October 2014

October 31, 2014

Proposed Rules Would Change Partners’ Treatment of Unrealized Receivables and Inventory Items

The IRS issued proposed regulations under Sec. 751 that would amend the rules governing how a partner measures its interest in a partnership’s unrealized receivables and inventory items and the tax consequences of a distribution to a partner reducing that interest.

October 30, 2014

2015 Inflation-Adjusted Items and Tax Tables Issued

The IRS issued the annual inflation adjustments for 2015 for more than 40 tax provisions as well as the 2015 tax rate tables for individuals and estates and trusts.

October 24, 2014

Defined Contribution Plans Can Offer Deferred Annuities to Older Participants

Qualified defined contribution plans will be allowed to provide lifetime income to plan participants by offering funds including deferred annuities among their assets, even if some of the funds are available only to older plan participants.

October 23, 2014

Pension Plan Limitations Are Increased for Inflation

Taxpayers will be allowed to contribute more money to their retirement savings in 2015 under new pension plan limits announced by the IRS.

October 22, 2014

Social Security Administration Announces 2015 Wage Base

The Social Security Administration announced that the wage base above which OASDI taxes are not due will increase from $117,000 to $118,500 in 2015.

October 14, 2014

Proposed Regs. Would Eliminate 36-Month Testing Period from COD Reporting Requirements

Because the IRS believes that requiring the filing of Form 1099-C at the expiration of a 36-month nonpayment of debt testing period “creates confusion for taxpayers” and does not increase tax compliance, the Service proposes to eliminate the rule.

October 13, 2014

Changes Made to IRS Streamlined Offshore Compliance Procedures

The IRS updated its streamlined offshore compliance program to provide procedures taxpayers residing both inside and outside the United States should use to participate in the program.

October 13, 2014

Certain FATCA Deadlines Are Postponed

The IRS announced its intention to modify the effective dates of the FATCA standards of knowledge that apply to a withholding certificate or documentary evidence to document a payee and other rules.

October 9, 2014

AICPA Asks for Raise in Repair Regulations’ De Minimis Safe Harbor Threshold

The AICPA raised concerns about the low amount of the de minimis safe harbor threshold in the tangible property regulations and about the retrospective application of the new rules.

October 9, 2014

Notice Defines Terms for Economic Substance Doctrine

The IRS provided guidance defining "transaction" for purposes of applying the codified economic substance doctrine and "similar rule of law" for purposes of the accuracy-related penalty.