Internal Revenue Bulletin: 2016-10
March 7, 2016
These proposed regulations provide a definition of “political subdivision” for purposes of sections 103 and 141 through 150 of the Code and rules stating when to apply that definition. The proposed definition generally provides that a political subdivision must be delegated sufficient sovereign powers, must serve a governmental purpose, and must be controlled by a State or local governmental unit. The proposed definition provides that an issuer must remain a political subdivision for its bonds to remain tax-exempt under section 103. The proposed regulations also streamline certain portions of the existing regulations without changing their meaning.
Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate. For purposes of sections 382, 642, 1274, 1288, and other sections of the Code, tables set forth the rates for March 2016.
General Rules and Specifications for Substitute Form 941, Schedule B (Form 941), Schedule D (Form 941), and Schedule R (Form 941) This procedure provides general rules and specifications from the IRS for paper and computer-generated substitutes for Form 941, Schedule B (Form 941), Schedule D (Form 941), and Schedule R (Form 941). This procedure will be reproduced as the next revision of Publication 4436. Rev. Proc. 2015–38 is superseded.
The final regulations provide guidance to brokers who (1) must report OID income on a tax-exempt debt instrument, (2) must take into account certain debt instrument elections when computing basis, or (3) must prepare a transfer statement for the transfer of a debt instrument or section 1256 option that is a covered security.
These regulations relate to withholding on foreign persons upon certain dispositions of, and distributions with respect to, U.S. real property interests. The regulations reflect changes made by the Protecting Americans from Tax Hikes Act of 2015. In addition, the regulations update certain mailing addresses listed in regulations under sections 897 and 1445. Specifically, these regulations modify 26 CFR 1.897–2, 26 CFR 1.897–3, 26 CFR 1.1445–1, 26 CFR 1.1445–2, 26 CFR 1.1445–3, 26 CFR 1.1445–4, 26 CFR 1.1445–5, 26 CFR 1.1445–6, and 26 CFR 1.1445–11T.
These regulations provide guidance regarding the requirements for certain domestic entities to report specified foreign financial assets to the Internal Revenue Service with a timely filed U.S. income tax return. These regulations set forth the conditions under which a domestic corporation, domestic partnership, or domestic trust will be required to undertake such reporting.
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