Page maintained by Professor Annette Nellen.
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: 2020 2018 2017 2016 2015 2014 2013 2012 2011
California Franchise Tax Board (FTB) Regulations – see the Interested Parties meetings website of the FTB.
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Title of Regulation
|
Status |
Citation |
Additional Information |
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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.
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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. |
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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.” Corrections: FR 15953 + FR 15954 (4/17/19) Also issued:
*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. |
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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.” |
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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. |
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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.” Correction – FR 14634 (4/11/19). Correction – FR 14901 (4/12/19) Also see IR-2019-27 (3/5/19). |
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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. |
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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.” |
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Guidance under Section 851 Relating to Investments in Stock and Securities |
Final regs |
(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.” Correction - FR 17082 (4/24/19) |
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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) |
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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.” |
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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) |
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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.” |
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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.” Correction – FR 18999 (5/3/19). |
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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.” Correction – FR 16799 (4/23/19) |
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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.” |
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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. |
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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.” |
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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.” |
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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.” |
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Electing Small Business Trusts with Nonresident Aliens as Potential Current Beneficiaries
TCJA |
Prop regs |
REG-117062-18 (4/19/19) |
641 1361 |
“proposed rulemaking provides rules regarding the recent statutory expansion of the class of permissible potential current beneficiaries (PCBs) of an electing small business trust (ESBT) to include nonresident aliens (NRAs). In particular, these proposed regulations would ensure that the income of an S corporation will continue to be subject to U.S. Federal income tax when an NRA is a deemed owner of a grantor trust that elects to be an ESBT.” |
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Investing in Qualified Opportunity Funds
TCJA |
Prop regs |
REG-120186-18 (5/1/19)
Advance release by IRS (4/17/19) |
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), as well as special rules for an investment in a QOF held by a taxpayer for at least 10 years. This document also contains proposed regulations that update portions of previously proposed regulations under section 1400Z-2 to address various issues, including: the definition of “substantially all” in each of the various places it appears in section 1400Z-2; the transactions that may trigger the inclusion of gain that a taxpayer has elected to defer under section 1400Z-2; the timing and amount of the deferred gain that is included; the treatment of leased property used by a qualified opportunity zone business; the use of qualified opportunity zone business property in the qualified opportunity zone; the sourcing of gross income to the qualified opportunity zone business; and the “reasonable period” for a QOF to reinvest proceeds from the sale of qualifying assets without paying a penalty. These proposed regulations will affect QOFs and taxpayers that invest in QOFs.” + IR-2019-75 (4/17/19) Correction – FR 22987 (5/21/19) Prop regs were also issued in October 2018 - REG-115420-18 (10/29/18). IRS FAQs. |
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Recognition and Deferral of Section 987 Gain or Loss |
Final regs
Removal of temp regs |
TD 9857 (5/13/19) |
987 |
“final regulations relating to combinations and separations of qualified business units (QBUs) subject to section 987 and the recognition and deferral of foreign currency gain or loss with respect to a QBU subject to section 987 in connection with certain QBU terminations and certain other transactions involving partnerships. In addition, this document withdraws temporary regulations regarding the allocation of assets and liabilities of certain partnerships for purposes of section 987. The final regulations affect taxpayers that own certain QBUs.” FR 31194 (7/1/19) |
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User Fees Relating to Enrolled Agents and Enrolled Retirement Plan Agents |
Final regs |
TD 9858 (5/13/19) |
300 |
“final regulations that amend regulations relating to imposing user fees for enrolled agents and enrolled retirement plan agents. The final 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 final regulations also increase the amount of the renewal user fee for enrolled retirement plan agents from $30 to $67. In addition, the final regulations increase the amount of both the enrollment and renewal user fee for enrolled agents from $30 to $67. The final 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.” |
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Withholding of Tax and Information Reporting with Respect to Interests in Partnerships Engaged in the Conduct of a U.S. Trade or Business
TCJA |
Prop regs |
REG-105476-18 (5/13/19) |
864 1445 1446 1461 1463 1464 6050K |
“proposed regulations implementing certain sections of the Internal Revenue Code, including sections added by the Tax Cuts and Jobs Act, that relate to the withholding of tax and information reporting with respect to certain dispositions of interests in partnerships engaged in the conduct of a trade or business within the United States. 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 the conduct of a trade or business within the United States, and persons that acquire those interests. The proposed regulations also affect partnerships that, directly or indirectly, have foreign persons as partners.” |
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Ownership Attribution for Purposes of Determining Whether a Person Is Related to a Controlled Foreign Corporation; Rents Derived in the Active Conduct of a Trade or Business |
Prop regs |
REG-125135-15 (5/20/19) |
954 958 |
“proposed regulations that provide rules regarding the attribution of ownership of stock or other interests for purposes of determining whether a person is a related person with respect to a controlled foreign corporation (CFC) under section 954(d)(3). In addition, the proposed regulations provide rules for determining whether a CFC is considered to derive rents in the active conduct of a trade or business for purposes of computing foreign personal holding company income (FPHCI). The regulations would affect United States persons with direct or indirect ownership interests in certain foreign corporations.” |
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Amount Determined Under Section 956 for Corporate United States Shareholders
TCJA |
Final regs |
TD 9859 (5/23/19) |
956 |
“final regulations that reduce the amount determined under section 956 with respect to certain domestic corporations. This document finalizes the proposed regulations published on November 5, 2018. The final regulations affect certain domestic corporations that own (or are treated as owning) stock in foreign corporations.” Correction – FR 29799 (6/25/19) |
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Certified Professional Employer Organizations |
Final regs |
TD 9860 (5/28/19) |
3511 7705 |
“final regulations relating to certified professional employer organizations (CPEOs). The Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014, required the IRS to establish a voluntary certification program for professional employer organizations. These final regulations set forth the requirements a person must satisfy in order to become and remain a CPEO and the federal employment tax liabilities and other obligations of persons certified by the IRS as CPEOs. These final regulations will affect persons who apply to be treated as CPEOs and who are certified by the IRS as meeting the applicable requirements. In certain instances, the final regulations will also affect the federal employment tax liabilities and other obligations of customers of the CPEO.” |
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Withholding on Certain Distributions under Section 3405(a) and (b) |
Prop regs |
REG-132240-15 (5/31/19) |
3405 |
“proposed regulation regarding withholding on certain periodic and nonperiodic distributions under section 3405, other than eligible rollover distributions. This regulation would affect payors and payees of these distributions.” This guidance is based on Notice 87-7 with additional clarification.
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|
Use of Truncated Taxpayer Identification Numbers on Forms W–2, Wage and Tax Statement, Furnished to Employees |
Final regs |
TD 9861 (7/3/19) |
6051 6052 6109 |
“final regulations under sections 6051 and 6052 of the Internal Revenue Code (Code). To aid employers’ efforts to protect employees from identity theft, these regulations amend existing regulations to permit employers to voluntarily truncate employees’ social security numbers (SSNs) on copies of Forms W–2, Wage and Tax Statement, that are furnished to employees so that the truncated SSNs appear in the form of IRS truncated taxpayer identification numbers (TTINs). These regulations also amend the regulations under section 6109 to clarify the application of the truncation rules to Forms W–2 and to add an example illustrating the application of these rules. Additionally, these regulations delete obsolete provisions and update cross references in the regulations under sections 6051 and 6052. These regulations affect employers who are required to furnish Forms W–2 and employees who receive Forms W–2.” Effective 7/3/19. |
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Certain Transfers of Property to Regulated Investment Companies and Real Estate Investment Trusts |
Final regs
Removal of temp regs |
TD 9862 (6/7/19) |
337 |
“final regulations effecting the repeal of the General Utilities doctrine by the Tax Reform Act of 1986 and preventing abuse of the Protecting Americans from Tax Hikes Act of 2015 (PATH Act). The final regulations impose corporate-level tax on certain transactions in which property of a C corporation becomes the property of a REIT. The final regulations affect RICs, REITs, C corporations the property of which becomes the property of a RIC or a REIT, and their shareholders.” |
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Exception for Interests Held by Foreign Pension Funds |
Prop regs |
REG-109826-17 (6/7/19) |
897 1441 1445 1446 |
“proposed regulations regarding the exception from taxation with respect to gain or loss of a qualified foreign pension fund attributable to certain interests in United States real property. The proposed regulations also include rules for certifying that a qualified foreign pension fund is not subject to withholding on certain dispositions of, and distributions with respect to, certain interests in United States real property. The proposed regulations affect certain holders of certain interests in United States real property and withholding agents that are required to withhold tax on certain dispositions of, and distributions with respect to, such property.” |
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Modification of Discounting Rules for Insurance Companies
TCJA |
Final regs |
TD 9863 (6/17/19) |
846 |
“final regulations on discounting rules for unpaid losses and estimated salvage recoverable of insurance companies for Federal income tax purposes. The final regulations update and replace existing regulations to implement recent legislative changes to the Internal Revenue Code (Code) and make a technical improvement to the derivation of loss payment patterns used for discounting. The final regulations affect entities taxable as insurance companies.” |
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Contributions in Exchange for State or Local Tax Credits
TCJA |
Final regs |
TD 9864 (6/13/19) |
170 642 |
“The final regulation provides 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 provides a final regulation under section 642(c) to apply similar rules to payments made by a trust or decedent’s estate.” Effective 8/12/19, but rule applies to donations made after 8/27/18 (as provided in the proposed regulations (REG-112176-18 (8/27/18)). Notice 2019-12 (6/11/19) was issued along with these final regs to provide a safe harbor for payments by certain individuals. “Under the safe harbor, an individual who itemizes deductions and makes a payment to a section 170(c) entity in return for a state or local tax credit may treat the portion of such payment that is or will be disallowed as a charitable contribution deduction under section 170 as a payment of state or local tax for purposes of section 164. This disallowed portion of the payment may be treated as a payment of state or local tax under section 164 when and to the extent an individual applies the state or local tax credit to offset the individual’s state or local tax liability.” This safe harbor is effective for payments made to charities after 8/27/18; amended 2018 returns can be filed where the notice provides a tax savings. The IRS seeks comments and intends to include this safe harbor in proposed regulations under §164. Also see IR-2019-109 (6/11/19). |
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Limitation on Deduction for Dividends Received from Certain Foreign Corporations and Amounts Eligible for Section 954 Look-Through Exception
TCJA |
Temp regs
Prop regs |
TD 9865 (6/18/19)
REG-106282-18 (6/18/19) |
245A 954 6038 |
“temporary regulations under section 245A of the Internal Revenue Code (the ‘‘Code’’) that limit the dividends received deduction available for certain dividends received from current or former controlled foreign corporations. This document also contains temporary regulations that limit the applicability of the exception to foreign personal holding company income for certain dividends received by upper-tier controlled foreign corporations from lower-tier controlled foreign corporations and temporary regulations under section 6038 to facilitate administration of certain rules in the temporary regulations. The temporary regulations affect certain U.S. persons that are domestic corporations that receive certain dividends from current or former controlled foreign corporations or are United States shareholders of upper-tier controlled foreign corporations that receive certain dividends from lower-tier controlled foreign corporations.” Correction – FR 38866 (8/8/19) Correction – FR 38892 (8/8/19) |
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Guidance Related to Section 951A (Global Intangible Low-Taxed Income) and Certain Guidance Related to Foreign Tax Credits
TCJA |
Final and temp regs |
TD 9866 (6/21/19)
IRS Advance release (6/14/19) |
78 861 951 951A 1502 6038 |
“final regulations that provide guidance to determine the amount of global intangible low-taxed income included in the gross income of certain United States shareholders of foreign corporations, including United States shareholders that are members of a consolidated group. This document also contains final regulations relating to the determination of a United States shareholder’s pro rata share of a controlled foreign corporation’s subpart F income included in the shareholder’s gross income, as well as certain reporting requirements relating to inclusions of subpart F income and global intangible low-taxed income. Finally, this document contains final regulations relating to certain foreign tax credit provisions applicable to persons that directly or indirectly own stock in foreign corporations.” Also see IR-2019-114 (6/14/19). Correction – FR 44223 (8/23/19) Correction – FR 44693 (8/27/19) Correction – FR 53052 (10/4/19) |
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Guidance under Section 958 (Rules for Determining Stock Ownership) and Section 951A (Global Intangible Low-Taxed Income) [GILTI]
TCJA |
Prop regs |
REG-101828-19 (6/21/19) |
951 951A 954 956 958 1502 |
“proposed regulations regarding the treatment of domestic partnerships for purposes of determining amounts included in the gross income of their partners with respect to foreign corporations. In addition, this document contains proposed regulations under the global intangible low-taxed income provisions regarding gross income that is subject to a high rate of foreign tax. The proposed regulations would affect United States persons that own stock of foreign corporations through domestic partnerships and United States shareholders of foreign corporations.” Also see IR-2019-114 (6/14/19). |
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Health Reimbursement Arrangements and Other Account–Based Group Health Plans |
Final regs |
TD 9867 (6/20/19) |
36B 9801 9802 98159831 |
“final rules to expand opportunities for working men and women and their families to access affordable, quality healthcare through changes to rules 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. Specifically, the final rules allow integrating HRAs and other account- based group health plans with individual health insurance coverage or Medicare, if certain conditions are satisfied (an individual coverage HRA). The final rules also set forth conditions under which certain HRAs and other account-based group health plans will be recognized as limited excepted benefits. Also, the Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) are finalizing rules regarding premium tax credit (PTC) eligibility for individuals offered an individual coverage HRA. In addition, the Department of Labor (DOL) is finalizing a clarification to provide assurance that the individual health insurance coverage for which premiums are reimbursed by an individual coverage HRA or a qualified small employer health reimbursement arrangement (QSEHRA) does not become part of an ERISA plan, provided certain safe harbor conditions are satisfied. Finally, the Department of Health and Human Services (HHS) is finalizing provisions to provide a special enrollment period (SEP) in the individual market for individuals who newly gain access to an individual coverage HRA or who are newly provided a QSEHRA. The goal of the final rules is to expand the flexibility and use of HRAs and other account- based group health plans to provide more Americans with additional options to obtain quality, affordable healthcare. The final rules 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.” Stems from Exec Order 13813 (10/12/17), Promoting Healthcare Choice and Competition Across the United States. HHS press release of 6/13/19. IRS information including model attestations, notice and FAQs FAQs from HHS See below for additional proposed regs issued by Treasury on 9/30/19
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Electing Small Business Trusts with Nonresident Aliens as Potential Current Beneficiaries
TCJA |
Final regs |
TD 9868 (6/18/19) |
641 1361 |
“final regulations regarding the statutory expansion of the class of permissible potential current beneficiaries (PCBs) of an electing small business trust (ESBT) to include nonresident aliens (NRAs). In particular, the final regulations ensure that the income of an S corporation will continue to be subject to U.S. Federal income tax when an NRA is a deemed owner of a grantor trust that elects to be an ESBT.” |
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Section 199A Rules for Cooperatives and Their Patrons
TCJA |
Prop regs |
REG-118425-18 (6/19/19) |
199A 1388 |
“proposed regulations provide guidance to cooperatives to which sections 1381 through 1388 of the Internal Revenue Code (Code) apply (Cooperatives) and their patrons regarding the deduction for qualified business income (QBI) under section 199A(a) of the Code as well as guidance to specified agricultural or horticultural cooperatives (Specified Cooperatives) and their patrons regarding the deduction for domestic production activities under section 199A(g) of the Code. These proposed regulations also provide guidance on section 199A(b)(7), the rule requiring patrons of Specified Cooperatives to reduce their deduction for QBI under section 199A(a). In addition, these proposed regulations include a single definition of patronage and nonpatronage under section 1388 of the Code. Finally, these proposed regulations propose to remove the final regulations, and withdraw the proposed regulations that have not been finalized, under former section 199. These proposed regulations affect Cooperatives as well as patrons that are individuals, partnerships, S corporations, trusts, and estates engaged in domestic trades or businesses.” Correction – FR 38148 (8/6/19) IR-2019-115 (6/18/19). Notice 2019-27 (6/18/19) – “proposed revenue procedure that provides guidance on methods for calculating W-2 wages for purposes of section 199A(g) and proposed §§1.199A-8 through 1.199A-12.”
|
|
Guidance Under Section 958 (Rules for Determining Stock Ownership) and Section 951A (Global Intangible Low–Taxed Income)
TCJA |
Prop regs |
REG-101828-19 (6/21/19) |
951 951A 954 956 1502 |
“proposed regulations regarding the treatment of domestic partnerships for purposes of determining amounts included in the gross income of their partners with respect to foreign corporations. In addition, this document contains proposed regulations under the global intangible low-taxed income provisions regarding gross income that is subject to a high rate of foreign tax. The proposed regulations would affect United States persons that own stock of foreign corporations through domestic partnerships and United States shareholders of foreign corporations.” |
|
Guidance on the Determination of the Section 4968 Excise Tax Applicable to Certain Private Colleges and Universities
TCJA |
Prop regs |
REG-106877-18 (7/3/19) |
4968 |
“proposed regulations for determining the excise tax applicable to the net investment income of certain private colleges and universities, as provided by the Tax Cuts and Jobs Act. These regulations affect applicable educational institutions and their related organizations.” IR-2019-120 (6/28/19) |
|
Multiple Employer Plans |
Prop regs |
REG-121508-18 (7/3/19) |
413
|
“proposed regulations relating to the tax qualification of plans maintained by more than one employer. These plans, maintained pursuant to section 413(c), are often referred to as multiple employer plans or MEPs. The proposed regulations would provide an exception, if certain requirements are met, to the application of the ‘‘unified plan rule’’ for a defined contribution MEP in the event of a failure by an employer participating in the plan to satisfy a qualification requirement or to provide information needed to determine compliance with a qualification requirement. These proposed regulations would affect MEPs, participants in MEPs (and their beneficiaries), employers participating in MEPs, and MEP plan administrators.” Correction – FR 43542 (8/21/19) |
|
Self-Employment Tax Treatment of Partners in a Partnership That Owns a Disregarded Entity |
Final regs |
TD 9869 (7/2/19) |
7701 |
“final regulations that clarify the employment tax treatment of partners in a partnership that owns a disregarded entity. These regulations affect partners in a partnership that owns a disregarded entity.” |
|
Guidance on Passive Foreign Investment Companies
TCJA |
Prop regs |
REG-105474-18 (7/11/19) |
1291 1297 1298 |
“proposed regulations under sections 1291, 1297, and 1298 of the Internal Revenue Code (‘‘Code’’) regarding the determination of ownership in a passive foreign investment company within the meaning of section 1297(a) (‘‘PFIC’’) and the treatment of certain income received or accrued by a foreign corporation and assets held by a foreign corporation for purposes of section 1297. The regulations provide guidance regarding when a foreign corporation is a qualifying insurance corporation (‘‘QIC’’) under section 1297(f) of the Code and the amounts of income and assets that a QIC excludes from passive income and assets pursuant to section 1297(b)(2)(B) (‘‘PFIC insurance exception’’) for purposes of section 1297(a). The regulations also clarify the application and scope of certain rules that determine whether a United States person that directly or indirectly holds stock in a PFIC is treated as a shareholder of the PFIC, and whether a foreign corporation is a PFIC. The regulations affect United States persons with direct or indirect ownership interests in certain foreign corporations.” |
|
Regulations Regarding Advance Payments for Goods and Long-Term Contracts
TCJA |
Final regs |
TD 9870 (7/15/19) |
381 382 451 861 6655 |
“final regulations that streamline IRS regulations by removing regulations that are no longer necessary after the enactment of recent tax legislation. Specifically, these final regulations remove existing regulations regarding advance payments for goods and long- term contracts. These final regulations affect accrual method taxpayers who receive advance payments for goods, including those for inventoriable goods.” |
|
U.S. Trade Representative – Initiation of a Section 301 Investigation of Frances’s Digital Services Tax |
Notice of initiation of investigation, public hearing and request for comments |
Docket No. USTR-2019-0009 (7/16/19) |
--- |
“The U.S. Trade Representative (Trade Representative) is initiating an investigation with respect to the Digital Services Tax (DST) under consideration by the Government of France. The Section 301 Committee will hold a public hearing and is seeking public comments in connection with this investigation.” USTR press release about 8/19/19 hearing. |
|
Allocation of Creditable Foreign Taxes |
Final regs
Removal of temp regs |
TD 9871 (7/24/19) |
704 |
“final regulations with respect to a provision of the Internal Revenue Code (Code) that addresses the allocation by a partnership of foreign income taxes. These regulations are necessary to improve the operation of an existing safe harbor rule that determines whether allocations of creditable foreign tax expenditures are deemed to be in accordance with the partners’ interests in the partnership. The regulations affect partnerships that pay or accrue foreign income taxes and partners in such partnerships.” |
|
Income Inclusion when Lessee Treated as Having Acquired Investment Credit Property |
Final regs
Removal of temp regs |
TD 9872 (7/19/19) |
50 |
“final regulations that provide guidance concerning the income inclusion rules under section 50(d)(5) that are applicable to a lessee of investment credit property when a lessor of such property elects to treat the lessee as having acquired the property. These final regulations also provide rules to coordinate the section 50(a) recapture rules with the section 50(d)(5) income inclusion rules. In addition, these final regulations provide rules regarding income inclusion upon a lease termination, lease disposition by a lessee, or disposition of a partner’s or S corporation shareholder’s entire interest in a lessee partnership or S corporation outside of the recapture period. Accordingly, these regulations will affect lessees of investment credit property when the lessor of the property makes an election to treat the lessee as having acquired the property and an investment credit is determined under section 46 with respect to such lessee.” |
|
Requirement to Notify the IRS of Intent to Operate as a Section 501(c)(4) Organization |
Final regs
Removal of temp regs |
TD 9873 (7/23/19) |
506 |
“final regulations relating to the section 506 requirement, added by the Protecting Americans from Tax Hikes Act of 2015 (the PATH Act), enacted on December 18, 2015, that organizations described in section 501(c)(4) must notify the IRS, no later than 60 days after their establishment, of their intent to operate under section 501(c)(4). |
|
Classification of Cloud Transactions and Transactions Involving Digital Content |
Prop regs |
REG-130700-14 (8/14/19) |
861 937 |
“proposed regulations regarding the classification of cloud transactions for purposes of the international provisions of the Internal Revenue Code. These proposed regulations also modify the rules for classifying transactions involving computer programs, including by applying the rules to transfers of digital content.” To update existing 1.861-18 regs to address “‘‘cloud computing,’’ [at 1.861-19] which typically is characterized by on-demand network access to computing resources, such as networks, servers, storage, and software. See, e.g., National Institute of Standards and Technology, Special Publication 500–322 (February 2018) (‘‘NIST Report’’). Cloud computing transactions typically are described for non-tax purposes as following one or more of the following three models: Software as a Service (‘‘SaaS’’); Platform as a Service (‘‘PaaS’’); and Infrastructure as a Service (‘‘IaaS’’). SaaS allows customers to access applications on a provider’s cloud infrastructure through an interface such as a web browser. NIST Report, p. 9–10. PaaS allows customers to deploy applications created by the customer onto a provider’s cloud infrastructure using programming languages, libraries, services, and tools supported by the provider. NIST Report, pp. 10–11. IaaS allows customers to access processing, storage, networks, and other infrastructure resources on a provider’s cloud infrastructure. NIST Report, p. 11. A cloud computing transaction typically does not involve any transfer of a computer program classified under §1.861–18 as a transfer of a copyright right or copyrighted article or any provision of development services or know-how relating to computer programs or programming. Although certain cloud computing transactions may provide similar functionality with respect to computer programs as transactions subject to § 1.861–18 (for example, the transfer of a computer program via download may provide similar functionality as the same program accessed via a web browser), § 1.861–18 does not address the provision of online access to use the computer program. Accordingly, § 1.861–18 would not apply to classify such a transaction.” Also to address other transactions such as streaming music and video, apps, and access to data via remotely hosted software. Correction – FR 52410 (10/2/19) |
|
Determination of the Maximum Value of a Vehicle for Use with the Fleet-average and Vehicle Cents-per-mile Valuation Rules
TCJA |
Prop regs |
REG-101378-19 (8/23/19) |
61 |
“proposed regulations regarding special valuation rules for employers and employees to use in determining the amount to include in an employee’s gross income for personal use of an employer-provided vehicle. The proposed regulations reflect changes made by the Tax Cuts and Jobs Act, Public Law 115–97 (the Act).” Also see: |
|
Taxable Year of Income Inclusion under an Accrual Method of Accounting
TCJA |
Prop regs |
REG-104870-18 (9/9/19) |
446 451 1275 |
“proposed regulations regarding the timing of income inclusion under section 451. The proposed regulations reflect changes made by the Tax Cuts and Jobs Act. These proposed regulations affect taxpayers that use an accrual method of accounting and have an applicable financial statement. Also see Rev. Proc. 2019-37 (9/6/19) which modifies Rev. Proc. 2018-31 on how to obtain automatic consent to comply with §451 and Prop Regs at 1.451-3. Correction FR 54079 (10/9/19) |
|
Advance Payments for Goods, Services, and Other Items
TCJA |
Prop regs |
REG-104554-18 (9/9/19) |
451 |
“proposed regulations regarding the timing of income inclusion under section 451 of advance payments for goods, services, and certain other items. The proposed regulations reflect changes made by the Tax Cuts and Jobs Act. These proposed regulations affect taxpayers that use an accrual method of accounting and receive advance payments.” Rev. Proc. 2019-37 (9/6/19) which modifies Rev. Proc. 2018-31 on how to obtain automatic consent to comply with §451 and Prop Regs at 1.451-8. |
|
Regulations under Section 382(h) Related to Built-in Gain and Loss
TCJA |
Prop regs |
REG-125710-18 (9/10/19) |
382 |
“proposed regulations regarding the items of income and deduction which are included in the calculation of built-in gains and losses under section 382, and reflecting numerous changes made to the Code by the enactment of recent tax legislation. These proposed regulations would affect corporations that experience an ownership change for purposes of section 382.This document also proposes to withdraw the following IRS notices and incorporate their subject matter, as appropriate, into these proposed regulations undersection 382: Notice 87-79, Notice 90-27, Notice 2003-65, and Notice 2018-30. “ NOTE: on 1/14/2020, IRS issued proposed regs that withdraw a portion of these proposed regs. |
|
Guidance Under section 6033 Regarding the Reporting Requirements of Exempt Organizations |
Prop regs |
REG-102508-16 (9/10/19) |
6033 |
“proposed regulations that would update information reporting regulations under section 6033 that are generally applicable to organizations exempt from tax under section 501(a) to reflect statutory amendments and certain grants of reporting relief announced through subregulatory guidance that have been made since the current regulations were adopted, particularly with respect to tax-exempt organizations required to file an annual Form 990 or 990–EZ information return.” Also see Notice 2019-47 (9/6/19) on penalty relief. |
|
Additional First Year Depreciation Deduction
TCJA |
Final regs |
TD 9874 (9/24/19)
Advance release (9/13/19)
IR-2019-156 (9/13/19) |
48 167 168 169 179 312 704 743 |
“final regulations that provide guidance regarding the additional first year depreciation deduction under section 168(k). The final regulations reflect and clarify the increase of the benefit and expansion of the universe of qualifying property, particularly to certain classes of used property, authorized by the Tax Cuts and Jobs Act. The final regulations affect taxpayers who deduct depreciation for qualified property acquired and placed in service after September 27, 2017.” Also see Rev. Proc. 2019-33 (7/31/19) |
|
Additional First Year Depreciation Deduction
TCJA |
Prop regs |
REG-106808-19 (9/24/19)
Advance release (9/13/19) |
168 |
“proposed regulations that provide guidance regarding the additional first year depreciation deduction under section 168(k). These proposed regulations reflect and clarify the increase of the benefit and expansion of the universe of qualifying property, particularly to certain classes of used property, made by the Tax Cuts and Jobs Act. These proposed regulations generally affect taxpayers who deduct depreciation for qualified property acquired and placed in service after September 27, 2017. This document also provides notice of a public hearing on these proposed regulations. Finally, this document withdraws a portion of the proposed regulations published on August 8, 2018.” |
|
Hardship Distributions of Elective Contributions, Qualified Matching Contributions, Qualified Nonelective Contributions, and Earnings |
Final regs |
TD 9875 (9/23/19) |
401 |
“final regulations that amend the rules relating to hardship distributions from section 401(k) plans. The final regulations reflect statutory changes affecting section 401(k) plans, including changes made by the Bipartisan Budget Act of 2018. The regulations affect participants in, beneficiaries of, employers maintaining, and administrators of plans that include cash or deferred arrangements or provide for employee or matching contributions.”
Also see Rev. Proc. 2020-9 (12/12/19). |
|
Application of the Employer Shared Responsibility Provisions and Certain Nondiscrimination Rules to Health Reimbursement Arrangements and Other Account-Based Group Health Plans Integrated with Individual Health Insurance Coverage or Medicare |
Prop regs |
REG-136401-18 (9/30/19) |
105 4980H |
“proposed regulations to clarify the application of the employer shared responsibility provisions and certain nondiscrimination rules under the Internal Revenue Code (Code) to health reimbursement arrangements (HRAs) and other account-based group health plans integrated with individual health insurance coverage or Medicare (individual coverage HRAs), and to provide certain safe harbors with respect to the application of those provisions to individual coverage HRAs. The proposed regulations are intended to facilitate the adoption of individual coverage HRAs by employers, and taxpayers generally are permitted to rely on the proposed regulations. The proposed regulations would affect employers, employees and their family members, and plan sponsors.” |
|
Ownership Attribution Under Section 958 Including For Purposes of Determining Status as Controlled Foreign Corporation or United States Shareholder
TCJA |
Prop regs |
REG-104223-18 (10/2/19) |
267 367 672 706 863 904 958 1297 6049 |
“proposed regulations relating to the modification of section 958(b) by the Tax Cuts and Jobs Act, which was enacted on December 22, 2017. The proposed regulations affect United States persons that have ownership interests in or that make or receive payments to or from certain foreign corporations.” |
|
Removal of Temporary Regulations on a Partner's Share of a Partnership Liability for Disguised Sale Purposes |
Final regs Removal of temp regs |
TD 9876 (10/9/19) |
707 |
“final regulations concerning how partnership liabilities are allocated for disguised sale purposes. The regulations replace existing temporary regulations with final regulations that were in effect prior to the temporary regulations. These regulations affect partnerships and their partners.” |
|
Liabilities Recognized as Recourse Partnership Liabilities under Section 752 |
Final regs Removal of temp regs |
TD 9877 (10/9/19) |
704 752
|
“final regulations addressing when certain obligations to restore a deficit balance in a partner’s capital account are disregarded under section 704 of the Internal Revenue Code (Code), when partnership liabilities are treated as recourse liabilities under section 752, and how bottom dollar payment obligations are treated under section 752. These final regulations provide guidance necessary for a partnership to allocate its liabilities among its partners. These regulations affect partnerships and their partners.” |
|
Guidance on the Transition from Interbank Offered Rates to Other Reference Rates |
Prop regs |
REG-118784-18 (10/9/19) |
860A 860G 882 1001 1271 1275 |
“proposed regulations that provide guidance on the tax consequences of the transition to the use of reference rates other than interbank offered rates (IBORs) in debt instruments and non- debt contracts. The proposed regulations are necessary to address the possibility that an alteration of the terms of a debt instrument or a modification of the terms of other types of contracts to replace an IBOR to which the terms of the debt instrument or other contract refers with a new reference rate could result in the realization of income, deduction, gain, or loss for Federal income tax purposes or could result in other tax consequences. The proposed regulations will affect parties to debt instruments and other contracts that reference an IBOR.” |
|
Contribution Limits Applicable to ABLE Accounts
TCJA |
Prop regs |
RIN 1545-BP10 (10/10/19) |
529A |
“proposed regulations related to the Internal Revenue Code (Code), which allows a State (or its agency or instrumentality) to establish and maintain a tax-advantaged savings program under which contributions may be made to an ABLE account for the purpose of paying for the qualified disability expenses of the designated beneficiary of the account. The affected Code section was amended by the Tax Cuts and Jobs Act, signed into law on December 22, 2017. The Tax Cuts and Jobs Act allows certain designated beneficiaries to contribute a limited amount of compensation income to their own ABLE accounts.” |
|
Election to Take Disaster Loss Deduction for Preceding Year |
Final reg
Removal of temp regs |
TD 9878 (10/16/19) |
165 |
“final regulation relating to the election to accelerate the timing of a loss sustained by a taxpayer attributable to a federally declared disaster.” |
|
Information Reporting for Certain Life Insurance Contract Transactions and Modifications to the Transfer for Valuable Consideration Rules |
Final regs |
TD 9879 (10/31/19) |
101 6050Y |
“final 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 final regulations also provide guidance on the amount of death benefits excluded from gross income under section 101 following a reportable policy sale. The final 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.” Corrections – FR 68042 (12/13/19) |
|
Removal of Section 385 Documentation Regulations |
Final regs |
TD 9880 (11/4/19) |
385 1275 |
“removes 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. This document also adopts conforming amendments to other final regulations to reflect the removal of the documentation regulations. The final regulations removed or amended by this document generally affect corporations that issue purported indebtedness to related corporations or partnerships.” Effective 11/4/19. Action relates to EO 13789 (4/21/17). |
|
The Treatment of Certain Interests in Corporations as Stock or Indebtedness |
Prop regs |
REG-123112-19 (11/4/19) |
385 |
“announces that the Department of the Treasury (Treasury Department) and the IRS intend to issue proposed regulations regarding the treatment of certain interests in corporations as stock or indebtedness and requests comments from the public regarding the contemplated rules. This document also announces that, following the expiration of the 2016 Temporary Regulations (described in the Background section of this advance notice of proposed rulemaking), a taxpayer may rely on the 2016 Proposed Regulations (also described in the Background) until further notice is given in the Federal Register, provided that the taxpayer consistently applies the rules in the 2016 Proposed Regulations in their entirety.” |
|
Eligible Terminated S Corporations
TCJA |
Prop regs |
REG-131071-18 (11/7/19) |
316 481(d) 1371(f) |
“rules regarding the definition of an eligible terminated S corporation (ETSC). In addition, these proposed regulations provide rules relating to distributions of money by an ETSC after the post-termination transition period (PTTP). Finally, these proposed regulations revise current regulations to extend the treatment of distributions of money during the PTTP to all shareholders of the corporation and to update and clarify the allocation of current earnings and profits to distributions of money and other property. These proposed regulations would affect certain C corporations and the shareholders of such corporations.” |
|
Updated Life Expectancy and Distribution Period Tables Used for Purposes of Determining Minimum Required Distributions |
Prop regs |
REG-132210-18 (11/8/19) |
401 |
“proposed regulations providing guidance relating to the life expectancy and distribution period tables that are used to calculate required minimum distributions from qualified retirement plans, individual retirement accounts and annuities, and certain other tax- favored employer-provided retirement arrangements. These regulations affect participants, beneficiaries, and plan administrators of these qualified retirement plans and other tax-favored employer-provided retirement arrangements, as well as owners, beneficiaries, trustees and custodians of individual retirement accounts and annuities.” Generally applicable for distribution calendar years beginning on or after 1/1/21. “Thus, for example, for an individual who attains age 70 ½ during 2020 (so that the minimum required distribution for the distribution calendar year 2020 is due April 1, 2021), the final regulations would not apply to the minimum required distribution for the individual’s 2020 distribution calendar year (which is due April 1, 2021), but would apply to the minimum required distribution for the individual’s 2021 distribution calendar year (which is due December 31, 2021).” |
|
Electronic Filing of the Report of Health Insurance Provider Information |
Final regs |
(11/13/19) |
57.3 57.10 |
“final regulations amending the Health Insurance Providers Fee regulations to require certain covered entities engaged in the business of providing health insurance for United States health risks to electronically file Form 8963, ‘‘Report of Health Insurance Provider Information.’’ These final regulations affect those entities.” |
|
Ownership Attribution for Purposes of Determining whether a Person Is Related to a Controlled Foreign Corporation; Rents Derived in the Active Conduct of a Trade or Business
TCJA |
Final regs |
TD 9883 (11/19/19) |
954 958 |
“final regulations regarding the attribution of ownership of stock or other interests for purposes of determining whether a person is a related person with respect to a controlled foreign corporation (‘‘CFC’’) under section 954(d)(3). In addition, the final regulations provide rules for determining whether a CFC is considered to derive rents in the active conduct of a trade or business for purposes of computing foreign personal holding company income. This document finalizes the proposed regulations published on May 20, 2019. The regulations affect United States persons with direct or indirect ownership interests in certain foreign corporations.” |
|
Estate and Gift Taxes; Difference in the Basic Exclusion Amount
TCJA |
Final regs |
TD 9884 (11/26/19) |
2010 |
“final regulations addressing the effect of recent legislative changes to the basic exclusion amount allowable in computing Federal gift and estate taxes. The final regulations will affect donors of gifts made after 2017 and the estates of decedents dying after 2025.” Correction – FR 6803 (2/6/20) |
|
Transparency in Coverage |
Prop regs |
REG-118378-19 (11/27/19) |
9815 |
“proposed requirements for group health plans and health insurance issuers in the individual and group markets to disclose cost-sharing information upon request, to a participant, beneficiary, or enrollee (or his or her authorized representative), including an estimate of such individual’s cost-sharing liability for covered items or services furnished by a particular provider. Under these proposed rules, plans and issuers would be required to make such information available on an internet website and, if requested, through non-internet means, thereby allowing a participant, beneficiary, or enrollee (or his or her authorized representative) to obtain an estimate and understanding of the individual’s out-of-pocket expenses and effectively shop for items and services. These proposed rules also include proposals to require plans and issuers to disclose in-network provider negotiated rates, and historical out-of-network allowed amounts through two machine- readable files posted on an internet website, thereby allowing the public to have access to health insurance coverage information that can be used to understand health care pricing and potentially dampen the rise in health care spending. The Department of Health and Human Services (HHS) also proposes amendments to its medical loss ratio program rules to allow issuers offering group or individual health insurance coverage to receive credit in their medical loss ratio calculations for savings they share with enrollees that result from the enrollee’s shopping for, and receiving care from, lower-cost, higher-value providers.” |
|
Foreign Currency Guidance under Section 987 |
Notice |
Notice 2019-65 (12/6/19) |
987 |
Treasury and IRS “intend to amend the regulations under section 987 to defer the applicability date of the final regulations under section 987, as well as certain related final and temporary regulations, by one additional year. Notice 2017-57, published on October 16, 2017, and Notice 2018-57, published on June 25, 2018, each delayed the applicability date of the final regulations, along with the related final and temporary regulations, by 1 year. The Treasury Department and the IRS intend to amend §§1.861-9T, 1.985-5, 1.987-11, 1.988-1, 1.988-4, and 1.989(a)-1 of the 2016 final regulations and §§1.987-2 and 1.987-4 of the 2019 final regulations to apply to taxable years beginning on or after the first day of the first taxable year following December 7, 2020. |
|
Base Erosion and Anti-Abuse Tax
TCJA |
Final regs |
TD 9885 (12/6/19) |
59A 383 1502 6038A 6655
|
“final regulations implementing the base erosion and anti-abuse tax, designed to prevent the reduction of tax liability by certain large corporate taxpayers through certain payments made to foreign related parties and certain tax credits. These final regulations also provide reporting requirements related to this tax. This tax was added to the Internal Revenue Code (the ‘‘Code’’) as part of the Tax Cuts and Jobs Act. This document finalizes the proposed regulations published on December 21, 2018. The final regulations affect corporations with substantial gross receipts that make payments to foreign related parties. The final regulations also affect any reporting corporations required to furnish information relating to certain related-party transactions and information relating to a trade or business conducted within the United States by a foreign corporation.” Correction – FR 9369 (2/19/20) Correction – FR 11841 (2/28/20 |
|
Additional Rules Regarding Base Erosion and Anti-Abuse Tax
TCJA |
Prop regs |
REG-112607–19 (12/6/19) |
59A 6031 |
“proposed regulations that provide guidance regarding the base erosion and anti-abuse tax imposed on certain large corporate taxpayers with respect to certain payments made to foreign related parties. The proposed regulations would affect corporations with substantial gross receipts that make payments to foreign related parties.” |
|
Calculation of Unrelated Business Taxable Income for Certain Exempt Organizations |
Final regs |
TD 9886 (12/10/19) |
512 |
“final regulation providing guidance on how certain organizations that provide employee benefits must calculate unrelated business taxable income (UBTI).” Correction – FR 68042 (12/13/19) |
|
Treatment of Payments to Charitable Entities in Return for Consideration
TCJA |
Prop regs |
REG-107431-19 (12/17/19)
Advance release by IRS (12/13/19) |
162 164 170 |
“proposed amendments to the regulations under sections 162, 164, and 170. First, the proposed amendments update the regulations under section 162 to reflect current law regarding the application of section 162 to a taxpayer that makes a payment or transfer to an entity described in section 170(c)for a business purpose. Second, the proposed amendments provide safe harbors under section 162 to provide certainty with respect to the treatment of payments made by business entities to an entity described in section 170(c). Third, the proposed amendments provide a safe harbor under section 164 for payments made to an entity described in section 170(c) by individuals who itemize deductions and receive or expect to receive a state or local tax credit in return. Fourth, the proposed amendments update the regulations under section 170 to reflect past guidance and case law regarding the application of the quid pro quo principle under section 170 to benefits received or expected to be received by a donor from a third party.” Intended to replace Rev. Proc. 2019-12 and Notice 2029-12. |
|
Dividend Equivalents from Sources within the United States |
Final regs Removal of temp regs |
TD 9887 (12/17/19) |
871 |
“final regulations relating to certain financial products providing for payments that are contingent upon or determined by reference to U.S. source dividend payments.” |
|
Foreign Tax Credit Guidance Related to the Tax Cuts and Jobs Act, Overall Foreign Loss Recapture, and Foreign Tax Redeterminations
TCJA |
Final regs Removal of temp regs |
TD 9882 (12/17/19) |
861 901 904 905 951A 954 960 965 985 986 988 |
“final regulations that provide guidance relating to the determination of the foreign tax credit under the Internal Revenue Code. The guidance relates to changes made to the applicable law by the Tax Cuts and Jobs Act, which was enacted on December 22, 2017. This document finalizes the proposed regulations published on December 7, 2018. This document also finalizes proposed regulations on overall foreign losses that were published on June 25, 2012, and finalizes certain portions of proposed regulations published on November 7, 2007, relating to a U.S. taxpayer’s obligation to notify the IRS of a foreign tax redetermination.” Correction – FR 29323 (5/15/20) |
|
Guidance Related to the Allocation and Apportionment of Deductions and Foreign Taxes, the Definition of Financial Services Income, Foreign Tax Redeterminations Under Section 905(c), the Disallowance of Certain Foreign Tax Credits Under Section 965(g), and the Application of the Foreign Tax Credit Limitation to Consolidated Groups
TCJA |
Prop regs |
REG–105495–19 (12/17/19) |
704 861 904 905 954 960 965 1502 6227 6689
|
“proposed regulations that provide guidance relating to the allocation and apportionment of deductions and creditable foreign taxes, the definition of financial services income, foreign tax redeterminations, availability of foreign tax credits under the transition tax, and the application of the foreign tax credit limitation to consolidated groups.” Correction – FR 29368 (5/15/20) |
|
Guidance under Section 355(e) Regarding Predecessors, Successors, and Limitation on Gain Recognition; Guidance under Section 355(f) |
Final regs
Removal of temp regs |
TD 9888 (12/18/19) |
355 |
“final regulations that provide guidance regarding the distribution by a distributing corporation of stock or securities of a controlled corporation without the recognition of income, gain, or loss. In particular, the final regulations provide guidance in determining whether a corporation is a predecessor or successor of a distributing or controlled corporation for purposes of the exception under section 355(e) of the Internal Revenue Code (Code) to the nonrecognition treatment afforded qualifying distributions. In addition, the final regulations provide certain limitations on the recognition of gain in certain cases involving a predecessor of a distributing corporation. The final regulations also provide rules regarding the extent to which section 355(f) causes a distributing corporation (and in certain cases its shareholders) to recognize income or gain on the distribution of stock or securities of a controlled corporation. These regulations affect corporations that distribute the stock or securities of a controlled corporation and the shareholders or security holders of those distributing corporations.” Correction – FR 15060 (3/17/20). Correction – FR 15061 (3/17/20) |
|
Certain Employee Remuneration in Excess of 1,000,000 Dollars under Internal Revenue Code Section 162(m)
TCJA |
Prop regs |
REG-122180-18 (12/20/19) |
162 338 |
“proposed regulations under section 162(m), which limits the deduction for certain employee remuneration in excess of $1,000,000 for federal income tax purposes. These proposed regulations implement the amendments made to section 162(m) by the Tax Cuts and Jobs Act. These proposed regulations would affect publicly held corporations.” IR-2019-208 (12/17/19) |
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Misdirected Direct Deposit Refunds
Taxpayer First Act |
Prop regs |
REG-116163-19 (12/23/19) |
6402 |
“proposed regulations provide guidance on section 6402(n), concerning the procedures for identification and recovery of a misdirected direct deposit refund. The regulations reflect changes to the law made by the Taxpayer First Act. The proposed regulations affect taxpayers who have made a claim for refund, requested the refund be issued as a direct deposit, but did not receive a refund in the account designated on the claim for refund.” |
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Investing in Qualified Opportunity Funds
TCJA |
Final regs |
TD 9889 (1/13/20)
Advance release by IRS (12/19/19) |
1400Z2 1502 1504 |
“final regulations governing the extent to which taxpayers may elect the Federal income tax benefits provided by section 1400Z-2 of the Internal Revenue Code (Code) with respect to certain equity interests in a qualified opportunity fund (QOF). The final regulations address the comments received in response to the two notices of proposed rulemaking issued under section 1400Z-2 and provide additional guidance for taxpayers eligible to elect to temporarily defer the inclusion in gross income of certain gains if corresponding amounts are invested in certain equity interests in QOFs, as well as guidance on the ability of such taxpayers to exclude from gross income additional gain recognized after holding those equity interests for at least 10 years. The final regulations also address various requirements that must be met for an entity to qualify as a QOF, including requirements that must be met for an entity to qualify as a qualified opportunity zone business. The final regulations affect entities that self-certify as QOFs and eligible taxpayers that make investments, whether qualifying or non-qualifying, in such entities.” IR-2019-212 (12/19/19) |
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Source of Income From Certain Sales of Personal Property
TCJA |
Prop regs |
REG-100956-19 (12/30/19) |
863 864 865 937 1502 |
“proposed regulations modifying the rules for determining the source of income from sales of inventory produced within the United States and sold without the United States or vice versa. These proposed regulations also contain new rules for determining the source of income from sales of personal property (including inventory) by nonresidents that are attributable to an office or other fixed place of business that the nonresident maintains in the United States. Finally, these proposed regulations modify certain rules for determining whether foreign source income is effectively connected with the conduct of a trade or business within the United States.” |
| This page last updated March 17, 2020 |
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Page maintained by Professor Annette Nellen. |