Daily Tax Update - September 16, 2016: Hatch, Brady Send Letters to Solar Energy Companies Regarding Use of Energy-Related Tax Provisions

Hatch, Brady Send Letters to Solar Energy Companies Regarding Use of Energy-Related Tax Provisions:  Senate Finance Committee Chairman Orrin Hatch (R-UT) and House Ways and Means Committee Chairman Kevin Brady (R-TX) recently sent letters to several solar energy companies as part of an investigation into the use of certain energy-related tax provisions.  The letters specifically reference Treasury’s section 1603 cash grant program, which allows taxpayers to receive an initial cash grant for renewable energy projects equal to 30% of a project’s qualified expenditures.  Section 1603 cash grants are available in lieu of section 48 energy investment tax credits for certain solar projects that (i) began construction between 2009 and 2011 and (ii) are placed in service prior to January 1, 2017.  

IRS Requests Comments on Facilitating Compliance With Qualified Plan Document Requirements:  Today, the IRS issued Announcement 2016-32, which requests comments on ways in which Treasury and the IRS can improve compliance with plan qualification requirements by making it easier for plan sponsors to satisfy requirements for qualified plan documents, particularly in light of the changes to the determination program described in Revenue Procedure 2016-37.  Comments can be submitted in writing on or before December 15. 

Miscellaneous Guidance:  
Notice 2016-54 provides guidance on the corporate bond monthly yield curve, the corresponding segment rates under section 417(e)(3), and the 24-month average segment rates under section 430(h)(2).  

Notice 2016-55 provides guidance for income and employment tax purposes on the treatment of cash payments made by employers under leave-based donation programs for the relief of victims of the Louisiana storms.

Revenue Ruling 2016-25 provides various prescribed rates for federal income tax purposes, including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate, and the adjusted federal long-term tax-exempt rate.