Source: https://www.irs.gov/irb/2016-27_IRB
Timestamp: 2019-04-20 00:44:11+00:00

Document:
Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate. For purposes of sections 382, 642, 1274, 1288, 7872, and other sections of the Code, tables set forth the rates for July 2016.
This notice provides additional transition relief for employers claiming the Work Opportunity Tax Credit (WOTC) under §§ 51 and 3111(e) of the Internal Revenue Code (Code), as extended and amended by the Protecting Americans from Tax Hikes Act of 2015, Pub. L. No. 114–113, div. Q (the PATH Act). Specifically, this notice expands and extends by three months the transition relief provided in Notice 2016–22 (2016–13 IRB 488) for meeting the 28-day deadline in § 51(d)(13)(A)(ii) of the Code. This notice applies to employers that (1) hire members of targeted groups (other than qualified long-term unemployment recipients) on or after January 1, 2015, and on or before August 31, 2016, or (2) hire members of the new targeted group of qualified long-term unemployment recipients on or after January 1, 2016, and on or before August 31, 2016. This notice does not otherwise modify or add to the guidance provided under Notice 2016–22.
This notice updates the appendix to Notice 2013–1, which lists the Indian tribes who have settled tribal trust cases against the United States. Notice 2012–60 originally was published in IRB 2012–41 (October 9, 2012). Notice 2012–60 was superceded by Notice 2013–1 IRB 2013–3, and the appendix to Notice 2013–1 was superceded by Notice 2013–16 (IRB 2013–14), then Notice 2013–36, then Notice 2013–55, then Notice 2014–22, Notice 2014–38, then Notice 2014–61, and then Notice 2015–20. However, four additional tribes have settled cases against the United States since the publication of Notice 2015–20, so we are seeking to publish an updated appendix to Notice 2013–1. This notice supersedes Notice 2015–20.
Serves notice to potential donors of a stipulated decision by the United States Tax Court in declaratory judgment proceedings under Section 7428.
This revenue ruling provides various prescribed rates for federal income tax purposes for July 2016 (the current month). Table 1 contains the short-term, mid-term, and long-term applicable federal rates (AFR) for the current month for purposes of section 1274(d) of the Internal Revenue Code. Table 2 contains the short-term, mid-term, and long-term adjusted applicable federal rates (adjusted AFR) for the current month for purposes of section 1288(b). Table 3 sets forth the adjusted federal long-term rate and the long-term tax-exempt rate described in section 382(f). Table 4 contains the appropriate percentages for determining the low-income housing credit described in section 42(b)(1) for buildings placed in service during the current month. However, under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after July 30, 2008, shall not be less than 9%. Table 5 contains the federal rate for determining the present value of an annuity, an interest for life or for a term of years, or a remainder or a reversionary interest for purposes of section 7520. Finally, Table 6 contains the blended annual rate for 2016 for purposes of section 7872.
Section 51(a) of the Code provides the WOTC to employers based on a percentage of qualified wages paid during the taxable year. Section 51(b) of the Code defines qualified wages as wages paid or incurred by an employer during the taxable year to an individual who is a member of a targeted group. Section 51(d)(1) of the Code lists the targeted groups.
The PATH Act amends § 51(d)(1) of the Code to add qualified long-term unemployment recipients to the list of targeted groups, effective as of January 1, 2016. The PATH Act also extends the WOTC through December 31, 2019 for taxable employers that hire members of a targeted group and for qualified tax-exempt organizations described in § 501(c) of the Code that hire qualified veterans. For more information about the definition of qualified long-term unemployment recipients, and other information concerning the PATH Act extension of the WOTC, see Notice 2016–22.
Pursuant to § 51(d)(13)(A) of the Code, an individual is not treated as a member of a targeted group unless (1) on or before the day the individual begins work, the employer obtains certification from the designated local agency (DLA) that the individual is a member of a targeted group; or (2) the employer completes a pre-screening notice on or before the day the individual is offered employment and submits such notice to the DLA to request certification not later than 28 days after the individual begins work. To request certification from a DLA, an employer submits IRS Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit (IRS Form 8850), to the DLA no later than the 28th day after the day an individual who is a member of a targeted group begins work for the employer. As recognized in Notice 2016–22, the PATH Act amendments and expansion of the targeted groups described in § 51(d)(1) of the Code to include long-term unemployment recipients will require changes to forms for employers to request certification for qualified long-term unemployment recipients hired on or after January 1, 2016.
In recognition of the new forms and instructions, as well as the retroactive nature of the extension of the WOTC to certain targeted groups, Notice 2016–22 grants employers with transition relief for submitting IRS Form 8850 to the DLAs. Depending on the particular target group, that transition relief applied to individuals hired on or before May 31, 2016 and on or after either January 1, 2015 or January 1, 2016.
The IRS Form 8850 has been updated. The new targeted group, qualified long-term unemployment recipients, was added to the list of targeted groups. The updated IRS Form 8850 and instructions were made available for filers in March 2016 and may be found at https://www.irs.gov/uac/form-8850-pre-screening-notice-and-certification-request-for-the-work-opportunity-credit.
The Department of Labor, Employment and Training Administration (ETA) requires employers to submit ETA Form 9061 (Individual Characteristics Form) or 9062 (Conditional Certification) to the DLA as part of the employer’s certification request. To reduce burdens and the likelihood of processing delays, employers generally are encouraged to submit to DLAs the IRS Form 8850 and ETA Forms 9061 or 9062 together in the same submission. The ETA has informed the IRS that it intends to release the updated ETA forms and processing instructions for the DLAs coincident with the release of this notice.
(2) An employer that hired or hires an individual who is a long-term unemployment recipient, described in § 51(d)(1)(J) of the Code and Notice 2016–22, and who began or begins work for that employer on or after January 1, 2016, and on or before August 31, 2016, will be considered to have satisfied the requirements of § 51(d)(13)(A)(ii) of the Code if the employer submits the completed IRS Form 8850 to the DLA to request certification no later than September 28, 2016.
An employer that hires a member of a targeted group described in § 51(d)(1)(A) through (d)(1)(J) of the Code, including a long-term unemployment recipient, who begins work for that employer on or after September 1, 2016, is not eligible for the transition relief described in this notice with respect to any such new hire.
The notice modifies the transition relief provided in section IV.B of Notice 2016–22, only by extending the period of that transition relief as indicated in section III of this notice. In all other respects, this notice does not modify the guidance provided in Notice 2016–22, or provide additional guidance to the guidance provided in Notice 2016–22.
The principal author of this notice is R. Lisa Mojiri-Azad of the Office of Associate Chief Counsel (Tax Exempt and Government Entities). For further information regarding the WOTC, contact Ms. Mojiri-Azad at (202) 317-5500 (not a toll-free number).
Notice 2013–1, 2013–3 IRB 281, provides guidance on the federal tax treatment of per capita payments that members of Indian tribes receive from proceeds of certain settlements of tribal trust cases between the United States and those Indian tribes. Additional tribes have settled tribal trust cases against the United States since publication of Notice 2013–1. This notice provides an updated Appendix that reflects the additional settlement agreements.
Notice 2013–1 Appendix is modified and superseded.
For further information regarding this notice, please contact Telly Meier at phone number (202) 317-8494 (not a toll-free number).
2014–42 may be determined ineligible to engage in limited practice as a representative of any taxpayer. Under the regulations, individuals subject to Circular 230 may not assist, or accept assistance from, individuals who are suspended or disbarred with respect to matters constituting practice (i.e., representation) before the IRS, and they may not aid or abet suspended or disbarred individuals to practice before the IRS.
This announcement serves notice to donors that on February 26, 2016, the United States Tax Court entered a stipulated decision that, effective January 15, 2016, the organization listed below is not qualified as an organization described in section 501(c)(3), is not exempt from taxation under section 501(a), and is not an organization described in section 170(c)(2).

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