Internal Revenue Bulletin: 2017-3
January 17, 2017
Table of Contents
Section 995(f) of the Internal Revenue Code requires the IRS to annually publish a “base period T-bill rate” with which a shareholder of an interest charge domestic international sales corporation (IC-DISC) calculates the interest due on their IC-DISC-related deferred tax liability for the year. Revenue Ruling 2017–01 sets forth the base period T-bill rate as determined by the Office of Debt Management within the Treasury Department for the period ending September 30, 2016, and provides a table of factors compounded daily for taxpayers with short or alternative taxable years.
Notice 2017–6 waives the eligibility rule for one more year (to any taxable year beginning before January 1, 2017) for taxpayers making certain automatic changes to utilize the final tangible property regulations under §§ 162(a) and 263(a) of the Internal Revenue Code (and for making certain automatic changes to comply with the final depreciation and disposition regulations under § 168). The eligibility rule, set out in section 5.01(1)(f) of Rev. Proc. 2015–13, 2015–5 I.R.B. 419, prohibits taxpayers from making certain automatic changes in accounting methods if they applied or made a change in accounting method for the same item during any of the five taxable years ending with the year of change. This notice provides an additional year’s waiver of that requirement for making certain automatic method changes under these final regulations.
The notice modifies the effective dates in the § 1.987–12T deferral rule (published in December 2016 in TD 9795) to apply to deferral events or outbound loss events that occur as a result of an entity classification election made under § 301.7701–3.
The notice modifies Notice 2016–66, 2016–47 I.R.B. 745, to provide an extension of time for the filing of participant and material advisor disclosure statements until May 1, 2017.
The revenue procedure generally provides that the Internal Revenue Service will treat certain internal total loss-absorbing capacity (TLAC) instruments as indebtedness for federal tax purposes.
This revenue procedure sets forth the final qualified intermediary (QI) withholding agreement (QI agreement) that foreign persons may enter with the Internal Revenue Service (IRS) under § 1.1441–1(e)(5) to simplify their obligations as withholding agents under chapters 3 and 4 and as payors under chapter 61 and section 3406 for amounts paid to their account holders. The QI agreement also allows certain foreign persons to enter into an agreement with the IRS to act as qualified derivatives dealers (QDDs). This revenue procedure also announces that because updated withholding foreign partnership (WP) and withholding foreign trust (WT) agreements will not be published before December 31, 2016, WPs and WTs with agreements currently in effect may continue to treat those agreements as in effect until updated agreements are issued in January 2017.
This revenue procedure sets forth the agreement entered into by a foreign financial institution (FFI) with the Internal Revenue Service (IRS) to be treated as a participating FFI under section 1471(b) of the Internal Revenue Code (Code) and § 1.1471–4 of the Income Tax Regulations (the FFI agreement). This revenue procedure also provides guidance to FFIs and branches of FFIs treated as reporting financial institutions under an applicable Model 2 intergovernmental agreement (IGA) (reporting Model 2 FFIs) on complying with the terms of the FFI agreement, as modified by the Model 2 IGA. The FFI agreement provided in Revenue Procedure 2014–38 (2014–29 I.R.B. 131) (2014 FFI agreement) expires on December 31, 2016. The FFI agreement in this revenue procedure will apply to FFIs with an FFI agreement effective on or after January 1, 2017.
Final regulations treating a domestic disregarded entity wholly owned by a foreign person as a domestic corporation separate from its owner for the limited purposes of the reporting, record maintenance and associated compliance requirements that apply to 25 percent foreign-owned domestic corporations under section 6038A of the Code.
This final regulations address certain transfers of property by United States persons to foreign corporations. The final regulations affect United States persons that transfer certain property, including foreign goodwill and going concern value, to foreign corporations in nonrecognition transactions described in section 367 of the Internal Revenue Code. The regulations also combine certain sections of the existing regulations under section 367(a) into a single section. This document also withdraws certain temporary regulations.
These final regulations address issues under section 36B of the Internal Revenue Code relating to the health insurance premium tax credit. The final regulations amend the computation of the premium tax credit for families with children who enroll in health coverage through Exchanges offering qualified health plans that do not provide pediatric dental benefits, and address information reporting by Exchanges and other issues. The final regulations are reserved on the effect of employer opt-out arrangements on the affordability of employer-provided health coverage for purposes of the premium tax credit and the section 5000A individual shared responsibility provision.
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