Income Tax

REV. RUL. 2019-10, page 1010. Fringe benefits aircraft valuation formula. For purposes of section 1.61-21(g) of the Income Tax Regulations, relating to the rule for valuing non-commercial flights on employer-provided aircraft, the Standard Industry Fare Level (SIFL) centsper-mile rates and terminal charge in effect for the first half of 2019 are set forth.

T.D. 9852, page 1010. Sections 1471 through 1474 of the Internal Revenue Code of 1986 (Code), commonly known as FATCA, generally require U.S. withholding agents to withhold tax on certain payments to a foreign financial institution (FFI) that has not agreed to provide the IRS with certain information regarding its United States accounts. These sections also require U.S. withholding agents to withhold tax on certain payments to a nonfinancial foreign entity (NFFE) that does not provide information about its substantial U.S. owners to withholding agents. This Treasury Decision finalizes (with limited revisions) certain proposed regulations under chapter 4 of Subtitle A (sections 1471 through 1474) of the Code. The final regulations provide compliance requirements and verification procedures for sponsoring entities of FFIs and certain NFFEs, trustees of certain trustee-documented trusts, registered deemed-compliant FFIs, and participating FFIs that implement consolidated compliance programs.

T.D. 9853, page 1026. These revisions to Treas. Reg. § 301.6707A-1 provide guidance on the calculation of the penalty under section 6707A, as amended by the Small Business Jobs Act of 2010. Section 6707A provides penalties for failure to include on any return

Finding Lists begin on page ii.

or statement any information required to be disclosed under section 6011 with respect to a reportable transaction. The final regulation addresses the meaning of the phrase “decrease in tax” for purposes of determining the amount of the penalty, the calculation of the penalty when a taxpayer fails to disclose participation in a transaction that becomes a reportable transaction after the taxpayer engaged in the transaction, the calculation of the penalty based on a failure to disclose liability for certain penalties in reports to the Securities and Exchange Commission pursuant to section 6707A(e), minimum and maximum penalty limits, and the calculation of the penalty where no tax is required to be shown on the return.

REG-121694-16, page 1032. This document contains proposed regulations under section 301 of the Internal Revenue Code of 1986 (Code). The proposed regulations would update existing regulations under section 301 to reflect statutory changes made by the Technical and Miscellaneous Revenue Act of 1988, which changes provide that the amount of a distribution of property made by a corporation to its shareholder is the fair market value of the distributed property. The proposed regulations would affect any shareholder who receives a distribution of property from a corporation.

REG-135671-17, page 1035. This notice of proposed rulemaking contains amendments to the Income Tax Regulations (26 CFR part 1) under section 337(d) of the Internal Revenue Code (Code) set forth in §1.337(d)-3 (final regulations) that prevent a corporate partner from using a partnership to avoid recognition of corporate-level gain. The rules set forth in this notice of proposed rulemaking contain substantive modifications to the final regulations relating to the definition of Stock of the Corporate Partner.