e-News for Tax Professionals Issue 2013-48

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Issue Number:  2013-48

Inside This Issue

1. IRPAC Issues Annual Report for 2013
2. Interest Rates Unchanged for the First Quarter of 2014
3. Technical Guidance

The Information Reporting Program Advisory Committee (IRPAC) released its annual report for 2013, including numerous recommendations to the Commissioner of Internal Revenue on new and existing issues in tax administration.

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The Internal Revenue Service announced that interest rates will remain the same for the calendar quarter beginning Jan. 1, 2014. The rates will be:

• Three percent for overpayments (two percent in the case of a corporation)
• Three percent for underpayments
• Five percent for large corporate underpayments; and
• One-half (0.5) percent for the portion of a corporate overpayment exceeding $10,000.

See Revenue Ruling 2013-25 for details.

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Announcement 2014-1 reminds financial institutions creating accounts and entering registration information on the IRS FATCA registration website about certain steps that they will need to take on or after January 1, 2014 -- as originally announced in Notice 2013-43. The Announcement also provides general information concerning anticipated publication dates of final qualified intermediary (QI), withholding foreign partnership (WP), and withholding foreign trust agreements (WT).

Notice 2014-05 provides temporary nondiscrimination relief for certain “closed” defined benefit pension plans (i.e., defined benefit plans that provide ongoing accruals but that have been amended to limit those accruals to some or all of the employees who participated in the plan on a specified date). 
 
This notice permits certain employers that sponsor a closed DB plan and a DC plan to demonstrate that the aggregated plans comply with the nondiscrimination requirements of § 401(a)(4) on the basis of equivalent benefits, even if the aggregated plans do not satisfy the current conditions for testing on that basis.  The notice also requests comments on possible permanent changes to the nondiscrimination rules under § 401(a)(4).

Revenue Procedure 2013-39 describes and updates the procedure for requesting the IRS authorize a person to act as agent under section 3504 of the Internal Revenue Code (Code) and §31.3504-1 of the Employment Tax Regulations for purposes of Chapters 21, 22, 24, and 25 of the Code. Special instructions are also set forth for agents authorized to perform acts for purposes of Chapter 23 of the Code.

Notice 2013-74 provides guidance on in-plan Roth rollovers, the practitioner community is looking forward to this guidance.

Notice 2013-84 contains the 2013 Cumulative List of Changes in Plan Qualification Requirements (2013 Cumulative List) described in section 4 of Rev. Proc. 2007-44, 2007-2 C.B. 54.

Notice 2013-85 provides guidance on the corporate bond monthly yield curve (and the corresponding spot segment rates), and the 24-month average segment rates under § 430(h)(2) of the Internal Revenue Code.

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