Daily Tax Update: December 8, 2016: IRS Issues Regulations on Issue Price Definition for Tax-Exempt Bonds

IRS Issues Regulations on Issue Price Definition for Tax-Exempt Bonds:  Today, the IRS issued final regulations (T.D. 9801) addressing the definition of “issue price” for purposes of the arbitrage investment restrictions that apply to tax-exempt bonds and other tax-advantaged bonds.  Under the regulations, the issue price is the first price at which a substantial amount of bonds are sold to the public.  A substantial amount is 10% of the bonds being issued.  The regulations also make clear that for a bond issued for money in a private placement (like a bank loan) to a single buyer that is not an underwriter, the issue price is the price paid by that buyer.

IRS Issues Proposed Regulations on Electronic Filing of Health Insurance Provider Information:  The IRS today issued proposed regulations regarding the Health Insurance Providers Fee that require certain covered entities providing health insurance to electronically file Form 8963, “Report of Health Insurance Provider Information.”  The proposed regulations would amend §57.3(a)(2) of the existing regulations to provide that a covered entity, including a controlled group, reporting more than $25 million in net premiums must electronically file Form 8963 starting December 31, 2017.

IRS Proposes Revised Definition of ‘Net Premiums Written’ in Health Insurance Rules:  Today, the IRS issued REG-134438-15, proposing an amendment to the way health insurers calculate “net premiums written” under the Affordable Care Act.  The proposed regulations modify the definition of “net premiums written” to account for premium adjustments related to retroactively rated contracts, computed on an accrual basis.  The rules also clarify that net premiums written are reduced when risk adjustment charges are paid.

IRS Modifies Rules for Sharing Tax Data With Census Bureau:  The IRS issued temporary regulations today adjusting the rules for sharing tax data with the Census Bureau.  Under the temporary regulations, returns for the purpose of “the structuring of censuses and national economic accounts and conducting related statistical activities” can be shared with the bureau upon request.  The regulations amend the existing regulations to clarify that disclosure only of categorical information for total qualified research expenses is authorized.

House Passes Stopgap Spending Bill to Avoid Government Shutdown:  Today, the House passed 326-96, a stopgap spending bill to avert a government shutdown on December 9 and fund the government through April 28, 2017.  The bill faces a Democrat-led blockade in the Senate over a renegotiation of coal miner health benefits.