Federal Tax Regulations Issued in 2011

The table below lists tax regulations issued by the Treasury Department and IRS in 2011 in chronological order.  The links will take you to the text of the regulations (usually in the Federal Register) and other helpful information. 

Federal tax regulations issued in:      2012     2013    2014

Title of Regulation

Status

Citation

IRC Sections

Additional Information

Modifications of Debt Instruments

Final regs

TD 9513 (1/7/11)

1001

"clarify the extent to which the deterioration in the financial condition of the issuer is taken into account to determine whether a modified debt instrument will be recharacterized as an instrument or property right that is not debt."

Property Traded on an Established Market

Proposed

REG–131947–10 (1/7/11)

1273

1274

1275

"determining when property is traded on an established market (that is, publicly traded) for purposes of determining the issue price of a debt instrument."

Guidance on Reporting Interest Paid to Nonresident Aliens

Proposed

REG–146097–09 (1/7/11)

 

Correction (1/18/11)

 

Correction

(2/11/11)

6049

"guidance on the reporting requirements for interest on deposits maintained at U.S. offices of certain financial institutions and paid to nonresident alien individuals. These proposed regulations affect persons making payments of interest with respect to such deposits."

Rewards and Awards for Information Relating to Violations of Internal Revenue Laws

Proposed

REG–131151–10 (1/18/11)

7623

"relating to the payment of rewards under section 7623(a) of the Internal Revenue Code and awards under section 7623(b). The guidance is necessary to clarify the definition of proceeds of amounts collected and collected proceeds under section 7623. ... provides needed guidance to the general public as well as officers and employees of the IRS who review claims under section 7623."

Nuclear Decommissioning Funds

Final regs

TD 9512

468A

Correction – page 3837 (1/21/11) – “correction to final regulations (TD 9512) that were published in the Federal Register on Thursday, December 23, 2010 (75 FR 80697) relating to deductions for contributions to trusts maintained for decommissioning nuclear power plants.”

Hybrid Retirement Plans

Rule document

TD 9505

411

Correction – page 4244 (1/25/11)  - TD 9505 (10/19/10)

Source Rules Involving U.S. Possessions and Other Conforming Changes

Final regs

TD 9391

932

Correction – page 4244 (1/25/11) – “correction to final regulations (TD 9391) that were published in the Federal Register on Wednesday, April 9, 2008 (73 FR 19350) providing rules under section 937(b) of the Internal Revenue Code for determining whether income is derived from sources within a U.S. possession or territory specified in section 937(a)(1) (generally referred to in this preamble as a ‘‘territory’’) and whether income is effectively connected with the conduct of a trade or business within a territory as well as providing guidance under section 932 and other provisions related to the territories.”

Time and Manner for Electing Capital Asset Treatment for Certain Self-Created Musical Works

Final regs and removal of temporary regs

TD 9514 (2/7/11)

1221

provides the time and manner rules for electing to treat the sale or exchange of a musical composition or a copyright in a musical work created by the taxpayer (or received by the taxpayer from the composition or work’s creator in a transferred basis transaction) as the sale or exchange of a capital asset. The regulation reflects changes to the law made by the Tax Increase Prevention and Reconciliation Act of 2005 and the Tax Relief and Health Care Act of 2006. The regulation affects taxpayers who elect to treat gain or loss from such a sale or exchange as capital gain or loss.”

Amendment to the Bank Secrecy Act Regulations:   Reports of Foreign Financial Accounts

Final rule

RIN 1506–AB08 (2/24/11)

FBAR

 

31 CFR Part 1010

 

"FinCEN is issuing this final rule to amend the Bank Secrecy Act (BSA) regulations regarding reports of foreign financial accounts. The rule addresses the scope of the persons that are required to file reports of foreign financial accounts. The rule further specifies the types of accounts that are reportable, and provides filing relief in the form of exemptions for certain persons with signature or other authority over foreign financial accounts. Finally, the rule adopts provisions intended to prevent persons subject to the rule from avoiding their reporting requirement."

Guidance under Section 1502; Amendment of Matching Rule for Certain Gains on Member Stock

Final and temporary regs

TD 9515 (3/4/11)

1502

the treatment of certain intercompany gain with respect to stock owned by members of a consolidated group. These regulations provide for the redetermination of intercompany gain as excluded from gross income in certain transactions involving stock transfers between members of a consolidated group. The temporary regulations contained in this document are solely for the purpose of retaining the portion of the existing temporary regulations that were in the same temporary regulation section but that are not being promulgated as final regulations at this time. These regulations affect corporations filing consolidated returns.”

 

Correction – page 20524 (4/13/11)

Correcting amendment – page 17781 (3/31/11)

Disclosure of Return Information in Connection With Written Contracts Among the IRS, Whistleblowers, and Legal Representatives of Whistleblowers

Final regs and removal of temporary regs

TD 9516 (3/15/11)

6103

disclosure of return information by an officer or employee of the Treasury Department, to a whistleblower and, if applicable, the legal representative of the whistleblower, to the extent necessary in connection with a written contract among the IRS, the whistleblower and, if applicable, the legal representative of the whistleblower, for services relating to the detection of violations of the internal revenue laws or related statutes. The final regulations will affect officers and employees of the Treasury Department who disclose return information to whistleblowers or their legal representatives in connection with written contracts among the IRS, whistleblowers and, if applicable, their legal representatives, for services relating to the detection of violations of the internal revenue laws or related statutes. The final regulations will also affect any whistleblower or legal representative of a whistleblower who receives return information in connection with a written contract among the IRS, the whistleblower and, if applicable, the legal representative of the whistleblower, for services relating to the detection of violations of the internal revenue laws or related statutes.”

Disclosure of Information to State Officials Regarding Tax-Exempt Organizations

Proposed regs

REG–140108–08 (3/15/11)

6104

reflect[s] changes to section 6104(c) of the Internal Revenue Code (Code) made by the Pension Protection Act of 2006 (PPA). These rules provide guidance to states regarding the process by which they may obtain or inspect certain returns and return information (including information about final and proposed denials and revocations of tax-exempt status) for the purpose of administering state laws governing certain tax-exempt organizations and their activities. These regulations will affect such exempt organizations, as well as those state agencies choosing to obtain information from the Internal Revenue Service (IRS) under section 6104(c).”

Disclosure of Returns and Return Information to Designee of Taxpayer

Proposed regs

REG–153338–09 (3/18/11)

6103

pertaining to the period for submission to the IRS of taxpayer authorizations permitting disclosure of returns and return information to third-party designees. Specifically, the proposed regulation extends from 60 days to 120 days the period within which a signed and dated authorization must be received by the IRS (or an agent or contractor of the IRS) in order for it to be effective. The proposed regulation extends the period as some institutions charged with assisting taxpayers in their financial dealings have encountered difficulty in obtaining written authorizations and submitting the authorizations within the 60-day period allowed by the existing regulations. The proposed regulation will affect taxpayers who submit authorizations permitting disclosure of returns and return information to third party designees.”

Regulations Governing Performance of Actuarial Services under 1974 Employee Retirement Income Security Act

Final regs

TD 9517 (3/31/11)

20 CFR part 901

regulations under section 3042 of the Employee Retirement Income Security Act of 1974 (ERISA) relating to the enrollment of actuaries. These regulations update the eligibility requirements for performing actuarial services for ERISA-covered employee pension benefit plans, including the continuing professional education requirements, and the standards for performing such actuarial services. These regulations will affect employee pension benefit plans and the actuaries providing actuarial services to those plans.”

Specified Tax Return Preparers Required To File Individual Income Tax Returns Using Magnetic Media

Final regs

TD 9518 (3/30/11)

6011

"requirement for ‘‘specified tax return preparers’’ to file individual income tax returns using magnetic media pursuant to section 6011(e)(3) of the Internal Revenue Code (Code). The final regulations reflect changes made to the law by the Worker, Homeownership, and Business Assistance Act of 2009. These regulations provide guidance to specified tax return preparers who prepare and file individual income tax returns. Unless an exception in these regulations applies, a tax return preparer who meets the definition of a ‘‘specified tax return preparer’’ must electronically file Federal income tax returns that the preparer prepares and files for individuals, trusts, and estates. These regulations provide a two-year transition period for certain specified tax return preparers."

 

Correction – page 22611 (4/22/11)

Taxpayer Assistance Orders

Final regs

TD 9519 (4/1/11)

7811

"reflect changes to the law made by the Taxpayer Bill of Rights II, the Internal Revenue Service Restructuring and Reform Act of 1998, the Community Renewal Tax Relief Act of 2000, and the American Jobs Creation Act of 2004. The final regulations affect taxpayers in cases where a taxpayer assistance order is being considered or issued."

Withdrawal of Regulations Related to Validity and Priority of Federal Tax Lien

Final regs

TD 9520 (4/4/11)

6323

"validity and priority of the Federal tax lien against certain persons under section 6323 of the Internal Revenue Code (the Code). The final regulations update the corresponding Treasury Regulations to reflect changes in the law and in IRS practice."

Reduction of Foreign Tax Credit Limitation Categories under Section 904(d)

Final regs and removal of temporary regs

TD 9521 (4/7/11)

904

"guidance relating to the reduction of the number of separate foreign tax credit limitation categories under section 904(d) of the Internal Revenue Code. Changes to the applicable law were made by the American Jobs Creation Act of 2004 (AJCA) reducing the number of section 904(d) separate categories from eight to two, effective for taxable years beginning after December 31, 2006. The final regulations provide guidance needed to comply with these changes and affect individuals and corporations claiming foreign tax credits."

 

Correction – page 27609 (5/12/11)

Clarification of Controlled Group Qualification Rules

Final regs

TD 9522 (4/11/11)

1563

"clarifies that a corporation that satisfies the controlled group rules for stock ownership and qualification is a member of such group, without regard to its status as a component member."

Guidance Concerning the Exclusion of Section 61 Discharge of Indebtedness Income of a Grantor Trust or a Disregarded Entity

Proposed regs

REG–154159–09 (4/13/11)

108

"exclusion from gross income under section 108(a) of discharge of indebtedness income of a grantor trust or an entity that is disregarded as an entity separate from its owner. The proposed regulations provide rules regarding the term ‘‘taxpayer’’ for purposes of applying section 108 to discharge of indebtedness income of a grantor trust or a disregarded entity. The proposed regulations affect grantor trusts, disregarded entities, and their owners."

Controlled Groups; Deferral of Losses

Proposed regs

REG–118761–09 (4/21/11)

267

guidance concerning the time for taking into account deferred losses on the sale or exchange of property between members of a controlled group. These proposed regulations affect members of a controlled group and their shareholders.”

 

Correction – page 30052 (5/24/11)

User Fees Relating to Enrolled Agents and Enrolled Retirement Plan Agents

Final regs

TD 9523 (4/19/11)

9701

"imposition of user fees for enrolled agents and enrolled retirement plan agents. The final regulations lower the initial enrollment and renewal of enrollment user fees for enrolled agents and enrolled retirement plan agents and separate the enrolled retirement plan agent user fees from the enrolled agent user fees. The final regulations affect individuals who are, or apply to become, enrolled agents or enrolled retirement plan agents."

Controlled Groups; Deferral of Losse

Proposed

REG–118761–09 (4/21/11)

267

"guidance concerning the time for taking into account deferred losses on the sale or exchange of property between members of a controlled group. These proposed regulations affect members of a controlled group and their shareholders."

Extension of Withholding to Certain Payments Made by Government Entities

Final regs

 

 

Proposed regs

TD 9524 (5/9/11)

 

REG–151687–10 (5/9/11)

3402(t)

"affect Federal, State, and local government entities that will be required to withhold and report tax from payments to persons providing property or services and also affect the persons receiving payments for property or services from the government entities."

 

Correction – page 32864 (6/7/11)

Correction – page 32885 (6/7/11)

Modifications to Treatment of Aircraft and Vessel Leasing Income

Final regs and removal of temporary regs

TD 9525 (5/6/11)

367

"treatment of certain income and assets related to the leasing of aircraft or vessels in foreign commerce."

Treatment of Property Used to Acquire Parent Stock or Securities in Certain Triangular Reorganizations Involving Foreign Corporations

Final regs and removal of temporary regs

TD 9526 (5/19/11)

367

"relating to the treatment of property used to acquire parent stock or securities in certain triangular reorganizations involving foreign corporations."

 

q      Journal of Accountancy, “New "Killer B" Regulations Issued,” (5/18/11)

q      http://www.journalofaccountancy.com/Web/20114166

 

Practice Before the Internal Revenue Service

Final regs

TD 9527 (6/3/11)

Changes to Circular 230

"final regulations governing practice before the Internal Revenue Service (IRS). The regulations affect individuals who practice before the IRS and providers of continuing education programs. The regulations modify the general standards of practice before the IRS and the standards with respect to tax returns."

 

Correction – page 49650 (8/11/11)

Alternative Simplified Credit

Final regs and removal of temporary regs

TD 9528 (6/10/11)

41

"election and calculation of the alternative simplified credit under section 41(c)(5) of the Internal Revenue Code (Code). The final regulations affect certain taxpayers claiming the credit under section 41. These final regulations implement changes to the credit for increasing research activities under section 41 made by the Tax Relief and Health Care Act of 2006."

 

n       Can make or revoke an election to use ASC using Form 6765 but not on an amended return

n       No relief to make late election or revocation under 301.9100-3

n       “short taxable years be prorated by the number of days in the year instead of the number of months in the year for taxable years ending after June 9, 2011”

 

Encouraging New Markets Tax Credit Non-Real Estate Investments

Proposed regs

REG–114206–11 (6/7/11)

 

REG–101826–11 (6/7/11)

 

"invites comments from the public on issues that the Treasury Department and the IRS may address in regulations relating to the new markets tax credit."

 

"proposed regulations modifying the new markets tax credit program to facilitate and encourage investments in non-real estate businesses in low-income communities."

 

Correction – page 39341 (7/6/11)

Correction – page 39343 (7/6/11)

Requirements for Taxpayers Filing

Form 5472

Temporary regs

TD 9529 (6/10/11)

 

REG–101352–11 (6/10/11)

6038A

"remove the duplicate filing requirement for Form 5472, ‘‘Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business.’’"

 

Correction – page 36995 (6/24/11)

Correction – page 36996 (6/24/11)

 

n       Reason: “advances in electronic processing and data collection in the IRS”

n       Duplicate used to be sent to Philadelphia Service Center

 

Claims for credit or refund

Proposed regs

REG–137128–08 (6/10/11)

6402

"provide guidance to taxpayers generally as to the proper place to file a claim for credit or refund. The regulations are updated to reflect changes made by the enactment of the Tax Reform Act of 1976, the Internal Revenue Service Restructuring and Reform Act of 1998, and the Community Renewal Tax Relief Act of 2000. The regulations further are updated to reflect that the IRS may prescribe additional claim forms."

Guidance Under Section 956 for Determining the Basis of Property Acquired in Certain Nonrecognition Transactions

Final and temporary regs

TD 9530 (6/24/11)

956

"determination of basis in certain United States property acquired by a controlled foreign corporation in certain nonrecognition transactions that are intended to repatriate earnings and profits of the controlled foreign corporation without U.S. income taxation. The regulations affect United States shareholders of a controlled foreign corporation that acquires United States property in certain nonrecognition transactions."

 

Correction – page 43891 (7/22/11)

 

Effective 6/24/11

Extension of Time for Filing Returns

Final regs and removal of temporary regs

TD 9531 (6/24/11)

6081

" automatic extensions of time to file returns for partnership, trust, and estate taxpayers, and automatic extensions of time for filing returns for pension excise taxes. The objective of these final regulations is to reduce overall taxpayer burden by providing an extension period that strikes the most reasonable balance for these pass-through entities and the large number of taxpayers who require information from these entities for completion of their income tax returns."

Group Health Plans and Health Insurance Issuers:   Internal Claims and Appeals and External Review Processes

Amendment to interim final

rules with request for comments

TD 9532 (6/24/11)

 

REG–125592–10 (6/24/11)

9851

"amendments to interim final regulations implementing the requirements regarding internal claims and appeals and external review processes for group health plans and health insurance coverage in the group and individual markets under provisions of the Affordable Care Act. These rules are intended to respond to feedback from a wide range of stakeholders on the interim final regulations and to assist plans and issuers in coming into full compliance with the law through an orderly and expeditious implementation process."

 

Correction – page 44491 (7/26/11)

Deduction Limitation for Certain Employee Remuneration in Excess of $1,000,000

Proposed regs

REG–137125–08 (6/24/11)

162(m)

"clarify that qualified performance-based compensation attributable to stock options and stock appreciation rights must specify the maximum number of shares with respect to which options or rights may be granted to each individual employee. The proposed regulations also clarify the application of the transition rule for taxpayers that are not publicly held corporations and then become publicly held corporations."

 

Correction – page 55321 (9/7/11)

Modification of Regulations Under Dodd–Frank Wall Street Reform and Consumer Protection Act

Final and temporary regs

TD 9533 (7/6/11)

 

REG–118809–11 (7/6/11)

150

171

197

249

475

860G

1001

"remove any reference to, or requirement of reliance on, ‘‘credit ratings’’ in regulations under the Internal Revenue Code (Code) and provides substitute standards of creditworthiness where appropriate. This action is required by the Dodd-Frank Wall Street Reform and Consumer Protection Act."

Methods of Accounting Used by Corporations That Acquire the Assets of Other Corporations

Final regs

 

1.381(c)(4)-1 and 1.381(c)(5)-1

 

TD 9534 (8/1/11)

381

446

"methods of accounting, including the inventory methods, to be used by corporations that acquire the assets of other corporations in certain corporate reorganizations and tax-free liquidations. These regulations clarify and simplify the rules regarding the accounting methods to be used following these reorganizations and liquidations."

 

Correction – page 53819 (8/30/11)

 

J of A article - http://www.journalofaccountancy.com/Web/20114428.htm

 

Determining Amount of Taxes Paid for Purposes of Foreign Tax Credit

Final regs and removal of temporary regs

TD 9535 (7/18/11)

901

" address certain highly structured arrangements that produce inappropriate foreign tax credit results. The regulations affect individuals and corporations that claim direct and indirect foreign tax credits."

 

n       Journal of Accountancy article (7/13/11)

q      http://www.journalofaccountancy.com/Web/20114358

 

Correction – page 53819 and 53818 (8/30/11)

Final and temporary regs

TD 9536 (7/18/11)

 

REG–126519–11 (7/18/11)

901

Highway Use Tax; Filing and Payment for Taxable Period Beginning July 1, 2011

Final and temporary regs

TD 9537 (7/20/11)

 

REG–122813–11 (7/20/11)

6001

6071

6151

"guidance on the filing of Form 2290 (‘‘Heavy Highway Vehicle Use Tax Return’’) and payment of the associated highway use tax for the taxable period beginning July 1, 2011. The regulations affect owners and operators of highway motor vehicles with a taxable gross weight of 55,000 pounds or more."

Modifications of Certain Derivative Contracts

Final and temporary regs

TD 9538 (7/22/11)

 

REG–109006–11 (7/22/11)

1001

" address when a transfer or assignment of certain derivative contracts does not result in an exchange to the nonassigning counterparty for purposes of 1.1001–1(a)."

 

Correction (8/19/11) – page 51878 and page 51922

Election of Reduced Research Credit Under Section 280C(c)(3)

Final regs

TD 9539 (7/27/11)

280C

         Make election on Form 6765

         "must be filed with an original return for the taxable year filed on or before the due date (including extensions) for filing the income tax return for such year, regardless of whether any research credits are claimed on the original return. An election, once made for any taxable year, is irrevocable for that taxable year."

         Explanation and examples for controlled groups

 

Use of Actuarial Tables in Valuing Annuities, Interests for Life or Terms of Years, and Remainder or Reversionary Interests

Final regs and removal of temp regs

TD 9540 (8/10/11)

170

642

664

2031

2032

2055

2056A

2512

2522

7520

"use of actuarial tables in valuing annuities, interests for life or terms of years, and remainder or reversionary interests. These regulations will affect the valuation of inter vivos and testamentary transfers of interests dependent on one or more measuring lives. These regulations are necessary because section 7520(c)(3) directs the Secretary to update the actuarial tables to reflect the most recent mortality experience available."

Elections Regarding Start-up Expenditures, Corporation Organizational Expenditures, and Partnership Organizational Expenses

Final regs and removal of temp regs

TD 9542 (8/17/11)

195

248

709

Guidance on how to elect to deduct these start-up and organization expenditures per modifications made by the American Jobs Creation Act of 2004

 

Correction – page 56973 (9/15/11)

 

Health Insurance Premium Tax Credit

Proposed regs

REG–131491–10 (8/17/11)

36B

6011

6012

"guidance to individuals who enroll in qualified health plans through Affordable Insurance Exchanges and claim the premium tax credit, and to Exchanges that make qualified health plans available to individuals and employers."

Branded Prescription Drug Fee

Temporary and proposed regs

TD 9544 (8/18/11)

REG-112805-10

51

"guidance on the annual fee imposed on covered entities engaged in the business of manufacturing or importing branded prescription drugs."

 

Correction – page 59897 (9/28/11)

Correction – page 59897-98 (9/28/11)

Correction – page 59898 (9/28/11)

 

Interest and Penalty Suspension Provisions Under Section 6404(g) of the Internal Revenue Code

Final regs and removal of temporary regs

TD 9545 (8/22/11)

6404

suspension of interest, penalties, additions to tax, or additional amounts under section 6404(g) of the Internal Revenue Code. The final regulations explain the general rules for suspension and exceptions to those general rules, and incorporate a special rule from Notice 2007–93, 2007– 48 IRB 1072, regarding the effective date of the changes to section 6404(g) made by the Small Business and Work Opportunity Tax Act of 2007. The final regulations affect taxpayers who file timely individual income tax returns and who fail to receive notification from the IRS of additional tax liability within the time period prescribed by section 6404(g).”

 

Correction – page 60373 (9/29/11)

Definition of Solid Waste Disposal Facilities for Tax-Exempt Bond Purposes

Final regs

TD 9546 (8/19/11)

103

142

"final rules for determining whether a facility is a solid waste disposal facility under section 142(a)(6)."

 

Correction – page 55255  and  55256 (9/7/11)

Summary of Benefits and Coverage and the Uniform Glossary

Proposed regs

REG–140038–10 (8/22/11)

5000A

6056

disclosure of the summary of benefits and coverage and the uniform glossary for group health plans and health insurance coverage in the group and individual markets under the Patient Protection and Affordable Care Act. This document implements the disclosure requirements to help plans and individuals better understand their health coverage, as well as other coverage options. The templates and instructions to be used in making these disclosures are being issued separately in today’s Federal Register.”

Election to Expense Certain Refineries

Final regs and removal of temporary regs

TD 9547 (8/23/11)

179C

election to expense qualified refinery property under section 179C of the Internal Revenue Code (Code). These final regulations adopt the temporary regulations with certain modifications to reflect changes to the law made by the Energy Improvement and Extension Act of 2008.”

Timely Mailing Treated as Timely Filing

Final regs

TD 9543 (8/23/11)

7502

guidance as to the only ways to establish prima facie evidence of delivery of documents that have a filing deadline prescribed by the internal revenue laws, absent direct proof of actual delivery. The regulations provide that the proper use of registered or certified mail, or a service of a private delivery service (PDS) designated under criteria established by the IRS, will constitute prima facie evidence of delivery. The regulations are necessary to provide greater certainty on this issue and to provide specific guidance. The regulations affect taxpayers who mail Federal tax documents to the Internal Revenue Service or the United States Tax Court.”

 

Correction – page 61947 (10/6/11)

Correction – page 62607 (10/11/11)

Section 6707A and the Failure To Include on Any Return or Statement Any Information Required To Be Disclosed Under Section 6011 With Respect to a Reportable Transaction

Final regs and removal of temporary regs

TD 9550 (9/7/11)

6707A

guidance regarding section 6707A of the Internal Revenue Code (Code) with respect to the penalties applicable to the failure to include on any return or statement any information required to be disclosed under section 6011 with respect to a reportable transaction. These final regulations reflect amendments under the Small Business Jobs Act of 2010 that revise the penalty calculation.”

Section 67 Limitations on Estates or Trusts

Issuance and withdrawal of proposed regs

REG–128224–06 (9/7/11)

67

withdraws the notice of proposed rulemaking that was published in the Federal Register on July 27, 2007, providing guidance on which costs incurred by estates or trusts other than grantor trusts (non-grantor trusts) are subject to the 2-percent floor for miscellaneous itemized deductions under section 67(a). This document contains proposed regulations that provide guidance on which costs incurred by estates or trusts other than grantor trusts (non-grantor trusts) are subject to the 2-percent floor for miscellaneous itemized deductions under section 67(a). The regulations affect estates and non-grantor trusts.”

 

Also see Notice 2011-37 - Extension of Interim Guidance on Section 67 Limitations on Estates or Trusts

Implementation of Form 990

Final regs and removal of temporary regs

TD 9549 (9/8/11)

170A

507

509

6033

final regulations necessary to implement the redesigned Form 990, ‘‘Return of Organization Exempt From Income Tax.’’ These final regulations make revisions to the regulations to allow for new threshold amounts for reporting compensation, to require that compensation be reported on a calendar year basis, and to modify the scope of organizations subject to information reporting requirements upon a substantial contraction. The final regulations also eliminate the advance ruling process for new organizations, change the public support computation period for publicly supported organizations to five years, consistent with the revised Form 990, and clarify that support must be reported using the organization’s overall method of accounting. All tax-exempt organizations required to file annual information returns are affected by these regulations.”

 

Correction – page 61946 (10/6/11)

Correction – page 61946-7 (10/6/11)

 

Journal of Accountancy article – 9/7/11

Swap Exclusion for Section 1256 Contracts

Proposed regs

REG–111283–11 (9/16/11)

446

512

863

954

988

1256

swaps and similar agreements that fall within the meaning of section 1256(b)(2)(B) of the Internal Revenue Code (Code). This document also contains proposed regulations that revise the definition of a notional principal contract under 1.446–3 of the Income Tax Regulations.”

User Fees Relating to the Registered Tax Return Preparer Competency Examination and Fingerprinting Participants in the Preparer Tax Identification Number, Acceptance Agent, and Authorized E-File Provider Programs

Proposed regs

REG–116284–11 (9/26/11)

26 CFR Part 300

"proposed amendments to the user fee regulations. The proposed regulations would establish a new user fee for individuals to take the registered tax return preparer competency examination and a new user fee for certain persons to be fingerprinted in conjunction with the preparer tax identification number, acceptance agent, and authorized e-file provider programs. The proposed regulations also would redesignate 300.12, Fee for obtaining a preparer tax identification number, as 300.13. The proposed regulations affect individuals who take the registered tax return preparer competency examination and applicants and certain participants in the preparer tax identification number, acceptance agent, or authorized e-file provider programs. The charging of user fees is authorized by the Independent Offices Appropriations Act of 1952."

 

PTIN renewal page - here

Deduction for Qualified Film and Television Production Costs

Final regs and removal of temporary regs

TD 9551 (9/30/11)

181

final regulations relating to deductions for the costs of producing qualified film and television productions. These final regulations reflect changes to the law made by the American Jobs Creation Act of 2004 and the Gulf Opportunity Zone Act of 2005, and affect persons that produce film and television productions within the United States.”

Retail Inventory Method

Proposed regs

REG–125949–10 (10/7/11)

471

proposed regulations relating to the retail inventory method of accounting. The regulations restate and clarify the computation of ending inventory values under the retail inventory method and provide a special rule for certain taxpayers that receive margin protection payments and similar vendor allowances. The regulations affect taxpayers that are retailers and elect to use a retail inventory method.”

Tax Return Preparer Penalties Under Section 6695

Proposed regs

 

Note – finalized by TD 9570 (12/20/11) (see below)

REG–140280–09 (10/11/11)

6695

proposed regulations that would modify existing regulations related to the tax return preparer penalties under section 6695 of the Internal Revenue Code (Code). These proposed regulations are necessary to monitor and to improve compliance with the tax return preparer due diligence requirements of section 6695(g). The proposed regulations affect tax return preparers.”

 

Correction – page 63574 (10/13/11)

Correction – page 65138 (10/20/11)

 

Calls for all paid return preparers to include Form 8867 on returns and claims for refund claiming EITC after 2011.

 

Current EITC due diligence requirements – here.

 

Tax preparer EITC information from the IRS.

Deduction for Qualified Film and Television Production Costs

Temporary and proposed regs

TD 9552 (10/19/11)

 

REG–146297–09 (10/19/11)

181

final and temporary regulations relating to deductions for the cost of producing film and television productions. These temporary regulations reflect changes to the law made by the Tax Extenders and Alternative Minimum Tax Relief Act of 2008, and affect taxpayers that produce films and television productions within the United States.”

 

Correction – page 71450 (11/18/11)

 

Guidance Regarding the Treatment of Stock of a Controlled Corporation Under Section 355(a)(3)(B)

Final regs and removal of temporary regs

TD 9548 (10/20/11)

355

final regulations regarding the distribution of stock of a controlled corporation acquired in a transaction described in section 355(a)(3)(B) of the Internal Revenue Code (Code). This action is necessary in light of amendments to section 355(b). These final regulations will affect corporations and their shareholders.”

 

Redetermination of the Consolidated Net Unrealized Built-In Gain and Loss

Proposed regs

REG–133002–10 (10/24/11)

1502

proposed regulations under section 1502 of the Internal Revenue Code. The regulations will apply to corporations filing consolidated returns. The regulations will require a loss group or loss subgroup to redetermine its consolidated net unrealized built-in gain and loss in certain circumstances.”

Partner's Distributive Share

Proposed regs

REG–109564–10 (10/25/11)

704

"proposed regulations removing 1.704–1(b)(2)(iii)(e) (the de minimis partner rule) because the rule may have resulted in unintended tax consequences. The proposed regulations affect partnerships and their partners."

Disregarded Entities; Excise Taxes and Employment Taxes

Final regs and removal of temporary regs

TD 9553 (10/26/11)

7701

"final regulations relating to disregarded entities and excise taxes. These regulations also make conforming changes to the tax liability rule for disregarded entities and the treatment of entity rule for disregarded entities with respect to employment taxes. These regulations affect disregarded entities in general and, in particular, disregarded entities that pay or pay over certain federal excise taxes or that are required to be registered by the IRS."

Extending Religious and Family Member FICA and FUTA Exceptions to Disregarded Entities

Final and temp regs

TD 9554 (11/1/11)

 

REG–136565–09 (11/1/11)

3121

3127

3306

7701

"final and temporary regulations amending 26 CFR parts 31 and 301. These regulations extend the exceptions from taxes under the Federal Insurance Contributions Act (‘‘FICA’’) and the Federal Unemployment Tax Act (‘‘FUTA’’) under sections 3121(b)(3) (concerning individuals who work for certain family members), 3127 (concerning members of religious faiths), and 3306(c)(5) (concerning persons employed by children and spouses and children under 21 employed by their parents) of the Internal Revenue Code (‘‘Code’’) to entities that are disregarded as separate from their owners for federal tax purposes. The temporary regulations also clarify the existing rule that the owners of disregarded entities, except for qualified subchapter S subsidiaries, are responsible for backup withholding and related information reporting requirements under section 3406."

 

Correction – page 70057 (11/10.11)

Correction - page 71259 (11/17/11)

Correction – page 76037 (12/6/11)

 

Journal of Accountancy article – 10/31/11

Income of Foreign Governments and International Organizations

Proposed regs

REG–146537–06 (11/3/11)

892

"guidance relating to the taxation of the income of foreign governments from investments in the United States under section 892 of the Internal Revenue Code of 1986 (Code). The regulations will affect foreign governments that derive income from sources within the United States."

 

Correction – page 72367 (11/23/11)

 

Bloomberg story – 11/3/11

Tax Accounting Elections on Behalf of Foreign Corporations

Proposed regs and withdrawal of earlier proposed regs

REG–114749–09 (11/4/11)

964

clarify the rules for controlling domestic shareholders to adopt or

change a method of accounting or taxable year on behalf of a foreign corporation. The regulations affect United States persons that own stock in certain foreign corporations.”

Graduated Retained Interests

Final regs

TD 9555 (11/8/11)

2036

guidance on the portion of property (held in trust or otherwise) includible in the grantor’s gross estate if the grantor has retained the use of the property, the right to an annuity, unitrust, graduated retained

interest, or other payment from the property for life, for any period not ascertainable without reference to the grantor’s death, or for a period that does not in fact end before the grantor’s death. The final regulations will affect estates that file Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return.”

Determination of Governmental Plan Status

Advance Notice of Proposed Rulemaking

REG–157714–06 (11/8/11)

414

The Treasury Department and IRS anticipate issuing regulations under section 414(d) of the Internal Revenue Code (Code) to define the term ‘‘governmental plan.’’ This document describes the rules that the Treasury Department and IRS are considering proposing relating to the determination of whether a plan is a governmental plan within the meaning of section 414(d) and contains an appendix that includes a draft notice of proposed rulemaking on which the Treasury Department and IRS invite comments from the public. This document applies to sponsors of, and participants and beneficiaries in, employee benefit plans that are determined to be governmental plans.”

 

Correction – page 76633 (12/8/11)

Indian Tribal Governmental Plans

Advance Notice of Proposed Rulemaking

REG–133223–08 (11/8/11)

414

The Treasury Department and IRS anticipate issuing regulations under section 414(d) of the Internal Revenue Code (Code) to define the term ‘‘governmental plan.’’ This document describes the rules the Treasury Department and IRS are considering proposing relating to the determination of whether a plan of an Indian tribal government is a governmental plan within the meaning of section 414(d) and contains an appendix that includes a draft notice of proposed rulemaking on which the Treasury Department and IRS invite comments from the public. This document applies to sponsors of, and participants and beneficiaries in, employee benefit plans of Indian tribal governments.”

 

Correction – page 76633 (11/8/11)

Generation-Skipping Transfers (GST) Section 6011 Regulations and Amendments to the Section 6112 Regulations

Final regs

TD 9556 (11/14/11)

6011

6111

6112

rules relating to the disclosure of listed transactions and transactions of interest with respect to the generation-skipping transfer tax under section 6011 of the Internal Revenue Code (Code), conforming amendments under sections 6111 and 6112, and rules relating to the preparation and maintenance of lists with respect to reportable transactions under section 6112. The regulations affect taxpayers participating in listed transactions and transactions of interest and material advisors to such transactions. The final regulations also contain rules under section 6112 that affect material advisors to reportable transactions. These regulations provide guidance regarding the length of time a material advisor has to prepare the list that must be maintained after the list maintenance requirement first arises with respect to a reportable transaction. These regulations also clarify guidance regarding designation agreements.”

Application of Section 108(e)(8) to Indebtedness Satisfied by a Partnership Interest

Final regs

TD 9557 (11/17/11)

108

704

"final regulations relating to the application of section 108(e)(8) of the Internal Revenue Code (Code) to partnerships and their partners. These regulations provide guidance regarding the determination of discharge of indebtedness income of a partnership that transfers a partnership interest to a creditor in satisfaction of the partnership’s indebtedness. The final regulations also address the application of section 721 to a contribution of a partnership’s recourse or nonrecourse indebtedness by a creditor to the partnership in exchange for a capital or profits interest in the partnership. Moreover, the final regulations address how a partnership’s discharge of indebtedness income is allocated as a minimum gain chargeback under section 704. The regulations affect partnerships and their partners."

Gross Estate; Election to Value on

Alternate Valuation Date

Proposed regs

REG–112196–07 (11/18/11)

2032

"guidance respecting the election to use the alternate valuation method under section 2032 of the Internal Revenue Code (Code). The proposed regulations will affect estates that file Form 706, United States Estate (and Generation- Skipping Transfer) Tax Return and elect to use the alternate valuation method."

Corporate Reorganizations; Allocation

of Basis in ‘‘All Cash D’’

Reorganizations

Final and temp regs

 

Prop regs

TD 9558 (11/21/11)

 

REG–101273–10 (11/21/11)

358

"temporary regulations regarding the determination of the basis of stock or securities in a reorganization where no stock or securities of the issuing corporation is issued and distributed in the transaction. These temporary regulations clarify that, in certain reorganizations where no stock or securities of the issuing corporation is issued and distributed in the transaction, the ability to designate the share of stock of the issuing corporation to which the basis, if any, of the stock or securities surrendered will attach applies only to a shareholder that owns actual shares in the issuing corporation. These temporary regulations affect corporations engaging in such transactions and their shareholders."

Application of the Segregation Rules to Small Shareholders

Prop regs

REG–149625–10 (11/23/11)

382

"guidance regarding the application of the segregation rules to public groups under section 382 of the Code. These regulations affect corporations."

 

Correction – page 78182 (12/16/11)

User Fee To Take the Registered Tax Return Preparer Competency Examination

Final regs

TD 9559 (11/25/11)

Reg 300.12

"redesignate rules pertaining to fees for obtaining a preparer tax identification number. These final regulations also establish a user fee for individuals to take the registered tax return preparer competency examination. The final regulations affect individuals who take the registered tax return preparer competency examination. The charging of user fees is authorized by the Independent Offices Appropriations Act of 1952.

Basis Reporting by Securities Brokers and Basis Determination for Debt Instruments and Options

Prop. regs

REG–102988–11 (11/25/11)

6045

6045A

"proposed regulations relating to reporting by brokers for transactions related to debt instruments and options"`

 

Correction – page 78182 (12/16/11)

Passive Activity Losses and Credits Limited

Prop. regs

REG–109369–10 (11/298/11)

469

These regulations  define "an ‘‘interest in a limited partnership as a limited partner’’ for purposes of determining whether a taxpayer materially participates in an activity under section 469 of the Internal Revenue Code (Code). These proposed regulations affect individuals who are partners in partnerships."

Per Section 469(h)(2), "Except as provided in regulations, no interest in a limited partnership as a limited partner shall be treated as an interest with respect to which a taxpayer materially participates." The regulations at 1.469-5T and -5 provide that if a limited partner also owns a general partner interest, any of the 7 material participation tests can be applied. Otherwise, a limited partner may only be treated as a material participant for a particular year if they meet one of three of the material participation tests: (1) over 500 hours, (2) material participant in 5 of the prior 10 years, or (3) personal service activity and was a material participant in any three prior years. An issue arose subsequent to issuance of these regulations in the late 1980s as to whether a member of an LLC should be treated as a limited partner.

Litigation in recent years has resulted in the courts holding that an LLC is not a limited partnership under state law and thus, for 469 purposes. See Newell, et ux., TC Memo 2010-23, Thompson, 104 AFTR 2d 2009-5381 (Fed. Cl. 2009), acq. AOD 2010-001; and Garnett v. Comm’r, 132 T.C. 368 (2009), Thus, courts allows additional material participation tests to be used.

The proposed regulations take a different approach. Prop. Reg. 1.469-5(e)(3) would broaden the definition of a limited partnership interest for 469 purposes as the IRS views that as in line with the intent of 469. This proposed regulation would read: "interest in an entity shall be treated as an interest in a limited partnership as a limited partner if—

(A) The entity in which such interest is held is classified as a partnership for Federal income tax purposes under 301.7701–3; and

(B) The holder of such interest does not have rights to manage the entity at all times during the entity’s taxable year under the law of the jurisdiction in which the entity is organized and under the governing agreement."

Targeted Populations Under Section 45D(e)(2)

Final regs

TD 9560 (12/5/11)

45D

"how an entity serving certain targeted populations can meet the requirements to be a qualified active low-income community business for the new markets tax credit. The regulations reflect changes to the law made by the American Jobs Creation Act of 2004. The regulations will affect certain taxpayers claiming the new markets tax credit."

Treasury Inflation-Protected Securities Issued at a Premium

Prop and temp regs

TD 9561 (12/5/11)

REG–130777–11

1275

Related to "Treasury Inflation-Protected Securities issued with more than a de minimis amount of premium." Temp regs serve as text of proposed regs.

Conduit Financing Arrangements

Final reg

TD 9562 (11/9/11)

881

"apply to multiple-party financing arrangements that are effected through disregarded entities, and are necessary in order to determine which of those arrangements should be recharacterized as a conduit financing arrangement."

 

Correction – FR page 22480 (4/13/12)

Employer's Annual Federal Tax Return and Modifications to the Deposit Rules

Final reg and removal of temp reg

TD 9566 (12/14/11)

6011

6071

6302

"final regulations relating to the Employers’ Annual Federal Tax Program (the Form 944 Program) and the requirements for depositing social security, Medicare, and withheld Federal income taxes (collectively ‘‘employment taxes’’). These final regulations allow certain employers to file a Form 944, ‘‘Employer’s ANNUAL Federal Tax Return,’’ rather than Forms 941, ‘‘Employer’s QUARTERLY Federal Tax Return.’’ Additionally, these final regulations provide guidance related to the lookback periods and deposit requirements for employers required to file Forms 941 and Form 944. These final regulations affect taxpayers that file Forms 941, Form 944, and any related Spanish-language returns or returns for U.S. possessions."

Corporate Reorganizations; Guidance on the Measurement of Continuity of Interest

Final reg and removal of temp reg

TD 9565 (12/19/11)

368

"guidance regarding the continuity of interest requirement for corporate reorganizations. The guidance is necessary to establish the date upon which continuity of interest is measured. These regulations affect corporations and their shareholders."

Corporate Reorganizations; Guidance on the Measurement of Continuity of Interest

Proposed regs

REG–124627–11 (12/19/11)

368

"necessary to clarify the manner in which the continuity of interest requirement is measured in particular circumstances. The proposed regulations affect corporations and their shareholders."

Guidance Regarding Foreign Base Company Sales Income

Final reg and removal of temp reg

TD 9563 (12/19/11)

954

"guidance relating to foreign base company sales income when personal property sold by a controlled foreign corporation (CFC) is purchased, sold, manufactured, produced, constructed, grown or extracted by one or more branches of the CFC. The regulations finalize proposed regulations and withdraw temporary regulations published on December 29, 2008. These regulations, in general, affect controlled foreign corporations and their United States shareholders."

Reporting of Specified Foreign Financial Assets

Temp regs

 

Proposed regs

TD 9567 (12/19/11)

 

REG–130302–10 (12/19/11)

6038D

" relating to the provisions of the Hiring Incentives to Restore Employment (HIRE) Act that require foreign financial assets to be reported to the Internal Revenue Service for taxable years beginning after March 18, 2010. In particular, the temporary regulations provide guidance relating to the requirement that individuals attach a statement to their income tax return to provide required information regarding foreign financial assets in which they have an interest. The temporary regulations affect individuals required to file Form 1040, ‘‘U.S. Individual Income Tax Return,’’ and certain individuals required to file Form 1040– NR, ‘‘Nonresident Alien Income Tax Return.’’" Text of temporary regs serves as text of proposed regs.

 

IRS webiste on Form 8938 - here

 

AICPA FATCA website - here

 

Correction – FR page 9845 (2/21/12)  and here and here

Correction – FR page 10422 (2/22/12)

Tax Return Preparer Penalties Under Section 6695

Final regs

TD 9570 (12/20/11)

6695

"modify existing regulations related to the tax return preparer penalties under section 6695 of the Internal Revenue Code (Code). The final regulations are necessary to monitor and to improve compliance with the tax return preparer due diligence requirements of section 6695(g). The final regulations affect paid tax return preparers."

Section 482: Methods To Determine Taxable Income in Connection With a Cost Sharing Arrangement

Final reg and removal of temp reg

TD 9568 (12/22/11)

482

367

6662

" methods to determine taxable income in connection with a cost sharing arrangement under section 482 of the Internal Revenue Code (Code). The final regulations address issues that have arisen in administering the current cost sharing regulations. The final regulations affect domestic and foreign entities that enter into cost sharing arrangements described in the final regulations."

Use of Differential Income Stream as a Consideration in Assessing the Best Method

Final and temp regs

 

Prop regs

TD 9569 (12/23/11)

 

REG–145474–11 (12/23/11)

482

"implement the use of the differential income stream as a consideration in assessing the best method in connection with a cost sharing arrangement. The text of these temporary regulations also serves as part of the text of proposed regulations contained in a cross-reference notice of proposed rulemaking (REG–145474–11) published in the Proposed Rules section in this issue of the Federal Register. This document also contains final regulations that provide cross-references in the final cost sharing regulations to relevant sections of these temporary regulations."

Guidance Regarding Deduction and Capitalization of Expenditures Related to Tangible Property

Temp regs

 

Prop regs

TD 9564 (12/27/11)

 

REG–168745–03 (12/27/11)

162

167

168

263

263A

1016

"guidance on the application of sections 162(a) and 263(a) of the Internal Revenue Code to amounts paid to acquire, produce, or improve tangible property. The temporary regulations clarify and expand the standards in the current regulations under sections 162(a) and 263(a) and provide certain bright-line tests (for example, a de minimis rule for certain acquisitions) for applying these standards. The temporary regulations also provide guidance under section 168 regarding the accounting for, and dispositions of, property subject to section 168. The temporary regulations also amend the general asset account regulations. The temporary regulations will affect all taxpayers that acquire, produce, or improve tangible property. The text of the temporary regulations also serves as the text of proposed regulations"

Correction – FR page 18145 and  page 18146 (3/27/12)

Correction – FR page 18167 (3/28/12)

Modification to TD 9564 (12/17/12)

Correction – FR 75016 (12/19/12)

Notice 2012-73 – additional guidance on effective date of regs – can chose to apply for tax years beginning on or after 1/1/14.

Final regs released Sept 2013 - TD 9636 (9/19/13).

Section 168 proposed regs issued and previously proposed regs released Sept 2013 - REG–110732–13 (9/19/13).



This page last updated October 5, 2013.

Page maintained by Professor Annette Nellen.