Search the News Archive

Final IRS Regs on Practice Before the Internal Revenue Service; New Requirements for Retirement Plan Agents (PDF)

69 pages. Excerpt: These regulations generally limit the practice of enrolled retirement plan agents to representation with respect to issues arising under the following employee plan programs: (1) Employee Plans Determination Letter program; (2) Employee Plans Compliance Resolution System; and (3) Employee Plans Master and Prototype and 5 Volume Submitter program. Enrolled retirement plan agents also are permitted to represent taxpayers generally with respect to IRS forms under the 5300 and 5500 series, which are filed by retirement plans and plan sponsors, but not with respect to actuarial forms or schedules. The Advisory Committee recommended the implementation of procedures for enrollment similar to the current enrolled agent program. The Treasury Department and IRS adopt that recommendation. Enrolled retirement plan agents will be subject to an examination to determine competency, a renewal process and continuing professional education requirements.

Text of IRS Notice 2014-35: Relief from Internal Revenue Code Late Filer Penalties for Certain Employee Benefit Plans (PDF)

"The Service will not impose penalties under Sections 6652(d) and 6652(e) (as those sections relate to the filing of Form 5500, Form 5500-SF, and Form 8955-SSA) or under Section 6692 (relating to the filing of actuarial reports required by Section [6059] with respect to a year for which filing of such a form is required on a person who [1] is eligible for and satisfies the requirements of the DFVC Program with respect to a delinquent Form 5500 series return for such year and [2] files separately with the Service, in the form and within the time prescribed by this notice, a Form 8955-SSA with any information required to be filed under Section 6057 for the year to which the DFVC filing relates (to the extent that the information has not previously been provided to the Service).... [T]his notice provides relief from the penalties applicable under the Code to the late filing of Forms 5500 and 5500-SF only if any applicable Form 8955-SSA is also filed for the year at issue.... Any Form 8955-SSA required to be filed with the Service pursuant to this notice must be filed on paper by the later of 30 calendar days after the filer completes the DFVC filing or December 1, 2014.... Form 5500-EZ and Form 5500-SF filers for plans without employees ... are not eligible for the relief in this notice. In Rev. Proc. 2014-32 ... the Service has established a temporary pilot program to afford penalty relief under the Code for delinquent Form 5500 series filers that are not covered under Title I of ERISA[.]"

Draft of Instructions for IRS Form 8928: Return of Certain Excise Taxes Under Chapter 43 of the Internal Revenue Code (PDF)

"File Form 8928 to report the tax due on the following failures by group health plans or employers. [1] A failure to provide a level of coverage of the costs of pediatric vaccines ... that is not below the coverage provided as of May 1, 1993. [2] A failure to satisfy continuation coverage requirements under section 4980B. [3] A failure to meet portability, access, renewability, and market reform requirements ... [4] A failure to make comparable Archer medical savings account (MSA) contributions ... [5] A failure to make comparable health savings account (HSA) contributions[.]"

Text of IRS Notice 2025-36: Eliminating Unnecessary IRS Internal Revenue Bulletin Guidance (PDF)

"This notice continues the process of eliminating extraneous and unnecessary Internal Revenue Bulletin guidance by identifying and obsoleting 83 IRB guidance documents.... These guidance documents no longer provide useful information, and clarifying their status as obsolete will streamline administration of the tax laws; reduce the volume of guidance that taxpayers and their advisors need to review for compliance with the tax laws; and increase clarity of the tax law.... Guidance to be eliminated [includes]: Notice 2016-75, Section 45R -- 2016 Guidance with Respect to the Tax Credit for Employee Health Insurance Expenses of Certain Small Employers Notice 2015-8, Section 45R -- 2015 Guidance with Respect to the Tax Credit for Employee Health Insurance Expenses of Certain Small Employers Notice 2014-6, Section 45R -- Transition Relief with Respect to the Tax Credit for Employee Health Insurance Expenses of Certain Small Employers Notice 2011-73, Request for Comments on Health Coverage Affordability Safe Harbor for Employers (Section 4980H) Notice 2008-94, Guidance on Sections 162(m)(5) and 280G(e) of the Internal Revenue Code"

Treasury Department Circular No. 230 (Rev. 6-2014): Regulations Governing Practice Before the Internal Revenue Service (PDF)

The IRS on June 9 finalized Circular 230 regulations (TD 9668), which adopted the approach taken in the proposed regulations, namely eliminating the covered opinion rules in former Circular 230 section 10.35 and instead subjecting all written tax advice to one standard under a revised section 10.37. This June 2014 revision and restatement of Circular 230 reflects the final regulations.

Meeting of the Advisory Group to the Internal Revenue Service Tax Exempt and Government Entities Division

"The Advisory Committee on Tax Exempt and Government Entities (ACT) will hold a public meeting on Wednesday, June 8, 2016.... Issues to be discussed [include] Employee Plans: Analysis and Recommendations Regarding Changes to the Determination Letter Program."

Text of IRS Proposed Regs: Certain Employee Remuneration in Excess of $1,000,000 Under Internal Revenue Code Section 162(m)

25 pages. "This document sets forth proposed regulations under section 162(m) of the Internal Revenue Code, which limits the deduction for certain employee remuneration in excess of $1,000,000 for Federal income tax purposes. These proposed regulations implement the amendments made to section 162(m) by the American Rescue Plan Act of 2021. These proposed regulations would affect publicly held corporations."

Text of IRS Final Regs: Certain Employee Remuneration in Excess of $1,000,000 Under Internal Revenue Code Section 162(m)

109 pages. "This document sets forth final regulations under section 162(m) of the Internal Revenue Code, which for federal income tax purposes limits the deduction for certain employee remuneration in excess of $1,000,000.... These final regulations retain the basic approach and structure of the proposed regulations, with certain revisions (including revised examples)."

Text of IRS Notice 2012-6: Qualified Pension, Profit-Sharing, and Stock Bonus Plans under the Puerto Rico Internal Revenue Code (PDF)

This notice extends and expands the transition relief provided under Rev. Rul. 2011-1, 2011-2 I.R.B. 251, and Rev. Rul. 2008-40, 2008-2 C.B. 166, for certain group trusts, certain retirement trusts that qualify under the Puerto Rico Internal Revenue Code ... and that participate in group trusts, and certain qualified retirement plans that benefit Puerto Rico residents. This notice also provides additional time for governmental retiree benefit plans described in section 401(a)(24) of the [IRC] ... to be amended to satisfy the applicable requirements of Rev. Rul. 2011-1.

IRS Notice 2007-89: 2007 Reporting and Wage Withholding Under Internal Revenue Code Section 409A (PDF)

19 pages; provides interim guidance to employers and payers on their reporting and wage withholding requirements for calendar year 2007 with respect to deferrals of compensation and amounts includible in gross income under § 409A. The notice also provides interim rules on calculating amounts includible in gross income under § 409A.

Text of Final Regs Governing Practice Before the Internal Revenue Service, Amending Circular 230

"This document contains final regulations revising the regulations governing practice before the [IRS]. These final regulations affect individuals who practice before the IRS. These final regulations modify the standards governing written advice and update other related provisions of the regulations. These regulations are effective on June 12, 2014."

Text of IRS Notice 2024-77: Guidance Under Sections 414(aa) and 402(c)(12) of the Internal Revenue Code with Respect to Inadvertent Benefit Overpayments (PDF)

Q-1. How is an 'inadvertent benefit overpayment' defined for purposes of sections 414(aa) and 402(c)(12) and this notice? ...  Q-2. Does section 414(aa)(1)(A) affect the requirement in section 6.06 of Rev. Proc. 2021-30 that an overpayment be corrected through corrective payments? ... Q-3. Does section 414(aa)(1) prohibit a plan sponsor from seeking recoupment of inadvertent benefit overpayments from overpayment recipients? ... Q-4. Under what circumstances may an individual who rolls over an inadvertent benefit overpayment to an eligible retirement plan retain the overpayment in tax-favored status? Q-5. What is the treatment under sections 414(aa) and 402(c)(12) for inadvertent benefit overpayments resulting from a section 436 failure? Q-6. What is the treatment under sections 414(aa) and 402(c)(12) for inadvertent benefit overpayments resulting from section 401(a)(17) or 415 failures? Q-7. May a plan sponsor amend a plan to increase past benefit payments to affected participants and beneficiaries, in order to adjust for prior inadvertent benefit overpayments pursuant to section 414(aa)(1)(B), in a manner that results in a violation of section 401(a)(17), 415, or 436 for a past year? ...  Q-8. Are there any provisions of Rev. Proc. 2021-30 that are modified or are no longer applicable with respect to an inadvertent benefit overpayment to which section 414(aa) or 402(c)(12) applies?

CRS Insight: Internal Revenue Service Standard Mileage Rates (PDF)

"The [IRS] provides standard mileage rates as optional methods for taxpayers to substantiate their transportation expenses. This Insight reviews how the standard mileage rates are set, who uses them, and a history of the rates." [IN12320 Feb. 16, 2024]

The Final Fiduciary Rule: How the Labor Department Brought the Internal Revenue Service Wolf to the RIA Door

"If the DOL writes a rule, is it really a regulation at all if nobody is there to enforce it other than a bunch of freelancing tort lawyers? It's a metaphysical and legal questions that hangs over the [DOL's] imposition of fiduciary responsibility over IRA assets where it has no jurisdiction to mete out justice against financial advisors who put their own interests ahead of clients. It's the [IRS] that oversees Individual Retirement Accounts. So what gives?"

Text of IRS CCM 201810007: Tax Treatment of Employer-Provided Tax Preparation Services as Part of Employer's International Tax Equalization Program (PDF)

"The tax preparation services provided by Taxpayer for the benefit of its employees working in foreign countries are includable in the employees' gross income. [2] The amount includable in the employees' gross income is the fair market value of the tax preparation services. [3] The fair market value of the tax preparation services constitutes wages for FICA tax purposes. [4] The fair market value of the tax preparation services constitutes wages for purposes of FITW, unless Taxpayer had a reasonable belief that such value would be excludable from the employees' gross income under Section 911 or Taxpayer was required by the law of a foreign country to withhold income taxes on such value."

IRS Clarifies Rules under ?162(m) of Internal Revenue Code on Deductibility of Certain Compensation

[A]ny company attempting to avail itself of the special transition rules in the Section 162(m) Treasury Regulations should be aware that unless restricted stock units and phantom stock arrangements are paid out prior to the end of the Transition Period, such payments will be subject to the $1,000,000 deduction limit under Section 162(m).

IRS Ruling Creates Uncertainty Regarding What Constitutes Performance-Based Compensation Under Internal Revenue Code Section 162(m)

Excerpt: It is believed that the Ruling is incorrect. The mere presence of the involuntary and good reason termination provisions should not be treated as sufficient to indicate that the employee would absolutely receive the compensation in each year regardless of whether the performance goal is attained and regardless of whether a termination occurs.... It is recommended that companies give serious consideration to modifying their plans and/or agreements to comply with the Ruling on a going-forward basis.

IRS Final Regulations Under Section 415 of Internal Revenue Code (PDF)

5 pages. Excerpt: Qualified retirement plans generally must be amended to comply with the final regulations by the deadline for filing the employer's tax return (including extensions) for the tax year which includes the effective date of the final regulations (e.g., by the due date (including extensions) for the tax year ending December 31, 2008 for a plan with a calendar year limitation year).

ABA Comment Letter to IRS on Distribution Restrictions of Section 409A of the Internal Revenue Code (PDF)

25 pages.

Gag Clause Prohibitions in ERISA, the Internal Revenue Code and the Public Health Service Act

"Plans and issuers subject to these gag clause prohibitions are required to submit an annual attestation here, with the first due Dec. 31, 2023, and on each Dec. 31 thereafter.... The FAQ sheet ... includes helpful examples of what constitutes a gag clause. One such example ... makes clear that a provision giving a TPA discretion over the plan's access is considered a gag clause[.]"