Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of September 21, 2020 – September 25, 2020. Additionally, for continuing updates on the tax impact of COVID-19, please visit our resource page here.

September 21, 2020: The IRS released Announcement 2020-12 to detail information reporting requirements for taxpayers seeking forgiveness of Paycheck Protection Program loans under the Coronavirus Aid, Relief and Economic Security (CARES) Act.

September 21, 2020: The IRS published final regulations related to bonus depreciation. The rules provide additional guidance to final regulations issued in 2019.

September 21, 2020: The IRS published final regulations providing guidance for certain foreign persons that recognize gain or loss from the sale or exchange of an interest in a partnership that is engaged in a trade or business within the United States.

September 21, 2020: The IRS published final regulations clarifying that certain deductions allowed to an estate or non-grantor trust are not miscellaneous non-itemized deductions.

September 22, 2020: The IRS issued proposed regulations to modify the ownership attribution rules applicable to outbound transfers of stock or securities of a domestic corporation under section 367(a) and narrow the scope of foreign corporations that are treated as controlled foreign corporations for purposes of the look-through rule under section 954(c)(6).

September 22, 2020: The IRS published final regulations related to the downward attribution for ownership determination of controlled foreign corporations (CFCs) following changes in the Tax Cuts and Jobs Act.

September 24, 2020: The IRS announced that it will provide tax relief for victims of Hurricane Sally by extending the deadline for filing and payment deadlines that would have been due October 15, 2020, until January 15, 2021.

September 25, 2020: The IRS updated the instructions for Form 8858: Information Return of US Persons with Respect to Foreign Disregarded Entities (FDEs) and Foreign Branches (FBs) to reflect changes due to the COVID-19 pandemic.

September 25, 2020: The IRS released Internal Revenue Bulletin 2020-40, dated September 28, 2020, containing the following highlights: Notice 2020-66 (Administrative); Announcement 2020-17 (Employee Plans Administrative); Notice 2020-72 (Employee Plans); Notice 2020-59 (Income Tax); Notice 2020-71 (Income Tax); REG-107911-18 (Income Tax); Rev. Proc. 2020-41 (Income Tax); Rev. Rul. 2020-19 (Income Tax); TD 9905 (Income Tax).

September 25, 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.