Source: https://www.irs.gov/irb/2020-05_IRB
Timestamp: 2020-04-02 14:53:47
Document Index: 618742300

Matched Legal Cases: ['§1', '§1', '§1', '§1', '§1', '§1', '§1', '§1', '§1', 'art 1', '§1', '§1', '§1', '§1', '§1', '§1', '§1', '§1', '§1', 'art 1', '§601', '§ 1', 'art 1']

Internal Revenue Bulletin: 2020-05 | Internal Revenue Service
Internal Revenue Bulletin: 2020-05
Announcement 2020-1
Internal Revenue Bulletin: 2020-5
Announcement 2020-1, page 401.
REG-125710-18, page 403.
This document withdraws a portion of a notice of proposed rulemaking published in the Proposed Rules section of the Federal Register on September 10, 2019. That notice of proposed rulemaking contained proposed rules to provide guidance regarding the items of income and deduction that are included in the calculation of built-in gains and losses under section 382 of the Internal Revenue Code. If adopted, those proposed rules would apply to any ownership change occurring after the date the Treasury decision adopting those proposed rules as a final regulation is published in the Federal Register. This notice of proposed rulemaking would delay the applicability of those proposed rules and provide transition relief for eligible taxpayers.
If on the other hand a suit for declaratory judgment has been timely filed, contributions from individuals and organizations described in section 170(c)(2) that are otherwise allowable will continue to be deductible. Protection under section 7428(c) would begin on January 27, 2020 and would end on the date the court first determines the organization is not described in section 170(c)(2) as more particularly set for in section 7428(c)(1). For individual contributors, the maximum deduction protected is $1,000, with a husband and wife treated as one contributor. This benefit is not extended to any individual, in whole or in part, for the acts or omissions of the organization that were the basis for revocation.
Cancer Fund of America 1/1/2014 Knoxville, TN
Vipers Basketball Inc 1/1/2016 Carterville, IL
Prep 2 Rise 7/1/2016 Providence, RI
Tsung Sun Social Club Inc 1/1/2015 New York, NY
Aptitunity Corp 1/1/2016 Atlanta, GA
Atlanta Womens Hockey Association Inc 1/1/2016 Alpharetta, GA
Haskell County Community Hospital 8/1/2010 Stigler, OK
The Will to Train 1/1/2015 San Diego, CA
Gamma Chapter Delta Phi Foundation Inc 8/7/2018 Old Bethpage, NY
Magans Light 1/1/2016 Ft. Worth, TX
Sims Chiropractic Ministering Health 1/1/2014 Gunnison, CO
Team Fitnuh Sports Corporation 8/1/2015 Maumelle, AR
Rice Hospital District 4/1/2015 Eagle Lake, TX
Herbert Hoover Boys and Girls Club 1/1/2018 St. Louis, MO
Friendship Fire Company No. 1 of Birdsboro 1/1/2016 Birdsboro, PA
Doctors Charitable Foundation 1/1/2014 San Diego, CA
Fairbanks Outboard Association Inc 1/1/2015 Fairbanks, AK
New Rockford Golf Club 4/1/2014 New Rockford, ND
Rehoboth McKinley Christian Health Care 1/1/2014 Gallup, NM
Moses Hill Cemetery Inc 1/1/2016 Holdrege, NE
Nia Comprehensive Center for Developmental Disabilities Inc 7/1/2013 Chicago, IL
Washington County Hospital Inc 10/1/2015 Plymouth, NC
Michael Patrick Hollins Memorial Foundation 1/1/2016 Mt. Ephraim, NJ
A Positive Progress Service Inc 1/1/2016 Red Springs, NC
Father’s Rights Organization 7/1/2014 Toledo, OH
Walter’s Family Foundation 1/1/2015 Tamarac, FL
Teen Leadership Foundation 1/1/2015 Newport Beach, FL
Real Pay It Forward Inc 1/1/2016 Clearwater, FL
New World Sanctuary Foundation 1/1/2016 Ashland, OR
Strength for the Journey Inc 1/1/2015 Hobe Sound, FL
Arizona Bike Week Charities 1/1/2014 Mesa, AZ
Support Our Veterans Inc 1/1/2014 Central Village, CT
Kingdom Victories Outreach Ministries 1/1/2016 Inkster, MI
Light of the World Inc 1/1/2015 Unionville, CT
Turner-Lieder-Tafel Singing Society Inc 7/1/2015 Stamford, CT
Thirty Thousand feet Booster Club 3/21/2014 Travis AFB, CA
American Medical Missionary Care Inc 1/1/2014 Alpharetta, GA
Uplift Individuals in Christ 1/1/2015 Ft. Washington, MD
You Are Loved LLC 1/1/2016 Mandeville, LA
Sigma Theta Tau International Inc 7/1/2014 Mayaguez, PR
Blankie Depot 1/1/2016 Hazlet, NJ
Owners Association of Spring Street 1/1/2016 Houston, TX
Community Worship Church 8/1/2012 Portland, OR
Comitato Trinacria Alcamo-Castellammare-Santa Ninfa Ltd 1/1/2014 Glendale, NY
ACTION: Partial withdrawal of notice of proposed rulemaking; notice of proposed rulemaking.
SUMMARY: This document withdraws a portion of a notice of proposed rulemaking published in the Proposed Rules section of the Federal Register on September 10, 2019. That notice of proposed rulemaking contained proposed rules to provide guidance regarding the items of income and deduction that are included in the calculation of built-in gains and losses under section 382 of the Internal Revenue Code (Code). If adopted, those proposed rules would apply to any ownership change occurring after the date the Treasury decision adopting those proposed rules as a final regulation is published in the Federal Register. This notice of proposed rulemaking would delay the applicability of those proposed rules and provide transition relief for eligible taxpayers. The proposed regulations in this notice of proposed rulemaking would affect corporations that experience an ownership change for purposes of section 382.
DATES: Written or electronic comments must be received by March 16, 2020. Written or electronic requests for a public hearing and outlines of topics to be discussed at the public hearing must be received by March 16, 2020.
ADDRESSES: Submit electronic submissions via the Federal eRulemaking Portal at www.regulations.gov (indicate IRS and REG-125710-18) by following the online instructions for submitting comments. Once submitted to the Federal eRulemaking Portal, comments cannot be edited or withdrawn. The Department of the Treasury (Treasury Department) and the IRS will publish for public availability any comment received to its public docket, whether submitted electronically or in hard copy. Send hard copy submissions to: Internal Revenue Service, CC:PA:LPD:PR (REG-125710-18), Room 5203, Post Office Box 7604, Ben Franklin Station, Washington, DC 20044.
FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, Jonathan R. Neuville at (202) 317-5363; concerning submissions of comments or requests for a public hearing, Regina L. Johnson at (202) 317-6901 (not toll-free numbers).
On September 10, 2019, the Treasury Department and the IRS published in the Federal Register (84 FR 47455) a notice of proposed rulemaking (REG-125710-18) proposing revisions to the rules in §§1.382-2 and 1.382-7 (September 2019 proposed regulations). These rules would affect the determination of net built-in gains and losses and recognized built-in gains and losses under section 382(h) that, in turn, affect the limitation under section 382 on net operating losses and disallowed business interest expense under section 163(j).
Proposed §§1.382-2(b)(4) and 1.382-7(g)(1), as set forth in the September 2019 proposed regulations, provided that the September 2019 proposed regulations would apply to ownership changes that occur after the date the Treasury decision adopting the September 2019 proposed regulations as final regulations is published in the Federal Register. As noted in part II of the Background in the September 2019 proposed regulations, section V of Notice 2003-65 (2003-2 C.B. 747) provides that taxpayers may rely on either of two safe harbor approaches for applying section 382(h) to an ownership change “prior to the effective date of temporary or final regulations under section 382(h).”
As explained more fully in the Explanation of Provisions, this notice of proposed rulemaking modifies the applicability dates for the September 2019 proposed regulations by withdrawing the text of proposed §§1.382-2(b)(4) and 1.382-7(g), as set forth in the September 2019 proposed regulations, and proposing revised applicability dates.
To address the concerns raised by taxpayers and practitioners, the Treasury Department and the IRS are withdrawing the text of proposed §§1.382-2(b)(4) and 1.382-7(g) contained in the September 2019 proposed regulations. In its place, the Treasury Department and the IRS are proposing the revised applicability date text set forth in proposed §§1.382-2(b)(4) and 1.382-7(g) as contained in this notice of proposed rulemaking.
The first exception to the delayed applicability date relates to the rule in proposed §1.382-7(d)(5), which provides that certain carryforwards of business interest expense disallowed under section 163(j) would not be treated as recognized built-in losses under section 382(h)(6)(B) if such amounts were allowable as deductions during the five-year recognition period set forth in section 382(h)(7)(A). This rule eliminates the possible duplicative application of section 382 to certain disallowed business interest expense carryforwards. Due to the noncontroversial nature of this rule, the Treasury Department and the IRS have determined that proposed §1.382-7(d)(5) should be finalized before the remainder of the rules in the September 2019 proposed regulations, and that taxpayers should be allowed to retroactively apply this rule. To that end, the Treasury Department and IRS expect that proposed §1.382-7(d)(5) will be finalized as part of the Treasury decision that finalizes the proposed section 163(j) regulations (see 83 FR 67490) and taxpayers will be permitted to apply the rule to prior periods. The Treasury Department and the IRS continue to actively study the remainder of the rules in the September 2019 proposed regulations.
Pursuant to the Regulatory Flexibility Act (RFA), 5 U.S.C. chapter 6, the Treasury Department and the IRS hereby certify that these proposed regulations will not have a significant economic impact on a substantial number of small entities. This proposed rule is limited to revising the proposed applicability date of proposed regulations under section 382(h) of the Internal Revenue Code that were published in the Federal Register (84 FR 47455) on September 10, 2019. Based on the narrow scope of corporate transactions covered by the proposed regulations’ delayed applicability rules, the Treasury Department and the IRS have determined that these proposed regulations are unlikely to affect a substantial number of small entities and are unlikely to have a significant economic impact on any small entities affected.
Before these proposed regulations are adopted as final regulations, consideration will be given to any comments that are submitted timely to the Treasury Department and the IRS as prescribed in this preamble under the “ADDRESSES” heading. All comments will be available at http://www.regulations.gov or upon request. A public hearing will be scheduled if requested in writing by any person that timely submits written comments. If a public hearing is scheduled, notice of the date, time, and place of the public hearing will be published in the Federal Register.
Accordingly, under the authority of 26 U.S.C. 382(h)(3)(B)(ii), 382(m), and 7805, §§1.382-2(b)(4) and 1.382-7(g) of the notice of proposed rulemaking (REG-125710-18) published in the Federal Register on September 10, 2019 (84 FR 47455) are withdrawn.
Paragraph 1. The authority citation for part 1 is amended by revising the entry for §1.382-7 to read as follows:
Par. 2. Section 1.382-1, as proposed to be revised by 84 FR 47455, September 10, 2019, is further amended by revising the entry for §1.382-7(g) to read as follows:
§1.382-1 Table of Contents.
§1.382-7 Built-in gains and losses.
Par. 3. Section 1.382-2, as proposed to be amended by 84 FR 47455, September 10, 2019, is further amended by revising paragraph (b)(4) to read as follows: §1.382-2 General rules for ownership change.
(4) Rules provided in paragraphs (a)(9) through (13) of this section. The rules of paragraphs (a)(9) through (13) of this section apply to any ownership change that occurs after the date that is 30 days after the date of publication in the Federal Register of a Treasury decision adopting these proposed regulations as final regulations, if §1.382-7(g)(2) does not apply to that ownership change. Notwithstanding the preceding sentence, a taxpayer may apply the rules of paragraphs (a)(9) through (13) of this section to an ownership change to which §1.382-7(g)(2) applies if the taxpayer applies the rules of §1.382-7 to such ownership change.
Par. 4. Section 1.382-7, as proposed to be revised by 84 FR 47455, September 10, 2019, is amended by revising paragraph (g) to read as follows:
(g) Applicability dates—(1) In general. Except as otherwise provided in this paragraph (g), this section applies to any ownership change that occurs after the date that is 30 days after the date of publication in the Federal Register of a Treasury decision adopting the rules of this section as final regulations (applicability date), if paragraph (g)(2) of this section does not apply to that ownership change. For ownership changes occurring on or before the applicability date and ownership changes to which paragraph (g)(2) of this section applies, see §1.382-7 as contained in 26 CFR part 1, revised April 1, 2019, and other applicable guidance, including Notice 2003-65 (2003-2 CB 747) (see §601.601(d)(2)(ii)(b) of this chapter). Notwithstanding the preceding sentences of this paragraph (g)(1), a taxpayer may apply this section to an ownership change to which paragraph (g)(2) of this section applies.
(v) Pursuant to a transaction described in a ruling request submitted to the IRS on or before the applicability date.
(3) Paragraph (d)(2)(vi) of this section. Paragraph (d)(2)(vi) of this section applies to loss corporations that have undergone an ownership change on or after June 11, 2010. For loss corporations that have undergone an ownership change before June 11, 2010, see § 1.382-7T as contained in 26 CFR part 1, revised April 1, 2009.
(Filed by the Office of the Federal Register on September 9, 2019, 8:45 a.m., and published in the issue of the Federal Register for September 10, 2019, 84 F.R. 47455)
Bulletin 2020–5
2020-1 2020-5 I.R.B. 2020-552 552
2020-1 2020-2 I.R.B. 2020-290 290
2020-2 2020-3 I.R.B. 2020-327 327
2020-3 2020-3 I.R.B. 2020-330 330
2020-4 2020-4 I.R.B. 2020-380 380
2020-5 2020-4 I.R.B. 2020-380 380
REG-107431-19 2020-3 I.R.B. 2020-332 332
REG-122180-18 2020-3 I.R.B. 2020-342 342
REG-100956-19 2020-4 I.R.B. 2020-383 383
REG-125710-18 2020-5 I.R.B. 2020-554 554
9886 2020-2 I.R.B. 2020-285 285
9887 2020-3 I.R.B. 2020-302 302
9888 2020-3 I.R.B. 2020-306 306
2020-1 2020-01 I.R.B. 2020-1 1
2020-2 2020-01 I.R.B. 2020-107 107
2020-3 2020-01 I.R.B. 2020-131 131
2020-4 2020-01 I.R.B. 2020-148 148
2020-5 2020-01 I.R.B. 2020-241 241
2020-7 2020-01 I.R.B. 2020-281 281
2020-9 2020-02 I.R.B. 2020-294 294
2020-10 2020-02 I.R.B. 2020-295 295
2020-1 2020-3 I.R.B. 2020-296 296
2020-2 2020-3 I.R.B. 2020-298 298