2008 IRS Internal Revenue Bulletins
Rev. Rul. 2008–54, page 1352.
Interest rates; underpayments and overpayments. The rates of interest determined under section 6621 of the Code for the calendar quarter beginning January 1, 2009, will be 5 percent for overpayments (4 percent in the case of a corporation), 5 percent for underpayments, and 7 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 2.5 percent.
Notice 2008–115, page 1367.
This notice provides guidance to employers and payers on their reporting and wage withholding requirements for calendar year 2008 with respect to deferrals of compensation and amounts includible in gross income under section 409A of the Code. In addition, this notice provides guidance to service providers on their income tax reporting and tax payment requirements with respect to amounts includible in gross income under section 409A. Notice 2005–1 modified.
Notice 2008–116, page 1372.
This notice extends to taxable years that begin before January 1, 2009, the interim guidance provided in Notice 2008–32, 2008–11 I.R.B. 593, on the treatment under section 67 of the Code of investment advisory costs and other costs subject to the 2-percent floor under section 67(a) that are integrated as part of one commission or fee paid to the trustee or executor and are incurred by a trust other than a grantor trust or an estate. Notice 2008–32 modified and superseded.
Rev. Proc. 2008–68, page 1373.
Notice 2008–104, page 1298.
This notice provides additional transition relief with respect to the use of debit cards for medical expense reimbursements at stores with the Drug Stores and Pharmacies merchant category code. Notice 2007–2 modified.
Notice 2008–111, page 1299. This notice clarifies Notice 2001–16, 2001–1 C.B. 730, and supersedes Notice 2008–20, 2008–6 I.R.B. 406, regarding Intermediary Transaction Tax Shelters. A transaction is treated as an Intermediary Transaction with respect to a particular person only if that person engages in the transaction pursuant to a plan, the transaction contains the four objective components indicative of an Intermediary Transaction, and no safe harbor exception applies to that person. Notice 2001–16 clarified. Notice 2008–20 superseded.
REG–148326–05, page 1325.
Proposed regulations address the calculation of amounts includible in income under section 409A(a) of the Code and the additional taxes imposed by such section with respect to a service provider participating in a nonqualified deferred compensation plan if such plan fails to meet the requirements of section 409A(a). A public hearing is scheduled for April 2, 2009.
Notice 2008–112, page 1301.
Weighted average interest rate update; corporate bond indices; 30-year Treasury securities; segment rates.
T.D. 9433, page 1263.
Final regulations under section 7701 of the Code add an entity to the list of foreign business entities that are always classified as corporations. This entity is not eligible to check the box to change its classification.
Notice 2008–107, page 1265.
This notice provides adjusted limitations on housing expenses for tax year 2008 for purposes of section 911 of the Code.
Notice 2008–109, page 1282.
This notice provides guidance with respect to state volume limits under section 1400N that are applicable to (1) allocations of the low-income housing tax credit in the Midwestern and Hurricane Ike disaster areas, (2) the issuance of tax-exempt bonds for the Midwestern and Hurricane Ike disaster areas, and (3) the issuance of tax credit bonds for the Midwestern disaster areas. These provisions were enacted as part of the Tax Extenders and Alternative Minimum Tax Relief Act of 2008. The notice provides a list of the counties that qualify as Midwestern or Hurricane Ike disaster areas and provides the portion of the state population located in the disaster or other relevant areas for purposes of determining the volume limits applicable to each of these provisions. The notice also provides instructions for reporting the issuance of Midwestern and Hurricane Ike tax-exempt and tax credit bonds.
Rev. Proc. 2008–72, page 1286.
Rev. Rul. 2008–52, page 1233.
Section 1274A – Inflation adjusted numbers for 2009.
This ruling provides the dollar amounts, increased by the 2009 inflation adjustment, for section 1274A of the Code. Rev. Rul. 2008–3 supplemented and superseded.
Rev. Rul. 2008–53, page 1231.
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 December 2008.
T.D. 9431, page 1235.
Final regulations under section 6039I of the Code implement the authority given the Secretary to require information reporting on employer-owned life insurance contracts.
Notice 2008–106, page 1239.
This notice informs taxpayers that the new 9 percent applicable percentage floor for certain buildings that are placed in service after July 30, 2008 and before December 31, 2013, enacted pursuant to section 3002(a)(1) of the Housing Assistance Tax Act of 2008, applies notwithstanding a pre-Act irrevocable election by the taxpayer to apply to these buildings an applicable percentage that is less than 9 percent.
This information was obtained from the IRS.gov website. E-File Magic does not warrant the accuracy of this information and provides it as a convenience to it’s customers. We encourage you to visit http://www.irs.gov/irb/ for the most recent copy of this information.
T.D. 9430, page 1205.
REG–118327–08, page 1218.
Final, temporary, and proposed regulations under section 6050P of the Code relate to information returns for cancellation of indebtedness by certain entities. The regulations will avoid premature information reporting from certain businesses that are currently required to report and will reduce the number of information returns required to be filed. A public hearing on the proposed regulations is scheduled for March 13, 2009.
Rev. Proc. 2008–69, page 1217. This procedure provides real estate investment trusts (REITs) with a method of applying the prohibited transactions safe harbor under section 857(b)(6) of the Code for a taxable year that begins on or before July 30, 2008, and ends on or after July 31, 2008.
Announcement 2008–105, page 1219.
The Fast Track Settlement (FTS) for TE/GE Taxpayers program is based on the LMSB and SB/SE FTS programs. The existing FTS programs promote early and timely settlements with taxpayers through the use of alternative dispute resolution techniques. The LMSB and SB/SE programs are designed to commence prior to the issuance of the 30-day letter and to reach a result within 120 days and 60 days respectively. The TE/GE FTS program will use the same procedures and have a 60-day period within which to reach settlement.
Announcement 2008–115, page 1228.
Rev. Rul. 2008–51, page 1171.
2008 base period T-bill rate. The “base period T-bill rate” for the period ending September 30, 2008, is published as required by section 995(f) of the Code.
T.D. 9428, page 1174.
Final regulations under section 1367 of the Code provide rules regarding the definition of open account debt and the adjustments in basis of any indebtedness of an S corporation to a shareholder for shareholder advances and repayments on advances of open account debt. The regulations affect shareholders of S corporations and are necessary to provide guidance needed to comply with the applicable tax law.
T.D. 9429, page 1167.
Final regulations under section 141 of the Code provide guidance relating to the standards for treating payments in lieu of taxes as generally applicable taxes for purposes of the private security or payment test.
Notice 2008–99, page 1194.
This notice identifies a transaction, and substantially similar transactions, as transactions of interest for purposes of regulations section 1.6011–4(b)(6) and sections 6111 and 6112 of the Code. In the transaction, a sale or other disposition of all the interests in a charitable remainder trust (subsequent to the contribution of appreciated assets to and their reinvestment by the trust) results in the grantor or other noncharitable recipient receiving the value of the grantor or other noncharitable recipient’s trust interest and claiming to recognize little or no taxable gain.
T.D. 9416, page 1142.
REG–156779–06, page 1160.
Final, temporary, and proposed regulations under section 901 of the Code provide guidance relating to the determination of the amount of taxes paid for purposes of the foreign tax credit. The regulations affect taxpayers that claim direct and indirect foreign tax credits. A public hearing on the proposed regulations is scheduled for December 11, 2008.
REG–164370–05, page 1157.
Proposed regulations under section 108(e)(8) of the Code provide guidance in determining the discharge of indebtedness income of a partnership that transfers a partnership interest to a creditor in satisfaction of the partnership’s indebtedness. In particular, the regulations address how the fair market value of a partnership interest transferred by the debtor partnership to the creditor in satisfaction of the partnership’s indebtedness is determined. The regulations also provide that section 721 generally applies to a contribution of a partnership’s indebtedness by a creditor to the partnership in exchange for an interest in the partnership. A public hearing is scheduled for February 19, 2009.
Announcement 2008–107, page 1162.
This document solicits comments as to what should be included in implementing regulations (REG–123829–08) under the Genetic Information Nondiscrimination Act of 2008. Comments must be submitted on or before December 9, 2008.
Notice 2008–103, page 1156.
Announcement 2008–106, page 1137.
The announcement for the 2009 IRS Individual e-file Partnership Program solicits applications from potential partners for participation in the program. The partnership opportunities are a result of RRA 98 which authorized the IRS Commissioner to promote the benefits of and encourage the use of e-file products and services through partnerships with various entities that offer low-cost tax preparation and electronic filing of individual income tax returns for qualified taxpayers. Those applicants that are accepted into the program will have a link(s) and offer description(s) for their products and services posted to IRS.gov (Partners Page).
Rev. Rul. 2008–50, page 1098.
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 November 2008.
REG–142339–05, page 1116.
Proposed regulations under section 45D of the Code relate to how an entity serving certain targeted populations under section 45D(e)(2) can meet the requirements to be a qualified active low-income community business. A public hearing is scheduled for January 22, 2009.
REG–107318–08, page 1131.
T.D. 9424, page 1012.
Final regulations under section 1502 of the Code provide rules for determining the tax consequences of a member’s transfer (including by deconsolidation and worthlessness) of loss shares of subsidiary stock. The regulations also provide that section 362(e)(2) generally does not apply to transactions between members of a consolidated group.
REG–157711–02, page 1087.
This document contains a partial withdrawal of proposed regulations under section 1502 of the Code. Proposed section 1.1502-13(e)(4), which would have suspended the application of section 362(e)(2) in the case of intercompany transactions, and section 1502-32(c)(1)(ii), relating to the treatment of items attributable to property transferred in an intercompany section 362(e)(2) transaction, are withdrawn.
Notice 2008–94, page 1070. This notice provides guidance on certain executive compensation provisions of the Emergency Economic Stabilization Act of 2008 (EESA). Section 302 of EESA added new sections 162(m)(5) and 280G(e) to the Code. Section 162(m) limits the deductibility of compensation paid to certain corporate executives and section 280G provides that a corporate executive’s excess parachute payments are not deductible and imposes (under Code section 4999) an excise tax on the executive for those amounts.
Notice 2008–95, page 1076.
Notice 2008–72, page 998.
2008 Section 43 inflation adjustment factor. This notice announces the applicable inflation adjustment factor and phaseout amount for the enhanced oil recovery credit for the 2008 calendar year.
Notice 2008–89, page 999.
2008 marginal production rates. This notice announces the applicable percentage under section 613A of the Code to be used in determining percentage depletion for marginal properties for the 2008 calendar year.
Notice 2008–90, page 1000.
Charitable contributions of inventory property under section 170(e)(3) of the Code. This notice announces that the Service and the Treasury Department intend to issue guidance under section 170(e) that will allow a taxpayer making a qualified contribution to compute the deductible amount and adjustment to cost of goods sold either under the special rules applicable to qualified contributions under section 170(e)(3) or under the general rules applicable to contributions under section 170(e)(1). The notice also provides that, pending the issuance of further guidance, the Service will not challenge a taxpayer that makes the computation under either set of rules provided all other applicable requirements are met.
Notice 2008–91, page 1001.
This notice announces that a controlled foreign corporation (CFC) may choose to exclude certain obligations held by the CFC from the definition of the term “United States property” for purposes of section 956 of the Code.
Notice 2008–92, page 1001.