Overview
IRS Issues Guidance on Cost Recovery Approaches for Section 382: Today, the IRS issued Notice 2018-30, which modifies the approaches for determining recognized built-in gain or loss under section 382(h). The notice modifies Notice 2003-65 to take into account changes to section 168(k) resulting from the enactment of Pub. L. No. 115-97 in December 2017. The notice provides that the hypothetical cost recovery deductions used in the section 338 approach described in Notice 2003-65 to identify recognized built-in gain or recognized built-in loss under section 382 are determined without regard to section 168(k). Similarly, in computing the amount of cost recovery deductions that are not attributable to an asset’s built-in loss on the change date under the section 1374 approach described in Notice 2003-65, the hypothetical deductions that would have been allowable had the loss corporation purchased the asset for its fair market value on the change date are determined without regard to section 168(k).
IRS Issues a Reminder That Form 990 for Calendar Year Organizations is Due May 15: Today, the IRS issued a reminder to certain tax-exempt organizations that the May 15 filing deadline for Form 990-series information returns is fast approaching. Form 990-series information returns are normally due on the 15th day of the fifth month after an organization’s tax year ends. Many organizations use the calendar year as their tax year, making May 15, 2018 the deadline to file for 2017. Organizations that need additional time to file may obtain an automatic six-month extension by filing Form 8868. Organizations that fail to file annual reports for three consecutive years will have their federal tax exemptions automatically revoked. The IRS is also reminding tax-exempt organizations to not include any personally identifiable information or social security numbers on Form 990, which is publicly available.