Bulletin No. 2014–33 August 11, 2014

guidance issued by the Department of Health and Human Services, used to determine whether an individual is eligible for an exemption from the individual shared responsibility payment because of a lack of affordable minimum essential coverage under § 5000A(e)(1)(A) for plan years beginning after calendar year 2014.

Rev. Proc. 2014–41, page 364. Rev. Proc. 2014–41 provides calculation methods a taxpayer may use to resolve the interrelationship between the section 162(l) deduction and the premium tax credit under section 36B. It provides an iterative calculation and alternative calculation taxpayers may use, as well as examples demonstrating the calculations.

Rev. Proc. 2014–46, page 367. This Revenue Procedure provides the 2014 monthly national average premium for qualified health plans that have a bronze level of coverage for taxpayers to use in determining their maximum individual shared responsibility payment under § 5000A(c)(1)(B) of the Internal Revenue Code and § 1.5000A–4 of the Income Tax Regulations. The revenue procedure also provides an explanation of the methodology used to determine the monthly national average premium amount.

T.D. 9681, page 340. These final regulations provide guidance regarding the deductibility of start-up expenditures and organizational expenses for partnerships following a termination of a partnership under section 708(b)(1)(B). Specifically, these final regulations provide that the new partnership is required to continue to amortize those expenditures using the same amortization period adopted by the terminating partnership These final regulations affect partnerships that undergo section 708(b)(1)(B) terminations and their partners.

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T.D. 9682, page 342. This document contains final regulations relating to basis of indebtedness of S corporations to their shareholders. These regulations provide that S corporation shareholders increase their basis of indebtedness of the S corporation to the shareholder only if the indebtedness is bona fide. The final regulations affect shareholders of S corporations.

T.D. 9683, page 330. These temporary and final regulations provide further guidance on the premium tax credit. In particular, the regulations allow certain victims of domestic abuse or spousal abandonment to claim the premium tax credit while filing a return using the Married Filing Separately filing status. In addition, the regulations provide special allocation rules for reconciling advance credit payments, address the indexing in future years of certain amounts used to compute the credit, and describe the coordination between the credit and the deduction under section 162(l) for health insurance costs of self-employed individuals.

EXCISE TAX

REG–123286–14, page 377. These proposed regulations modify the definition of controlled group for purposes of the branded prescription drug fee. These proposed regulations affect persons engaged in the business of manufacturing or importing certain branded prescription drugs. Comments and requests for a public hearing must be received by October 27, 2014.

T.D. 9684, page 345. This document contains final regulations that provide guidance on the annual fee imposed on covered entities engaged in the business of manufacturing or importing branded prescriptions drugs. This document also withdraws the Branded Prescription Drug Fee temporary regulations and contains new temporary regulations regarding the definition of controlled group that apply January 1, 2015.