Proposed regulations under section 381 of the Internal Revenue Code modify the definition of an acquiring corporation for purposes of section 381 with regard to certain acquisitions of assets. Written or electronic comments and requests for a public hearing must be received by August 5, 2014

This document contains corrections to final and temporary regulations (TD 9650) that were published in the Federal Register on Tuesday, December 31, 2013 (78 FR 79602). The regulations provide guidance on determining ownership of a passive foreign investment company (“PFIC”) and on the annual filing requirements for shareholders of PFICs.

This document contains corrections to a notice of proposed rulemaking by cross-reference to temporary regulations (REG–140974–11) that was published in the Federal Register on Tuesday, December 31, 2013 (78 FR 79650). The proposed regulations provide guidance on determining the ownership of a passive foreign investment company (PFIC), the annual filing requirements for shareholders of PFICs, and an exclusion from certain filing requirements for shareholders that constructively own interests in certain foreign corporations.

This revenue procedure provides the exclusive procedures for taxpayers to obtain the automatic consent of the Commissioner to change a method of accounting for sales-based royalties and sales-based vendor chargebacks to comply with final regulations under §§ 263A and 471 of the Code. The final regulations (TD 9652) were published in the Federal Register on January 13, 2014.

Credit for Renewable Electricity Production, Refined Coal Production, and Indian Coal Production, and Publication of Inflation Adjustment Factors and Reference Prices for Calendar Year 2014: The notice reports for 2014 the inflation adjustment factors and reference prices used to determine the availability of the section 45 credit for electricity produced from qualified energy resources and refined coal and includes the credit amounts for renewable electricity production and refined coal production. The notice also reports the inflation adjustment factor for Indian coal and includes the credit amounts for Indian coal production.

Final regulations provide rules under section 36B of the Code relating to requirements for Affordable Insurance Exchanges to report information relating to the health insurance premium tax credit, enacted by section 1401 of the Affordable Care Act.

Final Regulations under section 67 of the Code provide that certain costs incurred by estates or non-grantor trusts are miscellaneous itemized deductions that are deductible only to the extent they exceed 2 percent of the adjusted gross income of the estate or non-grantor trust. This limitation is often referred to as the “2-percent floor.” Other costs incurred by estates or non-grantor trusts are deductible without regard to the 2-percent floor. These final regulations provide guidance on the types of costs that are and are not subject to the 2-percent floor.

These final regulations clarify the general rule under section 402(a) that amounts held in a qualified retirement plan that are used to pay accident or health insurance premiums are taxable distributions unless described in certain statutory exceptions. The final regulations do not extend this result to arrangements under which amounts are used to pay premiums for disability insurance that replaces retirement plan contributions in the event of a participant’s disability.