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

Announcement 2018-15, page 1020. The Office of Professional Responsibility (OPR) announces re-cent 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.

Rev. Proc. 2018-58, page 990. This procedure provides an updated list of time-sensitive acts, the performance of which may be postponed under sections 7508 and 7508A of the Internal Revenue Code. Section 7508 postpones specified acts for individuals serving in the Armed Forces of the United States or serving in support of such Armed Forces in a combat zone or serving with respect to a contingency operation (as defined in 10 U.S.C. § 101(a)(13)). Section 7508A permits a postponement of the time to perform specified acts for taxpayers affected by a federally declared disaster or a terroristic or military action. The list of acts in this revenue procedure supplements the list of postponed acts in section 7508(a)(1) and § 301.7508A-1(c)(1)(vii) of the Procedure and Administration Regulations. Rev. Proc. 200756 superseded.

Employee Plans

NOTICE 2018-86, page 982. This notice sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates for November 2018 used under § 417(e)(3)(D), the 24-month average segment rates applicable for November 2018, and the 30-year Treasury rates, as reflected by the application of § 430(h)(2)(C)(iv).

NOTICE 2018-91, page 985. This notice contains the 2018 Required Amendments List for individually designed qualified retirement plans. There are no entries listing changes in qualification requirements on the 2018 Required Amendments List.

Excise Tax

TD 9840, page 851. Final regulations under Code section 9815 amend previous regulations added pursuant to the Patient Protection and Affordable Care Act. Section 9815 incorporates by reference sections of the Public Health Service Act (PHS Act), including PHS Act section 2713 concerning the mandatory provision by certain health plans of preventive care, including contraception. This guidance expands exemptions to recognize the religious convictions for entities and individuals who object to the mandate based on religious beliefs and whose health plans are subject to the mandate of contraceptive coverage. It is related to a second set of final regulations that expand moral exemptions and accommodations under that mandate.

TD 9841, page 913. Final regulations under Code section 9815 amend previous regulations added pursuant to the Patient Protection and Affordable Care Act. Section 9815 incorporates by reference sections of the Public Health Service Act (PHS Act), including PHS Act section 2713 concerning the mandatory provision by certain health plans of preventive care, including contraception. This guidance expands exemptions to recognize the moral convictions for entities and individuals who object to the mandate based on sincerely held beliefs and whose health plans are subject to the mandate of contraceptive coverage. It is related to a second set of final regulations that expand religious exemptions and accommodations under that contraceptive mandate.

Income Tax

Rev. Proc. 2018-56, page 985. This procedure provides the procedures by which a taxpayer may obtain automatic consent of the Commissioner of Internal Revenue to change to certain methods of accounting provided under sections 1.263A-1, -2, and -3, including methods described in T.D. 9843, for costs allocable to certain property produced or acquired for resale by the taxpayer. This revenue procedure modifies Rev. Proc. 2018-31, 2018-22 I.R.B. 637.

Rev. Proc. 2018-59, page 1018 Rev. Proc. 2018-59 provides a safe harbor that allows tax-payers to treat certain infrastructure trades or businesses as real property trades or businesses solely for purposes of qualifying as electing real property trades or businesses under section 163(j)(7)(B) of the Internal Revenue Code. Taxpayers that make an election for an infrastructure trade or business to be an electing real property trade or business under section 163(j)(7)(B) are not subject to the limitation on business interest expense under section 163(j), but must use the alternative depreciation system of section 168(g) to depreciate the property described in section 168(g)(8). This revenue procedure describes the types of infrastructure trades or businesses that can qualify as electing real property trades or businesses.

REV. RUL. 2018-31, page 848. 2018 Base Period T-Bill Rate. The base period T-bill rate for the period ending September 30, 2018, is published as required by section 995(f) of the Internal Revenue Code.

TD 9843, page 957. This document contains final regulations on allocating costs to certain property produced or acquired for resale by a taxpayer. These final regulations: provide rules for the treatment of negative adjustments related to certain costs required to be capitalized to property produced or acquired for resale; provide a new simplified method of accounting for determining the additional costs allocable to property produced or acquired for resale; and redefine how certain types of costs are categorized for purposes of the simplified methods. These final regulations affect taxpayers that are producers or resellers of property that are required to capitalize costs to the property and that elect to allocate costs using a simplified method.