Internal Revenue Bulletin: 2017-4
January 23, 2017
Table of Contents
Nuclear Decommissioning Funds. The proposed regulations provide rules under section 468A concerning deductions for amounts contributed to a qualified nuclear decommissioning reserve fund and the use of the amounts in those funds to decommission nuclear plants. The proposed regulations revise certain provisions to (1) address issues that have arisen as more nuclear plants have begun the decommissioning process, and (2) clarify provisions in the current regulations regarding self-dealing and the definition of substantial completion of decommissioning.
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 Notice 2012–60 was superceded by Notice 2013–1 IRB 2013–3, and the appendix to Notice 2013–1 was superceded by Notice 2013–16 (IRB 2013–14), then Notice 2013–36, then Notice 2013–55, then Notice 2014–22, Notice 2014–38, then Notice 2014–61, and then Notice 2015–20, and then Notice 2016–41, and then Notice 2016–65. However, we noticed a typo in Notice 2016–65 after it was published. The correct spelling of Tribe 81 is "Southern Ute Indian Tribe." Notice 2017–02 simply corrects the spelling. This notice would supersede Notice 2016–65.
The proposed revenue ruling updates, for certain insurance contracts issued in 2016 and 2017, the prevailing state assumed interest rates that life insurance companies need in order to compute their life insurance reserves for federal tax purposes.
Beginning of Construction for Sections 45 and 48. Notice 2017–04 updates and clarifies the guidance provided in prior IRS notices regarding the beginning of construction for sections 45 and 48. Specifically, the notice provides clarification regarding the extension and modification of the Continuity Safe Harbor, the prohibition against combining methods by which to satisfy the beginning of construction requirement, and the costs that may be included in the Five Percent Safe Harbor for retrofitted renewable energy facilities.
The notice alerts participants and material advisors involved in certain syndicated conservation easement transactions that they are tax avoidance transactions and are listed transactions.
The final regulations provide guidance on determining ownership of a passive foreign investment company (PFIC) and on certain annual reporting requirements for shareholders of PFICs to file Form 8621, “Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund.” In addition, the final regulations provide guidance on an exception to the requirement for certain shareholders of foreign corporations to file Form 5471, “Information Return of U.S. Persons with Respect to Certain Foreign Corporations.” The regulations finalize proposed regulations and withdraw temporary regulations published on December 31, 2013. The final regulations affect United States persons that own interests in PFICs, and certain United States shareholders of foreign corporations.
|More Internal Revenue Bulletins|