New Internal Revenue Service Guidance in January 2020

Who is Impacted?

Anyone making payments of U.S. reportable income will be interested in a listing of notable new guidance posted by the Internal Revenue Service (IRS) in January 2020.

What Changed?

In January 2020, the IRS published several important updates. We hope this quick listing of notable new items posted in January is helpful to you! One thing you may notice is that many forms were issued in draft and finalized during the month. In those cases, we only highlighted the new form. Be sure to check the IRS site for other forms that your organization uses.

Publications and other Guidance

Publication 519, U.S. Tax Guide for Aliens. Note. This links to the 2018 Publication with a note that it is currently being updated for the 2019 version based on the December 2019 enacted regulations.

Publication 550, Investment Income and Expense. Note. This links to the 2018 Publication with a note that it is currently being updated for the 2019 version based on the December 2019 enacted regulations.

Publication 570, Tax Guide for Individuals with Income from U.S. Possessions. Note. This links to the 2018 Publication with a note that it is currently being updated for the 2019 version based on the December 2019 enacted regulations.

Publication 575, Pension and Annuity Income. Note. This links to the 2018 Publication with a note that it is currently being updated for the 2019 version based on the December 2019 enacted regulations. But, see DRAFT 2019 Publication 575.

Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs). Note. This links to the 2018 Publication with a note that it is currently being updated for the 2019 version based on the December 2019 enacted regulations. But, see DRAFT Publication 590-A.

Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs). Note. This links to the 2018 Publication with a note that it is currently being updated for the 2019 version based on the December 2019 enacted regulations.

2019 Publication 525, Taxable and Nontaxable Income

2019 Publication 4152, Electronic Toolkit for Nonresident Alien VITA/TCE Sites

2019 Publication 5187, Affordable Care Act: What You and Your Family Need to Know

2020 Publication 15-B, Employer's Tax Guide to Fringe Benefits

Publication 1212 (Rev. January 2020), Guide to Original Issue Discount Instruments

Publication 4520 (Rev. January 2020), Acceptance Agents Guide for Individual Taxpayer Identification Number (ITIN)

2020 Publication 5382, Internal Revenue Service Progress Update Fiscal Year 2019

2020 Publication 5341, The Taxpayer Roadmap

2020 Publication 5341 (SP), The Taxpayer Roadmap (Spanish Version)

2020 Notice 940 (SP), Why do I have to File Form W-4 with My Employer? (Spanish Version)

Notice 1392 (Revised January 2020), Supplemental Form W-4 Instructions for Nonresident Aliens

2019 Forms

2019 Schedule M-3 (Form 1065), Net Income (Loss) Reconciliation for Certain Partnerships

2019 Form 1098-F, Fines, Penalties, and Other Amounts

Form 1098-F, Fines, Penalties and Other Amounts (Revised December 2019). Note, this links to the continuous use form.

Form 1099-LS, Reportable Life Insurance Sales (Revised December 2019). Note, this links to the continuous use form.

Form 1099-SB, Seller’s Investment in Life Insurance Contract (Revised December 2019).

2019 Form 1120-L, U.S. Life Insurance Company Income Tax Return

2019 Form 1120-L, Schedule M-3, Net Income (Loss) Reconciliation for U.S. Life Insurance Companies With Total Assets of $10 Million or More

2019 Form 1120-REIT, U.S. Income Tax Return for Real Estate Investment Trusts

2019 Form 1120-RIC, U.S. Income Tax Return for Regulated Investment Companies

Form 2848, Power of Attorney and Declaration of Representative (Revised January 2018). Note. This links to the 2018 Form, but with a note that it is currently being updated for the December 2019 enacted regulations.

2019 Form 8879, IRS e-file Signature Authorization

2019 Form 8879-S, IRS e-file Signature Authorization for Form 1120-S

Form SS-4, Application for Employer Identification Number (Revised December 2019)

2019 Form W-2, Wage and Tax Statement

2019 Form W-2VI, U.S. Virgin Islands Wage and Tax Statement

2019 Form W-2GU, Guam Wage and Tax Statement

2019 Form W-2AS, American Samoa Wage and Tax Statement

2019 Form W-4S, Request for Federal Income Tax Withholding from Sick Pay. Note. This links to the 2019 Form, but with a note that it is currently being updated for the December 2019 enacted regulations.

2019 Instructions

Instructions for Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons. Note. This links to the 2018 Instructions, but with a note that it is currently being updated for the December 2019 enacted regulations.

2019 Instruction for Schedule M-3 (Form 1065), Net Income (Loss) Reconciliation for Certain Partnerships

Instructions to Form 1098-F, Fines, Penalties, and Other Amounts (Revised December 2019).

Instructions for Form 1099-LS, Reportable Life Insurance Sales (Revised December 2019).

2019 Instructions for Form 1120, U.S. Corporation Income Tax Return

Instructions for Form 1120-C, U.S. Income Tax Return for Cooperative Associations. Note. This links to the 2018 Instructions, but with a note that it is currently being updated for the December 2019 enacted regulations.

Instructions for Form 1120-F, U.S. Income Tax Return of a Foreign Corporation. Note. This links to the 2018 Form, but with a note that it is currently being updated for the December 2019 enacted regulations.

2019 Instructions for Schedule D (Form 1120-F), Capital Gains and Losses

2019 Shareholder’s Instructions for Schedule K-1 (Form 1120-S), Shareholder’s Share of Income, Deductions, Credits, etc. (For Shareholder’s Use Only)

2019 Instructions for Form 1120-S, U.S. Income Tax Return for an S Corporation

2019 Instructions for Schedule D (Form 1120-S), Capital Gains and Losses

Instructions for Schedule UTP (Form 1120), Uncertain Tax Positions (Revised December 2019)

2019 Instructions for Schedule M-3 (Form 1120-F), Net Income (Loss) Reconciliation for Foreign Corporations with Reportable Assets of $10 Million or More

2019 Instructions for Schedule P (Form 1120-F), List of Foreign Partner Interests in Partnerships

2019 Instructions for Schedule S (Form 1120-F), Exclusion of Income From the International Operation of Ships or Aircraft Under Section 883

Instructions for Form SS-4, Application for Employer Identification Number (EIN) (Revised December 2019).

2020 Forms

2020 Form 1120-W (Worksheet), Estimated Tax for Corporations

2020 Form W-2, Wage and Tax Statement (Info Copy Only)

2020 Form W-4P, Withholding Certificate for Pensions or Annuity Payments. Note, a there is a draft posting of this from on the same day it was published on the final forms site, January 31, 2020.

2020 Form W-4 (SP), Employee’s Withholding Certificate (Spanish Version) 2020 Instructions

2020 Instructions for Form 1120-W, Estimated Tax for Corporations

Notable Drafts

DRAFT Publications and other guidance

DRAFT 2019 Publication 575, Pension and Annuity Income (as of January 31, 2020)

DRAFT 2019 Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs) (as of January 28, 2020)

DRAFT 2019 Forms

DRAFT 2019 Form 1120-PC, U.S. Property and Casualty Insurance Company Income Tax Return (as of January 29, 2020)

DRAFT 2019 Instructions

DRAFT 2019 Instructions for Schedule D (Form 1120), Capital Gains and Losses (as of January 17, 2020)

DRAFT 2019 Instructions for Form 1120, U.S. Corporation Income Tax Return (as of January 17, 2020)

DRAFT Instructions for Form SS-4, Application for Employer Identification Number (EIN) (Revised December 2019) (as of January 24, 2020).

DRAFT Instructions for Form SS-4 (PR), Application for Employer Identification Number (Puerto Rico Version) (Revised February 2020) (as of January 14, 2020)

DRAFT 2020 Forms

DRAFT 2020 Instructions

DRAFT 2020 General Instructions for Certain Information Returns (Forms 1096, 1097, 1098, 1099, 3921, 3922, 5498, and W-2G) (as of January 31, 2020).

DRAFT Instructions for Forms 1099-R and 5498, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. (as of January 16, 2020).

How to Implement?

Organizations required to file any of the information returns mentioned in this article should consider the following:

• Confirm withholding calculations are updated for 2019 and prepare for 2020.

• Confirm your systems and reporting applications are updated for the many new forms released this month!

• Confirm tax reporting vendors are aware of updates to 2019 and 2020 Forms and withholding rates. If you have received your yearend update for 2019 reporting from your vendor, confirm additional updates for 2019 forms will be coming timely.

• Review all draft and new forms to identify changes that may impact your organization and update process and procedure manuals to incorporate any changes required.

• Update policy and procedure manuals, training materials and presentations to staff.

Share your experiences with us in the comments or e-mail us!

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This document contains general information only and is not a substitute for accounting, tax, or any other professional advice or services. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor.