Daily Tax Update - June 11, 2014: House Majority Leader Cantor Defeated in Virginia Primary

HOUSE MAJORITY LEADER CANTOR DEFEATED IN VIRGINIA PRIMARY:  House Majority Leader Eric Cantor (R-VA) was lost his re-election bid yesterday in a major upset by Tea Party candidate David Brat.  Cantor has been in office since 2001 and was considered the frontrunner to be the next Speaker of the House.  In acknowledging his defeat last night Cantor said, “It’s disappointing sure, but I believe in this country, I believe there’s opportunity around the next corner for all of us. So, I look forward to continuing to fight with all of you for the things that we believe in for the conservative cause, because those solutions of ours are the answer to the problems that so many people are facing today.”

MISCELLANEOUS GUIDANCE RELEASED:
Notice 2014-40 publishes the inflation adjustment factor for the carbon dioxide (CO2) sequestration credit under § 45Q for calendar year 2014.   

Notice 2014-41 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).