This Week's Internal Revenue Bulletin

HIGHLIGHTS OF THIS ISSUE

These synopses are intended only as aids to the reader in identifying the subject matter covered. They may not be relied upon as authoritative interpretations.

ADMINISTRATIVE

ANN. 2019-05, page 1262. The Office of Professional Responsibility (OPR) announces recent disciplinary sanctions involving attorneys, certified public accountants, enrolled agents, enrolled actuaries, enrolled retirement plan agents, and appraisers. These individuals are subject to the regulations governing practice before the Internal Revenue Service (IRS), which are set out in Title 31, Code of Federal Regulations, Part 10, and which are published in pamphlet form as Treasury Department Circular No. 230. The regulations prescribe the duties and restrictions relating to such practice and prescribe the disciplinary sanctions for violating the regulations.

T.D. 9858, page 1251. These regulations remove the initial enrollment user fee for enrolled retirement plan agents because the IRS no longer offers initial enrollment as an enrolled retirement plan agent. These regulations also increase the amount of the renewal user fee for enrolled retirement plan agents from $30 to $67. In addition, these regulations increase the amount of both the initial enrollment and renewal user fees for enrolled agents from $30 to $67.

EMPLOYMENT TAX & INCOME TAX

NOT. 2019-34, page 1257. This Notice provides the maximum fair market value of a vehicle eligible to use the fleet-average and cents-per-mile special valuation rules of Treas. Reg. section 1.61-21(d) and (e), respectively, for 2019. These special valuation rules may be used to value an employee's personal use of an employer-provided vehicle for income and employment tax purposes.

EXEMPT ORGANIZATIONS

REV. PROC. 2019-22, page 1260. This revenue procedure modifies Revenue Procedure 75-50, 1975-2 C.B. 587, to reflect technological advances since its publication and provides a third method for a private school to satisfy the requirement contained in section 4.03 of the revenue procedure by using its Internet website to publicize the school's racially nondiscriminatory policy as to students.

INCOME TAX

REG-113604-18, page 1265. Nonresident aliens and foreign corporations are taxable in the United States on taxable income that is effectively connected with the conduct of a trade or business in the United States. These proposed regulations under section 864(c)(8) would provide rules for determining the amount of gain or loss recognized by a nonresident alien individual or foreign corporation from the sale or exchange of a partnership interest that is treated as effectively connected with the conduct of a trade or business within the United States.

T.D. 9857, page 1239. The final regulations contain rules relating to combinations and separations of qualified business units (QBUs) subject to section 987 and the recognition and deferral of foreign currency gain or loss with respect to a QBU subject to section 987 in connection with certain QBU terminations and certain other transactions involving partnerships. In addition, this document withdraws temporary regulations regarding the allocation of assets and liabilities of certain partnerships for purposes of section 987.

NOT. 2019-33, page 1255. This notice requests comments about normalization issues that have arisen or are anticipated in ratemaking proceedings due to the decrease in the corporate tax rate under § 11 of the Internal Revenue Code (Code) that was included in the Tax Cuts and Jobs Act, Pub. L. 115-97, enacted on December 22, 2017. Based on comments received from stakeholders, we expect to issue future guidance under § 168(f)(2) and (i)(9) of the Code addressing excess deferred income taxes and public utility companies.

REV. PROC. 2019-25, page 1261. This revenue procedure provides the 2020 inflation adjusted amounts for health savings accounts as determined under section 223 of the Internal Revenue Code.