Overview
IRS Issues Guidance on Blended Tax Rates for Fiscal Year End Corporations: Today, the IRS issued Notice 2018-38, containing guidance for corporations that report on a fiscal year end basis for federal tax purposes on how to calculate federal income tax for the tax year that includes January 1, 2018. Notice 2018-38 includes instructions for computing tax using a blended rate that incorporates the rates in effect prior to January 1, 2018 and the new 21% corporate rate adopted in 2017’s Tax Cuts and Jobs Act. In a news release accompanying the notice, the IRS said fiscal year corporations may want to consider amending any returns filed that don’t reflect the blended rate.
OECD Releases Draft Agenda for Digital Financial Assets Workshop: The OECD released the draft agenda for next month’s Workshop on Digital Financial Assets. The workshop, which will take place in Paris on May 15 and 16, will focus on monetary and tax policy with respects to digital currencies.
Miscellaneous Guidance: Notice 2018-34 provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates used under § 417(e)(3), and the 24-month average segment rates under § 430(h)(2) of the Internal Revenue Code. In addition, the notice provides guidance as to the interest rate on 30-year Treasury securities under § 417(e)(3)(A)(ii)(II) as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate under § 431(c)(6)(E)(ii)(I).