Document summaries for the week of Nov. 30, 2020
Tax document summaries for the week of Nov. 30–Dec. 4, 2020, covering employee benefits, IRS procedure, and more.
Final regs. update life expectancy tables for RMDs
The IRS issued final regulations updating life expectancy and distribution period tables that are used to calculate required minimum distributions from qualified retirement plans, individual retirement accounts and annuities, and certain other tax-favored employer-provided retirement arrangements. T.D. 9930 (11/30/20).
Individual corruptly endeavored to obstruct administration of Code
The Eleventh Circuit affirmed the conviction of an individual for corruptly endeavoring to obstruct the administration of the Internal Revenue Code in violation of Sec. 7212(a). The individual attempted to pay his $3.6 million tax obligation with a fraudulent check. Graham, No. 18-15299 (11th Cir. 12/4/20).
Final regs. issued on PFICs
The IRS posted final regulations for determining whether a foreign corporation is treated as a passive foreign investment company (PFIC) and the application and scope of certain rules that determine whether a U.S. person that indirectly holds stock in a PFIC is treated as a shareholder of the PFIC. T.D. 9936 (12/4/20).
Proposed PFIC insurance exception regs. posted
The IRS proposed regulations that provide guidance regarding the treatment of income and assets of a qualifying insurance corporation that is engaged in the active conduct of an insurance business for purposes of the passive foreign investment company (PFIC) insurance exception. They also address the treatment of qualified improvement property to calculate qualified business asset investment for purposes of the global intangible low-taxed income and the foreign-derived intangible income provisions. REG-111950-20 (12/4/20).
IRS expands IP PIN program
The IRS announced that starting in January it is expanding the Identity Protection PIN Opt-In Program to all taxpayers who can properly verify their identities. IR-2020-267 (12/2/20) (see related news story).
IRS issues 2021 first-quarter interest rates for tax overpayments and underpayments
The IRS issued the rates for interest on tax overpayments and underpayments for the first calendar quarter of 2021: 3% for overpayments (2% in the case of a corporation), 3% for underpayments, 5% for large corporate underpayments, and 0.5% on corporate overpayments exceeding $10,000. Rev. Rul. 2020-28 (12/4/20).
Business meal deductions after the TCJA
This article discusses the history of the deduction of business meal expenses and the new rules under the TCJA and the regulations and provides a framework for documenting and substantiating the deduction.
Quirks spurred by COVID-19 tax relief
This article discusses some procedural and administrative quirks that have emerged with the new tax legislative, regulatory, and procedural guidance related to COVID-19.