Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of May 25 – May 29, 2020. Additionally, for continuing updates on the tax impact of COVID-19, please visit our resource page here.
May 26, 2020: The IRS and United States Department of the Treasury issued proposed regulations to provide guidance on federal income tax withholding on certain periodic retirement and annuity payments under IRC § 3405(a).
May 26, 2020: The IRS and Treasury issued final regulations clarifying the reporting requirements under IRC § 6033, generally applicable to tax-exempt organizations.
May 26, 2020: The IRS Practice Unit titled Taxation on the Disposition of USRPI by Foreign Persons was updated to clarify that publicly traded stock of a corporation continues to not be US real property interests (USRPI) if held by a 5% or less shareholder. The 5% threshold was increased to 10% only for real estate investment trusts (REITs) under the Protecting Americans from Tax Hikes Act of 2015 (PATH Act).
May 27, 2020: The IRS and Treasury issued Notice 2020-41 to modify prior IRS notices addressing the beginning of construction requirement for both the production tax credit for renewable energy facilities under IRC § 45 and the investment tax credit for energy property under IRC § 48.
May 27, 2020: The IRS announced that some Economic Impact Payments (EIPs) will be sent to taxpayers in the form of a prepaid debit card that will arrive in a plain envelope from “Money Network Cardholder Services.”
May 28, 2020: The IRS announced that taxpayers will be able to file Form 1040-X, Amended US Individual Income Tax Return, electronically this summer. Previously, Form 1040-X was only accepted through the mail.
May 28, 2020: The IRS and Treasury issued proposed regulations regarding the credit for carbon oxide sequestration under IRC § 45Q.
May 29, 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.