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

REG-117138-17, page 796. This guidance contains proposed amendments to the 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 regulations propose to 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.

Rev. Rul. 2020-8, page 775. This item is a revenue ruling that suspends Rev. Rul. 71-533 entirely and also suspends Rev. Rul. 68-150 in part. The revenue rulings are suspended pending reconsideration by the Department of the Treasury and the Internal Revenue Service of whether the ten-year limitations period provided by section 6511(d)(3)(A) of the Internal Revenue Code applies to claims for refund or credit of an overpayment resulting from a foreign tax credit carryback arising as a result of a net operating loss carryback from a subsequent year.

ADMINISTRATIVE, INCOME TAX

Rev. Proc. 2020-28, page 792. This revenue procedure provides tax return filing procedures for certain eligible individuals who are not otherwise required to file 2019 Federal income tax returns to facilitate their receipt of the allowed economic impact payments provided by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), Public Law 116-136, 134 Stat. 281, 334-7 (March 27, 2020).

EMPLOYEE PLANS

Notice 2020-27, page 778. This notice sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates for April 2020 used under § 417(e)(3)(D), the 24-month average segment rates applicable for April 2020, and the 30-year Treasury rates, as reflected by the application of § 430(h)(2)(C)(iv).

INCOME TAX

Announcement 2020-5, page 796. The Announcement provides clarity to Connecticut homeowners who receive financial assistance from the Connecticut Foundation Solutions Indemnity Company, Inc. for the repair of premature deterioration of the concrete foundations of their homes due to the mineral pyrrhotite.

Notice 2020-28, page 781. This notice publishes the reference price under section 45K(d)(2)(C) of the Internal Revenue Code for calendar year 2019. The reference price applies in determining the amount of the enhanced oil recovery credit under § 43, the marginal well production credit for qualified crude oil production under § 45I, and the applicable percentage under § 613A to be used in determining percentage depletion in the case of oil and natural gas produced from marginal properties.

Notice 2020-30, page 781. The notice announces that under § 613A(c)(6)(C) of the Internal Revenue Code, the applicable percentage for purposes of determining percentage depletion on marginal properties for calendar year 2020 is 15 percent. The format of the notice is identical to the format of notices previously published on this issue.

Notice 2020-31, page 783. The notice announces the inflation adjustment factor and phase-out amount for the enhanced oil recovery credit for taxable years beginning in the 2020 calendar year. The notice concludes that because the reference price for the 2019 calendar year ($55.55) exceeds $28 multiplied by the inflation adjustment factor for the 2019 calendar year ($28 multiplied by 1.7640 = $49.392) by $6.16, the enhanced oil recovery credit for qualified costs paid or incurred in 2020 is phased out completely.

Rev. Rul. 2020-11, page 776. 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 May 2020.

Rev. Proc. 2020-25, page 785. This revenue procedure provides guidance allowing a taxpayer to change its depreciation under section 168 for certain qualified improvement property. This revenue procedure also allows a taxpayer to make a late election, or to revoke or withdraw an election, under § 168(g)(7), (k)(5), (k)(7) or (k)(10) of the Code for certain years.