Introduced under is our abstract of great Inner Income Service (IRS) steering and related tax issues for the week of August 3, 2020 – August 7, 2020. Moreover, for persevering with updates on the tax affect of COVID-19, please go to our useful resource web page right here.
August 3, 2020: The IRS printed a information launch asserting that James Lee will grow to be the brand new chief of IRS Legal Investigation on October 1, 2020.
August 4, 2020: The IRS printed a discover and request for feedback regarding Kind 3800 (Common Enterprise Credit score), which is the shape taxpayers file to assert any of the overall enterprise credit. Feedback are due on or earlier than October 5, 2020.
August 4, 2020: The IRS printed corrections to closing rules beneath Treasury Choice 9896 that have been printed within the Federal Register on Wednesday, April 8, 2020. The ultimate rules present steering concerning hybrid dividends and sure quantities paid or accrued pursuant to hybrid preparations, which typically contain preparations whereby US and overseas tax legislation classify a transaction or entity in another way for tax functions. The corrections are efficient on August 4, 2020.
August 4, 2020: The IRS added new content material to Inner Income Guide 21.7.2 regarding a brand new main subsection with COVID-19 associated employment tax aid steering.
August 5, 2020: The IRS launched public feedback in response to Discover 2020-43, which requested feedback on a proposed requirement for partnerships to make use of solely one in every of two different strategies (described within the discover) to fulfill the tax capital reporting requirement with respect to partnership taxable years that finish on or after December 31, 2020. If adopted, partnerships and sure different individuals would not be permitted to report associate capital accounts utilizing some other methodology, together with part 704(b) and US typically accepted accounting rules.
August 7, 2020: The IRS launched Inner Income Bulletin 2020-33, dated August 10, 2020, containing the next: Announcement 2020-10, Announcement 2020-11; Income Process 2020-37; T.D. 9901, T.D. 9902; REG-127732-19.
August 7, 2020: The IRS introduced corrections to Treasury Choice 9900, printed in Inner Income Bulletin 2020-30 on Monday, July 20, 2020, concerning consolidated web working loss deductions. The corrections revise the applicability date of the momentary rules, revise the amended return submitting date, and revise a selected regulation’s expiration date.
August 7, 2020: The IRS launched for publication within the Federal Register closing rules beneath sections 162, 164, and 170 affecting taxpayers who make transfers to entities described in part 170(c) for enterprise functions and taxpayers who obtain state or native tax credit in change for transfers to such entities or who obtain different third celebration advantages in change for transfers to such entities. The ultimate rules: (1) replace the rules beneath part 162 to replicate present legislation concerning the applying of part 162 to taxpayers that make funds or transfers for enterprise functions to entities described in part 170(c); (2) present secure harbors beneath part 162 to offer certainty with respect to the remedy of funds made by enterprise entities to entities described in part 170(c); (3) present a secure harbor beneath part 164 for funds made to an entity described in part 170(c) by people who itemize deductions and obtain or count on to obtain a state or native tax credit score in return; and (4) replace the rules beneath part 170 to replicate previous steering and case legislation concerning the applying of the quid professional quo precept beneath part 170 to a donor who receives or expects to obtain advantages from a 3rd celebration. The ultimate rules are efficient August 11, 2020.
August 7, 2020: The IRS launched its weekly checklist of written determinations (e.g., Personal Letter Rulings, Technical Recommendation Memorandums and Chief Counsel Recommendation).
Particular due to Robbie Alipour in our Chicago workplace for this week’s roundup.