Issue Number: 2016-39
Inside This Issue
- Answers to Questions about the New e-Services Authentication Process
- New Private Debt Collection Program to Begin Next Spring
- Reminder for Parents and Students: Check Out College Tax Credits for 2016 and Years Ahead
- Tax Relief for Victims of Hurricane Hermine in Florida
- Technical Guidance
1. Answers to Questions about the New e-Services Authentication Process
The IRS is answering questions from practitioners following announcement that e-Services is migrating to the Secure Access authentication process. Frequently asked questions and answers are available on IRS.gov.
E-Services users can find out more about Secure Access, which goes into effect Oct. 24, at Important Update about Your e-Services Account. Step-by-step instructions are available at Secure Access: How to Register for Certain Online Self-Help Tools.
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2. New Private Debt Collection Program to Begin Next Spring
The IRS next spring will begin to use private contractors to collect overdue federal tax debts. Four companies have been selected to implement the new program.
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3. Reminder for Parents and Students: Check Out College Tax Credits for 2016 and Years Ahead
With another school year now in full swing, practitioners should remind their clients that now is a good time to see whether they will qualify for either of two college tax credits on their 2016 federal income tax returns.
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4. Tax Relief for Victims of Hurricane Hermine in Florida
Victims of Hurricane Hermine, which affected parts of Florida beginning Aug. 31, may qualify for tax relief from the Internal Revenue Service.
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5. Technical Guidance
Revenue Procedure 2016-49 provides procedures to disregard and treat as null and void for transfer tax purposes a qualified terminable interest property (QTIP) election in situations where the QTIP election was not necessary to reduce the estate tax liability to zero. This guidance provides that such procedures are unavailable where QTIP elections are made in estates in which the executor elected portability of the deceased spousal unused exclusion (DSUE) amount under section 2010(c)(5)(A). This guidance modifies and supersedes Rev. Proc. 2001-38, 2001-1 C.B. 1335.
Revenue Procedure 2016-50, supplements Rev. Proc. 2016-3, 2016-1 IRB 126, by adding to the list of topics on which the Internal Revenue Service ordinarily will not rule a ruling relating to the treatment of a corporation as a regulated investment company under section 851 that requires a determination whether a financial instrument or position is a security under the Investment Company Act of 1940.
Revenue Procedure 2016-51 Rev. Proc. 2013-12, 2013-4 I.R.B. 313, which sets forth the Employee Plans Compliance Resolution System ("EPCRS"), a comprehensive system of correction programs for sponsors of retirement plans that have failed to satisfy certain requirements under section 401(a), 403(a), 403(b), 408(k), or 408(p) of the Internal Revenue Code. EPCRS is being modified to take into account the changes in the determination letter application program, as described in Rev. Proc. 2016-37. The revenue procedure also incorporates certain modifications set forth in Rev. Proc. 2015-27 and Rev. Proc. 2015-28, two prior revenue procedures which modified Rev. Proc. 2013-12. In addition, the revenue procedure incorporates modifications to Rev. Proc. 2013-12 from Rev. Proc. 2016-8, the annual user fee revenue procedure. Rev. Proc. 2013-12, Rev. Proc. 2015-27 and Rev. Proc. 2015-28 are modified and superseded by this revenue procedure.
Notice 2016-59 advises readers of revisions to the requirements for the reduced user fee for substantially identical letter rulings set forth in section 15.07(2) of Rev. Proc. 2016-1. This notice also corrects the amount of the user fee for Foreign Insurance Excise Tax Waiver Agreements stated in Appendix A of Rev. Proc. 2016-1.
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