New Internal Revenue Service Guidance in February 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 February 2020.


What Changed


In February 2020, the IRS published several important updates. We hope this quick listing of notable new items posted in February 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


2019 Publication 525, Taxable and Nontaxable Income

2019 Publication 570, Tax Guide for Individuals With Income from U.S. Possessions

2019 Publication 575, Pension and Annuity Income

2019 Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs)

2019 Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs)

2019 Publication 5301, Electronic Federal Tax Payment System - Batch Provider Software User Manual

2020 Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities

2020 Publication 938, Real Estate Mortgage Investment Conduits (REMICs) Reporting Information (And Other Collateralized Debt Obligations (CDOs))

2020 Publication 5084, IRS Congressional Update Newsletter

2020 Publication 5136, IRS Services Guide

2020 Publication 5319, LB&I Focus Guide


2019 Forms


2019 Form W-3(PR), Informe de Comprobantes de Retencion (Info Copy Only)

2019 Form W-4P, Withholding Certificate for Pension or Annuity Payments

2019 Form W-4S, Request for Federal Income Tax Withholding From Sick Pay

2019 Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. (Info Copy Only)

2019 Form 1099-PC (Schedule M-3), Net Income (Loss) Reconciliation for U.S. Property and Casualty Insurance Companies with Total Assets of $10 Million or More


2019 Instructions


2019 Instructions for Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons

2019 Instructions for Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding

2019 Instructions for Form 1065, U.S. Return of Partnership Income

2019 Instructions for Form 1120-C, U.S. Income Tax Return for Cooperative Associations

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


2020 Forms


2020 Form SS-4(PR), Application for Employer Identification Number (EIN) (Puerto Rico Version) (Rev. February 2020)

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

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

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

2020 Form W-2VI, U.S. Virgin Islands Wage and Tax Statement (Info Copy Only)

2020 Form W-3(PR), Transmittal of Wage and Tax Statements (Info Copy Only) (Puerto Rico Version)

2020 Form W-4S, Request for Federal Income Tax Withholding From Sick Pay

2020 Form 941, Employer’s Quarterly Federal Tax Return (Rev. January 2020)

2020 Form 941-SS, Employer's Quarterly Federal Tax Return - American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands

2020 Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.

2020 Form 2848, Power of Attorney and Declaration of Representative (Rev. February 2020)

2020 Form 5498, IRA Contribution Information (Info Copy Only)


2020 Instructions


2020 Instructions for Form SS-4 (PR), Application for Employer Identification Number (Puerto Rico Version) (Rev. Marzo de 2020)

2020 Instructions for Forms W-2 and W-3, Wage and Tax Statement and Transmittal of Wage and Tax Statements

2020 Instructions for Form 941, Employer’s Quarterly Federal Tax Return (Rev. January 2020)

2020 Instructions for Form 941-SS, Employer's Quarterly Federal Tax Return - American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands

2020 Instructions for Forms 1099-R and 5498, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.

2020 Instructions for Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations (Rev. February 2020)

2020 Instructions for Form 2848, Power of Attorney and Declaration of Representative (Rev. February 2020)


Notable Drafts


DRAFT Publications and other guidance


DRAFT 2019 Publication 519, U.S. Tax Guide for Aliens (as of February 26, 2020)


DRAFT 2019 Forms


DRAFT 2019 Form 1120-PC (Schedule M-3), Net Income (Loss) Reconciliation for U.S. Property and Casualty Insurance Companies with Total Assets of $10 Million or More as of (February 21, 2020)


DRAFT 2019 Instructions


DRAFT 2019 Instructions for Form 1120-F, U.S. Income Tax Return of a Foreign Corporation (as of February 27, 2020)

DRAFT 2019 Instructions for Schedule M-3 (Form 1120-PC), Net Income (Loss) Reconciliation for U.S. Property and Casualty Insurance Companies With Total Assets of $10 Million or More (as of February 21, 2020)

DRAFT 2019 Instructions for Form 1120-PC, U.S. Property and Casualty Insurance Company Income Tax Return (as of February 21, 2020)

DRAFT 2019 Instructions for Form 1120-L, U.S. Life Insurance Company Income Tax Return (as of February 20, 2020)

DRAFT 2019 Instructions for Form 1120-L Schedule M-3), Net Income (Loss) Reconciliation for US Life Insurance Companies With Total Assets of $10 Million or More (as of February 24, 2020. Note, there is also a version as of February 20, 2020).


DRAFT 2020 Forms


DRAFT 2020 Form 1099-PATR, Taxable Distributions Received From Cooperatives (Info Copy Only) (as of February 27, 2020)

DRAFT 2020 Instructions

DRAFT 2020 Instructions for Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding (as of February 27, 2020)

DRAFT 2020 Instructions for Form 1099-PATR, Taxable Distributions Received From Cooperatives (as of February 5, 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.

• Use the updated IRS tax calendar and consider syncing the deadlines with your own calendar application for consistency. Now that we have a new 2020 Tax Calendar, it is a great idea to coordinate the deadlines and update your procedures for this year.

• Confirm your systems and reporting applications are updated for the many new forms released this month! There are changes to coding and other items (see DRAFT 2020 Form 1042-S Instructions!)

• 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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