Daily Tax Update - September 19, 2014: IRS Releases Further Guidance on Automatic Method Changes for Tangible Property Dispositions

IRS Releases Further Guidance on Automatic Method Changes for Tangible Property Dispositions:  The IRS issued Revenue Procedure 2014-54 yesterday, which addresses certain changes in method of accounting for dispositions of tangible property.  The guidance provides the procedures by which a taxpayer may obtain the automatic consent of the IRS to change to the methods of accounting provided in Treas. Reg. §§1.168(i)-1, which provides rules for general asset accounts; 1.168(i)-7, which provides rules for depreciation of MACRS property; and 1.168(i)-8, which provides rules for dispositions of MACRS property.  Additionally, the revenue procedure allows a late partial disposition election under Treas. Reg. §1.168(i)-8 to be treated as a change in method of accounting for a limited period of time. 

Revenue Procedure 2014-54 will be published in IRB 2014-41 on October 6.  The revenue procedure complies with the final rules issued in T.D. 9689 on Aug. 14.

IRS Releases Draft Instructions for Affordable Care Act Forms:  The IRS released draft instructions yesterday for two Affordable Care Act forms.  The first set of draft instructions is for Form 8962, “Premium Tax Credit.”  Form 8962 is completed to calculate the premium tax credit for individuals who enroll, or whose family member enrolls, in a qualified health plan offered through a Health Insurance Marketplace.  The second set of instructions is for Form 8965, “Health Coverage Exemptions (and instructions for figuring your shared responsibility payment).”  Form 8965 is completed by individuals to report a coverage exemption granted by the marketplace or to claim a coverage exemption on a tax return.