Daily Tax Update - December 28, 2016: IRS Proposes Changes to Nuclear Decommissioning Fund Regulations

IRS Proposes Changes to Nuclear Decommissioning Fund Regulations:  Today the Treasury Department and the IRS released proposed regulations under section 468A relating to deductions for contributions to trusts maintained for decommissioning nuclear power plants and the use of the amounts in those trusts to decommission nuclear plants.  Specifically, the proposed regulations revise certain provisions to address issues that have arisen as more nuclear plants have begun the decommissioning process and clarify provisions in the current regulations regarding self-dealing and the definition of substantial completion of decommissioning.  

IRS Releases Proposed Mortality Tables for Determining Present Value Under Defined Benefit Pension Plans:  Today the Treasury Department and the IRS issued proposed regulations prescribing mortality tables to be used by most defined benefit pension plans.  In addition, the IRS released proposed regulations to update the requirements that a plan sponsor must meet in order to obtain IRS approval to use mortality tables specific to the plan for minimum funding purposes (instead of the generally applicable mortality tables).    

Luxembourg Tax Authorities Release New Transfer Pricing Guidelines:  The Luxembourg tax authorities have released a circular (in French) providing new guidelines regarding the tax treatment applicable to Luxembourg companies engaging in intra-group financing transactions.