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.

ADMNSTRATIVE, SPECIAL ANNOUNCEMENT

Notice 2020-47, page 7. The Department of the Treasury and the Internal Revenue Service invite the public to submit recommendations for items to be included on the 2020-2021 Priority Guidance Plan.

EMPLOYEE PLANS

Notice 2020-45, page 3. This notice sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates for June 2020 used under § 417(e)(3)(D), the 24-month average segment rates applicable for June 2020, and the 30-year Treasury rates, as reflected by the application of § 430(h)(2)(C)(iv).

EMPLOYMENT TAX

Rev. Proc. 2020-31, page 12. General Rules and Specifications for Substitute Form 941, Schedule B (Form 941), Schedule D (Form 941), Schedule R (Form 941), and Form 8974. This revenue procedure provides general rules and specifications from the IRS for paper and computer-generated substitutes for Form 941, Schedule B (Form 941), Schedule D (Form 941), Schedule R (Form 941) and Form 8974. This procedure will be reproduced as the next revision of Publication 4436. Rev. Proc. 2018-24 is superseded.

EMPLOYMENT TAX, INCOME TAX

Notice 2020-46, page 7. This notice provides guidance under the Internal Revenue Code on the federal income and employment tax treatment of cash payments made by employers under leave-based donation programs to aid victims of the ongoing Coronavirus Disease 2019 (COVID-19) pandemic as described in the notice.

INCOME TAX

Notice 2020-49, page 8. This notice postpones to December 31, 2020, the due dates for making investments, making reinvestments, and expending amounts for construction of real property under § 45D of the Internal Revenue Code (Code) due to be performed or expended on or after April 1, 2020, and before December 31, 2020.

Rev. Proc. 2020-16, page 10. Revenue Procedure 2020-16 provides an automatic procedure for a State or local government in which an empowerment zone is located to extend the empowerment zone designation made under section 1391(a) of the Internal Revenue Code. Specifically, the automatic procedure under section 3.01 of Rev. Proc. 2020-16 provides that a State or local government that nominated an empowerment zone is deemed to extend until December 31, 2020, the termination date designated by that State or local government in its empowerment zone nomination (designated termination date), as described in section 1391(d)(1)(B). Section 3.02 of Rev. Proc. 2020-16 provides a procedure for such State or local government to decline this deemed extension.

SPECIAL ANNOUNCEMENT

Notice 2020-43, page 1. Partnerships and certain other persons report partner capital accounts in Box L on the Schedule K-1 (Form 1065) or in Box F on the Schedule K-1 (Form 8865), each as they currently appear on the 2019 forms (Tax Capital Reporting Requirement). For purposes of satisfying the Tax Capital Reporting Requirement with respect to partnership taxable years that end on or after December 31, 2020, the Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) pro-pose to require the use of one of two alternative methods described in this notice. As a result, partnerships and certain other persons would no longer be permitted to report partner capital accounts using any other method, including section 704(b) of the Code (§ 704(b)) and generally accepted accounting principles (GAAP). This notice requests comments concerning the Tax Capital Reporting Requirement. Comments received in response to this notice will help inform the development of the instructions to be included in Form 1065, U.S. Return of Partnership Income (to which the instructions for Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, refer), and Partner's Instructions for Schedule K-1 (Form 1065), for 2020.