This Week’s Internal Revenue Bulletin

HIGHLIGHTS OF THIS ISSUE

These synopses are intended only as aids to the reader in identifying the subject matter covered. They may not be relied upon as authoritative interpretations.

EMPLOYEE PLANS

TD 9867, page 98. This document contains final regulations concerning Public Health Services Act (PHS Act) sections which are incorporated into section 9815 of the Internal Revenue Code. The final regulations allow integrating HRAs with individual health insurance coverage to satisfy PHS Act sections 2711 and 2713, and include conditions under which certain HRAs limited in dollar amount satisfy the conditions to be excepted benefits under section 9831(c)(1). In addition, the final regulations include a rule regarding when individuals offered an HRA integrated with individual coverage remain eligible for a premium tax credit. The final rule was published jointly with the Departments of Labor and of Health and Human Services.

INCOME TAX

NOTICE 2019-41, page 256. Credit for Renewable Electricity Production and Refined Coal Production, and Publication of Inflation Adjustment Factor and Reference Prices for Calendar Year 2019: The notice reports for 2019 the inflation adjustment factor and reference prices used to determine the availability of the section 45 credit for electricity produced from qualified energy resources and refined coal and includes the credit amounts for renewable electricity production and refined coal production. This notice also corrects the credit amount for refined coal production for calendar year 2018.

REG-106282-18, page 259. This document contains proposed regulations cross referencing Final Temporary regulations relating to the addition of section 245A to the Internal Revenue Code by the Tax Cuts and Jobs Act, which was enacted on December 22, 2017. The proposed regulations affect United States persons that have undertaken certain transactions with regards to a controlled foreign corporation or own a controlled foreign corporation that has undertaken certain transactions.

REV RUL 2019-16, page 96. Federal rates; adjusted federal rates; adjusted federal long-term rate, the long-term exempt rate, and the blended annual rate. For purposes of sections 382, 1274, 1288, 7872 and other sections of the Code, tables set forth the rates for July 2019.

TD 9868, page 252. This document contains final regulations regarding the statutory expansion of the class of permissible potential current beneficiaries (PCBs) of an electing small business trust (ESBT) to include nonresident aliens (NRAs). In particular, the final regulations ensure that the income of an S corporation will continue to be subject to U.S. Federal income tax when an NRA is a deemed owner of a grantor trust that elects to be an ESBT.