Daily Tax Update - September 11, 2009

IRS ISSUES FINAL, TEMPORARY REGULATIONS ON DISREGARDED ENTITIES AND EXCISE TAXES: Today, the Internal Revenue Service issued temporary and proposed regulations that "clarify" that a single-owner eligible entity that is disregarded as an entity separate from its owner may be treated as a corporation for tax administrative purposes related to excise taxes reported on Form 720 (Quarterly Federal Excise Tax Return), Form 730 (Monthly Tax Return for Wagers), Form 11-C, (Occupation Tax and Registration Return for Wagering), Form 2290 (Heavy Highway Vehicle Use Tax Return), excise tax refunds or payments claimed on Form 8849 (Claim for Refund of Excise Taxes) and excise tax registrations on Form 637 (Application for Registration for Certain Excise Tax Activities). 

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The regulations can be accessed here and here.

MISCELLANEOUS GUIDANCE RELEASED:

Revenue Procedure 2009-44 updates Revenue Procedure 2002-44, which formally established a mediation procedure for cases in the Appeals administrative process. This revenue procedure expands and clarifies the types of cases that may be mediated in Appeals. Generally, this program is available for cases in which a limited number of legal and factual issues remain unresolved following settlement discussions in Appeals.

REG-136563-07 (released yesterday) contains proposed regulations that provide rules relating to the disclosure of listed transactions and transactions of interest with respect to the generation-skipping transfer tax under section 6011 of the Internal Revenue Code (Code), conforming amendments under sections 6111 and 6112, and rules relating to the preparation and maintenance of lists with respect to reportable transactions under section 6112. The regulations affect taxpayers participating in listed transactions and transactions of interest and material advisors to such transactions. The proposed regulations also contain rules under section 6112 that affect material advisors to reportable transactions. These regulations provide guidance regarding the length of time a material advisor has to prepare the list that must be maintained after the list maintenance requirement first arises with respect to a reportable transaction. These regulations also clarify guidance regarding designation agreements. 

INTERNAL REVENUE SERVICE - CIRCULAR 230 DISCLOSURE:
As provided for in Treasury regulations, advice (if any) relating to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any plan or arrangement addressed herein.

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