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Internal Revenue Bulletin:  2017-7 

February 13, 2017 

INCOME TAX


REG–127203–15REG–127203–15

Proposed regulations address transfers of appreciated property by United States persons (U.S. persons) to partnerships with foreign partners related to the transferor. The regulations override the rules providing for nonrecognition of gain on a contribution of property to a partnership in exchange for an interest in the partnership under section 721(a) of the Internal Revenue Code (Code) pursuant to section 721(c) unless the partnership adopts the remedial method and certain other requirements are satisfied. The document also contains regulations under sections 197, 704, and 6038B that apply to certain transfers described in section 721. The regulations affect U.S. partners in domestic or foreign partnerships. The text of the proposed regulations is the same as temporary regulations published in TD 9814.

REG–137604–07REG–137604–07

The proposed regulations reflect changes to the Code relating to the dependency exemption. The proposed regulations also make conforming changes relating to the definition of surviving spouse and the definition of head of household, the tax tables for individuals, the child and dependent care credit, the earned income credit, the standard deduction, joint tax returns, and taxpayer identification numbers for children placed for adoption. To make the earned income credit and the dependency exemption easier for taxpayers to claim, the proposed regulations change the IRS’s position regarding who may take the childless earned income credit and the source of support for certain payments originating as governmental payments. The proposed regulations also change the IRS’s position regarding the adjusted income of a taxpayer filing a joint return to be consistent with other Code sections that require the filing of a joint return.

Nonacquiescence to the holding that a limited partnership was not a farming syndicate because the sole shareholder of a limited partner S Corporation actively participated in the farming business.

Notice 2017–16Notice 2017–16

This notice provides that, pursuant to the authority granted to the Secretary by § 35(g)(11)(B), a health coverage tax credit (HCTC) election for a month in 2016 may be made at any time before the expiration of the 3-year statute of limitation under § 6511 for such year, including on an amended income tax return. This extension of time is provided because, prior to its expiration, the HCTC did not require an election and the Treasury Department and the IRS are concerned that eligible taxpayers may not be aware of the requirement to affirmatively elect the HCTC for coverage provided in 2016.

Rev. Proc. 2017–19Rev. Proc. 2017–19

This revenue procedure provides a safe harbor under which the Service will respect certain Energy Savings Performance Contracts for the sale of electricity by an Energy Service Company to a Federal Agency as a service contract under § 7701(e)(3).

Rev. Proc. 2017–24Rev. Proc. 2017–24

This revenue procedure extends the relief provided under Rev. Proc. 2015–57, 2015–51 I.R.B. 863, to taxpayers who took out Federal student loans to finance attendance at a school owned by American career Institutes, Inc. (ACI) and whose Federal student loans are discharged under the Department of Educations's "Defense to Repayment" or "Closed School" discharge process. Further, this revenue procedure provides that the Internal Revenue Service (IRS) will not assert that the creditor must file information returns and furnish payee statements as a result of discharging these loans. This revenue procedure also modifies Rev. Proc. 2015–57 to provide that the IRS will not assert that creditors under that revenue procedure must file information returns and furnish payee statements as a result of discharges under the revenue procedure.

T.D. 9811T.D. 9811

This document contains final regulations regarding the application of the modified carryover basis rules of section 1022 of the Internal Revenue Code. Specifically, the final regulations modify provisions of the Treasury Regulations involving basis rules by including a reference to section 1022 where appropriate. The regulations will affect property transferred from certain decedents who died in 2010. The regulations reflect changes to the law made by the Economic Growth and Tax Relief Reconciliation Act of 2001 and the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.

T.D. 9814T.D. 9814

Temporary regulations address transfers of appreciated property by United States persons (U.S. persons) to partnerships with foreign partners related to the transferor. The regulations override the rules providing for nonrecognition of gain on a contribution of property to a partnership in exchange for an interest in the partnership under section 721(a) of the Internal Revenue Code (Code) pursuant to section 721(c) unless the partnership adopts the remedial method and certain other requirements are satisfied. The document also contains regulations under sections 197, 704, and 6038B that apply to certain transfers described in section 721. The regulations affect U.S. partners in domestic or foreign partnerships.


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