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 2019-05, page 283. On September 12, 2018, the Department of Health and Human Services issued guidance to allow all hardship exemptions available under 45 CFR 155.605(d)(1) to be claimed by a qualifying individual (or the taxpayer who may claim a qualifying individual as a dependent) on a Federal income tax return for the 2018 tax year without obtaining a hardship exemption certification from the Health Insurance Marketplace. Notice 2019-5 modifies the current list of hardship exemptions that may be claimed on a Federal income tax return without obtaining a hardship exemption certification to include the September 12, 2018 HHS guidance. Specifically, for the 2018 tax year, Notice 2019-5 expands the exemptions set forth in Notice 2014-76 and Notice 2017-14 to include all hardship exemptions available under 45 CFR 155.605(d)(1).

Rev. Proc. 2019-09, page 292. This revenue procedure updates Rev. Proc. 2018-11, and updates the annual adequate disclosure revenue procedure. It identifies circumstances under which the disclosure on a tax return with respect to an item or position is adequate for the purposes of the accuracy penalty of section 6662 and return preparer penalty under 6694.

EXCISE TAX

NOTICE 2019-04, page 282. Notice 2019-04 extends the dyed fuel relief initially provided in section 3.02 of Notice 2017-30, 2017-21 I.R.B. 1248, then extended through December 31, 2018, by section 3 of Notice 2018-39, 2018-20 I.R.B. 582. A claimant may submit a refund claim for the § 4081(a)(1) tax imposed on undyed diesel fuel and kerosene for fuel that is (1) removed from a Milwaukee or Madison terminal; (2) entered into a Green Bay terminal within 24 hours; and (3) subsequently dyed and removed from that Green Bay terminal. The relief provided in this notice takes effect beginning January 1, 2019, and ending December 31, 2019.

INCOME TAX

NOTICE 2019-01, page 275. This notice announces that the Treasury Department and the IRS intend to issue regulations addressing certain issues arising from the enactment of the Tax Cuts and Jobs Act, Pub. L. 115-97 (2017) (the “Act”), on December 22, 2017, with respect to foreign corporations with previously taxed earnings and profits (“PTEP”). The notice describes regulations that the Treasury Department intend to issue including (i) rules relating to the maintenance of PTEP in annual accounts and within certain groups; (ii) rules relating to the ordering of PTEP upon distribution and reclassification; and (iii) rules relating to the adjustment required when an income inclusion exceeds the earnings and profits of a foreign corporation. It is anticipated that the regulations announced in the notice will apply to taxable years of U.S. shareholders ending after the date of release of the notice and to taxable years of foreign corporations ending with or within such taxable years.

NOTICE 2019-02, page 281. This notice provides the optional 2019 standard mileage rates for taxpayers to use in computing the deductible costs of operating an automobile for business, charitable, medical, or moving expense purposes. This notice also provides the amount taxpayers must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that may be used in computing the allowance under a fixed and variable rate (FAVR) plan.

NOTICE 2019-05, page 283. On September 12, 2018, the Department of Health and Human Services issued guidance to allow all hardship exemptions available under 45 CFR 155.605(d)(1) to be claimed by a qualifying individual (or the taxpayer who may claim a qualifying individual as a dependent) on a Federal income tax return for the 2018 tax year without obtaining a hardship exemption certification from the Health Insurance Marketplace. Notice 2019-5 modifies the current list of hardship exemptions that may be claimed on a Federal income tax return without obtaining a hardship exemption certification to include the September 12, 2018 HHS guidance. Specifically, for the 2018 tax year, Notice 2019-5 expands the exemptions set forth in Notice 2014-76 and Notice 2017–14 to include all hardship exemptions available under 45 CFR 155.605(d)(1).

REG-104259-18, page 300. This document contains proposed regulations that provide guidance regarding an additional tax on certain corporations with substantial gross receipts (taking into account the gross receipts of certain related entities) that make certain payments to foreign persons that are related to the corporations, as well as additional reporting requirements.

Rev. Proc. 2019-06, page 284. The revenue procedure sets forth the unpaid loss discount factors for the 2018 accident year for purposes of section 846 of the Internal Revenue Code. The revenue procedure also prescribes the salvage discount factors for the 2018 accident year, which must be used to compute discounted estimated salvage recoverable under section 832 of the Internal Revenue Code.

Rev. Proc. 2019-09, page 292. This revenue procedure updates Rev. Proc. 2018-11, and updates the annual adequate disclosure revenue procedure. It identifies circumstances under which the disclosure on a tax return with respect to an item or position is adequate for the purposes of the accuracy penalty of section 6662 and return preparer penalty under 6694.

Rev. Proc. 2019-10, page 296. This revenue procedure modifies Rev. Proc. 2018-31 to provide procedures for an insurance company to obtain automatic consent of the Commissioner to change its method of accounting to comply with section 807(f), as amended by section 13513 of the TCJA. This revenue procedure also modifies Rev. Rul. 94-74 and Rev. Rul. 2002-6.

REV. RUL. 2019-03, page 272. 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, 642, 1274, 1288, 7872 and other sections of the Code, tables set forth the rates for January 2019.