INCOME TAX

Announcement 2016–01 Announcement 2016–01

Announcement 2016–01 updates the mailing address in Revenue Procedure 2007–21, section 4.08, to which a taxpayer or other person may send a written request for rescission of a penalty imposed by either Code section 6707 or 6707A.

Announcement 2016–02 Announcement 2016–02

Announcement 2016–02 informs the public that the IRS will not assert that an individual must include in gross income the value of identity protection services provided to employees or other individuals before a data breach occurs. Additionally, the IRS will not assert that an employer providing identity protection services to its employees must include the value of the identity protection services in the employees gross income and wages. Accordingly, this announcement extends Announcement 2015–22, 2015–35 I.R.B. 288, to include identity protection services provided to employees or other individuals before a data breach occurs.

EMPLOYEE PLANS

Notice 2016–03 Notice 2016–03

This notice provides that the Treasury and the IRS will issue guidance with respect to (1) Cycle A elections made by controlled groups and affiliated service groups; (2) expiration dates on determination letters issued prior to January 4, 2016; and (3) the extension of deadlines for certain defined contribution pre-approved plans. Employers may rely on this notice until Rev. Proc. 2007–44, 2007–2 C.B. 54, is updated to include the changes described in this notice.

EXCISE TAX

Rev. Rul. 2016–03 Rev. Rul. 2016–03

The Internal Revenue Service (IRS) has reconsidered Revenue Ruling 2008–15, 2008–1 C.B. 633, in view of the decision of the United States Court of Appeals for the District of Columbia Circuit in the case of Validus Reinsurance, Ltd. v. United States, 786 F.3d 1039 (2015). As a result, the IRS will no longer apply the one-percent excise tax imposed by section 4371(3) to premiums paid on a policy of reinsurance issued by one foreign reinsurer to another foreign insurer or reinsurer under the situations described in Rev. Rul. 2008–15. Rev. Rul. 2008–15 is hereby revoked.

ADMINISTRATIVE

Notice 2016–04 Notice 2016–04

This notice extends the due dates for the 2015 information reporting requirements, both furnishing to individuals and filing with the Internal Revenue Service, for insurers, self-insuring employers, and certain other providers of minimum essential coverage under I.R.C. § 6055, and the information reporting requirements for applicable large employers under I.R.C. § 6056. This Notice also provides guidance to individuals who, as a result of these extensions, might not receive a Form 1095–B or Form 1095–C by the time they file their 2015 tax returns.