Issue Number: 2019-31
Inside This Issue
IRS Waives Excise Tax on Dyed Fuel in Florida,
Urges Taxpayers to Be Hurricane-Ready
Reminder: e-File, e-Services Unavailable Over Labor Day
Interest Rates Unchanged for the Fourth Quarter
News from the Justice Department’s Tax Division
1. IRS Waives Excise Tax on Dyed Fuel in
Florida, Urges Taxpayers to Be Hurricane-Ready
To minimize or
prevent disruptions to the supply of fuel for diesel-powered highway
vehicles because of Hurricane Dorian, the Internal Revenue Service announced today it will not impose
a penalty when dyed diesel fuel is sold for use or used on the
highway in the State of Florida.
As Hurricane Dorian
threatens Florida, the Internal Revenue Service reminds everyone to develop an emergency preparedness
plan. Taxpayers, whether individuals, organizations or
businesses, should take time now to create or update their emergency plans.
2. Reminder: e-File, e-Services Unavailable Over
Labor Day Weekend
e-File (MeF) Systems, both Production and ATS,
will be unavailable from 8 a.m. ET on Saturday, Aug. 31, to 6 a.m. ET on
Tuesday, Sept. 3. Please monitor the MeF Status Page for updates. Additionally, the
e-Services’ Transcript Delivery System, TIN Matching, ACA and e-file
Application will also be unavailable during this time.
3. Interest Rates Unchanged for the Fourth Quarter
Interest rates will hold unchanged
for the calendar quarter beginning Oct. 1, 2019. The rates will be:
- 5 percent for overpayments (4 percent in the case
of a corporation
- 2.5 percent for the portion of a corporate
overpayment exceeding $10,000
- 5 percent for underpayments
- 7 percent for large corporate underpayments
information, review Revenue Ruling 2019-21.
4. News from the Justice Department’s Tax Division
The U.S. Justice
Department Tax Division this week reported the indictment of Brian Booker,
a former CPA from Fort Lauderdale, Fla., for failure to report foreign bank
accounts (FBARs) and filing false documents with the IRS.
According to the Tax Division, Booker failed to disclose his interest in
financial accounts located in Switzerland, Singapore and Panama. Booker
also allegedly filed false individual income tax returns for tax years 2010
through 2012 that failed to report all of Booker’s foreign bank accounts. If
convicted, Booker faces a maximum sentence of five year in prison for each
count relating to his failure to file an FBAR and a maximum sentence of
three years for each of the counts related to filing false tax returns.
5. Technical Guidance
Revenue Procedure 2019-23
adds one country – Georgia – to the list of countries with which the United
States has in force an information exchange agreement such that interest
paid to residents of such jurisdictions must be reported by payors to the
extent required under Treas. Reg. sections 1.6049-8(a) and 1.6049-4(b)(5).
This revenue procedure also adds Curaçao and Cyprus to the list of
jurisdictions with which Treasury and the IRS have determined that it is
appropriate to have an automatic exchange relationship with respect to bank
deposit interest income information under those regulatory provisions.
Revenue Procedure 2019-36
provides the domestic asset/liability percentages and domestic investment
yields needed by foreign life insurance companies and foreign property and
liability insurance companies to compute their minimum effectively
connected net investment income under section 842(b) of the Internal
Revenue Code for taxable years beginning after Dec. 31, 2017.