This Week’s Internal Revenue Bulletin

HIGHLIGHTS OF THIS ISSUE

These synopses are intended only as aids to the reader in identifying the subject matter covered. They may not be relied upon as authoritative interpretations.

ADMINISTRATIVE, EMPLOYMENT TAX

Notice 2020-65, page 567. Notice 2020-65 provides expedited guidance under section 7508A of the Internal Revenue Code to postpone the time for withholding and paying certain payroll taxes to implement directives from an August 8, 2020 Presidential Memorandum. Specifically, Notice 2020-65 provides that the due date for employers to withhold and pay applicable taxes on wages paid to an employee from September 1, 2020, through December 31, 2020, if the wages are below a certain amount, is postponed until the period beginning on January 1, 2021, and ending on April 30, 2021.

EMPLOYEE PLANS

Notice 2020-68, page 567. This notice provides information regarding certain provisions of the Setting Every Community Up for Retirement Enhancement Act of 2019, and the Bipartisan American Miners Act of 2019.

Rev. Proc. 2020-40, page 575. This revenue procedure amends section 15.05 of Rev. Proc. 2016-37 and section 12.02 of Rev. Proc. 2019-39 to provide that a discretionary amendment made to a qualified pre-approved plan or 403(b) pre-approved plan is timely adopted if it is adopted by the deadline set forth in a statutory provision or guidance that is earlier or later than the general deadline applicable to discretionary amendments.

EXEMPT ORGANIZATIONS

Announcement 2020-15, page 577. Revocation of IRC 501(c)(3) Organizations for failure to meet the code section requirements. Contributions made to the organizations by individual donors are no longer deductible under IRC 170(b)(1)(A).

Announcement 2020-16, page 578. Serves notice to potential donors of a stipulated decision by the United States Tax Court in declaratory judgment proceedings under Section 7428.

INCOME TAX

T.D. 9907, page 559. This Treasury Decision adopts, with clarifying changes, proposed regulations under sections 162, 164, and 170 of the Internal Revenue Code. First, this Treasury Decision updates the regulations under section 162 to reflect current law regarding the application of section 162 to a taxpayer that makes a payment or transfer to an entity described in section 170(c) for a business purpose. Second, this Treasury Decision amends the regulations under section 162 to provide safe harbors with respect to the treatment of payments made by business entities to an entity described in section 170(c). Third, this Treasury Decision amends the regulations under section 164 to provide a safe harbor for payments made to an entity described in section 170(c) by individuals who itemize deductions and receive or expect to receive a state or local tax credit in return. Fourth, this Treasury Decision amends the regulations under section 170 to reflect past guidance and case law regarding the application of the quid pro quo principle under section 170 to benefits received or expected to be received by a donor from a third party.