IRS GUIDANCE
Revenue Ruling 2020-05
The IRS recently released Revenue Ruling 2020-05 which updates guidance that was published earlier in Revenue Rulings 2009-13 and 2009-14. These changes reflect adjustments of the basis of life insurance contracts resulting from the Tax Cuts and Jobs Act.
Revenue Ruling 2020-06: Interest Rates
Rev. Rul. 2020-06 provides various prescribed rates for federal income tax purposes for March 2020. The tables include short, mid, and long-term applicable federal rates, adjusted federal rates, and percentages for determining low-income housing credits.
IRS Answers on Carbon Capture Credits
New guidance from the IRS has been published to help businesses understand carbon capture credits for their businesses. IRS Notice 2020-12 defines when construction has begun on equipment or facilities to capture carbon in order to be eligible for the carbon credit. Revenue Procedure 2020-12 also creates a safe harbor for related allocation rules.
IRS Guidance to Farmers
Revenue Procedure 2020-13, published on February 21, 2020, provides procedures for farmers who wish to revoke their election under section 263A(d)(3) and apply the small business taxpayer exemption under section 263A(i) in the same taxable year. Read Rev. Proc. 2020-13 here.
Tax and Accounting Industry Updates
FASB Proposes Gifts-in-kind Accounting Improvements
The Financial Accounting Standards Board issued a press release on February 10, 2020, discussing the publication of a new exposure draft on accounting standards update (ASU) for not-for-profit entities. This ASU is intended to improve the transparency of gifts-in-kind donations to charity. Read the ASU here.
TIGTA Reports on Cash Payments
The TIGTA released a report on the IRS expansion of cash remittance for tax payments at retail locations in the United States. During the TIGTA’s investigation, it was found that making payments is efficient and consumer-friendly. However, public participation in the program is low. Read the report here.
Draft Forms Issued
Product Number – Title – Revision Date – Posted Date
Publ 547-Casualties, Disasters, and Thefts-2019-02/18/2020
Form 2210-Underpayment of Estimated Tax by Individuals, Estates and Trusts-2019-02/18/2020
Form 8835-Renewable Electricity, Refined Coal, and Indian Coal Production Credit-2018-02/18/2020
Inst 2290 (SP)-Instrucciones para el Formulario 2290(SP), Declaracion del Impuesto sobre el Uso de Vehiculos Pesados en las Carreteras-0720-02/18/2020
Inst 8911-Instructions for Form 8911, Alternative Fuel Vehicle Refueling Property Credit-0320-02/18/2020
Form 5329-Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts-2018-02/14/2020
Inst 4684-Instructions for Form 4684, Casualties and Thefts-2019-02/14/2020
Form 1099-R-Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. (Info Copy Only)-2020-02/14/2020
Inst 1099-R and 5498-Instructions for Forms 1099-R and 5498, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.-2020-02/14/2020
Inst 2210-Instructions for Form 2210, Underpayment of Estimated Tax by Individuals, Estates and Trusts-2019-02/14/2020
Form 5498-IRA Contribution Information (Info Copy Only)-2020-02/14/2020
Form 8849 (Schedule 3)-Certain Fuel Mixtures and the Alternative Fuel Credit-0220-02/14/2020
Inst 5329-Instructions for Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts-2018-02/14/2020
Inst 8963-Instructions for Form 8963, Report of Health Insurance Provider Information-0120-02/14/2020
Publ 515-Withholding of Tax on Nonresident Aliens and Foreign Entities-2020-02/14/2020
Publ 570-Tax Guide for Individuals With Income from U.S. Possessions-2019-02/14/2020
Publ 590-B-Distributions from Individual Retirement Arrangements (IRAs)-2019-02/13/2020
Publ 561-Determining the Value of Donated Property-0220-02/12/2020
Form W-4S-Request for Federal Income Tax Withholding from Sick Pay-2020-02/12/2020
Inst 1120-RIC-Instructions for Form 1120-RIC, U.S. Income Tax Return For Regulated Investment Companies-2019-02/12/2020
Inst 8908-Instructions for Form 8908, Energy Efficient Home Credit-0220-02/12/2020
Publ 929-Tax Rules for Children and Dependents-2019-02/11/2020