Federal Tax Regulations Issued in 2020 + Rev Ruls, Rev Procs & Notices

The tables below lists tax regulations issued by the Treasury Department and IRS in 2020, as well as revenue rulings, revenue procedures and notices issued by the IRS.  The links will take you to the text of the regulations (usually in the Federal Register) and other helpful information. 

List of regulations issued in: 2019   2018  2017   2016   2015    2014     2013     2012      2011

California Franchise Tax Board (FTB) Regulations – see the Interested Parties meetings website of the FTB.

Regulations

 

Title of Regulation

 

Status

Citation

IRC Sections

Additional Information

Regulations Relating to Withholding and Reporting Tax on Certain U.S. Source Income Paid to Foreign Persons

Final regs

 

Removal of temp regs

TD 9890 (1/2/20)

1441

1471

1474

6049

“final regulations that provide guidance on certain due diligence and reporting rules applicable to persons making certain U.S. source payments to foreign persons, and guidance on certain aspects of reporting by foreign financial institutions on U.S. accounts. The final regulations affect persons making certain U.S.-related payments to certain foreign persons and foreign financial institutions reporting certain U.S. accounts.”

 Correction – FR 13045 (3/6/20)

Investing in Qualified Opportunity Funds

 

TCJA

Final regs

TD 9889 (1/13/20)

 

Advance release by IRS (12/19/19)
[544 pages]

1400Z2

1502

1504

“final regulations governing the extent to which taxpayers may elect the Federal income tax benefits provided by section 1400Z-2 of the Internal Revenue Code (Code) with respect to certain equity interests in a qualified opportunity fund (QOF). The final regulations address the comments received in response to the two notices of proposed rulemaking issued under section 1400Z-2 and provide additional guidance for taxpayers eligible to elect to temporarily defer the inclusion in gross income of certain gains if corresponding amounts are invested in certain equity interests in QOFs, as well as guidance on the ability of such taxpayers to exclude from gross income additional gain recognized after holding those equity interests for at least 10 years. The final regulations also address various requirements that must be met for an entity to qualify as a QOF, including requirements that must be met for an entity to qualify as a qualified opportunity zone business. The final regulations affect entities that self-certify as QOFs and eligible taxpayers that make investments, whether qualifying or non-qualifying, in such entities.”

  IR-2019-212 (12/19/19)

  Treasury press release on final regs (12/19/19) and FAQs

  New for 2019: New required form for 2019 and beyond – Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments.

Revised Applicability Dates for Regulations under Section 382(h) Related to Built-in Gain and Loss

Prop regs

REG-125710-18 (1/14/20)

382

“This document withdraws a portion of a notice of proposed rulemaking published in the Proposed Rules section of the Federal Register on September 10, 2019. That notice of proposed rulemaking contained proposed rules to provide guidance regarding the items of income and deduction that are included in the calculation of built-in gains and losses under section 382. If adopted, those proposed rules would apply to any ownership change occurring after the date the Treasury decision adopting those proposed rules as a final regulation is published in the Federal Register. This notice of proposed rulemaking would delay the applicability of those proposed rules and provide transition relief for eligible taxpayers. The proposed regulations in this notice of proposed rulemaking would affect corporations that experience an ownership change for purposes of section 382.”

Transfers of Certain Property by U.S. Persons to Partnerships with Related Foreign Partners

Final regs

 

Removal of temp regs

TD 9891 (1/23/20)

197

704

721

6038

6038B

“final regulations that provide guidance applicable to transfers of appreciated property by U.S. persons to partnerships with foreign partners related to the transferor. Specifically, when a U.S. person transfers appreciated property to a partnership with a foreign partner related to the transferor, the regulations override the general nonrecognition rule unless the partnership adopts the remedial allocation method and certain other requirements are satisfied. The regulations affect U.S. partners in domestic or foreign partnerships.”

Return Due Date and Extended Due Date Changes

Final regs

TD 9892 (1/30/20)

446

6012

6031

6032

6033

6041

6071

6072

6081

 

 

“final regulations that update the due dates and available extensions of time to file certain tax returns and information returns. The dates are updated to reflect the statutory requirements set by section 2006 of the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 and section 201 of the Protecting Americans from Tax Hikes Act of 2015. Additionally, the regulations remove a provision for electing large partnerships that was made obsolete by section 1101(b)(1) of the Bipartisan Budget Act of 2015. These regulations affect taxpayers who file Form W–2 (series, except Form W– 2G), Form W–3, Form 990 (series), Form 1099–MISC, Form 1041, Form 1041–A, Form 1065, Form 1065–B, Form 1120 (series), Form 4720, Form 5227, Form 6069, Form 8804, or Form 8870.”

Determination of the Maximum Value of a Vehicle for Use with the Fleet-Average and Vehicle Cents-Per-Mile Valuation Rules

 

TCJA

Final regs

TD 9893 (2/5/20)

61

“final regulations regarding special valuation rules for employers and employees to use in determining the amount to include in an employee’s gross income for personal use of an employer- provided vehicle. The final regulations reflect changes made by the Tax Cuts and Jobs Act (TCJA).”

Income Tax Withholding from Wages

 

TCJA

Prop regs

REG-132741-17 (2/13/20)

3401

3402

“proposed regulations that provide guidance for employers concerning the amount of Federal income tax to withhold from employee’s wages, implementing recent changes in the Internal Revenue Code made by the Tax Cuts and Jobs Act (TCJA), and reflecting the redesigned 2020 Form W–4 and related IRS publications. These proposed regulations affect employers that pay wages subject to Federal income tax withholding and employees who receive wages subject to Federal income tax withholding.”

   IR-2020-28 (2/11/20).

Meals and Entertainment Expenses under Section 274

TCJA

Prop regs

REG-100814-19 (2/26/20)

274

“proposed regulations that provide guidance under section 274 regarding certain statutory amendments made to section 274 by 2017 legislation. Specifically, the proposed regulations address the elimination of the deduction under section 274 for expenditures related to entertainment, amusement, or recreation activities, and provide guidance to determine whether an activity is of a type generally considered to be entertainment. The proposed regulations also address the limitation on the deduction of food and beverage expenses under section 274(k) and (n), including the applicability of the exceptions under section 274(e)(2), (3), (4), (7), (8), and (9). These proposed regulations affect taxpayers who pay or incur expenses for meals or entertainment in taxable years beginning after December 31, 2017.”

   IR-2020-39 (2/24/20)

  Effective for tax years beginning on or after the date published as final regs. However, taxpayers may rely on the proposed regulations for entertainment and food or beverage expenditures paid or incurred after 12/31/17. Taxpayers may also rely on Notice 2018-76 until the final regs are published.

User Fees for Offers in Compromise

Final regs

TD 9894 (3/13/20)

CFR 300.3

“final regulations that provide user fees for offers in compromise. The final regulations affect taxpayers who wish to pay their Federal tax liabilities through offers in compromise”

  IR-2020-55 (3/12/20), as with the regs, notes that low-income taxpayers don’t owe an OIC fee per changes made by the Taxpayer First Act (PL 116-25; 7/1/19).

IRS Revenue Rulings, Revenue Procedure and Notices Released in 2020

Generally, the text below is taken verbatim from IRS news releases about the guidance. Rulings on interest rates are omitted.

Revenue Rulings

 

Ruling #

Date released

IRS summary

Code Section(s)

Rev. Rul. 2020-1

12/17/19

provides various prescribed rates for federal income tax purposes for January 2020 (the current month)

1274

Rev. Rul. 2020-2

1/3/20

provides tables of covered compensation under §401(l)(5)(E) of the Internal Revenue Code and the Income Tax Regulations thereunder, for the 2020 plan year.

401

Rev. Rul. 2020-3

1/15/20

Determination of Issue Price in the Case of Certain Debt Instruments Issued for Property

42, 280G, 382, 467, 468, 482, 483, 1288, 7520, 7872

Rev. Rul. 2020-4

1/29/20

clarifies the manner to properly compute the income limits applicable to the low-income housing credit under § 42 of the Internal Revenue Code.  The Consolidated Appropriations Act of 2018 added a new minimum set-aside test, the average income test (§ 42(g)(1)(C)), to the existing minimum set-aside tests available to owners of a low-income housing project.  This revenue ruling addresses the additional income limits available in the average income test.

42

Rev. Rul. 2020-05

2/3/20

modifies Rev. Rul. 2009-13 and Rev. Rul. 2009-14 to reflect §1016(a)(1)(B), which was added by section 13521 of the 2017 Tax Cuts and Jobs Act.  Under §1016(a)(1)(B), the adjusted basis of an insurance contract is not reduced by the cost of insurance.  Section 1016(a)(1)(B) reversed the position in Rev. Rul. 2009-13 and Rev. Rul. 2009-14 that the basis of an insurance contract is reduced by the cost of insurance.

1011

1012

1016

Rev. Rul. 2020-6

2/18/20

Applicable federal rates for March 2020

1274

1288

Rev. Rul. 2020-7

2/28/20

Interest rates remain same for quarter beg 4/1/20

6621

Rev. Rul. 2020-8

 

 

 

Rev. Rul. 2020-9

3/17/20

Applicable Federal Rates - April 2020

1274

1288

382(f)

42(b)

7520

Revenue Procedures

Rev. Proc. #

Date released

IRS summary

Code Section(s)

Rev. Proc. 2020-1

1/2/20

Procedures for obtaining a private letter ruling.

 

Rev. Proc. 2020-2

1/2/20

Procedures for obtaining a technical advice memorandum (TAM).

 

Rev. Proc. 2020-3

1/2/20

No rulings area

 

Rev. Proc. 2020-4

1/2/20

types of advice provided by the Commissioner, Tax Exempt and Government Entities Division, Employee Plans Rulings and Agreements Office, including procedures for issuing determination letters and letter rulings

 

Rev. Proc. 2020-5

1/2/20

procedures for issuing determination letters on issues under the jurisdiction of the Director, Exempt Organizations (EO) Ruling and Agreements.  The revenue procedure also provides guidance on the exhaustion of administrative remedies for the purposes of declaratory judgment under §7428 and provides the applicable user fees for requesting determination letters.

 

Rev. Proc. 2020-6

 

 

 

Rev. Proc. 2020-7

 

No rulings area – international

 

Rev. Proc. 2020-8

 

makes specific modifications to Rev. Proc. 2020-5 to allow for the new electronic submission process of the Form 1023 Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code. It also provides a 90-day transition relief period, during which paper Form 1023 applications will be accepted. This revenue procedure also modifies language related to the submission of written requests of Canadian charities to be listed on the Tax Exempt Organizations Search database or for a determination on private foundation status.

501

Rev. Proc. 2020-09

12/12/19

clarifies which amendments are treated as integral to a plan provision that fails to satisfy the qualification requirements of the Internal Revenue Code (Code) by reason of a change to those requirements made by the recently published regulations under §§ 401(k) and 401(m) relating to hardship distributions of elective deferrals. This revenue procedure also extends the deadline, applicable to pre-approved plans, for adopting an interim amendment relating to those regulations. The deadline is extended to December 31, 2021.

401

Rev. Proc. 2020-10

12/16/19

provides that the third six-year remedial amendment cycle for pre-approved defined benefit plans begins on May 1, 2020, and ends on January 31, 2025.  It also provides that the on-cycle submission period for providers to submit opinion letter applications begins on August 1, 2020 and ends on July 31, 2021.Rev. Proc. 2017-41, 2017-29 I.R.B 92, sets forth procedures for providers of pre-approved plans to obtain opinion letters, once every six years, for qualified pre-approved plans submitted with respect to the third (and subsequent) six-year remedial amendment cycles.  Defined benefit and defined contribution pre-approved plans are under different six-year remedial amendment cycles. 

401

Rev. Proc. 2020-11

1/15/19

provides relief to additional taxpayers who took out federal or private student loans to finance attendance at a nonprofit or for-profit school.  The IRS will not assert that taxpayers within the scope of the revenue procedure must recognize gross income as a result of the discharge of their student loans.  Additionally, the IRS will not assert that a creditor must file information returns and furnish payee statements for the discharge of any indebtedness within the scope of the revenue procedure.  To avoid confusion, the IRS strongly recommends that these creditors not furnish students nor the IRS with a Form 1099-C.

108

Rev. Proc. 2020-12

2/19/20

provides a safe harbor for partnerships to make valid allocations of the carbon oxide sequestration credit under section 45Q. The safe harbor is similar to those developed for partnerships receiving the wind energy production tax credit and the rehabilitation credit. The safe harbor simplifies application of section 45Q credit rules to partnerships able to claim the credit.

45Q

Rev. Proc 2020-13

2/21/20

provides procedures applicable to a taxpayer in a farming business regarding the application of §263A.  Prior to the enactment of Public Law 115-97, 131 Stat. 2054 (December 22, 2017), commonly referred to as the Tax Cut and Jobs Act (TCJA), a taxpayer in a farming business could elect under §263A(d)(3) to have § 263A not apply to certain plants produced by the taxpayer’s farming business.  Section 13102 of the TCJA added new §263A(i), which provides that § 263A does not apply to a taxpayer, other than a tax shelter (as defined in § 448(d)(3)), for a tax year in which the taxpayer qualifies as a small business taxpayer by satisfying the gross receipts test in § 448(c).  This revenue procedure provides the exclusive procedures for a taxpayer that qualifies for the § 263A(i) small business taxpayer exemption to revoke its prior election under § 263A(d)(3) and apply the exemption under § 263(i) in the same taxable year.  In addition, this revenue procedure provides the exclusive procedures for a taxpayer that qualified for and wishes to make an election under §263A(d)(3) in the same tax year that it no longer qualifies for the exemption under §263A(i).

263A

Rev. Proc. 2020-14

 

 

 

Rev. Proc. 2020-15

 

 

 

Rev. Proc. 2020-16

 

 

 

Rev. Proc. 2020-17

3/2/20

exempts from foreign trust information reporting requirements certain U.S. individuals’ transactions with, and ownership of, certain tax-favored foreign trusts that are established and operated exclusively or almost exclusively to provide pension or retirement benefits, or to provide medical, disability, or educational benefits.  In addition, provides procedural guidance for certain eligible individuals on how to request abatement of penalties that have been assessed, or refunds of penalties that have been paid, for a failure to comply with info reporting requirements regarding these foreign trusts.

6048

6677

 

Notices

Notice #

Date released

IRS summary

Code Section(s)

Notice 2020-1

12/11/19

Corporate bond monthly yield curve

417

others

Notice 2020-2

12/16/19

announces that Treasury and the IRS intend to amend the section 871(m) regulations to delay the effective/applicability date of certain rules in those final regulations and extends the phase-in period provided in Notice 2018-72, 2018-40 I.R.B. 522, for certain provisions of the section 871(m) regulations.

871

Notice 2020-03

12/18/19

provides guidance for the 2020 calendar year regarding withholding from periodic payments for pensions, annuities, and certain other deferred income under section 3405(a), including the rules for withholding from periodic payments under section 3405(a) when no withholding certificate has been furnished.

3405

Notice 2020-04

12/27/19

Additional Extension of Temporary Relief for Fuel Removals Destined for Nontaxable Use Due to West Shore Pipeline Shutdown

4081

Notice 2020-05

12/31/19

0ptional 2020 standard mileage rates for taxpayers to use in computing the deductible costs of operating an automobile for business, charitable, medical, or moving expense purposes.  This notice also provides the amount taxpayers must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that may be used in computing the allowance under a fixed and variable rate (FAVR) plan.  Additionally, this notice provides the maximum fair market value (FMV) of employer-provided automobiles first made available to employees for personal use in calendar year 2020 for which employers may use the fleet-average valuation rule in § 1.61-21(d)(5)(v) of the Income Tax Regulations or the vehicle cents-per-mile valuation rule in § 1.61-21(e).

61

62

162

170

213

Notice 2020-06

1/24/20

“Under pre-amended law, by January 31st, the financial institutions would have had to notify IRA owners who turned 70½ in 2020 about the required minimum distribution (RMD) which would have needed to be made for 2020.  The SECURE Act changed the age triggering the RMD requirement from 70 and ½ to 72, so these notices are no longer due under the amended law.   Notice 2020-06 proves that if a RMD statement is provided for 2020 to an IRA owner who will attain age 70½ in 2020, the IRS will not consider such statement to be incorrect, provided that the financial institution notifies the IRA owner no later than April 15, 2020, that no RMD is due for 2020.” Also see IR-2019-19 (1/27/20).

401

Notice 2020-07

1/21/20

Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates

417, 430, 431

Notice 2020-08

1/15/20

Provides the rules that claimants must follow to make a one-time claim for the credits and payments for biodiesel (including renewable diesel) mixtures and alternative fuels sold or used during calendar years 2018 and 2019.  The notice also provides instructions for how a claimant may offset its taxable fuel liability with the alternative fuel mixture credit for 2018 and 2019, and provides instructions for how a claimant may make certain income tax claims for biodiesel, second generation biofuel, and alternative fuel.  The credits had expired on December 31, 2017, but were retroactively reinstated as part of the Further Consolidated Appropriations Act of 2020.

6426

6427

4081

Notice 2020-09

 

 

 

Notice 2020-10

3/2/20

2020 population figures for the low0income housing credit

42

141

142

146

Notice 2020-11

2/20/20

guidance on the corporate bond monthly yield curve, the corresponding spot segment rates used under §417(e)(3), and the 24-month average segment rates under § 430(h)(2).  In addition, this notice provides guidance as to the interest rate on 30-year Treasury securities under §417(e)(3)(A)(ii)(II) as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate under §431(c)(6)(E)(ii)(I), as reflected by application of §430(h)(2)(C)(iv). 

417

430

431

Notice 2020-12

2/19/20

addresses definition of “beginning of construction” for purposes of the carbon oxide sequestration credit under section 45Q. Notice provides guidance to help businesses determine when construction has begun on a qualified facility or on carbon capture equipment that may be eligible for the section 45Q credit.

45Q

Notice 2020-13

2/21/20

provides for adjustments to the limitation on housing expenses for purpose of section 911.  These adjustments are made on the basis of geographic differences in housing costs relative to housing costs in the United States.  Further, if the limitation on housing expenses is higher for taxable year 2020 than adjusted limitations on housing expenses provided in Notice 2019-24, qualified taxpayers may apply the adjusted limitations for tax year 2020 to their 2019 tax year. 

911

Notice 2020-14

3/6/20

2020 Cumulative List of Changes in Plan Qualification Requirements for Pre-Approved Defined Benefit Plans (2020 Cumulative List). The 2020 Cumulative List sets forth specific matters the IRS has identified for review in determining whether a defined benefit plan document that has been filed for an opinion letter has been properly updated.

401

402

411

415

417

436

 

Notice 2020-15

3/11/20

“until further guidance is issued, a health plan that otherwise satisfies requirements to be a high deductible health plan (HDHP) under §223(c)(2)(A) will not fail to be HDHP under § 23(c)(2)(A) merely because health plan provides health benefits associated with testing for and treatment of COVID-19 without a deductible, or with a deductible below minimum deductible (self only or family) for an HDHP. Therefore, an individual covered by HDHP will not be disqualified from being an eligible individual under §223(c)(1) who may make tax-favored contributions to a health savings account (HSA).”

 

223

Notice 2020-16

3/12/20

Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates

412

414

430

This page last updated March 17, 2020

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Page maintained by Professor Annette Nellen.
Last Modified: Mar 17, 2020