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.
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
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 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.