INCOME TAX

Rev. Rul. 2017–09, page 1244. This revenue ruling provides guidance regarding the federal tax treatment of certain transactions referred to as ‘northsouth’ transactions. The guidance describes two north-south transactions: one involving steps that are respected as separate and another involving steps that are integrated. This revenue ruling also removes § 5.02 from Rev. Proc. 2017–3, 2017–1 I.R.B. 130, thereby lifting the prohibition on private letter rulings involving north-south transactions.

Rev. Proc. 2017–36, page 1251. This revenue procedure provides indexing adjustments for certain provisions under sections 36B and 5000A of the Internal Revenue Code. In particular, it updates the Applicable Percentage Table in § 36B(b)(3)(A)(i) to provide the Applicable Percentage Table for 2018. This table is used to calculate an individual’s premium tax credit. This revenue procedure also updates the required contribution percentage in section 36B(c)(2)(C)(i)(II) for plan years beginning after calendar year 2017. The percentage is used to determine whether an individual is eligible for affordable employersponsored minimum essential coverage under § 36B.

Rev. Proc. 2017–37, page 1252. This revenue procedure provides the 2018 inflation adjusted amounts for Health Savings Accounts (HSAs) as determined under section 223 of the Internal Revenue Code.