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.

Employee Plans

Notice 2018-56, page 3. This notice sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates for June 2018 used under § 417(e)(3)(D), the 24-month average segment rates applicable for June 2018, and the 30-year Treasury rates, as reflected by the application of § 430(h)(2)(C)(iv).

Income Tax

Rev. Rul. 2018-19, page 1. Federal rates; adjusted federal rates; adjusted federal long-term rate, the long-term exempt rate, and the blended annual rate. For purposes of sections 382, 1274, 1288, 7872 and other sections of the Code, tables set forth the rates for July 2018.

REG-106977-18, page 6. The proposed regulations would amend the definition of investment-type property for purposes of tax-advantaged bonds and the arbitrage investment yield restrictions under § 148 that apply to those bonds. Section 103 provides that an arbitrage bond, as defined in § 148, is not tax-exempt. A bond is an arbitrage bond under § 148 if the bond's proceeds are used to purchase certain investment property with a yield higher than the yield on the issue. Investment property includes not only securities but also, among other things, “investment-type property.” Investment-type property is generally defined as any property that is held principally as a passive vehicle for the production of income. The proposed regulations would amend this definition to clarify that real or tangible personal property purchased with proceeds of tax-exempt bonds is not investment-type property if that property is used in furtherance of the public purposes for which the tax-exempt bonds are issued.