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

Announcement 2020-8, page 244. Announcement 2020-8 amends Revenue Procedure 2020-35 to show correct information.

Announcement 2020-9, page 244. The Office of Professional Responsibility (OPR) announces recent disciplinary sanctions involving attorneys, certified public accountants, enrolled agents, enrolled actuaries, enrolled retirement plan agents, and appraisers. These individuals are subject to the regulations governing practice before the Internal Revenue Service (IRS), which are set out in Title 31, Code of Federal Regulations, Part 10, and which are published in pamphlet form as Treasury Department Circular No. 230. The regulations prescribe the duties and restrictions relating to such practice and prescribe the disciplinary sanctions for violating the regulations.

T.D. 9903, page 235. The guidance contains final regulations relating to the imposition of certain user fees on tax return preparers. Pursuant to the guidelines in OMB Circular A-25, the IRS has recalculated its cost of providing PTINs and has determined that the full cost of administering the PTIN program going forward has been reduced. Therefore, the final regulations reduce the amount of the user fee to obtain or renew a PTIN from $33 to $21, plus $14.95 payable directly to a third-party contractor.

EMPLOYEE PLANS

Notice 2020-57, page 240. This notice sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates for July 2020 used under § 417(e)(3)(D), the 24-month average segment rates applicable for July 2020, and the 30-year Treasury rates, as reflected by the application of § 430(h)(2)(C) (iv).

REG-130081-19, page 246. These proposed rules would amend the 2015 regulations under Treas. Reg. § 54.9815-1251 to provide additional flexibility for grandfathered group health plans and issuers of grandfathered group health plans to make certain changes without losing their grandfathered status under the regulations.

EXEMPT ORGANIZATIONS

Notice 2020-56, page 239. This notice amplifies the relief provided in Notice 2020-23, 202-18 IRB 742, for hospital organizations that are required to meet the community health needs assessment (CHNA) requirements under section 501(r)(3) of the Code. Notice 2020-23 postponed until July 15, 2020, the deadline for performing any CHNA requirement that is due to be completed on or after April 1, 2020, and before July 15, 2020. This notice provides a further postponement, until December 31, 2020, of the deadline for performing any CHNA requirement due to be completed on or after April 1, 2020, and before December 31, 2020. However, the due date for any CHNA requirement originally due to be completed after December 31, 2020, is not extended by this notice.

INCOME TAX

Rev. Proc. 2020-36, page 243. This Revenue Procedure updates the applicable percentage table in § 36B(b)(3)(A)(i) (Applicable Percentage Table) for calendar year 2021, which is used to calculate an individual's premium tax credit. The revenue procedure also updates the required contribution percentage in § 36B(c)(2)(C)(i)(II) for plan years beginning after calendar year 2020 (Section 36B Required Contribution Percentage). This percentage is used to determine whether an individual is eligible for affordable employer-sponsored minimum essential coverage under § 36B.

Rev. Rul. 2020-15, page 233. Federal rates; adjusted federal rates; adjusted federal long-term rate, the long-term exempt rate, and the blended annual rate. For purposes of sections 382, 1274, 1288, 7872 and other sections of the Code, tables set forth the rates for August 2020.