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

Notice 2018-48, page 9. This notice lists the population census tracts the Secretary of the Treasury designates as qualified opportunity zones.

Notice 2018-59, page 196. Beginning of Construction for the Investment Tax Credit under Section 48. Notice 2018-59 provides two methods for taxpayers to establish the beginning of construction (Physical Work Test and Five Percent Safe Harbor), a Continuity Requirement for both methods, rules for transferring energy property, and additional rules applicable to the beginning of construction requirement of § 48.

Announcement 2018-11, page 206. 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.

EMPLOYMENT TAX

Rev. Rul. 2018-20, page 8. The Internal Revenue Service is continuing its program of reviewing revenue rulings published in the Internal Revenue Bulletin to identify and publish lists of those rulings that are no longer considered determinative because: (1) the applicable statutory provisions or regulations have been changed or repealed; (2) the ruling position is specifically covered by a statute, regulation, or subsequent published position; or (3) the facts set forth no longer exist or are not sufficiently described to permit clear application of the current statute and regulations. This revenue ruling obsoletes revenue rulings that addressed issues arising under section 3121(b)(8)(B) of the Internal Revenue Code of 1954 (the 1954 Code), which provided an exemption from Federal Insurance Contributions Act for tax-exempt organizations, and section 3121(k) of the 1954 Code, which provided for a waiver of the exemption. These 1954 Code sections were amended and repealed by the Social Security Amendments of 1983, Pub. L. No. 9821, § 102, 97 Stat. 65, 70-71 (1983).

EXEMPT ORGANIZATIONS

Rev. Rul. 2018-20, page 8. The Internal Revenue Service is continuing its program of reviewing revenue rulings published in the Internal Revenue Bulletin to identify and publish lists of those rulings that are no longer considered determinative because: (1) the applicable statutory provisions or regulations have been changed or repealed; (2) the ruling position is specifically covered by a statute, regulation, or subsequent published position; or (3) the facts set forth no longer exist or are not sufficiently described to permit clear application of the current statute and regulations. This revenue ruling obsoletes revenue rulings that addressed issues arising under section 3121(b)(8)(B) of the Internal Revenue Code of 1954 (the 1954 Code), which provided an exemption from Federal Insurance Contributions Act for tax-exempt organizations, and section 3121(k) of the 1954 Code, which provided for a waiver of the exemption. These 1954 Code sections were amended and repealed by the Social Security Amendments of 1983, Pub. L. No. 98-21, § 102, 97 Stat. 65, 70-71 (1983).

Income Tax

Notice 2018-48, page 9. This notice lists the population census tracts the Secretary of the Treasury designates as qualified opportunity zones.

Notice 2018-59, page 196. Beginning of Construction for the Investment Tax Credit under Section 48. Notice 2018-59 provides two methods for taxpayers to establish the beginning of construction (Physical Work Test and Five Percent Safe Harbor), a Continuity Requirement for both methods, rules for transferring energy property, and additional rules applicable to the beginning of construction requirement of § 48.

Rev. Proc. 2018-35, page 204. Rev. Proc. 2018-35 provides a new automatic method change for certain taxpayers to change their method of accounting from applying section 263A to citrus plant replanting costs to not applying section 263A to those costs, pursuant to section 263A(d)(2)(C). Section 263A(d)(2)(C) provides that section 263A does not apply to certain costs that are paid or incurred by certain taxpayers for replanting citrus plants after the loss or damage of citrus plants. Rev. Proc. 2018-35 modifies Rev. Proc. 2018-31, 2018–22 I.R.B. 637, to provide procedures for obtaining automatic consent of the Commissioner.