Internal Revenue Bulletin: 2016-2
January 11, 2016
This notice provides the optional 2016 standard mileage rates for taxpayers to use in computing the deductible costs of operating an automobile for business, charitable, medical, or moving expense purposes. This notice also provides the amount taxpayers must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that may be used in computing the allowance under a fixed and variable rate (FAVR) plan.
This revenue ruling provides various prescribed rates for federal income tax purposes including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate, the adjusted federal long-term tax-exempt rate, and the blended annual rate. These rates are determined as prescribed by § 1274. This month's revenue ruling also contains the deemed rate of return for transfers made during calendar year 2016 to pooled income funds described in § 642(c)(5) that have been in existence for less than 3 taxable years immediately preceding the taxable year in which the transfer was made.
This notice provides guidance regarding the health coverage tax credit (HCTC) under § 35 of the Internal Revenue Code as modified by the Trade Preferences Extension Act of 2015, Pub. L. 114–27 (June 29, 2015). The notice provides information, including answers to frequently asked questions, on who may claim the HCTC, the amount of the HCTC, and the procedures to claim the HCTC for tax years 2014 and 2015. The notice also provides guidance for taxpayers eligible to claim the HCTC who enrolled in a qualified health plan through a Health Insurance Marketplace in tax years 2014 and 2015, and who claimed or are eligible to claim the premium tax credit under § 36B.
These final regulations (REG–125398–12) finalize rules proposed in 2013 dealing with various issues under section 36B relating to the health insurance premium tax credit. These regulations include rules for determining the amount of the credit for partial months of coverage and the effect of various employer arrangements, such as health reimbursement arrangements, wellness programs, and health flex contributions, on the affordability of employer-sponsored health coverage. Rules relating to minimum value, also part of the 2013 proposed regulations, are reserved here and will be finalized at a later time.
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