Inside This Issue

1. Second quarter interest rates unchanged
2. Technical Guidance

1.  Second quarter interest rates unchanged

The IRS announced no change in interest rates beginning April 1. The interest rates are computed from the federal short-term rate determined during January 2024. See Revenue Ruling 2025-07 for details.

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2.  Technical Guidance

Notice 2025-16 provides for adjustments to the limitation on housing expenses for purposes of section 911 of the Internal Revenue Code for the 2025 tax year. These adjustments are made on the basis of geographic differences in housing costs relative to housing costs in the United States.

Revenue Procedure 2025-17 adds Ukraine, Iraq, Haiti, and Bangladesh to the list of waiver countries for tax year 2024 for which the minimum time requirements are waived. Generally, U.S. citizens or resident aliens living and working abroad are taxed on their worldwide income.