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e-News for Tax Professionals
Issue Number: 2015-27
Inside This Issue
1. Whistleblower Office Releases FY 2014 Annual Report to Congress
2. Sign Up for IRS Summertime Tax Tips
3. Tax Relief for Storm Victims in Arkansas, Oklahoma, Texas and Wyoming
1. Whistleblower Office Releases FY 2014 Annual Report to Congress
The latest Whistleblower Report to Congress is now available on IRS.gov. The report provides statistics and outlines the successes and challenges of the past year.
2. Sign Up for IRS Summertime Tax Tips
Tax professionals interested in receiving consumer tips this summer to help get a jump start on next year’s taxes should consider joining the more than 660,000 subscribers who already receive IRS Tax Tips.
3. Tax Relief for Storm Victims in Arkansas, Oklahoma, Texas and Wyoming
Victims of the severe storms, tornadoes, straight-line winds and flooding that took place in parts of Arkansas, Oklahoma, Texas and Wyoming may qualify for tax relief from the IRS.
Notice 2015-47: The Listing Notice applies to a type of structured financial transaction in which a taxpayer attempts to defer and treat ordinary income and short-term capital gain as long-term capital gain. The contract is denominated as an option contract that references a basket of actively traded personal property (i.e., securities). The contract allows the taxpayer to trade the securities referenced in the contract while the contract purportedly remains open, and the taxpayer does so. Consequently, option treatment is not warranted, and the income deferral and conversion to long-term capital gain is improper. The transaction described in the Listing Notice is similar to a transaction described in a companion Transaction of Interest Notice (NOT-110323-15); each of the Notices makes it clear that if a transaction is identified by both Notices, it is treated as a Listed Transaction.
Notice 2015-48: The Transaction of Interest Notice applies to a type of structured financial transaction in which a taxpayer attempts to defer and treat ordinary income and short-term capital gain as long-term capital gain. The transaction may be denominated as an option, notional principal contract, or forward contract. The contract may reference assets that are not actively traded, such as interests in hedge funds, and the taxpayer has the right to change the assets in the referenced basket. The taxpayer’s ability to control the assets in the basket raises the issue of whether the form of the transaction should be respected, and, thus, whether the income deferral and conversion to long-term capital gain is improper. The transaction described in the notice is similar to a transaction described in a companion draft Listing Notice (NOT-109093-14); each of the Notices makes it clear that if a transaction is identified by both Notices, it is treated as a Listed Transaction.
Notice 2015-49 informs taxpayers that the Treasury Department and the IRS intend to amend the required minimum distribution regulations under Section 401(a)(9) of the Internal Revenue Code to address the use of lump sum payments to replace annuity payments being paid by a qualified defined benefit pension plan. The regulations, as amended, will provide that qualified defined benefit plans generally are not permitted to replace any joint and survivor, single life, or other annuity currently being paid with a lump sum payment or other accelerated form of distribution. The Treasury Department and the IRS intend that these amendments to the regulations will apply as of July 9, 2015, except with respect to certain accelerations of annuity payments described in the notice.
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Mail To Candace Cansler NCSA Executive Director Post Office Box 1126 Conover, North Carolina 28613 |
