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

T.D. 9651, page 441. These final regulations provide guidance on the interpretation and application of section 833(c)(5). They guide certain health care organizations in computing and applying the medical loss ratio added to the Code by the Patient Protection and Affordable Care Act.

Notice 2014–7, page 445. This notice advises taxpayers that certain payments received by an individual care provider under a state Medicaid Home and Community-Based Services Waiver program are difficulty of care payments excludable from gross income under § 131 of the Code. The exclusion may apply whether the care provider is related or unrelated to the individual receiving care.

Announcement 2014–2, page 448. This announcement contains one correction to I.R.B. 2014–2, which lacked certain information on the Highlights page.

ADMINISTRATIVE

Notice 2014–7, page 445. This notice advises taxpayers that certain payments received by an individual care provider under a state Medicaid Home and Community-Based Services Waiver program are difficulty of care payments excludable from gross income under § 131 of the Code. The exclusion may apply whether the care provider is related or unrelated to the individual receiving care.

Announcement 2014–2, page 448. This announcement contains one correction to I.R.B. 2014–2, which lacked certain information on the Highlights page.

Finding Lists begin on page ii. Index for July through January begins on page iv.