Interest rates: underpayments and overpayments. The rates for interest determined under Section 6621 of the code for the calendar quarter beginning July 1, 2018, will be 5 percent for overpayments (4 percent in the case of a corporation), 5 percent for underpayments, and 7 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 2.5 percent.

Notice 2018-55 informs the public that the Treasury Department and the Internal Revenue Service intend to issue proposed regulations providing clarification regarding the calculation of net investment income for purposes of the section 4968 excise tax imposed on certain applicable private colleges and universities. The notice states that affected institutions will be able to rely on one of the described possible proposed regulations, relating to a step-up in basis for determining gain upon disposition of certain property held on December 31, 2017. The notice also describes two other proposed regulation issues, involving limitations on the use by an affected institution of losses from sales or other dispositions of property and offsetting overall net gains and losses among related organizations and an applicable educational institution, and requests comments on these and other questions that should be addressed in proposed regulations.

Revocation of IRC 501(c)(3) Organizations for failure to meet the code section requirements. Contributions made to the organizations by individual donors are no longer deductible under IRC 170(b)(1)(A).

This Notice announces that the Treasury Department and the IRS intend to amend regulations under section 987 to delay the applicability date of the final section 987 regulations and certain temporary section 987 regulations by 1 additional year. Notice 2017–57, published on October 16, 2017, previously delayed the applicability date by 1 year. The Treasury Department and the IRS intend to amend §§1.861–9T, 1.985–5, 1.987–11, 1.987–1T through 1.987–4T, 1.987–6T, 1.987–7T, 1.988–1, 1.988–1T, 1.988–4, and 1.989(a)–1 to provide that the final regulations and the related temporary regulations will apply to taxable years beginning on or after the date that is three years after the first day of the first taxable year following December 7, 2016.