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.

EMPLOYEE BENEFITS

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).
 

INDIVIDUALS

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).

 

INTERNATIONAL

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 PROCEDURE

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).

Newsletter Articles

50th ANNIVERSARY

50 years of The Tax Adviser

The January 2020 issue marks the 50th anniversary of The Tax Adviser, which was first published in January 1970. Over the coming year, we will be looking back at early issues of the magazine, highlighting interesting tidbits.

TAX RELIEF

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.