Daily Tax Update - June 29, 2016: IRS Issues Final Regulations on Country-by-Country Reporting

IRS Issues Final Regulations on Country-by-Country Reporting:  Today, Treasury and the IRS issued final regulations (TD 9733) that require annual country-by-country reporting by certain US persons that are the ultimate parent entity of a multinational enterprise group that has annual revenue for the preceding annual accounting period of $850 million or more.  The IRS intends that the information collection requirements in the final regulations will be satisfied by submitting a new reporting form, Form 8975, Country-by-Country Report, with an income tax return.  The categories of information required to be reported on the form were developed in coordination with the OECD/G20 Base Erosion and Project Shifting (BEPS) Project Action 13 - 2015 Final Report (Transfer Pricing Documentation and Country-by-Country Reporting).  Effective June 30, the final regulations apply to tax years beginning on or after July 1. 

IRS Modifies Determination Letter Program for Qualified Retirement Plans:  Revenue Procedure 2016-37 modifies the IRS determination letter program for qualified retirement plans to eliminate, as of January 1, 2017, the five-year remedial amendment cycle system for individually designed plans, currently set forth in Rev. Proc. 2007-44.  Under the modified program, a sponsor of an individually designed plan will be permitted to submit a determination letter application only for initial plan qualification, qualification upon plan termination, and in certain other circumstances.  The revenue procedure also makes clarifying changes and modifies the six-year remedial amendment cycle system for pre-approved qualified plans.