Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of March 9 – 13, 2020.
March 10, 2020: The IRS published a practice unit on how to compute the alternative minimum foreign tax credit. The public unit includes the framework for computing such alternative minimum foreign tax credit under IRC section 59.
March 10, 2020: The IRS released revised instructions for various information returns for 2020. The instructions were updated to reflect the PATH Act accelerating the due date for filing Form 1099 that included nonemployee compensation to January 31. Additionally, Form 1097-BTC, Form 1098-C, Form 1098-F, Form 1098-MA, Form 1098-Q, Form 1099-CAP, Form 1099-LS, Form 1099-LTC, Form 1099-OID, Form 1099-Q, Form 1099-SA, and Form 1099-SB and its instructions have been converted from annual updates to continuous use forms and instructions.
March 11, 2020: The Chief Counsel’s Office adopted 14-point as the standard font for all documents filed with the US Tax Court.
March 11, 2020: The US Tax Court cancelled sessions in a number of cities to contain the spread of Coronavirus. Some major cities cancelled sessions as far out as March 30, 2020. For more coverage, see here.
March 12, 2020: The IRS released clarifications to the 2019 Partner’s Instructions for Schedule K-1. The changes affect Code F IRC section 743(b) positive income adjustments, Code V IRC section 743(b) negative income adjustments, Code AA IRC section 704(c) information, and Code AH information.
March 12, 2020: The IRS released Notice 2020-16, which provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates used under IRC section 417(e)(3), and the 24-month average segment rates under IRC section 430(h)(2). The notice also provides guidance as to the interest rate on 30-year Treasury securities under IRC section 417(e)(3)(A)(ii)(II) for plan years beginning before 2008 and the 30-year Treasury weighted average rate under IRC section 431(c)(6)(E)(ii)(I).
March 13, 2020: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).
Special thanks to Emily Mussio in our Chicago office for this week’s roundup.