Daily Tax Update - October 24, 2014: Tax Officials Agree to Increase Cooperation

Tax Officials Agree to Increase Cooperation:  The head tax officials from 38 countries agreed to increase cooperation to implement the BEPS action plan at a meeting of the Forum on Tax Administration in Dublin today.  In an official Communiqué, the group announced the creation of a new international platform called the Joint International Tax Shelter Information and Collaboration (JITSIC) Network to focus specifically on cross border tax avoidance.

IRS Allows Defined Contribution Plans to Include Deferred Annuities:  Today, the IRS issued Notice 2014-66 providing a special rule that enables qualified defined contribution plans to provide lifetime income by offering, as an investment option, a series of target date funds (TDFs) that include deferred annuities among their assets.  The rule provides that, under certain circumstances, a series of TDFs in a defined contribution plan is treated as a single right or feature for purposes of the nondiscrimination requirements of Section 401(a)(4). 

IRS Issues Guidance on Private Business Use of Tax-Exempt Bond Financed Facilities:  Today, the IRS issued Notice 2014-67 providing interim guidance for determining whether a state or local government entity or a Section 501(c)(3) organization will be considered to have private business use of its tax-exempt bond-financed facilities due to its participation in an “accountable care organization.”  The Notice also provides guidance regarding certain management contracts that do not result in private business use.

Final Regulations Remove Payment Card Agent Program Rules:  The Treasury and IRS issued final regulations that remove rules regarding information reporting and backup withholding for the qualified payment card agent program.  The regulations, effective October 27, 2014, also amend other rules to remove references to the obsolete program.