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.

ADJUSTMENT TO BASIS

Rev Rul. 2020-5, page 454. Rev. Rul. 2020-5 modifies Rev. Rul. 2009-13 and Rev. Rul. 2009-14 to reflect § 1016(a)(1)(B) of the Internal Rev-enue Code, which was added by section 13521 of the 2017 Tax Cuts and Jobs Act. Under §1016(a)(1)(B), the adjusted basis of an insurance contract is not reduced by the cost of insurance. Section 1016(a)(1)(B) reversed the position in Rev. Rul. 2009-13 and Rev. Rul. 2009-14 that the basis of an insurance contract is reduced by the cost of insurance.

INCOME TAX

T.D. 9893, page 449. These regulations set forth the procedures for employers who choose to use special valuation rules to determine the amount to include in an employee's gross income for personal use of an employer-provided vehicle. To align with changes made by the Tax Cuts and Jobs Act, these final regulations update the procedures for determining the maximum vehicle values for use with the special valuation rules and describe how employers may adopt the special valuation rules for years 2018 and 2019.