Overview
IRS Issues Guidance on Section 956 Property: Today the Treasury Department and the IRS announced in Notice 2018-46 that they intend to publish regulations that provide an exception from the definition of US property (similar to the exception in section 956(c)(2)(J)) for an obligation of a US person to the extent the principal amount of the obligation does not exceed the fair market value of cash and readily marketable securities posted or received as margin or collateral for the obligation in the ordinary course of its business by a US or foreign person that is a dealer in securities or commodities. On May 8, 2015, temporary and proposed regulations were published that extended an exception to the definition of US property contained in earlier regulations to certain obligations of US persons arising from upfront payments made with respect to uncleared notational principal contracts (the full margin or cash collateral exception). Before the issuance of the contemplated regulations, taxpayers may rely either on the provisions of the notice or on the full margin or cash collateral exception provided in the 2015 regulations.
IRS Issues Guidance on Empowerment Zone Termination Date Extensions: Today, the IRS issued Notice 2018-47, which provides that empowerment zones already designated by state and local governments will be deemed to have an expiration date of December 31, 2017 instead of December 31, 2016.