Daily Tax Update - March 30, 2015: IRS Releases Final Rules for Deducting Excessive Compensation

IRS Releases Final Rules for Deducting Excessive Compensation:  Today the IRS released final rules under Section 162(m), adopting the proposed regulations with some modifications.  The final rules confirm that a plan satisfies the per-employee limitation requirement if the plan specifies an aggregate maximum number of shares with respect to which stock options, stock appreciation rights, restricted stock, restricted stock units, and other equity-based awards may be granted to any individual employee during a specified period under a plan approved by shareholders in accordance with Treas. Reg. §1.162-27(e)(4). 

IRS Releases Final Rules on Period of Limitations on Assessment for Undisclosed Listed Transactions:  Today the IRS released final regulations relating to the exception to the general three-year period of limitations on assessment under Section 6501(c)(10) for listed transactions that a taxpayer failed to disclose as required under Section 6011.  The final rules adopt the proposed regulations with four substantive clarifications.  Among these clarifications was the addition of language to Treas. Reg. §301.6501(c)-1(g)(1) to clarify the interaction of the one-year period of limitations on assessment after disclosure of a listed transaction under Section 6501(c)(10) and the general three-year period of limitations on assessment under Section 6501(a).

The final rules supersede Revenue Procedure 2005-26 for taxable years with respect to which the period of limitations on assessment under Section 6501 did not expire before publication of the final rules.  The final rules will be published in the Federal Register on March 31, 2015.  Revenue Procedure 2005-26 will continue to apply to taxable years with respect to the period of limitations on assessment expired on or after April 8, 2005, and before March 31, 2015, although as provided in the proposed regulations, taxpayers could rely on the proposed rules until publication of the final rules.

BSI SA Reaches Settlement With the Department of Justice Under Swiss Bank Program:  The Department of Justice (DOJ) announced today that BSI SA, one of the 10 largest private banks in Switzerland, is the first bank to reach a resolution under the Swiss Bank Program.  As part of its agreement, BSI is providing detailed information to DOJ about transfers of money from Switzerland to other countries. 

Department of the Treasury Releases Boycott List:  The Department of the Treasury has released the current list of countries which require or may require participation in, or cooperation with, an international boycott (within the meaning of Section 999(b)(3)).  The list, unchanged from the last published list, consists of Iraq, Kuwait, Lebanon, Libya, Qatar, Saudi Arabia, Syria, United Arab Emirates, and Yemen.

JCT Releases Report Providing Summary of Current U.S. Tax Law:  Today the Joint Committee on Taxation (JCT) released a report providing an overview of the federal tax system as in effect for 2015.