Daily Tax Update - April 5, 2013: President to Release FY 2014 Budget Next Week

PRESIDENT TO RELEASE FY 2014 BUDGET NEXT WEEK:  Congress returns from its two-week spring recess on April 9.  President Obama plans to release his fiscal year 2014 budget blueprint on April 10.  The White House had delayed release of the budget due to the fiscal cliff negotiations at the end of 2012.  According to reports, the President’s budget would reduce the debt by $1.8 trillion over 10 years.

In a statement today, House Speaker John Boehner said, “When the president visited the Capitol last month, House Republicans stated a desire to find common ground and urged him not to make savings we agree upon conditional on another round of tax increases.  If reports are accurate, the president has not heeded that call.  If the president believes these modest entitlement savings are needed to help shore up these programs, there's no reason they should be held hostage for more tax hikes.  That’s no way to lead and move the country forward.”

Notice 2013-28 provides guidance as to the corporate bond weighted average interest rate and the permissible range of interest rates specified under § 412(b)(5)(B)(ii)(II) of the Internal Revenue Code as in effect for plan years beginning before 2008.  It also provides guidance on the corporate bond monthly yield curve (and the corresponding spot segment rates), and the 24-month average segment rates under § 430(h)(2).  In addition, this notice provides guidance as to the interest rate on 30-year Treasury securities under § 417(e)(3)(A)(ii)(II) as in effect for plan years beginning before 2008, the 30-year Treasury weighted average rate under § 431(c)(6)(E)(ii)(I), and the minimum present value segment rates under § 417(e)(3)(D) as in effect for plan years beginning after 2007.  The rates in this notice reflect certain changes implemented by the Moving Ahead for Progress in the 21st Century Act, Public Law 112-141 (MAP-21).   

Revenue Procedure 2013-22 sets forth the procedures of the Internal Revenue Service for issuing opinion and advisory letters for § 403(b) pre-approved plans (that is, § 403(b) prototype plans and § 403(b) volume submitter plans).  Under the program established by this revenue procedure, the Service will accept applications for opinion and advisory letters regarding the acceptability under § 403(b) of the Internal Revenue Code of the form of prototype plans and volume submitter plans.

Announcement 2013-21 provides a revised Acknowledgement Letter, attached to Rev. Proc. 2013-12, 2013-4 I.R.B. 313.  The telephone number that taxpayers use to inquire about the status of a Voluntary Correction Program (“VCP”) submission that has been sent to the IRS has changed as of March 27, 2013. The new number is 626-927-2011.

Notice 2013-26 allows addional time for filing claims for certain excise tax payments because ATRA extended various fuel tax credits that expired on December 31, 2011.  The due date for filing certain claims for payments related to biodiesel mixtures and alternative fuel had already passed by the date that ATRA was enacted.  

Notice 2013-25 announces the 2012 section 45K credit for fuel produced from a nonconventional source.  For 2012, the section 45K credit is only available for fuel produced from coke or coke gas (other than from petroleum based products) and is not subject to phase-out.