Daily Tax Update - January 19, 2016: IRS Announces Upcoming Changes to Foreign Financial Institution Regs

IRS Announces Upcoming Changes to Foreign Financial Institution Regs:  Today the IRS released Notice 2016-08 announcing forthcoming amendments to the regulations under chapter 4 to: (1) modify the date for submitting preexisting account certifications required of certain foreign financial institutions (FFIs); (2) specify the period and date for submitting to the IRS the periodic certification of compliance for a registered deemed compliant FFI; and (3) modify the transitional information reporting rules for accounts of nonparticipating FFIs to eliminate the requirement to report on gross proceeds for the 2015 year.  The notice also announced forthcoming amendments under chapters 3 and 4 to specify the circumstances under which a withholding agent may rely on electronically furnished Forms W-8 and W-9 collected by intermediaries and flow-through entities.

IRS Extends Deadline for Social Welfare Organizations:  Today the IRS released Notice 2016-09 that provides interim guidance that extends the due date of notifications required by social welfare organizations described in section 501(c)(4).  The notice also provides guidance on the process by which an organization may request a determination that it qualifies for section 501(c)(4) status.  For additional information click here.

Miscellaneous Guidance: Revenue Ruling 2016-04 provides various prescribed rates for February 2016 for federal income tax purposes including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted long-term rate, and the adjusted federal long-term tax-exempt rate.