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).