IRS News Update June 20: Retirement Plan Distribution

Offered beneath is our abstract of great Inner Income Service (IRS) steerage and related tax issues for the week of June 15 – June 20, 2020.

June 19, 2020: The US Tax Court docket introduced that the Court docket will resume receiving mail efficient July 10, 2020. Any objects presently being held by the US Postal Service or any personal supply service might be delivered to the Court docket on that day.

June 19, 2020: The IRS issued proposed rules that present steerage for the deduction of certified transportation fringe (QTF) and commuting bills. As a part of the Tax Cuts and Jobs Act (TCJA), taxpayers should not allowed deductions for QTF bills or for sure commuting bills. These proposed rules tackle the elimination of the QTF deduction. The proposed rules additionally present steerage to find out the quantity of QTF parking expense that’s nondeductible.

June 19, 2020: The IRS launched Discover 2020-50 to assist retirement plan contributors affected by the COVID-19 benefit from the Coronavirus Help, Reduction, and Financial Safety (CARES) Act concerning retirement plan distributions. The CARES Act supplies that certified people might deal with as coronavirus-related distributions as much as $100,000 in distributions produced from their eligible retirement plans between January 1 and December 30, 2020 with out being topic to the 10% further tax that in any other case usually applies to distributions made earlier than a person reaches age 59 ½. Discover 2020-50 expands the definition of who’s a certified particular person to bear in mind further elements resembling reductions in pay, rescissions of job gives, and delayed begin dates with respect to a person, in addition to adversarial monetary penalties to a person arising from the impression of the COVID-19 on the person’s partner or family member.

June 20, 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 Emily Mussio in our Chicago workplace for this week’s roundup.