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.

Income Tax

Notice 2018-07, page 317. This notice provides preliminary guidance for determining amounts included in gross income by a United States shareholder under section 951(a)(1) by reason of section 965 of the Internal Revenue Code as amended by “An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018”, P.L. 115-97, which was enacted on December 22, 2017.

REG-119514-15, page 324. This document contains proposed regulations that provide guidance on the treatment of foreign currency gain or loss of a controlled foreign corporation (CFC) under the business needs exclusion from foreign personal holding company income. The proposed regulations also provide an election for a taxpayer to use a mark-to-market method of accounting for foreign currency gain or loss attributable to section 988 transactions. In addition, the proposed regulations permit the controlling United States shareholders of a CFC to automatically revoke certain elections concerning the treatment of foreign currency gain or loss. The proposed regulations affect taxpayers and United States shareholders of CFCs that engage in transactions giving rise to foreign currency gain or loss under section 988 of the Internal Revenue Code.

Employee Plans

Rev. Rul. 2018-04, page 304. This revenue ruling provides tables of covered compensation under § 401(l)(5)(E) of the Internal Revenue Code and the Income Tax Regulations thereunder, effective January 1, 2018. These tables of covered compensation reflect a revision to the taxable wage base for 2018 that was announced by the Social Security Administration on November 27, 2017, and apply in lieu of the tables that were provided in Revenue Ruling 2017-22, 2017-48 I.R.B. 536, 2017.

Administrative

T.D. 9829, page 307. Under section the Bipartisan Budget Act of 2015, Public Law 114-74 (BBA), each partnership required to file a partnership return is subject to the new rules, but certain partnerships may choose to elect out under section 6221(b) if they are eligible. These regulations provide the time, form, and manner for making any election under section 6221(b) as well as providing guidance regarding eligibility to make the election. The regulations affect partnerships for any taxable years beginning after December 31, 2017.