Memo #
26723

IRS and Treasury Release 2012 - 2013 Priority Guidance Plan
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[26723]

November 26, 2012

TO: 529 PLAN MEMBERS No. 15-12
ACCOUNTING/TREASURERS MEMBERS No. 19-12
INTERNATIONAL MEMBERS No. 52-12
TAX MEMBERS No. 41-12
TRANSFER AGENT ADVISORY COMMITTEE No. 75-12
PENSION MEMBERS No. 35-12 RE: IRS AND TREASURY RELEASE 2012 - 2013 PRIORITY GUIDANCE PLAN

 

The IRS and Treasury Department have released their 2012-2013 Priority Guidance Plan listing their priorities for tax regulations and other administrative guidance through June 2013. [1] We are pleased to report that the following projects requested by the Institute [2] have been or continue to be included on the plan:

Items of Interest to Funds and Fund Shareholders

  • Guidance under the RIC Mod act of 2010.
  • Regulations relating to accruals of interest (including discount) on distressed debt.
  • Regulations under §446 on notional principal contracts (NPC) relating to the inclusion in income or deduction of a contingent nonperiodic payment and guidance relating to the character of payments made pursuant to an NPC.
  • Regulations on prepaid forward contracts.
  • Regulations relating to Taxpayer Identification Numbers on payee statements.
  • Final regulations on the application of §1256 to certain derivative contracts.

Retirement Savings Items

  • Guidance under §402(c) on distributions that are disbursed to multiple destinations.
  • Revenue Procedure on §403(b) plans.

The 2011-2012 Priority Guidance Plan also includes numerous other projects that relate to funds, fund shareholders, and retirement savings. These projects include:

Items of Interest to Funds and Fund Shareholders

  • Regulations revising the RIC asset test examples in §1.851-5.
  • Final Regulations under §337(d) related to (REITs) and (RICs).
  • Regulations relating to the active trade or business requirement under §355(b).
  • Regulations regarding the application of the segregation rules to small shareholders under §382.
  • Regulations under §1273 for determining when a debt instrument is publicly traded.
  • Final regulations amending §1.1275-7 to provide guidance on Treasury Inflation-Protected Securities (TIPS) issued at a premium.
  • Regulations under §6045 to address basis reporting for options and debt instruments.
  • Guidance under §§1297 and 1298 on passive foreign investment companies.
  • Regulations under §871(m) added by the Hiring Incentives to Restore Employment (HIRE) Act of 2010.
  • Guidance under §1441 updating Rev. Proc. 89-47 on central withholding agreements.
  • Regulations and other guidance under §§1471-1474 and 6011(e)(4) added by the HIRE Act of 2010.
  • Guidance under §894 on issues under income tax treaties, including beneficial ownership.
  • Guidance updating Rev. Proc. 2006-54 on the Competent Authority Program.
  • Regulations under §§709 and 195 on organizational and start-up expenses of a partnership after a technical termination.
  • Final Regulations under §7701 regarding Series LLCs and cell companies and other guidance regarding entity classification. 

Retirement Savings Items

  • Guidance on exceptions to additional tax under §72(t) on early distributions from retirement plans and IRAs.
  • Revenue Procedure under §§401(a) and 403(a) updating interim amendment procedures in Revenue Procedure 2007-44.
  • Final regulations under §401(a)(9) on deferred annuities.
  • Final regulations on suspension or reduction of safe harbor contributions under §401(k) and (m).
  • Regulations under §402A on distributions from designated Roth accounts that are disbursed to multiple destinations.
  • Guidance on rules applicable to IRAs under §§408 and 408A.
  • Guidance updating regulations for service credit and vesting under §411.
  • Regulations on the definition of governmental plan under §414(d).
  • Regulations on eligible combined plans under §414(x), as added by the Pension Protection Act of 2006.
  • Guidance under §3405 regarding distributions made to payees with an address outside the United States.
  • Guidance under §§6057, 6058, and 6059 for late filers of Form 5500 series.
  • Regulations under §§6057, 6058, and 6059 regarding electronic filing of Form 5500.
  • Revenue Procedure updating Revenue Procedure 2007-44 for determination letters for individually designed plans.
  • Guidance on group trusts under Revenue Rulings 81-100 and 2011-1.
  • Guidance facilitating rollovers into retirement plans.
  • Additional guidance on issues relating to lifetime income from retirement plans.
  • Guidance on certain issues related to multiple employer plans.
  • Revenue Procedure updating Employee Plans Compliance Resolution System (EPCRS).

 

Elena Barone Chism
Associate Counsel

Ryan Lovin
Assistant Counsel – Tax Law

endnotes

[1] The 2011–2012 Priority Guidance Plan can be found on the IRS’s website at: http://www.irs.gov/PUP/pub/irs-utl/2012-2013_pgp.pdf.

[2] See Institute Memorandum [26084] for Tax items and Institute Memorandum [26115] for Retirement Plan items.