Source: http://www.sjsu.edu/people/annette.nellen/website/2019regs.html
Timestamp: 2019-08-22 12:11:32
Document Index: 375677471

Matched Legal Cases: ['§199', '§199', '§1', '§ 1', '§ 1', '§ 1', '§ 1', '§164', '§1', '§ 1', '§ 1', '§ 1', '§ 1']

Federal Tax Regulations Issued in 2019
The table below lists tax regulations issued by the Treasury Department and IRS in 2018. The links will take you to the text of the regulations (usually in the Federal Register) and other helpful information.
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: 2018 2017 2016 2015 2014 2013 2012 2011
California Franchise Tax Board (FTB) Regulations – see the Interested Parties meetings website of the FTB.
TD 9844 (2/27/19)
Advance release (12/28/18)
*delay likely due to gov’t shutdown
“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.
TD 9846 (2/5/19)
“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.
Corrections: FR 14260 (4/10/19) and FR 14261 (4/10/19)
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]
“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)
Rev. Proc. 2019-11 (1/18/19) with guidance on determining W-2 wages for 199A purposes,
Notice 2019-07 (1/18/19) which is a proposed revenue procedure on a safe harbor where certain real estate activities are considered a trade or business for §199A purposes. Note: This is a safe harbor meaning if you meet it, no questions asked. But it is not the only way to show that a rental activity is a trade or business so be sure to check on the extensive case law on this which often finds rentals of real property (other than a triple net lease) to be a trade or business where there is a profit motive and regular and continuous work by the owner or done by an agent on his behalf.
Proposed regs under §199A (see next),
IR-2019-04 (1/18/19).
*Correction of final regs at 2/1/19 – per the IRS: “corrections include, among other edits, corrections to the definition and computation of excess section 743(b) basis adjustments for purposes of determining the unadjusted basis immediately after an acquisition of qualified property, as well as corrections to the description of an entity disregarded as separate from its owner for purposes of section 199A and §§1.199A-1 through 1.199A-6.”
Effective date: Generally, 2/8/19. “However, taxpayers may rely on the rules set forth in §§ 1.199A–1 through 1.199A–6, in their entirety, or on the proposed regulations under §§ 1.199A–1 through 1.199A–6 issued on August 16, 2018, in their entirety, for taxable years ending in calendar year 2018.” Note though that the anti-abuse provisions in the regs are generally effective for tax years ending after the TCJA enactment date (12/22/17).
Observation: The final regs include new 1.199A-3(b)(1)(vi) that states that QBI is reduced by deductions attributable to the trade or business, such as the deduction for half of SE tax, self-employed health insurance and 404 contributions, and perhaps other items. Although this is specified in the final regs and not the proposed regs, arguably, it is in the statute itself so must be followed whether a taxpayer follows the proposed or final regs for 2018. For more on the rationale for this observation, see blog post of 2/28/19.
REG-134652-18 (2/8/19)
“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.”
TD 9848 (2/26/19)
“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.
REG-104464-18 (3/6/19)
“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).
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.
TD 9850 (3/4/19)
“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.”
“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)
REG-103083-18 (3/25/19)
“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)
REG-135671-17 (3/25/19)
“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.”
TD 9852 (3/25/19)
“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)
TD 9853 (3/26/19)
“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.”
REG-113943-17 (3/26/19)
“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).
REG-121694-16 (3/26/19)
“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)
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)
“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.”
Withdraw prop regs of December 2011
REG-124627-11 (4/1/19)
“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.
TD 9854 (4/9/19)
“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.”
TD 9855 (4/9/19)
“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.”
TD 9856 (4/9/19)
“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.”
REG-117062-18 (4/19/19)
“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.”
REG-120186-18 (5/1/19)
Advance release by IRS (4/17/19)
“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.
TD 9857 (5/13/19)
“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)
TD 9858 (5/13/19)
“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.”
REG-105476-18 (5/13/19)
“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.”
REG-125135-15 (5/20/19)
“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.”
TD 9859 (5/23/19)
“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)
TD 9860 (5/28/19)
“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.”
REG-132240-15 (5/31/19)
“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.
TD 9862 (6/7/19)
“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.”
REG-109826-17 (6/7/19)
“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.”
TD 9863 (6/17/19)
“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.”
TD 9864 (6/13/19)
“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).
TD 9865 (6/18/19)
REG-106282-18 (6/18/19)
“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)
TD 9866 (6/21/19)
IRS Advance release (6/14/19)
“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).
Guidance under Section 958 (Rules for Determining Stock Ownership) and Section 951A (Global Intangible Low-Taxed Income) [GILTI]
REG-101828-19 (6/21/19)
“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.”
Health Reimbursement Arrangements and Other Account–Based Group Health Plans
TD 9867 (6/20/19)
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
TD 9868 (6/18/19)
“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.”
REG-118425-18 (6/19/19)
“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.”
Use of Truncated Taxpayer Identification Numbers on Forms W–2, Wage and Tax Statement, Furnished to Employees
TD 9861 (7/3/19)
“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.
REG-106877-18 (7/3/19)
“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)
REG-121508-18 (7/3/19)
“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.”
TD 9869 (7/2/19)
“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.”
REG-105474-18 (7/11/19)
“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.”
TD 9870 (7/15/19)
“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.”
TD 9871 (7/24/19)
“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.”
TD 9872 (7/19/19)
“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.”
TD 9873 (7/23/19)
“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).
REG-130700-14 (8/14/19)
“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.
This page last updated August 16, 2019