Overview
IRS Announces Returns and Payments Due Dec. 5 Now Due Dec. 6: The IRS granted taxpayers an extra day, until Thursday, December 6, 2018, to file any return or pay any tax originally due on Wednesday, December 5. The IRS granted the extra time, following the December 1 Executive Order closing all federal agencies on December 5, as a mark of respect for former President George H.W. Bush.
IRS Updates Tax-Exempt Bond Data for Calendar Year 2016: The IRS has updated tax-exempt bond data for both governmental (“public purpose”) and private activity bonds issued in calendar year 2016 on its website. These data are obtained from Forms 8038-G, Information Return for Tax-Exempt Governmental Obligations, and Forms 8038, Information Return for Tax-Exempt Private Activity Bonds, and are filed and processed by the IRS after the bonds are issued.
Miscellaneous Guidance:
Notice 2018-95 provides transition relief from the “once-in-always-in” (OIAI) condition for excluding part-time employees under Treas. Reg. § 1.403(b)-5(b)(4)(iii)(B). Under the OIAI exclusion condition, for a section 403(b) plan that excludes part-time employees from making elective deferrals, once an employee is eligible to make elective deferrals, the employee may not be excluded from making elective deferrals in any later exclusion year on the basis that the employee is a part-time employee. In addition, in applying the OIAI exclusion condition for exclusion years after the transition relief ends, the notice provides a fresh-start opportunity for plans.
Minor Editorial Changes to Foreign Tax Credit Proposed Regulations Reflected in the Version Filed with the Federal Register: Today, the IRS filed the foreign tax credit proposed regulations with the Federal Register, which reflected certain minor editorial changes. A blackline of those changes can be found here.