpayers by revoking or revising existing tax regulations that meet the criteria set forth in the executive orders. This notice of proposed rulemaking proposes to streamline IRS regulations by removing 298 regulations that are no longer necessary because they do not have any current or future applicability under the Internal Revenue Code (Code) and by amending 79 regulations to reflect the proposed removal of the 298 regulations. The proposed removal and amendment of these regulations may affect various categories of taxpayers.”
Short-Term, Limited-Duration Insurance	Prop regs	REG-133491-17 (2/21/18)	9801 9833	“This rule contains proposals amending the definition of short-term, limited-duration insurance for purposes of its exclusion from the definition of individual health insurance coverage. This action is being taken to lengthen the maximum period of short-term, limited-duration insurance, which will provide more affordable consumer choice for health coverage.”
Health Insurance Providers Fee	Final rule	TD 9830 (2/26/18)	57.2 Part 57 – Health Insurance Providers Fee	“final regulations that provide rules for the definition of a covered entity for purposes of the fee imposed by section 9010 of the Patient Protection and Affordable Care Act, as amended. The final regulations supersede and adopt the text of temporary regulations that provide rules for the definition of a covered entity. The final regulations affect persons engaged in the business of providing health insurance for United States health risks.”
Balanced System for Measuring Organizational and Employee Performance	Final regs	TD 9831 (3/7/18)	801 26 CFR part 801	“final regulations regarding management and personnel within the IRS. The final regulations relate to the ‘‘employee satisfaction measures’’ utilized by the IRS in its Balanced System for Measuring Organizational and Employee Performance. These regulations affect internal operations of the IRS and the systems employed to evaluate the performance of organizations within the IRS and individuals employed by the IRS.”
Disclosure of Returns and Return Information in Connection with Written Contracts or Agreements for the Acquisition of Property or Services for Tax Administration Purposes	Prop regs	REG-129260-16 (3/13/18)	6103	“This document contains proposed regulations under section 6103(n) to authorize the Department of State to disclose returns and return information to its contractors who assist the Department of State in carrying out its responsibilities under section 32101 of the Fixing America’s Surface Transportation (FAST) Act. The FAST Act requires the IRS to notify the Department of State of certified seriously delinquent tax debts, and the Department of State procures services from outside contractors in connection with carrying out its responsibilities under the FAST Act.”
Allocation of Controlled Group Research Credit	Final regs	TD 9832 (3/28/18)	41 45G 280C	“final regulations relating to the allocation of the credit for increasing research activities (research credit) to corporations and trades or businesses under common control (controlled groups). This document also contains final regulations relating to the allocation of the railroad track maintenance credit and the election for a reduced research credit.”
Certain Non-Government Attorneys Not Authorized To Participate in Examinations of Books and Witnesses as a Section 6103(n) Contractor	Prop regs	REG-132434-17 (3/28/18)	7602	“This document contains proposed regulations to amend regulations under section 7602(a) relating to administrative proceedings. Current regulations permit any person authorized to receive returns and return information under section 6103(n) and the regulations thereunder to receive and review summoned books, papers, and other data, and, in the presence and under the guidance of an IRS officer or employee, participate fully in the interview of a witness in a summons interview. These proposed regulations significantly narrow the scope of the current regulations by excluding non- government attorneys from receiving summoned books, papers, records, or other data or from participating in the interview of a witness summoned by the IRS to provide testimony under oath, with a limited exception. These proposed regulations affect taxpayers involved in a federal tax examination and other persons whose books and records or testimony are sought to be examined by the IRS under section 7602(a).”
4/12/18 – Treasury announces new OMB regulatory review process and new Memorandum of Agreement (MOA) that replaces a 1983 agreement. Per Treasury Secretary Mnuchin: “This updated review framework will increase scrutiny of regulations most likely to impose new costs, while preserving Treasury’s ability to ensure taxpayers receive timely, clear rules and guidance on how to comply with our tax code. Under today’s agreement, Treasury will continue to swiftly and successfully implement historic tax reform while still avoiding needless regulatory costs and delays.” Under the new MOA, a tax regulation is subject to review by OIRA per EO 12866 (and 1993 version here), section 6 if it is “likely to result in a rule that may: (a) Create a serious inconsistency or otherwise interfere with an action taken or planned by another agency; (b) Raise novel legal or policy issues, such as by prescribing a rule of conduct backed by an assessable payment; or (c) Have an annual non-revenue effect on the economy of $100 million or more, measured against a no-action baseline.” The review is to take no more than 45 days, with TCJA guidance subject to ten business day review. Also relevant to the history of the review (or lack thereof) of tax regulations is a 1983 MOA on implementation of EO 12291. For more background on the longstanding agreement for reduced review of tax regulations, see letter from Congressman Johnson to OIRA Administrator Neomi Rao, 2/1/18.
Grandfathered Plans, Preexisting Condition Exclusions, Lifetime and Annual Limits, Rescissions, Dependent Coverage, Appeals, and Patient Protections under the Affordable Care Act	Final rules	TD 9744 (5/3/18)	9815	“On November 18, 2015, the Departments of Labor, Health and Human Services, and the Treasury (the Departments) published a final rule in the Federal Register titled ‘‘Final Rules for Grandfathered Plans, Preexisting Condition Exclusions, Lifetime and Annual Limits, Rescissions, Dependent Coverage, Appeals, and Patient Protections Under the Affordable Care Act’’ (the November 2015 final rule), regarding, in part, the coverage of emergency services by non- grandfathered group health plans and health insurance issuers offering non- grandfathered group or individual health insurance coverage, including the requirement that non-grandfathered group health plans and health insurance issuers offering non-grandfathered group or individual health insurance coverage limit cost-sharing for out-of- network emergency services and, as part of that rule, pay at least a minimum amount for out-of-network emergency services. The American College of Emergency Physicians (ACEP) filed a complaint in the United States District Court for the District of Columbia, which on August 31, 2017 granted in part and denied in part without prejudice ACEP’s motion for summary judgment and remanded the case to the Departments to respond to the public comments from ACEP and others. In response, the Departments are issuing this notice of clarification to provide a more thorough explanation of the Departments’ decision not to adopt recommendations made by ACEP and certain other commenters in the November 2015 final rule.” This clarification effective starting 5/3/18.
Filing Requirements for Information Returns Required on Magnetic Media (Electronically)	Prop regs	REG-102951-16 (5/31/18)	6011 6721	“proposed regulations amending the rules for determining whether information returns must be filed using magnetic media (electronically). The proposed regulations would require that all information returns, regardless of type, be taken into account to determine whether a person meets the 250-return threshold and, therefore, must file the information returns electronically. The proposed regulations also would require any person required to file information returns electronically to file corrected information returns electronically, regardless of the number of corrected information returns being filed. The proposed regulations will affect persons required to file information returns.” Correction FR 33165 (7/17/18)
Partnership Transactions Involving Equity Interests of a Partner	Final reg	TD 9833 (6/8/18)	337 732	“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. This document also contains final regulations that allow consolidated group members that are partners in the same partnership to aggregate their bases in stock distributed by the partnership for the purpose of limiting the application of rules that might otherwise cause basis reduction or gain recognition. This document also contains final regulations that may also require certain corporations that engage in gain elimination transactions to reduce the basis of corporate assets or to recognize gain. These final regulations affect partnerships and their partners.”
Arbitrage Investment Restrictions on Tax-Exempt Bonds	Prop reg	REG-106977-18 (6/12/18)	148	“proposed 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 proposed regulations would clarify existing regulations regarding the definition of ‘‘investment-type property’’ covered by arbitrage restrictions by expressly providing an exception for investments in capital projects that are used in furtherance of the public purposes of the bonds. The proposed regulations affect State and local governmental issuers of these bonds and potential investors in capital projects financed with these bonds.”
Delay in §987 Regs due to Executive Order	Delay of regs	TD 9794 (12/8/16)	987	Foreign Currency – Notice 2018-57 (6/13/18) – 6/13/18 Update - Per the IRS: Notice 2018-57 announces that the Treasury Department and the IRS intend to amend regulations under section 987 to delay the applicability date of the final section 987 regulations and certain temporary section 987 regulations by 1 additional year. Notice 2017-57, published on October 16, 2017, previously delayed the applicability date by 1 year. The Treasury Department and the IRS intend to amend §§ 1.861-9T, 1.985-5, 1.987-11, 1.987-1T through 1.987-4T, 1.987-6T, 1.987-7T, 1.988-1, 1.988-1T, 1.988-4, and 1.989(a)-1 to provide that the final regulations and the related temporary regulations will apply to taxable years beginning on or after the date that is three years after the first day of the first taxable year following December 7, 2016.” Delay due to added review per Executive Order 13789 (4/21/17).
Proposed Removal of Temporary Regulations on a Partner’s Share of a Partnership Liability for Disguised Sale Purposes	Prop regs	REG-131186-17 (6/19/18)	707	“proposed regulations concerning how partnership liabilities are allocated for disguised sale purposes. The proposed regulations, if finalized, would replace existing temporary regulations with final regulations that were in effect prior to the temporary regulations. This document also partially withdraws proposed regulations cross-referencing the temporary regulations. These regulations affect partnerships and their partners.”
Inversions and Related Transactions	Final regs Temp regs Removal of temp regs	TD 9834 (7/12/18)	304 367 956 7701 7874	“final 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. This document finalizes proposed regulations, and removes temporary regulations, published on April 8, 2016.” Effective 7/12/18.
Tax Return Preparer Due Diligence Penalty TCJA	Prop regs	REG-103474-18 (7/18/18)	6695	“proposed regulations that amend portions of previously proposed regulations related to the tax return preparer penalty under section 6695(g). These amendments to the previously proposed regulations are necessary to implement a recent law change that expands the scope of the tax return preparer due diligence penalty under section 6695(g) so that it applies with respect to eligibility to file a return or claim for refund as head of household. The proposed regulations affect tax return preparers.”
Definitions of Qualified Matching Contributions and Qualified Nonelective Contributions	Final regs	TD 9835 (7/20/18)	401	“final regulations that amend the definitions of qualified matching contributions (QMACs) and qualified nonelective contributions (QNECs) under regulations regarding certain qualified retirement plans that contain cash or deferred arrangements under section 401(k) or that provide for matching contributions or employee contributions under section 401(m). Under these regulations, an employer contribution to a plan may be a QMAC or QNEC if it satisfies applicable nonforfeitability requirements and distribution limitations at the time it is allocated to a participant’s account, but need not meet these requirements or limitations when it is contributed to the plan. These regulations affect participants in, beneficiaries of, employers maintaining, and administrators of tax-qualified plans that contain cash or deferred arrangements or provide for matching contributions or employee contributions.”
Substantiation and Reporting Requirements for Cash and Noncash Charitable Contribution Deductions	Final regs	TD 9836 (7/30/18)	170 664 6050L	“guidance concerning substantiation and reporting requirements for cash and noncash charitable contributions. The final regulations reflect the enactment of provisions of the American Jobs Creation Act of 2004 and the Pension Protection Act of 2006. These regulations provide guidance to individuals, partnerships, and corporations that make charitable contributions.” Effective 7/30/18. Corrections – FR 45826 (9/11/18)
Short-Term, Limited-Duration Insurance	Final rule	TD 9837 (8/3/18)	9801 9833	“This final rule amends the definition of short-term, limited duration insurance for purposes of its exclusion from the definition of individual health insurance coverage. This action is being taken to lengthen the maximum duration of short-term, limited-duration insurance, which will provide more affordable consumer choices for health coverage.” Effective 10/2/18.
Extension of Time To File Certain Information Returns	Final regs Removal of temp regs	TD 9838 (8/3/18)	6081	“final regulations providing rules regarding the automatic and non-automatic extension of time to file certain information returns. These changes are being implemented to accelerate the filing of the Form W–2 series (except Form W–2G) and forms that report nonemployee compensation (currently Form 1099–MISC with information in box 7) so they are available earlier in the filing season for use in the IRS’s identity theft and refund fraud detection processes. In addition, these final regulations update the list of information returns subject to the rules regarding extensions of time to file. These regulations affect filers requesting an extension of time to file the affected information returns.” Effective 8/3/18.
Partnership Representative under Centralized Partnership Audit Regime and Election to Apply Centralized Partnership Audit Regime	Final regs Removal of temp regs	TD 9839 (8/9/18)	6223 9100	“final regulations regarding the designation and authority of the partnership representative under the centralized partnership audit regime, which was enacted into law on November 2, 2015 by section 1101 of the Bipartisan Budget Act of 2015 (BBA). These final regulations affect partnerships for taxable years beginning after December 31, 2017. This document also contains final regulations and removes temporary regulations regarding the election to apply the centralized partnership audit regime to partnership taxable years beginning after November 2, 2015 and before January 1, 2018 under section 1101(g)(4) of the BBA. These final regulations affect partnerships for taxable years beginning after November 2, 2015 and before January 1, 2018.” Correction FR 46440 (9/4/19) Correction FR 46681 (9/5/19)
Guidance Regarding the Transition Tax Under Section 965 and Related Provisions TCJA	Prop regs	REG-104226-18 (8/9/18) Advance release	962 965 986	“proposed regulations implementing section 965 as amended by the Tax Cuts and Jobs Act, which was enacted on December 22, 2017. The proposed regulations would affect United States persons with direct or indirect ownership interests in certain foreign corporations.” Final regs released 2/5/19 – TD 9846.
Additional First Year Depreciation Deduction TCJA	Prop regs	REG-104397-18 (8/8/18) Advance release	168 169 179 312 704 743	"proposed regulations that provide guidance regarding the additional first year depreciation deduction under section 168(k) of the Internal Revenue Code (Code). These proposed regulations reflect changes made by the Tax Cuts and Jobs Act. These proposed regulations affect taxpayers who deduct depreciation for qualified property acquired and placed in service after September 27, 2017."
Qualified Business Income Deduction Reg topics: 1.199A-1 Operational rules 1.199A-2 Determination of W-2 Wages and unadjusted basis immediately after acquisition of qualified property 1.199A-3 Qualified business income, qualified REIT dividends, and qualified PTP income 1.199A-4 Aggregation 1.199A-5 Specified service trades or businesses and the trade or business of performing services as an employee 1.199A-6 Relevant passthrough entities (RPEs), publicly traded partnerships (PTPs), trusts, and estates TCJA	Prop regs	REG-107892-18 (8/16/18) Advance release IR-2018-162 (8/8/18)	199A 643	“This document contains proposed 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 proposed regulations also contain an anti-avoidance rule under section 643 to treat multiple trusts as a single trust in certain cases.” Also see Notice 2018-64 (8/8/18) on methods for calculating W-2 wages for §199A purposes. The IRS is requesting comments on specific items. Also see IRS FAQs on §199A.
Centralized Partnership Audit Regime	Prop regs Removal of prop regs	REG–136118–15 REG–119337–17 REG– 118067–17 REG–120232–17 REG– 120233–17 (8/17/18)	704 705 706 6221 6222 6225 6226 6227 6231 6232 6233 6234 6235 6241	“proposed regulations implementing the centralized partnership audit regime. This document withdraws and reproposes certain portions of proposed regulations implementing the centralized partnership audit regime that have not been finalized to reflect the changes made by the Technical Corrections Act of 2018, contained in Title II of the Consolidated Appropriations Act of 2018 (TTCA). The proposed regulations affect partnerships with respect to partnership taxable years beginning after December 31, 2017, as well as partnerships that make the election under the Bipartisan Budget Act of 2015 (BBA), to apply the centralized partnership audit regime to partnership taxable years beginning on or after November 2, 2015 and before January 1, 2018.”
Contributions in Exchange for State or Local Tax Credits TCJA	Prop regs	REG-112176-18 (8/27/18)) IR-2018-172 (8/23/18) Advance release	170 642	The IRS stated in Notice 2018-54 (5/23/18) that it would be issuing proposed regulations. “proposed amendments to regulations under section 170. The proposed amendments provide rules governing the availability of charitable contribution deductions under section 170 when a taxpayer receives or expects to receive a corresponding state or local tax credit. This document also proposes amendments to the regulations under section 642(c) to apply similar rules to payments made by a trust or decedent’s estate. This document provides notification of a public hearing on these proposed regulations [11/5/18].” Proposed to apply to donations made after 8/27/18. Also see IR-2018-178 (9/5/18) which states that donations by businesses operating in any entity type may find that their “donation” is really a business expense if they are getting some benefit from the charity. This adds confusion because the state might only allow a credit and not a deduction, or the state might view the transfer as not being a donation if the donor claims a business expense. Clarification from the IRS and states is needed.
Guidance Related to Section 951A (Global Intangible Low-Taxed Income) [GILTI] TCJA	Prop regs	REG-104390-18 (10/10/18) IR-2018-186 (9/13/18) Advance release	951A 1502 6038	“proposed regulations implementing section 951A. Section 951A was added to the Internal Revenue Code by the Tax Cuts and Jobs Act, Pub. L. 115-97 (2017), which was enacted on December 22, 2017. This document also contains proposed regulations under sections 951, 1502, and 6038. These proposed regulations would affect United States shareholders of controlled foreign corporations.”
Proposed Removal of Section 385 Documentation Regulations	Prop regs	REG-130244-17 (9/24/18)	385 1275	“proposes removing final regulations setting forth minimum 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 (Documentation Regulations). This notice of proposed rulemaking also proposes conforming amendments to other final regulations to reflect the proposed removal of the Documentation Regulations. The final regulations to be amended and removed generally affect corporations that issue purported indebtedness to related corporations or partnerships.” Comments requested by 12/24/18.
Availability of Additional Guidance Under Section 965 TCJA	Notice 2018-78	REG-104226-18 (10/10/18)	962 965 986	“This document announces the availability of additional guidance regarding the transition tax under section 965 issued as Notice 2018–78.” Final regs released 2/5/19 – TD 9846.
Removal of Regulations on Advance Payments for Goods and Long-Term Contracts TCJA	Prop regs	REG-104872-18 (10/15/18)	381 382 451 6655	“This notice of proposed rulemaking proposes to streamline IRS regulations by removing regulations that are no longer necessary after the enactment of recent tax legislation. Specifically, these regulations would remove existing regulations regarding advance payments for goods and long-term contracts. The regulations would affect accrual method taxpayers who receive advance payments for goods, including those for inventoriable goods.” Note: Repeal was suggested in footnote 880 of the House Report to the TCJA due to the addition of §451(c) intended as a the single rule for the deferral of certain advance payments for accrual method taxpayers.
De Minimis Error Safe Harbor Exceptions to Penalties for Failure to File Correct Information Returns or Furnish Correct Payee Statements	Prop regs	REG-118826-16 (10/17/18)	6045 6721 6722 6723 6724	“proposed regulations relating to penalties for failure to file correct information returns or furnish correct payee statements. The proposed regulations contain safe harbor rules that, for penalty purposes, generally treat as correct payee statements or corresponding information returns that contain errors relating to de minimis incorrect dollar amounts. They prescribe the time and manner in which a payee may elect not to have the safe harbor rules apply. They also update penalty amounts and update references to information reporting obligations. Finally, they provide rules relating to the reporting of basis of securities by brokers as this reporting relates to the de minimis error safe harbor rules. The proposed regulations affect persons required to either file information returns or to furnish payee statements (filers), and recipients of payee statements (payees).”
Investing in Qualified Opportunity Funds TCJA	Prop regs	REG-115420-18 (10/29/18) Advance release + IR-2018-206 (10/19/18)	1400Z-1 1400Z-2	“proposed regulations that provide guidance under new section 1400Z-2 of the Internal Revenue Code (Code) relating to gains that may be deferred as a result of a taxpayer’s investment in a qualified opportunity fund (QOF). Specifically, the proposed regulations address the type of gains that may be deferred by investors, the time by which corresponding amounts must be invested in QOFs, and the manner in which investors may elect to defer specified gains. This document also contains proposed regulations applicable to QOFs, including rules for self-certification, valuation of QOF assets, and guidance on qualified opportunity zone businesses. The proposed regulations affect QOFs and their investors.” Correction – FR 67171 (12/28/18) IRS FAQs + Form 8996, Qualified Opportunity Fund for self-certification by a fund – draft form and instructions.
Health Reimbursement Arrangements and Other Account-Based Group Health Plans	Prop regs Under Titles 26 and 29	REG-136724-17 (10/29/18) Advance release (10/23/18) Notice 2018-88 (11/19/18)	36B 9801 9802 9815 9831	“proposed rules to expand opportunities for working men and women and their families to access affordable, quality healthcare through proposed changes to regulations under various provisions of the Public Health Service Act (PHS Act), the Employee Retirement Income Security Act (ERISA), and the Internal Revenue Code (Code) regarding health reimbursement arrangements (HRAs) and other account-based group health plans. (For simplicity, this preamble generally refers only to HRAs, but references to HRAs should also be considered to include other account-based group health plans, unless indicated otherwise.) Specifically, these proposed rules allow integrating HRAs with individual health insurance coverage, if certain conditions are met. The proposed rules also set forth conditions under which certain HRAs would be recognized as limited excepted benefits. Also, the Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) propose rules regarding premium tax credit (PTC) eligibility for individuals offered coverage under an HRA integrated with individual health insurance coverage. In addition, the Department of Labor (DOL) proposes a clarification to provide plan sponsors with assurance that the individual health insurance coverage the premiums of which are reimbursed by an HRA or a qualified small employer health reimbursement arrangement (QSEHRA) does not become part of an ERISA plan, provided certain conditions are met. Finally, the Department of Health and Human Services (HHS) proposes rules that would provide a special enrollment period in the individual market for individuals who gain access to an HRA integrated with individual health insurance coverage or who are provided a QSEHRA. The goal of these proposed rules is to expand the flexibility and use of HRAs to provide more Americans with additional options to obtain quality, affordable healthcare. The proposed rules would affect employees and their family members; employers, employee organizations, and other plan sponsors; group health plans; health insurance issuers; and purchasers of individual health insurance coverage.”
Amount Determined Under Section 956 for Corporate United States Shareholders TCJA	Prop regs	REG-114540-18 (11/5/18) IR-2018-210 (10/31/18) Advance release (10/31/18)	956	“proposed regulations that reduce the amount determined under section 956 with respect to certain domestic corporations. The proposed regulations affect certain domestic corporations that own (or are treated as owning) stock in foreign corporations.”
Tax Return Preparer Due Diligence Penalty TCJA	Final regs	TD 9842 (11/7/18) IR-2018-216 (11/7/18)	6695(g)	“final regulations relating to the tax return preparer penalty. The final regulations are necessary to implement recent law changes that expand the scope of the tax return preparer due diligence penalty so that it applies to the child tax credit (CTC)/additional child tax credit (ACTC), and the American opportunity tax credit (AOTC) as well as to eligibility to file a return or claim for refund as head of household. The regulations affect tax return preparers.” Effective 11/7/18. Minor correction – FR 64458 (12/17/18). Note: Because the new $500 other dependent credit is in IRC §24, it also requires extra due diligence by the paid preparer. 2018 Form 8867 and draft instructions.
Modification of Discounting Rules for Insurance Companies TCJA	Prop regs	REG-103163-18 (11/7/18)	846	“proposed regulations providing guidance on new discounting rules for unpaid losses and estimated salvage recoverable of insurance companies for Federal income tax purposes. The proposed regulations implement recent legislative changes to the Internal Revenue Code (Code) and make other technical improvements to the derivation and use of discount factors. The proposed regulations affect entities taxable as insurance companies.”
Regulations to Prescribe Return and Time for Filing for Payment of Section 4960, 4966, 4967, and 4968 Taxes and to Update the Abatement Rules for Section 4966 and 4967 Taxes TCJA and other P.L.s	Prop regs	REG-107163-18 (11/7/18)	4960 4963 4966 4967 4968 6011 6071	“proposed 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.”
Hardship Distributions of Elective Contributions, Qualified Matching Contributions, Qualified Nonelective Contributions, and Earnings	Prop regs	REG–107813–18 (11/14/18)	401	“proposed amendments to the regulations relating to hardship distributions from section 401(k) plans. The amendments reflect statutory changes affecting section 401(k) plans, including recent changes made by the Bipartisan Budget Act of 2018. These regulations would affect participants in, beneficiaries of, employers maintaining, and administrators of plans that contain cash or deferred arrangements or provide for employee or matching contributions.” Also see explanation in IR-2018-236 (11/29/18) that focuses on the relief available per the preamble, to victims of Hurricane Michael of Florence.
Religious Exemptions and Accommodations for Coverage of Certain Preventive Services Under the Affordable Care Act	Final rules	TD 9840 (11/15/18)	9815	“finalize, with changes based on public comments, interim final rules concerning religious exemptions and accommodations regarding coverage of certain preventive services issued in the Federal Register on October 13, 2017. These rules expand exemptions to protect religious beliefs for certain entities and individuals whose health plans are subject to a mandate of contraceptive coverage through guidance issued pursuant to the Patient Protection and Affordable Care Act. These rules do not alter the discretion of the Health Resources and Services Administration, a component of the U.S. Department of Health and Human Services, to maintain the guidelines requiring contraceptive coverage where no regulatorily recognized objection exists. These rules also leave in place an ‘‘accommodation’’ process as an optional process for certain exempt entities that wish to use it voluntarily. These rules do not alter multiple other federal programs that provide free or subsidized contraceptives for women at risk of unintended pregnancy.” Effective 1/14/19.
Moral Exemptions and Accommodations for Coverage of Certain Preventive Services Under the Affordable Care Act	Final	TD 9841 (11/15/18)	9815	“finalize, with changes based on public comments, the interim final rules issued in the Federal Register on October 13, 2017 concerning moral exemptions and accommodations regarding coverage of certain preventive services. These rules finalize expanded exemptions to protect moral beliefs for certain entities and individuals whose health plans are subject to a mandate of contraceptive coverage through guidance issued pursuant to the Patient Protection and Affordable Care Act. These rules do not alter the discretion of the Health Resources and Services Administration, a component of the U.S. Department of Health and Human Services, to maintain the guidelines requiring contraceptive coverage where no regulatorily recognized objection exists. These rules also leave in place an optional ‘‘accommodation’’ process for certain exempt entities that wish to use it voluntarily. These rules do not alter multiple other federal programs that provide free or subsidized contraceptives for women at risk of unintended pregnancy.” Effective 1/14/19.
User Fees Relating to Enrolled Agents and Enrolled Retirement Plan Agents	Prop regs	REG–122898–17 (11/19/18)	300.5 300.6	“proposed amendments to the regulations relating to imposing user fees for enrolled agents and enrolled retirement plan agents. The proposed regulations remove the initial enrollment user fee for enrolled retirement plan agents because the IRS no longer offers initial enrollment as an enrolled retirement plan agent. The proposed regulations also increase the amount of the renewal user fee for enrolled retirement plan agents from $30 to $67. In addition, the proposed regulations increase the amount of both the enrollment and renewal user fee for enrolled agents from $30 to $67. The proposed regulations affect individuals who are or apply to become enrolled agents and individuals who are enrolled retirement plan agents. The Independent Offices Appropriations Act of 1952 authorizes charging user fees.”
Allocation of Costs Under the Simplified Methods	Final regs	TD 9843 (11/20/18)	263A 471	“final regulations on allocating costs to certain property produced or acquired for resale by a taxpayer. These final regulations: Provide rules for the treatment of negative adjustments related to certain costs required to be capitalized to property produced or acquired for resale; provide a new simplified method of accounting for determining the additional costs allocable to property produced or acquired for resale; and redefine how certain types of costs are categorized for purposes of the simplified methods. These final regulations affect taxpayers that are producers or resellers of property that are required to capitalize costs to the property and that elect to allocate costs using a simplified method.” … “Simultaneously with the publication of these final regulations, the Treasury Department and the IRS are issuing Revenue Procedure 2018–56 (2018–50 IRB) to modify Rev. Proc. 2018–31 and provide the procedures by which a taxpayer may obtain automatic consent to make certain method changes to conform to these final regulations, such as a change to the MSPM by a taxpayer using the HAR.”
Estate and Gift Taxes; Difference in the Basic Exclusion Amount TCJA	Prop regs	REG-106706-18 (11/23/18) IR-2018-229 (11/20/18) Advance release IRS FAQs	2010	“proposed regulations addressing the effect of recent legislative changes to the basic exclusion amount used in computing Federal gift and estate taxes. The proposed regulations will affect donors of gifts made after 2017 and the estates of decedents dying after 2017.” Per IR-2018-229: “To address concerns that an estate tax could apply to gifts exempt from gift tax by the increased BEA [basic exclusion amount], the proposed regulations provide a special rule that allows the estate to compute its estate tax credit using the higher of the BEA applicable to gifts made during life or the BEA applicable on the date of death.”
Limitation on Deduction for Business Interest Expense TCJA	Prop regs	REG-106089-18 (12/28/18) IR-2018-233 (11/26/18) Advance release (11/26/18)	163 263A 382 383 446 469 860C 882 1502 1504	“rules regarding the limitation on the deduction for business interest expense after the enactment of recent tax legislation. Specifically, these regulations provide general rules and definitions. The regulations also provide rules for calculating the limitation in consolidated group, partnership, and international contexts. The regulations affect taxpayers that have deductible business interest expense, other than certain small businesses, electing real property trades or businesses, electing farming businesses, and certain utility businesses. This document also withdraws a notice of proposed rulemaking relating to the disallowance of a deduction for certain interest paid or accrued by a corporation.” Form 8990 – draft form + instructions
Guidance Related to the Foreign Tax Credit, Including Guidance Implementing Changes Made by the Tax Cuts and Jobs Act TCJA	Prop regs	REG-105600-18 (12/7/18) IR-2018-235 (11/28/18) Advance release	78 861 901 904 952 954 960 965	“proposed regulations that provide guidance relating to the determination of the foreign tax credit under the Internal Revenue Code (the “Code”). The guidance relates to changes made to the applicable law by the Tax Cuts and Jobs Act (the “Act”),which was enacted on December 22, 2017. Guidance on other foreign tax credit issues, including in relation to pre-Act statutory amendments, is also included in this document. The proposed regulations provide guidance needed to comply with statutory changes and affect individuals and corporations claiming foreign tax credits.”
Base Erosion and Anti-Abuse Tax TCJA	Prop regs	REG-104259-18 (12/21/18) IR-2018-250 (12/13/18) Advance release	59A 383 1502 6028A 6038C 6655	“proposed regulations that provide guidance regarding the tax on base erosion payments of taxpayers with substantial gross receipts and reporting requirements thereunder. The proposed regulations would affect corporations with substantial gross receipts that make payments to foreign related parties. The proposed regulations under section 6038A would affect any reporting corporations within the meaning of section 6038A or 6038C.” Form 8991, Tax on Base Erosion Payments of Taxpayers With Substantial Gross Receipts - draft
Regulations Reducing Burden under FATCA and Chapter 3	Prop regs	REG–132881–17 (12/18/18)	1441 1461 1471 1473 1474	“proposed regulations eliminating withholding on payments of gross proceeds, deferring withholding on foreign passthru payments, eliminating withholding on certain insurance premiums, and clarifying the definition of investment entity. This notice of proposed rulemaking also includes guidance concerning certain due diligence requirements of withholding agents and guidance on refunds and credits of amounts withheld.”
Certain Hybrid Arrangements TCJA	Prop regs	REG–104352–18 (12/28/18)	245A 267A 1503 6038 6038A 7701	“proposed regulations implementing sections 245A(e) and 267A of the Internal Revenue Code (‘‘Code’’) regarding hybrid dividends and certain amounts paid or accrued in hybrid transactions or with hybrid entities. Sections 245A(e) and 267A were added to the Code by the Tax Cuts and Jobs Act, Public Law 115–97 (2017) (the ‘‘Act’’), which was enacted on December 22, 2017. This document also contains proposed regulations under sections 1503(d) and 7701 to prevent the same deduction from being claimed under the tax laws of both the United States and a foreign country. Further, this document contains proposed regulations under sections 6038, 6038A, and 6038C to facilitate administration of certain rules in the proposed regulations. The proposed regulations affect taxpayers that would otherwise claim a deduction related to such amounts and certain shareholders of foreign corporations that pay or receive hybrid dividends.”
Gain or Loss of Foreign Persons from Sale or Exchange of Certain Partnership Interests TCJA	Prop regs	REG-113604-18 (12/27/18)	864 897	“proposed regulations implementing section 864(c)(8) of the Internal Revenue Code. The proposed regulations affect certain foreign persons that recognize gain or loss from the sale or exchange of an interest in a partnership that is engaged in a trade or business within the United States. The proposed regulations also affect partnerships that, directly or indirectly, have foreign persons as partners.”
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 6341	“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.”

This page last updated February 27, 2019

Page maintained by Professor Annette Nellen.

Last Modified: Feb 22, 2023