Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of November 9, 2020 – November 13, 2020. Additionally, for continuing updates on the tax impact of COVID-19, please visit our resource page here.
November 9, 2020: The IRS released Notice 2020-75 announcing the IRS’ intention to issue proposed regulations permitting partnerships and S corporations to deduct certain state and local income taxes in computing non-separately stated taxable income.
November 12, 2020: The IRS released draft instructions for Form 1120-F Schedule H related to deductions allocated to effectively connected income (ECI) under Treas. Reg. § 1.861-8. Additionally, the IRS released draft instructions for Form 1120-F Schedule I related to interest expense allocation under Treas. Reg. § 1.882-5.
November 13, 2020: The IRS published corrections to TD 9909 related to the limitation on deduction for dividends received from certain foreign corporations.
November 13, 2020: The IRS posted a News Release announcing that to protect business taxpayers from identity theft, the IRS would mask sensitive data on business tax transcripts.
November 13, 2020: The IRS released Internal Revenue Bulletin 2020-47, dated November 16, 2020, containing the following highlights: Announcement 2020-19 (Administrative); Notice 2020-76 (Administrative); Notice 2020-80 (Employee Plans); Rev. Rul. 2020-23 (Employee Plans); REG-119890-18 (Income Tax); and TD 9927 (Income Tax).
November 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 Brian Moore in our Washington, DC, office for this week’s roundup.