The following were originally printed in the Weekly Report, part of the BNA Tax and Accounting Center.

Volume 28 Number 48
Monday, November 30, 2009

IRS, Treasury Issue 2009-10 Guidance Plan Spanning Range of Issues

Treasury and IRS unveil the 2009-10 priority guidance plan, with 315 projects to be completed from July 2009 through June 2010, noting the plan addresses a range of issues including recent legislation, the current economic environment, and key international issues. The guidance plan spans a broad variety of topics, from corporations and their shareholders to financial institutions and products, with a strong focus on cross-border taxation. Three top officials from Treasury and IRS say they plan to update and republish the business plan during the year to reflect additional guidance. Full text of the priority guidance plan can be found in the Text section of this issue.

IRS Issues Rules on Pension Plan Notice Requirements

IRS issues final rules (T.D. 9472) on ERISA §204(h) notice requirements to participants about pension plan amendments that reduce benefits accrued before a plan amendment's applicable amendment date. The rules incorporate revisions to notice requirements of §204(h) of the Employee Retirement Income Security Act made by the Pension Protection Act of 2006 (P.L. 109-280). The rules are effective Nov. 24, and generally apply to plan amendments effective on or after Jan. 1, 2008.

Final Rules Issued on Agreements for Installment Payments of Liabilities

IRS issues final rules (T.D. 9473) relating to the payment of tax liabilities in installments. IRS says the regulations reflect changes to the law made by several recently enacted laws, and they will affect taxpayers submitting installment agreements to the IRS. Under the final rules, the taxpayer may submit a request to modify or terminate the installment agreement, and the IRS may terminate an installment agreement if the taxpayer provides materially incomplete or inaccurate information in response to an IRS request for a financial update, IRS said.

Tax Court Upheld on Taxation of Loans Paid to Firms Owned by China

The Fifth Circuit, in New York Guangdong Finance Inc. v. Comr., upholds rulings by the U.S. Tax Court regarding the taxation of loan transactions New York Guangdong Finance Inc. engaged in with two businesses owned by the Chinese government.

FOCUS: Tax Effects of Surrender, Sale of Insurance Contract

The author of this week's Focus examines the tax consequences of surrender or sale of a life insurance contract—and how to classify the income derived from such a transaction. He discusses the Tax Court's recent ruling on the subject in Barr v. Comr. and outlines guidance setting forth IRS's views. Gross income for federal tax purposes includes income from life insurance contracts, the author writes.

Interest:

IRS issues ruling providing overpayment, underpayment interest rates for calendar quarter beginning Jan. 1, 2010.

Compensation Planning:

IRS makes announcement on acceptance of determination letters applications on Form 5307 for defined benefit plans.

Procedure:

IRS proposes rules relating to awards of administrative costs, attorneys fees.

Compensation Planning:

IRS proposes rules on payment transactions which would require duplicate reporting.

BNA AUDIOCONFERENCE

Business Entities: A Tax Management audioconference, Renewable Energy Financing Structures: Partnership or Lease?, will be held December 10. To register, call 800-372-1033, opt. 6 or visit http://tmaudioconference.bna.com.