Revenue Procedure 2020-41 provides the domestic asset/liability percentages and domestic investment yields needed by foreign life insurance companies and foreign property and liability insurance companies to compute their minimum effectively connected net investment income under section 842(b) of the Internal Revenue Code for taxable years beginning after December 31, 2018.

Revenue Procedure 2020-41 will be in IRB:   2020-40, dated September 28, 2020.

WASHINGTON – Later this month, the Internal Revenue Service will start mailing letters to roughly 9 million Americans who typically don’t file federal income tax returns who may be eligible for, but have not registered to claim, an Economic Impact Payment. 

The letters will urge recipients to register at IRS.gov by Oct. 15 in order to receive their payment by the end of the year. Individuals can receive up to $1,200, and married couples can receive up to $2,400. People with qualifying children under age 17 at the end of 2019 can get up to an additional $500 for each qualifying child.

The letters are being sent to people who haven’t filed a return for either 2018 or 2019. Based on an internal analysis, these are people who don’t typically have a tax return filing requirement because they appear to have very low incomes, based on Forms W-2, 1099s and other third-party statements available to the IRS. But many in this group are still eligible to receive an Economic Impact Payment.

“The IRS has made an unprecedented outreach effort to make sure people are aware of their potential eligibility for an Economic Impact Payment this year,” said IRS Commissioner Chuck Rettig. “Millions who don’t normally file a tax return have already registered and received a payment. We are taking this extra step to help Americans who may not know they could be eligible for this payment or don’t know how to register for one. People who aren’t required to file a tax return can quickly register on IRS.gov and still get their money this year.”

The letter, officially known as IRS Notice 1444-A, is written in English and Spanish and includes information on eligibility criteria and how eligible recipients can claim an Economic Impact Payment on IRS.gov. The mailing, which will begin around Sept. 24, will be delivered from an IRS address. To help address fraud concern, a copy of the letter is available on IRS.gov.

If those receiving letters haven’t done so already, this letter urges eligible individuals to register by Oct. 15 for a payment by using the free Non-Filers: Enter Payment Info tool, available in English and Spanish and only on IRS.gov. More than 7 million people have used the Non-Filers tool so far to register for a payment. Those unable to access the Non-Filers tool may submit a simplified paper return following the procedures described in the Economic Impact Payment FAQs on IRS.gov.

The IRS reminds recipients that receiving a letter is not a guarantee of eligibility for an Economic Impact Payment. An individual is likely eligible if he or she is a U.S. citizen or resident alien; has a work-eligible Social Security number; and can’t be claimed as dependent on someone else’s federal income tax return. However, there can be a variety of situations that could affect an individual’s eligibility. For more information on eligibility requirements, recipients should read the Economic Impact Payment eligibility FAQs on IRS.gov.

The registration deadline for non-filers to claim an Economic Impact Payment through the Non-Filers tool is Oct. 15, 2020. People can also wait until next year and claim it as a credit on their 2020 federal income tax return by filing in 2021.

The IRS emphasizes that anyone required to file either a 2018 or 2019 tax return should file the tax return and not use the Non-Filers tool.

Don’t wait:  Non-Filers can still get a payment; must act by Oct. 15

Though most Americans − more than 160 million in all − have already received their Economic Impact Payments, the IRS reminds anyone with little or no income who is not required to file a tax return that they may be eligible to receive an Economic Impact Payment. This is true regardless of whether they get a letter.

“Time is running out this year for the IRS to issue payments,” Rettig said. “People who normally don’t file a tax return shouldn’t wait to see if they receive one of these letters. They can review the guidelines and register now if they’re eligible.”

Available in both English and Spanish, the Non-Filers tool is designed for people with incomes typically below $24,400 for married couples, and $12,200 for singles. This includes couples and individuals who are experiencing homelessness.

People can qualify for a payment, even if they don’t work or have no earned income. But low- and moderate-income workers and working families eligible to receive special tax benefits, such as the Earned Income Tax Credit or Child Tax Credit, cannot use this tool. They will need to file a regular return as soon as possible. The IRS will use their tax return information to determine and issue any EIP for which they are eligible.

Anyone using the Non-Filers tool can speed up the arrival of their payment by choosing to receive it by direct deposit. Those not choosing this option will get a check.

Beginning two weeks after they register, people can track the status of their payment using the Get My Payment tool, available only on IRS.gov.

Watch out for scams

The IRS urges everyone to be on the lookout for scams related to the Economic Impact Payments. In particular, watch out for scams using email, phone calls or texts related to these payments. Be careful and cautious: The IRS will not send unsolicited electronic communications asking people to open attachments, visit a website or share personal or financial information.

Remember, go directly and solely to IRS.gov for official information. In particular, both the Non-Filers tool and the Get My Payment tool are available exclusively on IRS.gov. They are not available on any other web site.

For more Information on the Economic Impact Payment, including updated answers to frequently asked questions and other resources, visit IRS.gov/coronavirus.

WASHINGTON – The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning Oct. 1, 2020. The rates will be:  

Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.

Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.

The interest rates announced today are computed from the federal short-term rate determined during July 2020 to take effect Aug. 1, 2020, based on daily compounding.

Revenue Ruling 2020-18, announcing the rates of interest, is attached and will appear in Internal Revenue Bulletin 2020-39, dated Sept. 21, 2020.

Revenue Ruling 2020-18 provides the rates for interest determined under Section 6621 of the code for the calendar quarter beginning October 1, 2020, will be 3 percent for overpayments (2 percent in the case of a corporation), 3 percent for underpayments, and 5 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 0.5 percent.

Revenue Ruling 2020-18 will be published in Internal Revenue Bulletin 2020-39 on Sept. 21, 2020

WASHINGTON — The Internal Revenue Service announced today that Rachel Leiser Levy is the new Associate Chief Counsel, Employee Benefits, Exempt Organizations and Employment Taxes (EEE).

Levy has served as a principal at Groom Law Group in Washington, D.C., since 2015. She has an extensive background on issues including employee benefits, employment taxes and exempt organizations, including work at the Treasury Department and the Joint Committee on Taxation. She begins in her new role Sept. 29.

“Rachel brings a strong set of skills from both inside and outside the government to this critical position for Chief Counsel and the IRS,” said Mike Desmond, IRS Chief Counsel. “We look forward to her coming on board and are fortunate to have her join our staff.”

EEE provides published guidance, field support and taxpayer advice on a wide array of topic areas including qualified retirement plans, health and welfare and other employee benefits, executive compensation and fringe benefits, tax-exempt entities, employment tax, state and local governments and Indian tribal governments.

Previously, Levy was an attorney-advisor and then associate benefits tax counsel with the Office of Tax Policy, U.S. Department of the Treasury, from March 2012 to February 2015. In this capacity, she developed policies and guidance related to the taxation of employee benefits, employment taxes and exempt organizations and coordinated with IRS, Department of Labor, U.S. Department of Health and Human Services and the Domestic Policy Counsel on all aspects of health care reform implementation.

She also was a legislation counsel for the Joint Committee on Taxation from August 2008 to March 2012. She assisted in the development and drafting of the Affordable Care Act; the Health Care and Education Reconciliation Act of 2010; the American Workers, State and Business Relief Act of 2010; the American Jobs and Closing Tax Loopholes Act of 2010; the American Recovery and Reinvestment Act of 2009; the Emergency Economic Stabilization Act of 2008 and the Worker, Retiree and Employer Recovery Act of 2008.

In addition to her government service, Levy has extensive private-sector experience.

In addition to serving as principal at Groom Law Group in Washington, D.C., she also was an associate with Covington & Burling LLP and with Sonnenschein Nath & Rosenthal LLP.

Levy received her B.A. in literature from Yeshiva University and her J.D. from the University of Chicago Law School where she was a member of the Law Review.

Notice 2020-69 announces that the Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) intend to issue regulations addressing the application of §§ 951 and 951A of the Internal Revenue Code (Code) to certain S corporations with accumulated earnings and profits.  For those S corporations electing this treatment, global intangible low-taxed income (GILTI) inclusions would create AAA. This notice also announces that the Treasury Department and the IRS intend to issue regulations addressing the treatment of qualified improvement property (QIP) under the alternative depreciation system (ADS) of § 168(g) for purposes of calculating qualified business asset investment (QBAI) for purposes of the foreign-derived intangible income (FDII) and GILTI provisions. These rules when issued would implement recent clarifications enacted as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).  All of these provisions were originally part of the 2017 Tax Cuts and Jobs Act (TCJA).

Notice 2020-69 will be published in Internal Revenue Bulletin 2020-39 on Sept. 21, 2020.

WASHINGTON — The Internal Revenue Service issued final regulations today providing additional guidance on the base erosion and anti-abuse tax (BEAT). 

To limit profit-shifting, the Tax Cuts and Jobs Act (TCJA) added a new tax, the BEAT. The BEAT focuses on large U.S. corporations that make deductible payments to related foreign parties.

The final regulations provide detailed guidance regarding how to compute certain BEAT calculations for groups of related taxpayers. The final regulations also contain rules permitting taxpayers to waive deductions for purposes of the BEAT, and additional guidance regarding partnerships and anti-abuse rules.

Updates on the implementation of the TCJA can be found on the Tax Reform page of IRS.gov.

WASHINGTON- The IRS announces the launch of the Bi-Partisan Budget Act (BBA) Centralized Partnership Audit Regime website.

The Centralized Partnership Audit Regime replaces the Tax Equity and Fiscal Responsibility Act (TEFRA) and the electing large partnership rules. The centralized partnership audit regime, or BBA, is generally effective for tax years beginning January 2018. Under the BBA, the IRS generally assesses and collects any understatement of tax (called an imputed underpayment) at the partnership level. 

A partnership is subject to BBA unless it is an eligible partnership and makes an annual election out of BBA on a timely filed Form 1065.  An eligible partnership is one with 100 or fewer partners, all of whom are either individuals, C corporations, foreign entities that would be treated as a C corporation if it were domestic, S corporations or estates of deceased partners.

The new webpage is intended to be a one-stop location for anything BBA-related, including regulations and other guidance and instructions related to the Partnership Representative (PR), electing out of the centralized audit regime, Administrative Adjustment Requests (AARs) and what to expect during a BBA administrative proceeding.

Taxpayers are encouraged to visit the website often for information, including electronic submission instructions of forms related to a BBA examination when those instructions are available.

WASHINGTON — The Internal Revenue Service is holding a free webinar designed to give an overview of Opportunity Zones and to discuss related tax benefits for investors. Opportunity Zones are an economic development tool that allows people to invest in distressed areas in the United States.

This free 75-minute webinar will take place on Thursday, Sept. 3 at 2 p.m. Eastern Time. It is open to investors, tax professionals, government agencies and anyone else interested in the tax rules that affect Opportunity Zones.

In addition to the overview, topics to be covered include:

• Investor reporting elections

• Annual investor reporting requirements

• Impact of disaster relief on Opportunity Zones

The webinar will feature a live question and answer session and will be closed captioned for viewers who are deaf or hearing impaired. Anyone interested in attending can register online.

For more information on Opportunity Zones, visit the general Opportunity Zone page and the Opportunity Zone Frequently Asked Questions.

Archived versions of past IRS webinars are available at www.irsvideos.gov.

WASHINGTON — Victims of Hurricane Laura that began Aug. 22 now have until Dec. 31, 2020, to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today.

The IRS is offering this relief to any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual assistance. Currently this includes Allen, Beauregard, Calcasieu, Cameron, Jefferson Davis and Vernon parishes in Louisiana, but taxpayers in localities added later to the disaster area will automatically receive the same filing and payment relief. The current list of eligible localities is always available on the disaster relief page on IRS.gov.

The tax relief postpones various tax filing and payment deadlines that occurred starting on Aug. 22, 2020. As a result, affected individuals and businesses will have until Dec. 31, 2020, to file returns and pay any taxes that were originally due during this period. This means individuals who had a valid extension to file their 2019 return due to run out on Oct. 15, 2020, will now have until Dec. 31, 2020, to file. The IRS noted, however, that because tax payments related to these 2019 returns were due on July 15, 2020, those payments are not eligible for this relief.

The Dec. 31, 2020 deadline also applies to quarterly estimated income tax payments due on Sept. 15, 2020, and the quarterly payroll and excise tax returns normally due on Nov. 2, 2020. It also applies to tax-exempt organizations, operating on a calendar-year basis, that had a valid extension due to run out on Nov. 16, 2020. Businesses with extensions also have the additional time including, among others, calendar-year corporations whose 2019 extensions run out on Oct. 15, 2020.

In addition, penalties on payroll and excise tax deposits due after Aug. 22 and before Sept. 8, will be abated as long as the deposits are made by Sept. 8, 2020.

The IRS disaster relief page has details on other returns, payments and tax-related actions qualifying for the additional time.

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Therefore, taxpayers do not need to contact the agency to get this relief. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated.

In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization.

Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2020 return normally filed next year), or the return for the prior year (2019). Be sure to write the FEMA declaration number – 4559 − for Hurricane Laura in Louisiana on any return claiming a loss. See Publication 547 for details.

The tax relief is part of a coordinated federal response to the damage caused by this storm and is based on local damage assessments by FEMA. For information on disaster recovery, visit disasterassistance.gov.