Internal Revenue Bulletin 2020-39 (PDF rendition): IRS Revenue Rulings

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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.
Bulletin No. 2020–39
September 21, 2020
ADMINISTRATIVE
Rev. Rul. 2020-18, page 584.
Interest rates: underpayments and overpayments. The rates
for interest determined under Section 6621 of the code for
the calendar quarter beginning October 1, 2020, will be 3
percent for overpayments (2 percent in the case of a cor-
poration), 3 percent for underpayments, and 5 percent for
large corporate underpayments. The rate of interest paid on
the portion of a corporate overpayment exceeding $10,000
will be 0.5 percent.
INCOME TAX
Notice 2020-69, page 604.
This notice announces that the Department of the Treasury
and the Internal Revenue Service intend to issue regulations
addressing the application of §§ 951 and 951A of the In-
ternal Revenue Code to certain S corporations (as defined
in § 1361(a)(1)) with accumulated earnings and profits, as
described in § 316(a)(1). This notice also announces that the
Treasury Department and the IRS intend to issue regulations
addressing the treatment of qualified improvement property
under the alternative depreciation system of § 168(g) for pur-
poses of calculating qualified business asset investment for
purposes of the foreign-derived intangible income and global
intangible low-taxed income provisions, which were added to
the Code by the enactment of Public Law No. 115-97, 131
Stat. 2054 (2017), commonly referred to as the Tax Cuts
and Jobs Act (TCJA).
T.D. 9906, page 579.
Nuclear Decommissioning Funds. Section 468A al-
lows a taxpayer to elect to currently deduct amounts
set aside in a qualified nuclear decommissioning fund
for the purpose of decommissioning a nuclear power
plant. These regulations provide rules concerning the
use of those funds to decommission nuclear power
plants. Specifically, the regulations revise and clarify
certain provisions in existing regulations to address
issues that have arisen as more nuclear plants have
begun the decommissioning process. The regulations
also clarify provisions in existing regulations regarding
self-dealing and the definition of substantial completion
of decommissioning.
Finding Lists begin on page ii.

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Introduction
The Internal Revenue Bulletin is the authoritative instrument
of the Commissioner of Internal Revenue for announcing of-
ficial rulings and procedures of the Internal Revenue Service
and for publishing Treasury Decisions, Executive Orders, Tax
Conventions, legislation, court decisions, and other items of
general interest. It is published weekly.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application
of the tax laws, including all rulings that supersede, revoke,
modify, or amend any of those previously published in the
Bulletin. All published rulings apply retroactively unless other-
wise indicated. Procedures relating solely to matters of inter-
nal management are not published; however, statements of
internal practices and procedures that affect the rights and
duties of taxpayers are published.
Revenue rulings represent the conclusions of the Service
on the application of the law to the pivotal facts stated in
the revenue ruling. In those based on positions taken in rul-
ings to taxpayers or technical advice to Service field offices,
identifying details and information of a confidential nature are
deleted to prevent unwarranted invasions of privacy and to
comply with statutory requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned
against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—1986 Code.
This part includes rulings and decisions based on provisions
of the Internal Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B,
Legislation and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative
Rulings. Bank Secrecy Act Administrative Rulings are issued
by the Department of the Treasury’s Office of the Assistant
Secretary (Enforcement).
Part IV.—Items of General Interest.
This part includes notices of proposed rulemakings, disbar-
ment and suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.
The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
September 21, 2020 Bulletin No. 2020–39

Part I
26 CFR 1.468A-1; 26 CFR 1.468A-5; 26 CFR
1.468A-9
T.D. 9906
DEPARTMENT OF THE
TREASURY
Internal Revenue Service
26 CFR Part 1
RIN 1545-BN42
Nuclear Decommissioning
Funds
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Final regulations.
SUMMARY: This document contains final
regulations under section 468A of the Inter-
nal Revenue Code of 1986 (Code) relating to
deductions for contributions to trusts main-
tained for decommissioning nuclear power
plants and the use of the amounts in those
trusts to decommission nuclear plants. The
regulations revise and clarify certain provi-
sions in existing regulations to address is-
sues that have arisen as more nuclear plants
have begun the decommissioning process.
DATES: Effective Date: These regula-
tions are effective on September 4, 2020.
Applicability Date: For date of applica-
bility, see §1.468A-9.
FOR FURTHER INFORMATION
CONTACT: Jennifer C. Bernardini, (202)
317-6853 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
This document contains amendments to
the income tax regulations (26 CFR part 1)
under section 468A of the Code relating to
deductions for contributions to trusts main-
tained for decommissioning nuclear power
plants and the use of the amounts in those
trusts to decommission nuclear plants.
Section 468A was originally enacted by
section 91(c)(1) of the Deficit Reduction
Act of 1984, Public Law 98-369 (98 Stat
604) and has been amended several times,
most recently by section 1310 of the Ener-
gy Policy Act of 2005, Public Law 109-58
(119 Stat 594). Temporary regulations (TD
9374) under section 468A were published
in the Federal Register on December 31,
2007 (72 FR 74175). Final regulations fi-
nalizing and removing the temporary reg-
ulations (TD 9512) were published in the
Federal Register on December 23, 2010
(75 FR 80697) (existing regulations). A no-
tice of proposed rulemaking (REG-112800-
16) (proposed regulations) was published
in the Federal Register (81 FR 95929)
on December 29, 2016. The proposed reg-
ulations provide additional guidance on
deductions for contributions to trusts main-
tained for decommissioning nuclear power
plants and the use of the amounts in those
trusts to decommission nuclear plants un-
der section 468A.
The Department of the Treasury (Trea-
sury Department) and the IRS received
several written and electronic comments
in response to the proposed regulations.
All comments are available at www.regu-
lations.gov. The Treasury Department and
the IRS held a public hearing on the pro-
posed regulations on October 25, 2017.
After consideration of the comments
received, including comments made at the
public hearing, the proposed regulations are
adopted as final regulations as revised by
this Treasury decision. In general, these final
regulations follow the approach of the pro-
posed regulations with some modifications
based on the recommendations made in
the comments. This preamble describes the
comments received by the Treasury Depart-
ment and the IRS and the revisions made.
Summary of Comments and
Explanation of Provisions
1. Definition of Nuclear
Decommissioning Costs
A. Inclusion of Amounts Related to the
Storage of Spent Fuel within Definition
of Nuclear Decommissioning Costs
Section 1.468A-1(b)(6) of the existing
regulations defines nuclear decommis-
sioning costs as including “all otherwise
deductible expenses to be incurred in con-
nection with” the disposal of nuclear as-
sets. In the proposed regulations, the Trea-
sury Department and the IRS addressed
questions regarding whether nuclear de-
commissioning costs include costs relat-
ed to an Independent Spent Fuel Storage
Installation (ISFSI) for the construction
or purchase of assets that would not nec-
essarily qualify as “otherwise deductible”
expenses under the existing regulations.
The proposed regulations clarified the
definition of nuclear decommissioning
costs to specifically include ISFSI-relat-
ed costs. The proposed regulations also
confirmed that the requirement that an
expense be “otherwise deductible” is not
applicable to costs related to spent nuclear
fuel generated by a nuclear power plant
or plants. A commenter requested that the
final regulations further clarify this point.
The Treasury and the IRS view additional
clarification as unnecessary and decline to
adopt this suggestion.
The existing and proposed regulations
assume operators typically store spent
fuel in an on-site ISFSI, and thus the defi-
nition of nuclear decommissioning costs
included expenses related to fuel storage
in on-site ISFSIs. However, the Treasury
Department and the IRS understand that
because the Department of Energy has not
begun accepting spent fuel for disposal in
a permanent geologic repository, on-site
ISFSIs currently being used by opera-
tors of nuclear power plants may become
overcrowded and, as a result, operators
may choose to look to off-site ISFSIs for
future storage capacity. After reviewing
the comments, the Treasury Department
and the IRS have decided to address this
consideration by broadening the defini-
tion of nuclear decommissioning costs in
§1.468A-1(b)(6) to include expenses re-
lated to spent fuel storage in ISFSIs both
on-site and off-site from the nuclear pow-
er plant that generates such spent fuel.
B. Inclusion of Amounts Related
to a Depreciable Asset and to Land
Improvements within Definition of
Nuclear Decommissioning Costs
In response to questions about wheth-
er a cost must be currently deductible for
Bulletin No. 2020–39 579 September 21, 2020

that amount to be payable currently from
the Fund under the “otherwise deduct-
ible” language of §1.468A-1(b)(6) of the
existing regulations, the proposed regula-
tions broadened the definition of nuclear
decommissioning costs to include the to-
tal cost of depreciable or amortizable as-
sets by adding the words “or recoverable
through depreciation or amortization” fol-
lowing “otherwise deductible.”
Commenters suggested that the term
“otherwise deductible” be removed from
the definition of nuclear decommission-
ing costs. These commenters asserted that
the “otherwise deductible” requirement
is unnecessary with respect to all decom-
missioning costs because deductibility is
not required by the legislative intent or
plain language of the Code. Nuclear de-
commissioning costs are broadly defined
in §1.468A-1(b)(5) of the regulations to
include expenses incurred before, during,
and after the actual decommissioning pro-
cess for the nuclear power plant unit that
has ceased operations. This broad defi-
nition is consistent with Congress’s rec-
ognition in enacting section 468A of the
Code in 1984 (at the same time as section
461(h) relating to economic performance
was enacted) that “the establishment of
segregated reserve funds for paying fu-
ture nuclear decommissioning costs was
of sufficient national importance that a tax
deduction, subject to limitations, should
be provided for amounts contributed to
qualified funds.” And further, “[t]axpayers
who do not elect this provision are subject
to the general rules in the Act which do not
permit accrual basis taxpayers to deduct
future liabilities prior to the time when
economic performance occurs (Code Sec
461).” Joint Committee on Taxation Staff,
General Explanation of the Revenue Pro-
visions of the Deficit Reduction Act of
1984, 98th Cong., 2d Sess. 270 (1984).
Nuclear decommissioning costs must
be incurred for the purposes intended
by Congress. However, whether nuclear
decommissioning costs are “otherwise
deductible” are determined under other
provisions of the Code. Costs that meet
the definition of nuclear decommissioning
costs under section 468A are not inde-
pendently deductible under section 468A.
Specifically, under section 468A(c)(2),
these costs are deductible when economic
performance occurs under section 461(h)
(2) if the costs are deductible under sec-
tion 162 (or are otherwise deductible un-
der another provision of chapter 1 of the
Code). Further, the Treasury Department
and the IRS believe that the broader defi-
nition of nuclear decommissioning costs
in the proposed regulations will eliminate
most of the issues raised by commenters
suggesting deletion of “otherwise deduct-
ible,” and thus the final regulations do not
adopt this suggestion.
One commenter observed that the pro-
posed regulations can be interpreted to
mean that an expense for property will
not be deemed recoverable through de-
preciation or amortization if the property
will be considered abandoned for purpos-
es of section 165. The commenter noted
that such an interpretation could lead to
inconsistent results depending on the type
of cost and whether such cost is incurred
while the plant is still operating versus
if such cost is incurred when the plant is
already retired or decommissioned. The
Treasury Department and the IRS do not
believe that the suggested interpretation
is correct. The definition of nuclear de-
commissioning costs in the proposed reg-
ulations should be interpreted to include
costs incurred for depreciable assets as
those costs are incurred, whether or not
such asset will be abandoned for purposes
of section 165.
Commenters suggested that the Trea-
sury Department and the IRS consider
including additional types of assets, such
as land improvements, within the defini-
tion of nuclear decommissioning costs to
effectuate the purpose of section 468A.
The Treasury Department and the IRS
agree with this suggestion. Accordingly,
the final regulations broaden the defini-
tion of nuclear decommissioning costs
in §1.468A-1(b)(6)(i) to include “all land
improvements and otherwise deductible
expenses to be incurred in connection
with the entombment, decontamination,
dismantlement, removal, and disposal of
the structures, systems and components
of a nuclear power plant, whether that nu-
clear power plant will continue to produce
electric energy or has permanently ceased
to produce electric energy.”
Commenters also noted that the use of
the term “expense” may cause confusion
because the common business usage of
the term “expense” suggests a period cost.
A commenter recommended that the final
regulations use the term “expenditure,”
which in common business usage denotes
an outflow of resources, as more appropri-
ate than “expense” where the reference to
a period cost is not specifically intended.
While the Treasury Department and the
IRS acknowledge the merits of this clari-
fication, the term “expense” is used to de-
scribe similar concepts throughout many
other sections of the existing regulations.
Because adoption of the term “expendi-
ture” in §§1.468A-1 and 1.468A-5 may
cause additional confusion and inconsis-
tency with other sections of the existing
regulations where the term “expense” is
used for similar concepts (for example,
§1.468A-4(b)(2) Treatment of Nuclear
Decommissioning Fund; Modified Gross
Income), the final regulations do not adopt
this recommendation.
2. Clarification of the Applicability of
the Self-Dealing Rules to Transactions
Between the Fund and Disqualified
Persons
The proposed regulations provid-
ed that, for purposes of the prohibitions
against self-dealing provisions in existing
§1.468A-5(b), reimbursement of decom-
missioning costs by the Fund to a disqual-
ified person that paid such costs is not an
act of self-dealing. The Treasury Depart-
ment and the IRS received no comments
on this provision, and these final regula-
tions adopt the proposed regulations on
this point.
The preamble to the proposed regula-
tions further stated that no amount beyond
what is actually paid by the disqualified
person, including amounts such as direct
or indirect overhead or a reasonable prof-
it element, may be included in the reim-
bursement by the Fund. Several comment-
ers recommended amending the language
of §1.468A-5(b) to expand the types of
expenses permitted to be reimbursed as
nuclear decommissioning costs under
the self-dealing rules to include direct or
indirect overhead and a reasonable prof-
it element. These commenters assert that
there is no existing statutory or regulatory
requirement to suggest that it is not entire-
ly appropriate for a contributor or its affil-
iate to be reimbursed for overhead of any
type and, in addition, a reasonable profit
September 21, 2020 580 Bulletin No. 2020–39

Bulletin No. 2020–39 581 September 21, 2020
element, if the amount of the charge is not
excessive.
Under §1.468A-5(b)(2)(v) of the exist-
ing regulations, the payment of compen-
sation (and payment or reimbursement of
expenses) by a Fund to a disqualified per-
son for personal services that are decom-
missioning costs and that are reasonable
and necessary to carrying out the exempt
purposes of the Fund are not an act of
self-dealing if such payment is purely for
the compensation (and payment or reim-
bursement of expenses) of such services,
but only to the extent such payment would
ordinarily be paid for like services by like
enterprises under like circumstances. See
section 4951(d)(2)(C), §§53.4951-1(a),
53.4941(d)-3(c), and 1.162-7. The fact
that the total amount of such payment is
more than the disqualified person’s actual
expenses paid for such personal services
does not cause the Fund’s payment to con-
stitute an act of self-dealing, even if the
difference is properly characterized as
profit, or direct or indirect overhead. See
§53.4941(d)-3(c)(1). In response to the
comments on this issue, the Treasury De-
partment and the IRS have modified the
language of §1.468A-5(b)(2)(v) to refer to
the determination of whether a payment
is reasonable under section 4951(d)(2)
(C), §§53.4951-1(a), 53.4941(d)-3(c), and
1.162-7.
Conversely, one commenter observed
there is a significant risk for abuse of the
self-dealing rules where nuclear power
plants are decommissioned by “contrac-
tors” that are also the owners of the nucle-
ar power plant because the fees for their
services or activities may also include a
profit margin that is not properly report-
ed for federal income tax purposes. As a
result, the tax treatment of Funds could
be exploited as a tax loophole. This com-
menter requested that the Treasury De-
partment and the IRS either modify the
proposed regulations to require the report-
ing of profits in charges paid to related
entities (or to the taxpayers themselves)
by a Fund, and/or promulgate reporting
requirements in the implementation of
the final regulations. The Treasury De-
partment and the IRS decline to adopt this
change because, as discussed above, the
safeguards in place under the self-dealing
rules are adequate to avoid the potential
exploitation identified by the commenter.
3. Definition of “Substantial Completion”
in §1.468A-5(d)(3)(i)
Existing §1.468A-5(d)(3)(i) defines
the substantial completion date as “the
date that the maximum acceptable radio-
activity levels mandated by the Nuclear
Regulatory Commission [NRC] with re-
spect to a decommissioned nuclear power
plant are satisfied.” The proposed regula-
tions amended this definition to provide
that the substantial completion date is the
date on which all Federal, state, local, and
contractual decommissioning liabilities
are fully satisfied. Because the Treasury
Department and the IRS received no com-
ments on this proposed amendment, the
final regulations adopt this change to the
definition.
Effective/Applicability Date
Section 7805(b)(1)(A) and (B) of the
Code generally provides that no tempo-
rary, proposed, or final regulation relating
to the internal revenue laws may apply to
any taxable period ending before the ear-
liest of (A) the date on which such regu-
lation is filed with the Federal Register,
or (B) in the case of a final regulation, the
date on which a proposed or temporary
regulation to which the final regulation re-
lates was filed with the Federal Register.
The proposed regulations provided that
the regulations would apply to taxable
years ending on or after the date of pub-
lication of the Treasury decision adopting
the proposed rules as final regulations in
the Federal Register. Additionally, the
preamble to the proposed regulations pro-
vided that, notwithstanding the prospec-
tive effective date, taxpayers could take
return positions consistent with the pro-
posed regulations for taxable years ending
on or after December 29, 2016 (the date
the proposed regulations were published
in the Federal Register).
One commenter proposed that the ef-
fective and applicability dates of these reg-
ulations be amended to permit taxpayers
to rely on the provisions of the final reg-
ulations for taxable years that are open as
of the date the proposed regulations were
published in the Federal Register. After
consideration, the Treasury Department
and IRS decline to adopt this comment in
the final regulations. As noted in the pre-
ceding paragraph, the preamble to the pro-
posed regulations made clear that taxpay-
ers could take return positions consistent
with the notice of proposed rulemaking
for taxable years ending on or after De-
cember 29, 2016 (the date the proposed
regulations were published in the Feder-
al Register). This allowed taxpayers to
request schedules of ruling amounts from
the IRS (as required by section 468A(d)(1)
and §1.468A-3) with respect to costs that
were treated as nuclear decommissioning
costs under the proposed regulations and
to deduct those amounts in taxable years
ending on or after December 29, 2016.
However, for taxpayers that have not re-
quested and obtained a schedule of ruling
amounts for taxable years for which the
deemed payment deadline date (as de-
fined in §1.468A-2(c)(1)) has passed as
of September 4, 2020, under §1.468-3(e)
(v), it is impossible to obtain a schedule
of ruling amounts (and therefore impossi-
ble to contribute any amount to a qualified
fund) because the request for the schedule
of ruling amounts would be submitted to
the IRS after the deemed payment dead-
line date. Accordingly, while the final reg-
ulations apply to taxable years ending on
or after September 4, 2020, taxpayers may
apply the rules contained in the final reg-
ulations to prior taxable years for which a
taxpayer’s deemed payment deadline has
not passed prior to September 4, 2020. See
section 7805(b)(7).
Special Analyses
Executive Orders 12866 and 13563
direct agencies to assess costs and ben-
efits of available regulatory alternatives
and, if regulation is necessary, to select
regulatory approaches that maximize net
benefits (including potential economic,
environmental, public health and safety
effects, distributive impacts, and equity).
Executive Order 13563 emphasizes the
importance of quantifying both costs and
benefits, of reducing costs, of harmoniz-
ing rules, and of promoting flexibility.
These final regulations have been des-
ignated by the Office of Management
and Budget’s (OMB) Office of Informa-
tion and Regulatory Affairs (OIRA) as
subject to review under Executive Order
12866 pursuant to the Memorandum of
Agreement (April 11, 2018) between the

September 21, 2020 582 Bulletin No. 2020–39
Treasury Department and OMB regarding
review of tax regulations. OIRA has de-
termined that the final rulemaking is sig-
nificant and subject to review under Exec-
utive Order 12866 and section 1(b) of the
Memorandum of Agreement.
1. Background and Need for
Regulation
Federal law requires operators of nu-
clear power plants to dismantle these
plants and safely dispose of the fuel when
the useful life of the plant has expired.
Nuclear Regulatory Commission (NRC)
rules require plant owners to demonstrate
that sufficient financial resources will be
available for decommissioning costs.
1

Additionally, owners are required to re-
port to the NRC at least every two years
the status of a plant’s decommissioning
funding. The NRC rules allow for vari-
ous methods to satisfy the requirement
for dedicated decommissioning funds.
Section 468A of the Code is intended to
facilitate these requirements by allowing
taxpayers with ownership interests in nu-
clear power plants to elect to currently de-
duct the future costs of decommissioning
a nuclear power plant.
2
Funds for which
an election has been made under section
468A are widely used in the industry, but
not all decommissioning funding vehicles
are section 468A funds.
The election is made pursuant to pro-
cedures provided in existing regulations
under section 468A and allows taxpayers
to make contributions to a Nuclear De-
commissioning Fund (“Fund”) prior to the
time when actual decommissioning costs
are incurred.
3
When amounts are actual-
ly distributed from the Fund the electing
taxpayer faces a gross income inclusion.
Generally, the income inclusion is offset
with a corresponding deduction for the
costs of decommissioning activities when
they are actually performed. Funds are
treated as separate taxable corporations,
with investment incomes subject to a fixed
20 percent rate of tax.
Section 468A(a) limits the purposes for
which amounts can be considered “nuclear
decommissioning costs.” The definition of
such costs forms the basis for a large por-
tion of the rulemaking that has been issued
regarding 468A and furthermore forms the
bulk of the basis for the final regulations.
4

As decommissioning activity increases
and technologies change, additional guid-
ance is needed to address withdrawals
from the Fund to cover new costs and cost
categories that may arise for purposes of
decommissioning. For example, the ac-
cumulating amounts of spent nuclear fuel
and the ongoing lack of a Federal repos-
itory for that fuel have led plant owners
to store spent nuclear fuel in Independent
Spent Fuel Storage Installations (ISFSIs).
The need to independently store spent fuel
was not anticipated when previous IRS
regulations were issued. The final regula-
tions clarify that the costs of an ISFSI and
related matters are decommissioning costs
for purposes of section 468A.
More generally, the final regulations
provide clarifications and updates to ex-
isting regulations in response to industry
requests for public guidance on this and
related issues. These clarifications gener-
ally have already been adopted by the IRS
in its private letter rulings but stakehold-
ers have requested that the regulations be
amended to provide additional certainty.
2. Overview of the Final Regulations
The regulations provide guidance on
deductions for contributions to funds
maintained for decommissioning nuclear
power plants and the use of the amounts
in those funds to decommission nuclear
plants under section 468A. Specifically,
the regulations (1) broaden the defini-
tion of nuclear decommissioning costs
in §1.468A-1(b)(6) to include expenses
related to spent fuel storage in ISFSIs
both on-site and off-site from the nuclear
power plant that generates such spent fuel;
(2) clarify that the definition of nuclear de-
commissioning costs in §1.468A-1(b)(6)
does not only include currently deductible
costs by adding the words “or recoverable
through depreciation or amortization”
following “otherwise deductible”; (3)
broaden the definition of nuclear decom-
missioning costs in §1.468A-1(b)(6)(i) to
include “all land improvements and oth-
erwise deductible expenses to be incurred
in connection with the entombment, de-
contamination, dismantlement, removal,
and disposal of the structures, systems
and components of a nuclear power plant,
whether that nuclear power plant will con-
tinue to produce electric energy or has
permanently ceased to produce electric
energy”; (4) broaden the exemption from
the self-dealing rules to include reim-
bursements to parties related to the elect-
ing taxpayer and also expand the types
of expenses permitted to be reimbursed
as nuclear decommissioning costs under
the self-dealing rules to include direct or
indirect overhead and a reasonable profit
element; and (5) provide that the substan-
tial completion date is the date on which
all Federal, state, local, and contractual
decommissioning liabilities are fully sat-
isfied.
3. Economic Effects of the Final
Regulations
A. Baseline
The Treasury Department and the IRS
have assessed the benefits and costs of the
final regulations relative to a no-action
baseline reflecting anticipated Federal in-
come tax-related behavior in the absence
of these regulations.
B. Summary of Economic Effects
The final regulations provide certain-
ty and clarity regarding the tax treatment
of nuclear decommissioning costs. The
Treasury Department and the IRS do not
expect that the regulations will affect the
decommissioning of nuclear plants in any
meaningful way, including the mix or
1
A detailed description of nuclear decommissioning and the various Nuclear Regulatory Commission (NRC) rules are beyond the scope of this document.
2
See generally Joint Committee on Taxation Staff, General Explanation of the Revenue Provisions of the Deficit Reduction Act of 1984, 98th Cong. 2d Sess. 270 (1984).
3
Electing taxpayers are permitted to contribute to the Fund amounts in accordance with a schedule of ruling amounts, which taxpayers must request and receive from the IRS. Very generally,
the schedule of ruling amounts should reflect the total cost for decommissioning the plant over the estimated useful life of the plant. Section 468A(d); §1.468A-3.
4
Section 468A was added by the Deficit Reduction Act of 1984. Regulations were first promulgated in 1988 and were amended in 1992, 1994, 2007, and 2010.

Bulletin No. 2020–39 583 September 21, 2020
level of activities involved in decommis-
sioning, because the management of spent
nuclear fuel and related decommissioning
activities are regulated by the NRC and
governed by a wide range of non-tax reg-
ulations. The final regulations further do
not provide any tax-based incentives that
would affect in any substantial way the
decision to decommission, the timing of
decommissioning, or the methods chosen
to decommission any plant or plants in
general.
In the absence of these regulations, the
Treasury Department and the IRS expect
that decommissioning would generally
proceed the same. The Treasury Depart-
ment and the IRS further note that the fi-
nal regulations largely implement existing
industry expectations for tax treatment of
decommissioning expenses, as informed
by private letter rulings.
The Treasury Department and the IRS
also considered whether the final regula-
tions will affect decisions for owners or
operators to plan, construct, or open new
nuclear facilities. Future decommissioning
of any new plants would take place many
years from now and any issues regarding
changes in technology can be expected to
be dealt with through future rulemaking.
Therefore, the Treasury Department and
the IRS do not expect the final regulations
to affect decisions about new facilities.
The Treasury Department and the IRS
welcome comments on these conclusions
and more generally on the economic ef-
fects of these final regulations.
Regulatory Flexibility Act
It is hereby certified that these regula-
tions will not have a significant economic
impact on a substantial number of small
entities pursuant to the Regulatory Flexi-
bility Act (RFA) (5 U.S.C. 601). Although
a substantial number of small entities may
be affected, the economic impact of this
rule is unlikely to be significant.
According to the Small Business Ad-
ministration’s Table of Size Standards
(13 CFR 121), utilities, including nucle-
ar electric power generation with 750 or
fewer employees (NAICS Code 221113),
are considered small entities. According
to the 2016 Statistics of U.S. Businesses
(SUSB) data, there are at least seven enti-
ties with fewer than 750 employees of the
27 entities in the industry, which could be
considered a substantial number of small
entities for purposes of the RFA.
The economic impact of these regula-
tions on small entities is not likely to be
significant. Section 468A of the Code al-
lows taxpayers with ownership interests
in nuclear power plants to elect to cur-
rently deduct the future costs of decom-
missioning a nuclear power plant. The
procedures for this election are set forth
in existing regulations. As discussed ear-
lier in these Special Analyses, the final
regulations provide clarifications and
updates to the existing regulations in
response to industry requests for public
guidance. These clarifications generally
have already been adopted by the IRS
in private letter rulings but stakeholders
have requested that the regulations be
amended to provide additional certainty.
Because the final rule is codifying what is
widely understood to be existing policy,
the economic impact of this rule is not
likely to be significant for any entities af-
fected, regardless of size.
Pursuant to section 7805(f) of the
Code, the proposed regulations preceding
these final regulations were submitted to
the Chief Counsel for Advocacy of the
Small Business Administration for com-
ment on their impact on small business
and no comments were received.
Paperwork Reduction Act
There is no new collection of informa-
tion contained in these regulations. The
collection of information contained in the
regulations under section 468A has been
reviewed and approved by the Office of
Management and Budget in accordance
with the Paperwork Reduction Act of
1995 (44 U.S.C. 3507(d)) under control
number 1545-2091. Responses to these
collections of information are required to
obtain a tax benefit.
An agency may not conduct or sponsor,
and a person is not required to respond to,
a collection of information unless it dis-
plays a valid control number assigned by
the Office of Management and Budget.
Books or records relating to a collec-
tion of information must be retained as
long as their contents may become mate-
rial in the administration of any internal
revenue law. Generally, tax returns and tax
return information are confidential, as re-
quired by section 6103 of the Code.
Drafting Information
The principal author of these regula-
tions is Jennifer C. Bernardini, Office of
Associate Chief Counsel (Passthroughs
and Special Industries). However, other
personnel from the IRS and the Treasury
Department participated in their develop-
ment.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and record-
keeping requirements
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR part 1 is amend-
ed as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 continues to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.468A-1 is amended by
adding paragraphs (b)(6)(i) and (ii) to read
as follows:
§1.468A-1 Nuclear decommissioning
costs; general rules.
* * * * *
(b) * * *
(6) * * *
(i) For the purpose of this title, the
term nuclear decommissioning costs or
decommissioning costs includes all ex-
penses related to land improvements
and otherwise deductible expenses to be
incurred in connection with the entomb-
ment, decontamination, dismantlement,
removal and disposal of the structures,
systems and components of a nuclear
power plant, whether that nuclear pow-
er plant will continue to produce electric
energy or has permanently ceased to pro-
duce electric energy. Such term includes
all expenses related to land improvements
and otherwise deductible expenses to be
incurred in connection with the prepara-
tion for decommissioning, such as en-
gineering and other planning expenses,

September 21, 2020 584 Bulletin No. 2020–39
and all otherwise deductible expenses to
be incurred with respect to the plant after
the actual decommissioning occurs, such
as physical security and radiation moni-
toring expenses. An expense is otherwise
deductible for purposes of this paragraph
(b)(6) if it would be deductible or recover-
able through depreciation or amortization
under chapter 1 of the Internal Revenue
Code without regard to section 280B.
(ii) The term nuclear decommission-
ing costs or decommissioning costs, as
applicable to this title, also includes ex-
penses incurred in connection with the
construction, operation, and ultimate de-
commissioning of a facility used solely
to store, pending delivery to a permanent
repository or disposal, spent nuclear fuel
generated by one or more nuclear power
plants (for example, an Independent Spent
Fuel Storage Installation). Such term does
not include otherwise deductible expens-
es to be incurred in connection with the
disposal of spent nuclear fuel under the
Nuclear Waste Policy Act of 1982 (Pub.
L. 97-425).
* * * * *
Par. 3. Section 1.468A-5 is amended
by revising the section heading and para-
graphs (b)(2)(i) and (v) and (d)(3)(i) to
read as follows:
§1.468A-5 Nuclear decommissioning
fund—miscellaneous provisions.
* * * * *
(b) * * *
(2) * * *
(i) A payment by a nuclear decommis-
sioning fund for the purpose of satisfying,
in whole or in part, the liability of the
electing taxpayer for decommissioning
costs of the nuclear power plant to which
the nuclear decommissioning fund relates,
whether such payment is made to an un-
related party in satisfaction of the decom-
missioning liability or to the plant operator
or other otherwise disqualified person as
reimbursement solely for actual expenses
paid by such person in satisfaction of the
decommissioning liability;
* * * * *
(v) Any act described in section
4951(d)(2)(B) or (C). Whether payments
under section 4951(c)(2)(C) are not ex-
cessive is determined under §1.162-7.
See §53.4941(d)-3(c)(1). The fact that
the amount of such payments that are not
excessive are also more than the disqual-
ified person’s actual expenses for such
personal services does not cause the pay-
ments to constitute acts of self-dealing,
even if the difference is properly char-
acterized as profit, or direct or indirect
overhead;
* * * * *
(d) * * *
(3) * * *
(i) The substantial completion of the
decommissioning of a nuclear power plant
occurs on the date on which all Federal,
state, local, and contractual decommis-
sioning requirements are fully satisfied
(the substantial completion date). Except
as otherwise provided in paragraph (d)(3)
(ii) of this section, the substantial comple-
tion date is also the termination date.
* * * * *
Par. 4. Section 1.468A-9 is revised to
read as follows:
§1.468A-9 Applicability dates.
(a) In general. Except as provided in
paragraph (b) of this section, §§1.468A-
1 through 1.468A-8 are effective on De-
cember 23, 2010, and apply with respect
to taxable years ending after such date.
(b) Special rules—(1) Taxable years
ending before December 23, 2010. Special
rules that are provided for taxable years
ending on or before December 23, 2010,
such as the special rule for certain spe-
cial transfers contained in §1.468A-8(a)
(4)(ii), apply with respect to such taxable
years. In addition, except as provided in
paragraph (2) of this section, a taxpayer
may apply the provisions of §§1.468A-1
through 1.468A-8 with respect to a tax-
able year ending on or before December
23, 2010, if all such provisions are consis-
tently applied.
(2) Applicability of §1.468A-1(b)(6)
and §1.468A-5(b)(2)(i), (b)(2)(v), and (d)
(3)(i). The rules in §§1.468A-1(b)(6) and
1.468A-5(b)(2)(i), (b)(2)(v), and (d)(3)(i)
apply to taxable years ending on or after
September 4, 2020. Taxpayers may also
choose to apply the rules in §1.468A-1(b)
(6) and §1.468A-5(b)(2)(i), (b)(2)(v), and
(d)(3)(i) to prior taxable years for which
a taxpayer’s deemed payment deadline
(as defined in §1.468A-2(c)(1)) has not
passed prior to September 4, 2020.
Sunita Lough,
Deputy Commissioner for Services
and Enforcement.
Approved: March 5, 2020.
David J. Kautter,
Assistant Secretary of the Treasury
(Tax Policy).
(Filed by the Office of the Federal Register on Sep-
tember 3, 2020, 8:45 a.m., and published in the issue
of the Federal Register for September 4, 2020, 85
F.R. 55185)
Section 6621.—
Determination of Rate of
Interest
26 CFR 301.6621-1: Interest rate.
Rev. Rul. 2020-18
Section 6621 of the Internal Reve-
nue Code establishes the interest rates
on overpayments and underpayments of
tax. Under section 6621(a)(1), the over-
payment rate is the sum of the federal
short-term rate plus 3 percentage points (2
percentage points in the case of a corpo-
ration), except the rate for the portion of a
corporate overpayment of tax exceeding
$10,000 for a taxable period is the sum of
the federal short-term rate plus 0.5 of a
percentage point. Under section 6621(a)
(2), the underpayment rate is the sum of
the federal short-term rate plus 3 percent-
age points.
Section 6621(c) provides that for pur-
poses of interest payable under section
6601 on any large corporate underpay-
ment, the underpayment rate under sec-
tion 6621(a)(2) is determined by sub-
stituting “5 percentage points” for “3
percentage points.” See section 6621(c)
and section 301.6621-3 of the Regula-
tions on Procedure and Administration
for the definition of a large corporate
underpayment and for the rules for de-
termining the applicable date. Section
6621(c) and section 301.6621-3 are gen-
erally effective for periods after Decem-
ber 31, 1990.
Section 6621(b)(1) provides that the
Secretary will determine the federal short-

Bulletin No. 2020–39 585 September 21, 2020
term rate for the first month in each cal-
endar quarter. Section 6621(b)(2)(A)
provides that the federal short-term rate
determined under section 6621(b)(1) for
any month applies during the first calendar
quarter beginning after that month. Sec-
tion 6621(b)(3) provides that the federal
short-term rate for any month is the feder-
al short-term rate determined during that
month by the Secretary in accordance with
section 1274(d), rounded to the nearest
full percent (or, if a multiple of 1/2 of 1
percent, the rate is increased to the next
highest full percent).
Notice 88-59, 1988-1 C.B. 546, an-
nounced that in determining the quarterly
interest rates to be used for overpayments
and underpayments of tax under section
6621, the Internal Revenue Service will
use the federal short-term rate based on
daily compounding because that rate is
most consistent with section 6621 which,
pursuant to section 6622, is subject to dai-
ly compounding.
The federal short-term rate determined
in accordance with section 1274(d) during
July 2020 is the rate published in Revenue
Ruling 2020-15, 2020-32 IRB 233, to take
effect beginning August 1, 2020. The fed-
eral short-term rate, rounded to the nearest
full percent, based on daily compounding
determined during the month of July 2020
is 0 percent. Accordingly, an overpayment
rate of 3 percent (2 percent in the case of a
corporation) and an underpayment rate of
3 percent are established for the calendar
quarter beginning October 1, 2020. The
overpayment rate for the portion of a cor-
porate overpayment exceeding $10,000
for the calendar quarter beginning October
1, 2020 is 0.5 percent. The underpayment
rate for large corporate underpayments for
the calendar quarter beginning October 1,
2020, is 5 percent. These rates apply to
amounts bearing interest during that cal-
endar quarter.
Sections 6654(a)(1) and 6655(a)(1)
provide that the underpayment rate estab-
lished under section 6621 applies in deter-
mining the addition to tax under sections
6654 and 6655 for failure to pay estimat-
ed tax for any taxable year. Thus, the 3
percent rate also applies to estimated tax
underpayments for the fourth calendar
quarter beginning October 1, 2020. In ad-
dition, pursuant to section 6603(d)(4), the
rate of interest on section 6603 deposits
is 0 percent for the fourth calendar quarter
in 2020.
Interest factors for daily compound in-
terest for annual rates of 0.5 percent are
published in Appendix A of this Revenue
Ruling. Interest factors for daily com-
pound interest for annual rates of 2 per-
cent, 3 percent and 5 percent are published
in Tables 57, 59, and 63 of Rev. Proc. 95-
17, 1995-1 C.B. 611, 613, and 617.
Annual interest rates to be compounded
daily pursuant to section 6622 that apply
for prior periods are set forth in the tables
accompanying this revenue ruling.
DRAFTING INFORMATION
The principal author of this revenue
ruling is Casey R. Conrad of the Office of
the Associate Chief Counsel (Procedure
and Administration). For further informa-
tion regarding this revenue ruling, contact
Mr. Conrad at (202) 317-6844 (not a toll-
free number).

September 21, 2020 586 Bulletin No. 2020–39
APPENDIX A
365 Day Year
0.5% Compound Rate 184 Days
DaysFactorDaysFactorDaysFactor
10.000013699630.0008633801250.001713784
20.000027397640.0008770911260.001727506
30.000041096650.0008908011270.001741228
40.000054796660.0009045121280.001754951
50.000068495670.0009182231290.001768673
60.000082195680.0009319341300.001782396
70.000095894690.0009456461310.001796119
80.000109594700.0009593571320.001809843
90.000123294710.0009730691330.001823566
100.000136995720.0009867811340.001837290
110.000150695730.0010004931350.001851013
120.000164396740.0010142061360.001864737
130.000178097750.0010279181370.001878462
140.000191798760.0010416311380.001892186
150.000205499770.0010553441390.001905910
160.000219201780.0010690571400.001919635
170.000232902790.0010827701410.001933360
180.000246604800.0010964841420.001947085
190.000260306810.0011101971430.001960811
200.000274008820.0011239111440.001974536
210.000287711830.0011376251450.001988262
220.000301413840.0011513391460.002001988
230.000315116850.0011650541470.002015714
240.000328819860.0011787681480.002029440
250.000342522870.0011924831490.002043166
260.000356225880.0012061981500.002056893
270.000369929890.0012199131510.002070620
280.000383633900.0012336291520.002084347
290.000397336910.0012473441530.002098074
300.000411041920.0012610601540.002111801
310.000424745930.0012747761550.002125529
320.000438449940.0012884921560.002139257
330.000452154950.0013022081570.002152985
340.000465859960.0013159251580.002166713
350.000479564970.0013296411590.002180441
360.000493269980.0013433581600.002194169
370.000506974990.0013570751610.002207898
380.0005206801000.0013707921620.002221627
390.0005343861010.0013845101630.002235356
400.0005480921020.0013982271640.002249085
410.0005617981030.0014119451650.002262815

Bulletin No. 2020–39 587 September 21, 2020
420.0005755041040.0014256631660.002276544
430.0005892111050.0014393811670.002290274
440.0006029171060.0014531001680.002304004
450.0006166241070.0014668181690.002317734
460.0006303311080.0014805371700.002331465
470.0006440391090.0014942561710.002345195
480.0006577461100.0015079751720.002358926
490.0006714541110.0015216941730.002372657
500.0006851611120.0015354141740.002386388
510.0006988691130.0015491331750.002400120
520.0007125781140.0015628531760.002413851
530.0007262861150.0015765731770.002427583
540.0007399951160.0015902931780.002441315
550.0007537031170.0016040141790.002455047
560.0007674121180.0016177341800.002468779
570.0007811211190.0016314551810.002482511
580.0007948311200.0016451761820.002496244
590.0008085401210.0016588971830.002509977
600.0008222501220.0016726191840.002523710
610.0008359601230.001686340
620.0008496701240.001700062

September 21, 2020 588 Bulletin No. 2020–39
366 Day Year
0.5% Compound Rate 184 Days
DaysFactorDaysFactorDaysFactor
10.000013661630.0008610201250.001709097
20.000027323640.0008746931260.001722782
30.000040984650.0008883661270.001736467
40.000054646660.0009020401280.001750152
50.000068308670.0009157131290.001763837
60.000081970680.0009293871300.001777522
70.000095632690.0009430611310.001791208
80.000109295700.0009567351320.001804893
90.000122958710.0009704091330.001818579
100.000136620720.0009840841340.001832265
110.000150283730.0009977581350.001845951
120.000163947740.0010114331360.001859638
130.000177610750.0010251081370.001873324
140.000191274760.0010387831380.001887011
150.000204938770.0010524591390.001900698
160.000218602780.0010661341400.001914385
170.000232266790.0010798101410.001928073
180.000245930800.0010934861420.001941760
190.000259595810.0011071621430.001955448
200.000273260820.0011208391440.001969136
210.000286924830.0011345151450.001982824
220.000300590840.0011481921460.001996512
230.000314255850.0011618691470.002010201
240.000327920860.0011755461480.002023889
250.000341586870.0011892231490.002037578
260.000355252880.0012029001500.002051267
270.000368918890.0012165781510.002064957
280.000382584900.0012302561520.002078646
290.000396251910.0012439341530.002092336
300.000409917920.0012576121540.002106025
310.000423584930.0012712911550.002119715
320.000437251940.0012849691560.002133405
330.000450918950.0012986481570.002147096
340.000464586960.0013123271580.002160786
350.000478253970.0013260061590.002174477
360.000491921980.0013396851600.002188168
370.000505589990.0013533651610.002201859
380.0005192571000.0013670441620.002215550
390.0005329251010.0013807241630.002229242
400.0005465941020.0013944041640.002242933
410.0005602621030.0014080851650.002256625
420.0005739311040.0014217651660.002270317

Bulletin No. 2020–39 589 September 21, 2020
430.0005876001050.0014354461670.002284010
440.0006012691060.0014491271680.002297702
450.0006149391070.0014628081690.002311395
460.0006286081080.0014764891700.002325087
470.0006422781090.0014901701710.002338780
480.0006559481100.0015038521720.002352473
490.0006696181110.0015175331730.002366167
500.0006832891120.0015312151740.002379860
510.0006969591130.0015448971750.002393554
520.0007106301140.0015585801760.002407248
530.0007243011150.0015722621770.002420942
540.0007379721160.0015859451780.002434636
550.0007516431170.0015996281790.002448331
560.0007653151180.0016133111800.002462025
570.0007789861190.0016269941810.002475720
580.0007926581200.0016406781820.002489415
590.0008063301210.0016543611830.002503110
600.0008200031220.0016680451840.002516806
610.0008336751230.001681729
620.0008473481240.001695413

September 21, 2020 590 Bulletin No. 2020–39
TABLE OF INTEREST RATES
PERIODS BEFORE JUL. 1, 1975 - PERIODS ENDING DEC. 31, 1986
OVERPAYMENTS AND UNDERPAYMENTS
PERIODRATEIn 1995-1 C.B.
DAILY RATE TABLE
Before Jul. 1, 19756%Table 2,pg. 557
Jul.1,1975–Jan.31,19769%Table4,pg.559
Feb.1,1976–Jan.31,19787%Table3,pg.558
Feb.1,1978–Jan.31,19806%Table2,pg.557
Feb.1,1980–Jan.31,198212%Table5,pg.560
Feb.1,1982–Dec.31,198220%Table6,pg.560
Jan.1,1983–Jun.30,198316%Table37,pg.591
Jul.1,1983–Dec.31,198311%Table27,pg.581
Jan.1,1984–Jun.30,198411%Table75,pg.629
Jul.1,1984–Dec.31,198411%Table75,pg.629
Jan.1,1985–Jun.30,198513%Table31,pg.585
Jul.1,1985–Dec.31,198511%Table27,pg.581
Jan.1,1986–Jun.30,198610%Table25,pg.579
Jul.1,1986–Dec.31,19869%Table23,pg.577
TABLE OF INTEREST RATES
FROM JAN. 1, 1987 - Dec. 31, 1998
OVERPAYMENTSUNDERPAYMENTS
1995-1 C.B.1995-1 C.B. RATE
RATETABLEPGRATETABLEPG
Jan.1,1987–Mar.31,19878%215759%23577
Apr.1,1987–Jun.30,19878%215759%23577
Jul.1,1987–Sep.30,19878%215759%23577
Oct.1,1987–Dec.31,19879%2357710%25579
Jan.1,1988–Mar.31,198810%7362711%75629
Apr.1,1988–Jun.30,19889%7162510%73627
Jul.1,1988–Sep.30,19889%7162510%73627
Oct.1,1988–Dec.31,198810%7362711%75629
Jan.1,1989–Mar.31,198910%2557911%27581
Apr.1,1989–Jun.30,198911%2758112%29583
Jul.1,1989–Sep.30,198911%2758112%29583
Oct.1,1989–Dec.31,198910%2557911%27581
Jan.1,1990–Mar.31,199010%2557911%27581
Apr.1,1990–Jun.30,199010%2557911%27581
Jul.1,1990–Sep.30,199010%2557911%27581
Oct.1,1990–Dec.31,199010%2557911%27581
Jan.1,1991–Mar.31,199110%2557911%27581

Bulletin No. 2020–39 591 September 21, 2020
Apr.1,1991–Jun.30,19919%2357710%25579
Jul.1,1991–Sep.30,19919%2357710%25579
Oct.1,1991–Dec.31,19919%2357710%25579
Jan.1,1992–Mar.31,19928%696239%71625
Apr.1,1992–Jun.30,19927%676218%69623
Jul.1,1992–Sep.30,19927%676218%69623
Oct.1,1992–Dec.31,19926%656197%67621
Jan.1,1993–Mar.31,19936%175717%19573
Apr.1,1993–Jun.30,19936%175717%19573
Jul.1,1993–Sep.30,19936%175717%19573
Oct.1,1993–Dec.31,19936%175717%19573
Jan.1,1994–Mar.31,19946%175717%19573
Apr.1,1994–Jun.30,19946%175717%19573
Jul.1,1994–Sep.30,19947%195738%21575
Oct.1,1994–Dec.31,19948%215759%23577
Jan.1,1995–Mar.31,19958%215759%23577
Apr.1,1995–Jun.30,19959%2357710%25579
Jul.1,1995–Sep.30,19958%215759%23577
Oct.1,1995–Dec.31,19958%215759%23577
Jan.1,1996–Mar.31,19968%696239%71625
Apr.1,1996–Jun.30,19967%676218%69623
Jul.1,1996–Sep.30,19968%696239%71625
Oct.1,1996–Dec.31,19968%696239%71625
Jan.1,1997–Mar.31,19978%215759%23577
Apr.1,1997–Jun.30,19978%215759%23577
Jul.1,1997–Sep.30,19978%215759%23577
Oct.1,1997–Dec.31,19978%215759%23577
Jan.1,1998–Mar.31,19988%215759%23577
Apr.1,1998–Jun.30,19987%195738%21575
Jul.1,1998–Sep.30,19987%195738%21575
Oct.1,1998–Dec.31,19987%195738%21575

September 21, 2020 592 Bulletin No. 2020–39
TABLE OF INTEREST RATES
FROM JANUARY 1, 1999 - PRESENT
NONCORPORATE OVERPAYMENTS AND UNDERPAYMENTS
1995-1 C.B.
RATETABLEPAGE
Jan.1,1999–Mar.31,19997%19573
Apr.1,1999–Jun.30,19998%21575
Jul.1,1999–Sep.30,19998%21575
Oct.1,1999–Dec.31,19998%21575
Jan.1,2000–Mar.31,20008%69623
Apr.1,2000–Jun.30,20009%71625
Jul.1,2000–Sep.30,20009%71625
Oct.1,2000–Dec.31,20009%71625
Jan.1,2001–Mar.31,20019%23577
Apr.1,2001–Jun.30,20018%21575
Jul.1,2001–Sep.30,20017%19573
Oct.1,2001–Dec.31,20017%19573
Jan.1,2002–Mar.31,20026%17571
Apr.1,2002–Jun.30,20026%17571
Jul.1,2002–Sep.30,20026%17571
Oct.1,2002–Dec.31,20026%17571
Jan.1,2003–Mar.31,20035%15569
Apr.1,2003–Jun.30,20035%15569
Jul.1,2003–Sep.30,20035%15569
Oct.1,2003–Dec.31,20034%13567
Jan.1,2004–Mar.31,20044%61615
Apr.1,2004–Jun.30,20045%63617
Jul.1,2004–Sep.30,20044%61615
Oct.1,2004–Dec.31,20045%63617
Jan.1,2005–Mar.31,20055%15569
Apr.1,2005–Jun.30,20056%17571
Jul.1,2005–Sep.30,20056%17571
Oct.1,2005–Dec.31,20057%19573
Jan.1,2006–Mar.31,20067%19573
Apr.1,2006–Jun.30,20067%19573
Jul.1,2006–Sep.30,20068%21575
Oct.1,2006–Dec.31,20068%21575
Jan.1,2007–Mar.31,20078%21575
Apr.1,2007–Jun.30,20078%21575
Jul.1,2007–Sep.30,20078%21575
Oct.1,2007–Dec.31,20078%21575
Jan.1,2008–Mar.31,20087%67621
Apr.1,2008–Jun.30,20086%65619
Jul.1,2008–Sep.30,20085%63617

Bulletin No. 2020–39 593 September 21, 2020
Oct.1,2008–Dec.31,20086%65619
Jan.1,2009–Mar.31,20095%15569
Apr.1,2009–Jun.30,20094%13567
Jul.1,2009–Sep.30,20094%13567
Oct.1,2009–Dec.31,20094%13567
Jan.1,2010–Mar.31,20104%13567
Apr.1,2010–Jun.30,20104%13567
Jul.1,2010–Sep.30,20104%13567
Oct.1,2010–Dec.31,20104%13567
Jan.1,2011–Mar.31,20113%11565
Apr.1,2011–Jun.30,20114%13567
Jul.1,2011-—Sep.30,20114%13567
Oct.1,2011–Dec.31,20113%11565
Jan.1,2012–Mar.31,20123%59613
Apr.1,2012–Jun.30,20123%59613
Jul.1,2012–Sep.30,20123%59613
Oct.1,2012–Dec.31,20123%59613
Jan.1,2013–Mar.31,20133%11565
Apr.1,2013–Jun.30,20133%11565
Jul.1,2013–Sep.30,20133%11565
Oct.1,2013–Dec.31,20133%11565
Jan.1,2014–Mar.31,20143%11565
Apr.1,2014–Jun.30,20143%11565
Jul.1,2014–Sep.30,20143%11565
Oct.1,2014–Dec.31,20143%11565
Jan.1,2015–Mar.31,20153%11565
Apr.1,2015–Jun.30,20153%11565
Jul.1,2015–Sep.30,20153%11565
Oct.1.2015–Dec.31,20153%11565
Jan.1,2016–Mar.31,20163%59613
Apr.1,2016–Jun.30,20164%61615
Jul.1,2016–Sep.30,20164%61615
Oct.1,2016–Dec.31,20164%61615
Jan.1,2017–Mar.31,20174%13567
Apr.1,2017–Jun.30,20174%13567
Jul.1,2017–Sep.30,20174%13567
Oct.1,2017–Dec.31,20174%13567
Jan.1,2018–Mar.31,20184%13567
Apr.1,2018–Jun.30,20185%15569
Jul.1,2018–Sep.30,20185%15569
Oct.1,2018–Dec.31,20185%15569
Jan.1,2019–Mar.31,20196%17571
Apr.1,2019–Jun.30,20196%17571
Jul.1,2019–Sep.30,20195%15569

September 21, 2020 594 Bulletin No. 2020–39
Oct.1,2019–Dec. 31,20195%15569
Jan.1,2020–Mar.31, 20205%63617
Apr.1,2020–Jun.30,20205%63617
Jul.1,2020–Sep.30,20203%59613
Oct.1,2020–Dec. 31,20203%59613

Bulletin No. 2020–39 595 September 21, 2020
TABLE OF INTEREST RATES
FROM JANUARY 1, 1999 - PRESENT
CORPORATE OVERPAYMENTS AND UNDERPAYMENTS
OVERPAYMENTSUNDERPAYMENTS
1995-1 C.B.1995-1 C.B.
RATETABLEPGRATETABLEPG
Jan.1,1999–Mar.31,19996%175717%19573
Apr.1,1999–Jun.30,19997%195738%21575
Jul.1,1999–Sep.30,19997%195738%21575
Oct.1,1999–Dec.31,19997%195738%21575
Jan.1,2000–Mar.31,20007%676218%69623
Apr.1,2000–Jun.30,20008%696239%71625
Jul.1,2000–Sep.30,20008%696239%71625
Oct.1,2000–Dec.31,20008%696239%71625
Jan.1,2001–Mar.31,20018%215759%23577
Apr.1,2001–Jun.30,20017%195738%21575
Jul.1,2001–Sep.30,20016%175717%19573
Oct.1,2001–Dec.31,20016%175717%19573
Jan.1,2002–Mar.31,20025%155696%17571
Apr.1,2002–Jun.30,20025%155696%17571
Jul.1,2002–Sep.30,20025%155696%17571
Oct.1,2002–Dec.31,20025%155696%17571
Jan.1,2003–Mar.31,20034%135675%15569
Apr.1,2003–Jun.30,20034%135675%15569
Jul.1,2003–Sep.30,20034%135675%15569
Oct.1,2003–Dec.31,20033%115654%13567
Jan.1,2004–Mar.31,20043%596134%61615
Apr.1,2004–Jun.30,20044%616155%63617
Jul.1,2004–Sep.30,20043%596134%61615
Oct.1,2004–Dec.31,20044%616155%63617
Jan.1,2005–Mar.31,20054%135675%15569
Apr.1,2005–Jun.30,20055%155696%17571
Jul.1,2005–Sep.30,20055%155696%17571
Oct.1,2005–Dec.31,20056%175717%19573
Jan.1,2006–Mar.31,20066%175717%19573
Apr.1,2006–Jun.30,20066%175717%19573
Jul.1,2006–Sep.30,20067%195738%21575
Oct.1,2006–Dec.31,20067%195738%21575
Jan.1,2007–Mar.31,20077%195738%21575
Apr.1,2007–Jun.30,20077%195738%21575
Jul.1,2007–Sep.30,20077%195738%21575
Oct.1,2007–Dec.31,20077%195738%21575
Jan.1,2008–Mar.31,20086%656197%67621
Apr.1,2008–Jun.30,20085%636176%65619
Jul.1,2008–Sep.30,20084%616155%63617

September 21, 2020 596 Bulletin No. 2020–39
Oct.1,2008–Dec.31,20085%636176%65619
Jan.1,2009–Mar.31,20094%135675%15569
Apr.1,2009–Jun.30,20093%115654%13567
Jul.1,2009–Sep.30,20093%115654%13567
Oct.1,2009–Dec.31,20093%115654%13567
Jan.1,2010–Mar.31,20103%115654%13567
Apr.1,2010–Jun.30,20103%115654%13567
Jul.1,2010–Sep.30,20103%115654%13567
Oct.1,2010–Dec.31,20103%115654%13567
Jan.1,2011–Mar.31,20112%95633%11565
Apr.1,2011–Jun.30,20113%115654%13567
Jul.1,2011–Sep.30,20113%115654%13567
Oct.1,2011–Dec.31,20112%95633%11565
Jan.1,2012–Mar.31,20122%576113%59613
Apr.1,2012–Jun.30,20122%576113%59613
Jul.1,2012–Sep.30,20122%576113%59613
Oct.1,2012–Dec.31,20122%576113%59613
Jan.1,2013–Mar.31,20132%95633%11565
Apr.1,2013–Jun.30,20132%95633%11565
Jul.1,2013–Sep.30,20132%95633%11565
Oct.1,2013–Dec.31,20132%95633%11565
Jan.1,2014–Mar.31,20142%95633%11565
Apr.1,2014–Jun.30,20142%95633%11565
Jul.1,2014–Sep.30,20142%95633%11565
Oct.1,2014–Dec.31,20142%95633%11565
Jan.1,2015–Mar.31,20152%95633%11565
Apr.1,2015—Jun.30,20152%95633%11565
Jul.1,2015–Sep.30,20152%95633%11565
Oct.1,2015–Dec.31,20152%95633%11565
Jan.1,2016–Mar.31,20162%576113%59613
Apr.1,2016–Jun.30,20163%596134%61615
Jul.1,2016–Sep.30,20163%596134%61615
Oct.1,2016–Dec.31,20163%596134%61615
Jan.1,2017–Mar.31,20173%115654%13567
Apr.1,2017–Jun.30,20173%115654%13567
Jul.1,2017–Sep.30,20173%115654%13567
Oct.1,2017–Dec.31,,20173%115654%13567
Jan.1,2018–Mar.31,20183%115654%13567
Apr.1,2018–Jun.30,20184%135675%15569
Jul.1,2018–Sep.30,20184%135675%15569
Oct.1,2018–Dec.31,20184%135675%15569
Jan.1,2019–Mar.31,20195%155696%17571
Apr.1,2019–Jun.30,20195%155696%17571
Jul.1,2019–Sep.30,20194%135675%15569
Oct.1,2019–Dec.31,20194%135675%15569

Bulletin No. 2020–39 597 September 21, 2020
Jan.1,2020–Mar. 31,20204%616155%63617
Apr.1,2020–Jun.30,20204%616155%63617
Jul.1,2020–Sep.30,20202%576113%59613
Oct.1,2020–Dec.31,20202%576113%59613

September 21, 2020 598 Bulletin No. 2020–39
TABLE OF INTEREST RATES
FOR LARGE CORPORATE UNDERPAYMENTS
FROM JANUARY 1, 1991 - PRESENT
1995-1 C.B.
RATETABLEPG
Jan.1,1991–Mar.31,199113%31585
Apr.1,1991–Jun.30,199112%29583
Jul.1,1991–Sep.30,199112%29583
Oct.1,1991–Dec.31,199112%29583
Jan.1,1992–Mar.31,199211%75629
Apr.1,1992–Jun.30,199210%73627
Jul.1,1992–Sep.30,199210%73627
Oct.1,1992–Dec.31,19929%71625
Jan.1,1993–Mar.31,19939%23577
Apr.1,1993–Jun.30,19939%23577
Jul.1,1993–Sep.30,19939%23577
Oct.1,1993–Dec.31,19939%23577
Jan.1,1994–Mar.31,19949%23577
Apr.1,1994–Jun.30,19949%23577
Jul.1,1994–Sep.30,199410%25579
Oct.1,1994–Dec.31,199411%27581
Jan.1,1995–Mar.31,199511%27581
Apr.1,1995–Jun.30,199512%29583
Jul.1,1995–Sep.30,199511%27581
Oct.1,1995–Dec.31,199511%27581
Jan.1,1996–Mar.31,199611%75629
Apr.1,1996–Jun.30,199610%73627
Jul.1,1996–Sep.30,199611%75629
Oct.1,1996–Dec.31,199611%75629
Jan.1,1997–Mar.31,199711%27581
Apr.1,1997–Jun.30,199711%27581
Jul.1,1997–Sep.30,199711%27581
Oct.1,1997–Dec.31,199711%27581
Jan.1,1998–Mar.31,199811%27581
Apr.1,1998–Jun.30,199810%25579
Jul.1,1998–Sep.30,199810%25579
Oct.1,1998–Dec.31,199810%25579
Jan.1,1999–Mar.31,19999%23577
Apr.1,1999–Jun.30,199910%25579
Jul.1,1999–Sep.30,199910%25579
Oct.1,1999–Dec.31,199910%25579
Jan.1,2000–Mar.31,200010%73627
Apr.1,2000–Jun.30,200011%75629
Jul.1,2000–Sep.30,200011%75629
Oct.1,2000–Dec.31,200011%75629
Jan.1,2001–Mar.31,200111%27581

Bulletin No. 2020–39 599 September 21, 2020
Apr.1,2001–Jun.30,200110%25579
Jul.1,2001–Sep.30,20019%23577
Oct.1,2001–Dec.31,20019%23577
Jan.1,2002–Mar.31,20028%21575
Apr.1,2002–Jun.30,20028%21575
Jul.1,2002–Sep.30,20028%21575
Oct.1,2002–Dec.31,20028%21575
Jan.1,2003–Mar.31,20037%19573
Apr.1,2003–Jun.30,20037%19573
Jul.1,2003–Sep.30,20037%19573
Oct.1,2003–Dec.31,20036%17571
Jan.1,2004–Mar.31,20046%65619
Apr.1,2004–Jun.30,20047%67621
Jul.1,2004–Sep.30,20046%65619
Oct.1,2004–Dec.31,20047%67621
Jan.1,2005–Mar.31,20057%19573
Apr.1,2005–Jun.30,20058%21575
Jul.1,2005–Sep.30,20058%21575
Oct.1,2005–Dec.31,20059%23577
Jan.1,2006–Mar.31,20069%23577
Apr.1,2006–Jun.30,20069%23577
Jul.1,2006–Sep.30,200610%25579
Oct.1,2006–Dec.31,200610%25579
Jan.1,2007–Mar.31,200710%25579
Apr.1,2007–Jun.30,200710%25579
Jul.1,2007–Sep.30,200710%25579
Oct.1,2007–Dec.31,200710%25579
Jan.1,2008–Mar.31,20089%71625
Apr.1,2008–Jun.30,20088%69623
Jul.1,2008–Sep.30,20087%67621
Oct.1,2008–Dec.31,20088%69623
Jan.1,2009–Mar.31,20097%19573
Apr.1,2009–Jun.30,20096%17571
Jul.1,2009–Sep.30,20096%17571
Oct.1,2009–Dec.31,20096%17571
Jan.1,2010–Mar.31,20106%17571
Apr.1,2010–Jun.30,20106%17571
Jul.1,2010–Sep.30,20106%17571
Oct.1,2010–Dec.31,20106%17571
Jan.1,2011–Mar.31,20115%15569
Apr.1,2011–Jun.30,20116%17571
Jul.1,2011–Sep.30,20116%17571
Oct.1,2011–Dec.31,20115%15569
Jan.1,2012–Mar.31,20125%63617
Apr.1,2012–Jun.30,20125%63617

September 21, 2020 600 Bulletin No. 2020–39
Jul.1,2012–Sep.30,20125%63617
Oct.1,2012–Dec.31,20125%63617
Jan.1,2013–Mar.31,20135%15569
Apr.1,2013–Jun.30,20135%15569
Jul.1,2013–Sep.30,20135%15569
Oct.1,2013–Dec.31,20135%15569
Jan.1,2014–Mar.31,20145%15569
Apr.1,2014–Jun.30,20145%15569
Jul.1,2014–Sep.30,20145%15569
Oct.1,2014–Dec.31,20145%15569
Jan.1,2015–Mar.31,20155%15569
Apr.1,2015–Jun.30,20155%15569
Jul.1,2015–Sep.30,20155%15569
Oct.1,2015–Dec.31,20155%15569
Jan.1,2016–Mar.31,20165%63617
Apr.1,2016-—Jun.30,20166%65619
Jul.1,2016-—Sep.30,20166%65619
Oct.1,2016-—Dec.31,20166%65619
Jan.1,2017–Mar.31,20176%17571
Apr.1,2017–Jun.30,20176%17571
Jul.1,2017–Sep.30,20176%17571
Oct.1,2017–Dec.31,20176%17571
Jan.1,2018–Mar.31,20186%17571
Apr.1,2018–Jun.30,20187%19573
Jul.1,2018–Sep.30,20187%19573
Oct.1,2018–Dec.31,20187%19573
Jan.1,2019–Mar.31,20198%21575
Apr.1,2019–Jun.30,20198%21575
Jul.1,2019–Sep.30,20197%19573
Oct.1,2019–Dec.31,20197%19573
Jan.1,2020–Mar.31,20207%67621
Apr.1,2020–Jun. 30,20207%67621
Jul.1,2020–Sep.30,20205%63617
Oct.1,2020–Dec.31,20205%63617

Bulletin No. 2020–39 601 September 21, 2020
TABLE OF INTEREST RATES FOR CORPORATE
OVERPAYMENTS EXCEEDING $10,000
FROM JANUARY 1, 1995 – PRESENT
1995-1 C.B.
RATETABLEPG
Jan.1,1995–Mar.31,19956.5%18572
Apr.1,1995–Jun.30,19957.5%20574
Jul.1,1995–Sep.30,19956.5%18572
Oct.1,1995–Dec.31,19956.5%18572
Jan.1,1996–Mar.31,19966.5%66620
Apr.1,1996–Jun.30,19965.5%64618
Jul.1,1996–Sep.30,19966.5%66620
Oct.1,1996–Dec.31,19966.5%66620
Jan.1,1997–Mar.31,19976.5%18572
Apr.1,1997–Jun.30,19976.5%18572
Jul.1,1997–Sep.30,19976.5%18572
Oct.1,1997–Dec.31,19976.5%18572
Jan.1,1998–Mar.31,19986.5%18572
Apr.1,1998–Jun.30,19985.5%16570
Jul.1.1998–Sep.30,19985.5%16570
Oct.1,1998–Dec.31,19985.5%16570
Jan.1,1999–Mar.31,19994.5%14568
Apr.1,1999–Jun.30,19995.5%16570
Jul.1,1999–Sep.30,19995.5%16570
Oct.1,1999–Dec.31,19995.5%16570
Jan.1,2000–Mar.31,20005.5%64618
Apr.1,2000–Jun.30,20006.5%66620
Jul.1,2000–Sep.30,20006.5%66620
Oct.1,2000–Dec.31,20006.5%66620
Jan.1,2001–Mar.31,20016.5%18572
Apr.1,2001–Jun.30,20015.5%16570
Jul.1,2001–Sep.30,20014.5%14568
Oct.1,2001–Dec.31,20014.5%14568
Jan.1,2002–Mar.31,20023.5%12566
Apr.1,2002–Jun.30,20023.5%12566
Jul.1,2002–Sep.30,20023.5%12566
Oct.1,2002–Dec.31,20023.5%12566
Jan.1,2003–Mar.31,20032.5%10564
Apr.1,2003–Jun.30,20032.5%10564
Jul.1,2003–Sep.30,20032.5%10564
Oct.1,2003–Dec.31,20031.5%8562
Jan.1,2004–Mar.31,20041.5%56610
Apr.1,2004–Jun.30,20042.5%58612

September 21, 2020 602 Bulletin No. 2020–39
Jul.1,2004–Sep.30,20041.5%56610
Oct.1,2004–Dec.31,20042.5%58612
Jan.1,2005–Mar.31,20052.5%10564
Apr.1,2005–Jun.30,20053.5%12566
Jul.1,2005–Sep.30,20053.5%12566
Oct.1,2005–Dec.31,20054.5%14568
Jan.1,2006–Mar.31,20064.5%14568
Apr.1,2006–Jun.30,20064.5%14568
Jul.1,2006–Sep.30,20065.5%16570
Oct.1,2006–Dec.31,20065.5%16570
Jan.1,2007–Mar.31,20075.5%16570
Apr.1,2007–Jun.30,20075.5%16570
Jul.1,2007–Sep.30,20075.5%16570
Oct.1,2007–Dec.31,20075.5%16570
Jan.1,2008–Mar.31,20084.5%62616
Apr.1,2008–Jun.30,20083.5%60614
Jul.1,2008–Sep.30,20082.5%58612
Oct.1,2008–Dec.31,20083.5%60614
Jan.1,2009–Mar.31,20092.5%10564
Apr.1,2009–Jun.30,20091.5%8562
Jul.1,2009–Sep.30,20091.5%8562
Oct.1,2009–Dec.31,20091.5%8562
Jan.1,2010–Mar.31,20101.5%8562
Apr.1,2010–Jun.30,20101.5%8562
Jul.1,2010–Sep.30,20101.5%8562
Oct.1,2010–Dec.31,20101.5%8562
Jan.1,2011–Mar.31,20110.5%*
Apr.1,2011–Jun.30,20111.5%8562
Jul.1,2011-—Sep.30,20111.5%8562
Oct.1,2011–Dec.31,20110.5%*
Jan.1,2012–Mar.31,20120.5%*
Apr.1,2012–Jun.30,20120.5%*
Jul.1,2012–Sep.30,20120.5%*
Oct.1,2012–Dec.31,20120.5%*
Jan.1,2013–Mar.31,20130.5%*
Apr.1,2013–Jun.30,20130.5%*
Jul.1,2013–Sep.30,20130.5%*
Oct.1,2013–Dec.31,20130.5%*
Jan.1,2014–Mar.31,20140.5%*
Apr.1,2014–Jun.30,20140.5%*
Jul.1,2014–Sep.30,20140.5%*
Oct.1,2014–Dec.31,20140.5%*

Bulletin No. 2020–39 603 September 21, 2020
Jan.1,2015–Mar.31,20150.5%*
Apr.1,2015–Jun.30,20150.5%*
Jul.1,2015–Sep.30,20150.5%*
Oct.1,2015–Dec.31,20150.5%*
Jan.1,2016–Mar.31,20160.5%*
Apr.1,2016–Jun.30,20161.5%56610
Jul.1,2016–Sep.30,20161.5%56610
Oct.1,2016–Dec.31,20161.5%56610
Jan.1,2017–Mar.31,20171.5%8562
Apr.1,2017–Jun.30,20171.5%8562
Jul.1,2017–Sep.30,20171.5%8562
Oct.1,2017–Dec.31,20171.5%8562
Jan.1,2018–Mar.31,20181.5%8562
Apr.1,2018–Jun.30,20182.5%10564
Jul.1,2018–Sep.30,20182.5%10564
Oct.1,2018–Dec.31,20182.5%10564
Jan.1,2019–Mar.31,20193.5%12566
Apr.1,2019–Jun.30,20193.5%12566
Jul.1,2019–Sep.30,20192.5%10564
Oct.1,2019–Dec. 31,20192.5%10564
Jan.1,2020–Mar.31,20202.5%58612
Apr.1,2020–Jun.30,20202.5%58612
Jul.1,2020–Sep.30,20200.5%*
Oct.1,2020–Dec. 31, 20200.5%*
* The asterisk reflects the interest factors for daily compound interest for annual rates of 0.5 percent published in Appendix A of
this Revenue Ruling.

September 21, 2020 604 Bulletin No. 2020–39
Part III
S Corporation Guidance
under Section 958 (Rules
for Determining Stock
Ownership) and Guidance
Regarding the Treatment
of Qualified Improvement
Property under the
Alternative Depreciation
System for Purposes of
the QBAI Rules for FDII and
GILTI
Notice 2020-69
SECTION 1. OVERVIEW
This notice announces that the Depart-
ment of the Treasury (Treasury Depart-
ment) and the Internal Revenue Service
(IRS) intend to issue regulations address-
ing the application of §§ 951 and 951A
of the Internal Revenue Code (Code)
to certain S corporations (as defined in
§ 1361(a)(1)) with accumulated earnings
and profits, as described in § 316(a)(1)
(AE&P). This notice also announces that
the Treasury Department and the IRS in-
tend to issue regulations addressing the
treatment of qualified improvement prop-
erty (QIP) under the alternative deprecia-
tion system (ADS) of § 168(g) for purpos-
es of calculating qualified business asset
investment (QBAI) for purposes of the
foreign-derived intangible income (FDII)
and global intangible low-taxed income
(GILTI) provisions, which were added to
the Code by the enactment of Public Law
No. 115-97, 131 Stat. 2054 (2017), com-
monly referred to as the Tax Cuts and Jobs
Act (TCJA).
Section 2 of this notice provides a
summary of the current and proposed
treatment of domestic partnerships for
purposes of §§ 951 and 951A and the ap-
plication of these rules to S corporations
under § 1373(a). Section 2 of this notice
also provides background on §§ 168,
250, and 951A as they relate to QBAI
for purposes of FDII and GILTI and the
treatment of QIP under the ADS. Section
3 of this notice describes proposed reg-
ulations that the Treasury Department
and the IRS intend to issue concerning
the application of §§ 951 and 951A to
S corporations (forthcoming S corpora-
tion regulations). Section 4 of this notice
describes proposed regulations that the
Treasury Department and the IRS intend
to issue concerning the treatment of QIP
under the ADS for purposes of calculat-
ing QBAI for FDII and GILTI (forthcom-
ing QIP-QBAI regulations). Section 5 of
this notice describes the proposed appli-
cability dates of the forthcoming regu-
lations. Section 6 of this notice requests
comments. Section 7 of this notice pro-
vides information regarding collections
of information. Section 8 of this notice
provides drafting and contact informa-
tion.
SECTION 2. BACKGROUND
.01 Overview of §§ 951 and 951A
Section 951(a) of the Code generally
requires a United States shareholder (as
defined in § 951(b)) (U.S. shareholder),
to include in its gross income its pro rata
share of subpart F income (as defined in
§ 952) of a controlled foreign corpora-
tion (as defined in § 957) (CFC) and the
amount determined under § 956 with re-
spect to such shareholder for such year
(but only to the extent not excluded from
gross income under § 959(a)(2)) (subpart
F inclusion).
Section 951A(a) requires a U.S. share-
holder of any CFC for any taxable year
to include in gross income the sharehold-
er’s GILTI for such taxable year (GILTI
inclusion amount). The U.S. sharehold-
er’s GILTI inclusion amount is calculated
based on certain items – such as tested
income, tested loss, and QBAI – of each
CFC owned by the U.S. shareholder (test-
ed items). See § 1.951A-1(c) of the In-
come Tax Regulations. In general, a U.S.
shareholder’s GILTI inclusion amount is
determined by reference to the U.S. share-
holder’s pro rata share of the tested items
based on the stock of all the CFCs that the
U.S. shareholder owns within the mean-
ing of § 958(a). See § 951A(e)(1) (cross
referencing § 951(a)(2)). The GILTI pro-
visions in § 951A, enacted in § 14201(a)
of the TCJA, apply to taxable years of for-
eign corporations beginning after Decem-
ber 31, 2017, and to taxable years of U.S.
shareholders in which or with which such
taxable years of foreign corporations end.
See § 14201(d) of the TCJA.
Section 951(b) defines a U.S. share-
holder, with respect to any foreign cor-
poration, as a United States person (U.S.
person) that owns (within the meaning of
§ 958(a)), or is considered as owning by
applying the ownership rules of § 958(b),
10 percent or more of the total combined
voting power of all classes of stock enti-
tled to vote of such corporation or 10 per-
cent or more of the value of all shares of all
classes of stock of the foreign corporation.
See also § 1.951-1(g). Section 957(c) gen-
erally defines a U.S. person for purposes
of subpart F by reference to § 7701(a)(30),
which defines a U.S. person as a citizen or
resident of the United States, a domestic
partnership, a domestic corporation, and
certain estates and trusts.
.02 S corporations
For purposes of subparts A and F of
part III (§§ 901 through 909 and §§ 951
through 965, respectively), and part V
(§ 999), of subchapter N of chapter 1,
§ 1373(a) provides that an S corporation
is treated as a partnership and the share-
holders of the S corporation are treated
as partners of the partnership. Section
1373(a) thus causes S corporations, which
are domestic corporations, to be treated in
the same manner as domestic partnerships
for purposes of §§ 951 and 951A.
(1) Entity Treatment of Domestic Part-
nerships and S Corporations
Historically, a domestic partnership or
S corporation was generally treated as a
U.S. shareholder that had a subpart F in-
clusion with respect to a CFC owned un-
der § 958(a) by the partnership or S cor-
poration (entity treatment). Under entity
treatment, an S corporation determines its
subpart F inclusion at the entity level. An
S corporation shareholder takes into ac-
count the shareholder’s pro rata share of
the S corporation’s subpart F inclusion,
regardless of whether the S corporation
shareholder itself is a U.S. shareholder
of the CFC under § 951(b). See generally
§ 1366(a). A similar approach applied to
domestic partnerships under entity treat-
ment.

Bulletin No. 2020–39 605 September 21, 2020
(2) Aggregate Treatment of Partners of
Foreign Partnerships
Under § 958(a)(2), a partner in a for-
eign partnership is treated as owning pro-
portionately the stock of a CFC owned by
the foreign partnership (aggregate treat-
ment) for purposes of subpart F, which in-
cludes § 951A. Accordingly, if a partner in
a foreign partnership is a U.S. shareholder
with respect to a CFC owned by the part-
nership, the U.S. shareholder-partner will
directly include in gross income the pro
rata share of subpart F income of the CFC
and directly determine the partner’s GILTI
inclusion amount by reference to the pro
rata share of tested items of the CFC. See
§§ 951(a) and 951A(e)(1).
(3) Hybrid Treatment for GILTI Pur-
poses Under 2018 Proposed Regulations
On October 10, 2018, the Treasury De-
partment and the IRS published a notice of
proposed rulemaking (REG-104390-18)
in the Federal Register (83 FR 51072) un-
der § 951A (2018 proposed regulations).
Section 1.951A-5 of the 2018 proposed
regulations (proposed § 1.951A-5) pro-
vided a “hybrid approach” to a domes-
tic partnership that is a U.S. shareholder
(U.S. shareholder partnership) of a CFC
(partnership-owned CFC). Under the hy-
brid approach, a U.S. shareholder partner-
ship would determine its GILTI inclusion
amount, and the partners of the partner-
ship that were not also U.S. shareholders
of the partnership-owned CFC would take
into account their distributive share of the
partnership’s GILTI inclusion amount.
See proposed § 1.951A-5(b). Partners
that also were U.S. shareholders of a part-
nership-owned CFC would not take into
account their distributive share of the
partnership’s GILTI inclusion amount.
Instead, such partners would be treated as
proportionately owning the stock of the
partnership-owned CFC within the mean-
ing of § 958(a) as if the domestic partner-
ship were a foreign partnership. See pro-
posed § 1.951A-5(c).
Because § 1373(a) treats S corporations
as partnerships for purposes of subpart F,
the hybrid approach in the 2018 proposed
regulations also applied to S corporations
that held stock of a CFC. For example,
proposed § 1.951A-5(g)(5) (Example 5)
applied entity treatment (outlined in sec-
tion 2.02(1) of this notice) to an S cor-
poration shareholder that was not a U.S.
shareholder of a CFC owned by the S cor-
poration (S corporation-owned CFC), and
aggregate treatment (outlined in section
2.02(2) of this notice) to an S corporation
shareholder that was a U.S. shareholder of
the S corporation-owned CFC.
(4) Aggregate Treatment for GILTI
Purposes under 2019 Final Regulations
On June 21, 2019, the Treasury De-
partment and the IRS published final reg-
ulations (T.D. 9866) in the Federal Reg-
ister (84 FR 29288) under § 951A (final
regulations). The final regulations did not
adopt the hybrid approach included in the
2018 proposed regulations and instead
adopted aggregate treatment for domestic
partnerships. Accordingly, under the final
regulations, a domestic partnership does
not have a GILTI inclusion amount, and
therefore no partner of the partnership has
a distributive share of a GILTI inclusion
amount. See § 1.951A-1(e)(1). Rather,
for purposes of determining the GILTI
inclusion amount of any partner of a do-
mestic partnership, each partner is treated
as proportionately owning the stock of a
CFC owned by the partnership within the
meaning of § 958(a) in the same man-
ner as if the domestic partnership were a
foreign partnership. Because only a U.S.
person that is a U.S. shareholder can have
a GILTI inclusion amount, a partner that
is not a U.S. shareholder of a partner-
ship-owned CFC does not have a GILTI
inclusion amount determined by reference
to the partnership-owned CFC. Section
1.951A-1(e)(1) applies to taxable years of
foreign corporations beginning after De-
cember 31, 2017, and to taxable years of
U.S. shareholders in which or with which
such taxable years of foreign corporations
end. See § 1.951A-7.
(5) Aggregate Treatment for Subpart F
and GILTI Purposes Under 2019 Proposed
Regulations
On June 21, 2019, concurrent with the
final regulations, the Treasury Department
and the IRS published a notice of pro-
posed rulemaking (REG-101828-19) in
the Federal Register (84 FR 29114) under
§ 958 (2019 proposed regulations). Sec-
tion 1.958-1 of the 2019 proposed regu-
lations (proposed § 1.958-1) mirrored the
aggregate treatment of domestic partner-
ships for purposes of GILTI inclusions as
set forth in the final regulations, and also
extended it to apply for purposes of sub-
part F inclusions. See proposed § 1.958-
1(d)(1). Accordingly, subject to certain
exceptions in proposed § 1.958-1(d)(2),
for purposes of §§ 951 and 951A and any
other provision that applies by reference
to § 951 or 951A, the 2019 proposed reg-
ulations provided that a domestic part-
nership is not treated as owning stock of
a foreign corporation within the meaning
of § 958(a); instead, a domestic partner-
ship is treated in the same manner as a
foreign partnership for purposes of deter-
mining the persons that own stock of the
foreign corporation within the meaning of
§ 958(a). See proposed § 1.958-1(d)(1).
Under proposed § 1.958-1(d)(2), a domes-
tic partnership is treated as an entity for
purposes of determining whether any U.S.
person (including the domestic partner-
ship) is a U.S. shareholder, whether any
U.S. shareholder is a controlling domes-
tic shareholder (as defined in § 1.964-1(c)
(5)), or whether any foreign corporation is
a CFC.
Consistent with the final regulations
with respect to GILTI, under the 2019
proposed regulations a partner that is not
a U.S. shareholder with respect to a part-
nership-owned CFC does not take into
account a subpart F inclusion or GILTI
inclusion amount by reference to the part-
nership-owned CFC.
The 2019 proposed regulations are pro-
posed to apply to taxable years of foreign
corporations beginning on or after the
date of publication of the Treasury deci-
sion adopting the rules as final regulations
in the Federal Register. See proposed
§ 1.958-1(d)(4). Subject to a consistency
requirement, however, the 2019 proposed
regulations provide that a domestic part-
nership may apply the regulations, once
finalized, to taxable years of a foreign
corporation beginning after December 31,
2017, and to taxable years of the domestic
partnership in which or with which such
taxable years of the foreign corporation
end. See id.
(6) Applicability to S Corporations
Under § 1373(a), an S corporation is
treated as a partnership and its sharehold-
ers as partners for purposes of §§ 951 and
951A, among other provisions. Therefore,
for purposes of determining a GILTI in-
clusion amount under § 1.951A-1(e), as
well as determining a subpart F inclu-
sion or GILTI inclusion amount under

September 21, 2020 606 Bulletin No. 2020–39
proposed § 1.958-1(d), an S corporation
is not treated as owning stock of a for-
eign corporation within the meaning of
§ 958(a) but instead is treated in the same
manner as a foreign partnership (each
S corporation shareholder is treated as
proportionately owning the stock of the
S corporation-owned CFC). Under this
aggregate treatment, § 961(a) applies to
increase a U.S. shareholder’s basis in the
shares of the S corporation when the U.S.
shareholder has a subpart F inclusion or
GILTI inclusion amount attributable to
the S corporation-owned CFC. The pre-
amble to the final regulations stated that
the Treasury Department and the IRS are
studying the application of § 1373(a) with
respect to § 951A, as well as the broader
implications of treating S corporations as
partnerships for purposes of subpart F, and
requested comments. See 84 FR 29317.
(7) Distribution Rules Regarding S
Corporations
Paragraphs (b) and (c) of § 1368 pro-
vide for the annual treatment of distribu-
tions of property made by an S corporation
with respect to its stock to which (but for
§ 1368(a)) § 301(c) would apply. Section
1368(b) addresses the treatment of such
distributions by an S corporation that does
not have AE&P. Specifically, § 1368(b)(1)
provides that a distribution by an S corpo-
ration is not included in the gross income
of the shareholder to the extent that the
amount of the distribution does not exceed
the adjusted basis of the S corporation’s
stock. Section 1368(b)(2) provides that, if
the amount of the distribution exceeds the
adjusted basis of the S corporation’s stock,
that excess is treated as gain from the sale
or exchange of property.
Section 1368(c) addresses the treat-
ment of distributions by an S corpora-
tion that has AE&P (for example, if the
S corporation had generated earnings and
profits during its prior status as a C corpo-
ration) and therefore has an accumulated
adjustments account (AAA), as defined
by § 1368(e)(1). AE&P does not include
amounts that would increase an S corpo-
ration’s AAA. See § 1371(c). The S corpo-
ration’s AAA achieves dual congressional
purposes by ensuring that (i) distributions
of income already taxed to its sharehold-
ers will be tax-free and (ii) distributions of
AE&P generated by a former C corpora-
tion will be taxed as dividends (as defined
in § 316) when ultimately distributed. See
S. Rept. 97-354, at 3258, 97th Cong. 2nd
Sess. (Sept. 29, 1982). Accordingly, to
achieve the first-described congressional
purpose, an S corporation’s AAA func-
tions similarly to the basis-adjustment
rules set forth in § 1367 and is adjusted
positively to account for income taxed to
its shareholders. See § 1368(e)(1). AAA is
limited to income generated by the corpo-
ration during its status as an S corporation
and preserves the single-level-of-tax treat-
ment to S corporation shareholders that is
fundamental to subchapter S of chapter 1
of the Code (subchapter S).
With regard to distributions of proper-
ty by S corporations with AE&P (relating
to the second-described congressional
purpose), § 1368(c) first applies the dis-
tribution to the S corporation’s AAA. Spe-
cifically, § 1368(c)(1) provides that the
treatment of the portion of the distribution
that does not exceed the S corporation’s
AAA is governed by § 1368(b), and not
included in a shareholder’s gross income
if that amount does not exceed the share-
holder’s adjusted basis in the S corpora-
tion’s stock. See also § 1368(b)(1). For
the portion of the distribution that does
not exceed the S corporation’s AAA, but
which exceeds the shareholder’s adjust-
ed basis in the S corporation’s stock, that
amount is treated as gain from the sale
or exchange of property. See §§ 1368(c)
(1) and 1368(b)(2). After the application
of § 1368(c)(1), any remaining portion of
that distribution that exceeds the amount
of the S corporation’s AAA is treated as a
dividend (as defined in § 316) to the extent
of the S corporation’s remaining AE&P.
See § 1368(c)(2). Lastly, the portion of
the distribution remaining after the appli-
cation of § 1368(c)(1) and (2) is governed
by § 1368(b) (that is, either not included in
gross income or treated as gain depending
on the shareholder’s basis in the S corpo-
ration’s stock). See § 1368(c)(3).
(8) Application of Aggregate Treat-
ment to S Corporations with AE&P
The aggregate treatment provided in
the final regulations, as applied to S cor-
porations with AE&P, does not result in
a positive adjustment of AAA because
the GILTI inclusion amount arises at the
shareholder level, rather than at the S cor-
poration level. See § 1.951A-1(e). If an S
corporation with AE&P distributes proper-
ty to its shareholders, for example, to pro-
vide its shareholders with funds to pay the
resulting federal income tax arising from
their GILTI inclusion amount with respect
to stock of CFCs owned by the S corpo-
ration, the S corporation would need an
amount of AAA equal to the amount of
that distribution to prevent the distribution
from being included in such shareholders’
gross income to the extent of AE&P. See
generally § 1368(c). Although the S cor-
poration could generate additional AAA
as needed through a distribution from a
CFC, comments have asserted that such
an approach could result in foreign with-
holding taxes or undesired reductions in
working capital that otherwise would be
devoted to the CFC’s businesses.
As stated in section 2.02(7) of this no-
tice, § 1368(c)(1) provides that tax-free
distribution treatment to shareholders of
an S corporation with AE&P results only
to the extent the S corporation has suffi-
cient AAA to support the distribution. In
the absence of enough AAA, § 1368(c)(2)
requires the distribution to be taxed as a
dividend (as defined in § 316) to the S cor-
poration’s shareholders to the extent of the
S corporation’s AE&P. In other words, if
an S corporation has no AAA, the amount
of the adjusted basis in a shareholder’s S
corporation stock—including any positive
basis adjustment under § 961(a) resulting
from a shareholder’s GILTI inclusion—
does not affect dividend treatment. Once
the S corporation exhausts its AE&P, dis-
tributions are once again applied to share-
holder stock basis. Comments regarding
the application of the final regulations to
S corporations and their shareholders fo-
cused on these interactions between the
aggregate treatment and the distribution
rules for AE&P under subchapter S.
(9) Notice 2019-46 – Domestic Part-
nerships and S Corporations Filing Under
Proposed GILTI Regulations
Following the June 21, 2019, publica-
tion of the final regulations, the Treasury
Department and the IRS became aware
that certain domestic partnerships and
S corporations had furnished Schedules
K-1 to their partners and shareholders
for the 2018 taxable year on or before the
publication date of the final regulations
and had relied on proposed §1.951A-5.
See section 2.04 of Notice 2019-46, 2019-
37 I.R.B. 695 (Aug. 23, 2019). To reduce

Bulletin No. 2020–39 607 September 21, 2020
compliance and processing burdens re-
sulting from the need to issue corrected
Schedules K-1 consistent with the final
regulations, Notice 2019-46 announced
the intent of the Treasury Department and
the IRS to issue regulations that would
permit certain domestic partnerships or
S corporations to apply the 2018 proposed
regulations, including the hybrid approach
in proposed § 1.951A-5, in their entirety,
for taxable years that ended before June
22, 2019. See section 3 of Notice 2019-46.
.03 QBAI rules for FDII and GILTI
For purposes of applying § 951A, a
U.S. shareholder has to determine its “net
CFC tested income” and “net deemed tan-
gible income return.” Net CFC tested in-
come is generally defined as the excess (if
any) of the aggregate of the shareholder’s
pro rata share of the tested income of each
CFC with respect to which such share-
holder is a U.S. shareholder for the tax-
able year of the shareholder over the ag-
gregate of the shareholder’s pro rata share
of the tested loss of each such CFC. See
§ 951A(c) and § 1.951A-1(c)(2). The U.S.
shareholder’s GILTI inclusion amount is
then determined by reducing net CFC test-
ed income by net deemed tangible income
return. See § 951A(b)(1). Section 951A(b)
(2) and § 1.951A-1(c)(3) define the term
“net deemed tangible income return” as
the excess of 10 percent of the aggregate
of such U.S. shareholder’s pro rata share
of the QBAI of each CFC with respect
to which the shareholder is a U.S. share-
holder for the taxable year, over a certain
amount of interest expense.
Section 951A(d)(1) and § 1.951A-1(b)
define QBAI, with respect to any CFC for
any taxable year, as the quarterly average
of the aggregate adjusted bases in speci-
fied tangible property used in the CFC’s
trade or business and of a type for which a
depreciation deduction is allowable under
§ 167.
The definition of QBAI in § 951A(d)
also applies for purposes of determining
deemed tangible income return under
§ 250. See § 250(b)(2)(B) and § 1.250(b)-
2(b). Section 250 generally allows a do-
mestic corporation a deduction equal to
37.5 percent (21.875 percent for taxable
years after 2025) of its FDII (as defined
in § 250(b)(1) and § 1.250(b)-1(b)). For
purposes of FDII, QBAI is used to deter-
mine the deemed tangible income return
of a corporation, which in turn reduces
the amount of foreign-derived intangible
income of a corporation. See § 250(b)(1)-
(2). Section 250(b)(2)(B) and § 1.250(b)-
2 incorporate the definition of QBAI in
§ 951A(d)(3), with some modifications.
(1) Adjusted Basis for Purposes of
QBAI
Section 951A(d)(3)
1
requires a taxpay-
er to calculate QBAI by determining the
adjusted basis of property using the ADS
under § 168(g) “notwithstanding any pro-
vision of this title (or any other provision
of law) which is enacted after the date of
the enactment of [§ 951A].”
ADS depreciation under § 168(g) is
determined by using the straight-line
method (without regard to salvage val-
ue), the applicable convention determined
under § 168(d), and the applicable recov-
ery period as determined under the ta-
ble in § 168(g)(2)(C). On December 22,
2017, the date of enactment of the TCJA,
§ 168(g)(2)(C) provided that the recovery
period for purposes of ADS depreciation
for nonresidential real property, as defined
in § 168(e)(2)(B), was 40 years. Non-
residential real property is defined under
§ 168(e)(2)(B) as “section 1250 property”
(that is, any depreciable real property not
described in § 1245) that is not residential
rental property, as defined in § 168(e)(2)
(A), or property with a class life of less
than 27.5 years. Section 168(g)(2)(C)
(i) provided that the recovery period for
property not described in § 168(g)(2)(C)
(ii) or (iii) is the property’s class life. Class
life is generally determined under Rev.
Proc. 87-56, 1987-2 C.B. 674; however,
§ 168(g)(3) specifies class lives for certain
types of property for ADS purposes.
(2) Qualified Improvement Property
Effective for property placed in ser-
vice after December 31, 2017, § 13204
of the TCJA amended § 168(e) by re-
moving references to qualified leasehold
improvement property, qualified restau-
rant improvement property, and qualified
retail improvement property, and adding
a definition for QIP. Under § 168(e)(6),
as amended by the TCJA, QIP generally
is defined as certain improvements to an
interior portion of a building that is non-
residential real property if such improve-
ments are placed in service after the date
the building was first placed in service.
See § 1.168(b)-1(a)(5)(i)(A) and (ii).
(3) QIP’s 20-year ADS Recovery Peri-
od
Section 2307(a) of the Coronavirus
Aid, Relief, and Economic Security Act,
P.L. 116-136, 134 Stat. 281 (March 27,
2020) (CARES Act), titled “Technical
Amendments Regarding Qualified Im-
provement Property” amended the TCJA
rules regarding the treatment of QIP un-
der § 168(e) and (g) (technical amend-
ment). Under the technical amendment,
§ 2307(a)(1)(A) of the CARES Act
amended § 168(e) by adding clause (vii)
to paragraph (3)(E), providing that QIP is
classified as 15-year property, § 2307(a)
(1)(B) of the CARES Act amended the
definition of QIP in § 168(e)(6) by provid-
ing that the improvement must be “made
by the taxpayer,” and § 2307(a)(2) of the
CARES Act amended the table in § 168(g)
(3)(B) to provide a class life of 20 years
for QIP for purposes of the ADS. Under
§ 2307(b) of the CARES Act, the techni-
cal amendment is effective as if its pro-
visions had been included in § 13204 of
the TCJA and, therefore, applies to prop-
erty placed in service after December 31,
2017. According to the Description of the
Tax Provisions of Public Law 116-136,
the Coronavirus Aid, Relief, and Econom-
ic Security (“CARES”) Act, prepared by
the Staff of the Joint Committee on Tax-
ation and published on April 23, 2020
(JCX-12R-20), when Congress enacted
§ 13204(a)(4)(b)(i) of the TCJA to add the
definition of QIP in § 168(e)(6), it intended
for QIP to be classified as 15-year proper-
ty under § 168(e)(3)(E), with a 15-year re-
covery period under the general deprecia-
tion system in § 168(a) and a 20-year ADS
recovery period but inadvertently omitted
such language from the statute. See JCX-
12R-20 at 69-70. The conference report
under the TCJA also states that Congress
intended QIP to be classified as 15-year
property under the general depreciation
1
As enacted, § 951A(d) contains two paragraphs designated as paragraph (3). The § 951A(d)(3) of the Code discussed in this notice relates to the determination of the adjusted basis in property
for purposes of calculating QBAI.

September 21, 2020 608 Bulletin No. 2020–39
system and be assigned a 20-year ADS re-
covery period. See Conference Report to
Accompany H.R. 1, H.R. Rept. 115-466,
at 366-367, 115th Cong. 1st Sess. (Dec.
15, 2017).
SECTION 3. FORTHCOMING S
CORPORATION REGULATIONS
ADDRESSING QUALIFYING S
CORPORATIONS WITH AE&P
.01 Purpose and Scope
The Treasury Department and the IRS
intend to issue the forthcoming S corpora-
tion regulations under § 958 of the Code
to ease the transition of S corporations
with AE&P on September 1, 2020, from
the historic entity treatment and the hybrid
treatment under proposed §1.951A-5 (and
illustrated in § 1.951A-5(g)(5) (Example
5)) to the aggregate treatment required
under the final regulations (transition
rules). The forthcoming S corporation
regulations will ensure that distributions
of income already taxed to S corporation
shareholders will be tax-free, and AE&P
generated by a former C corporation will
be taxed as dividends when distributed.
The Treasury Department and the IRS
intend the transition rules to assist S corpo-
rations with AE&P and their shareholders
by allowing them to recognize the GILTI
inclusion amount at the entity level so it is
treated as an item of income, thereby in-
creasing its AAA before allocation to the
shareholders. This increase in AAA will
allow S corporations to distribute property
to shareholders and avoid dividend treat-
ment. To achieve this result, the Treasury
Department and the IRS expect to provide
rules and examples consistent with those
set forth in sections 3.02 and 3.03, respec-
tively, of this notice. These transition rules
are expected to apply solely to S corpora-
tions with “transition AE&P,” as defined
in section 3.02(3) of this notice.
.02 Transition Rules
(1) Elective Entity Treatment
With respect to a taxable year, an S
corporation is subject to entity treatment
if (a) it (and its shareholders, if applicable)
makes an election described in section
3.02(2) of this notice, (b) it has elected S
corporation status before June 22, 2019,
(c) it would be treated as owning stock of
a CFC on June 22, 2019, within the mean-
ing of § 958(a) if entity treatment applied,
2

(d) it has transition AE&P (as defined in
section 3.02(3) of this notice) on Septem-
ber 1, 2020, or on the first day of any sub-
sequent taxable year, and (e) it maintains
records to support the determination of the
transition AE&P amount. Entity treatment
means that an S corporation that owns
stock of a CFC is treated as owning with-
in the meaning of § 958(a) the CFC stock
for purposes of applying § 951A. Thus,
the S corporation determines its GILTI in-
clusion amount, and its shareholders take
into account their distributive share of
that GILTI inclusion amount. See section
2.02(1) of this notice.
(2) Time and Manner of Making an
Election.
With respect to the first taxable year
ending on or after September 1, 2020, an
S corporation may irrevocably elect to ap-
ply entity treatment on a timely filed (in-
cluding extensions) original Form 1120-S,
U.S. Income Tax Return for an S Corpo-
ration. For taxable years of an S corpo-
ration ending before September 1, 2020,
and after June 21, 2019, the S corporation
and all of its shareholders may irrevocably
elect the entity treatment provided in sec-
tion 3.02(1) of this notice on timely filed
(including extensions) original returns or
on amended returns filed by March 15,
2021, by attaching a statement thereto.
The election is made by attaching a
statement to the Federal tax return. The
election statement must identify the elec-
tion being made, include the amount of
transition AE&P as described in section
3.02(3) of this notice, and, where appli-
cable, be signed by a person authorized
to sign the return required to filed under
§ 6037. Form 1120-S, Schedules K-1
(Form 1120-S), and Form 8892, U.S.
Shareholder Calculation of Global Intan-
gible Low-Taxed Income (GILTI), must
be prepared consistent with the S corpora-
tion’s election for shareholders to comply
with § 6037(c).
(3) Transition AE&P
For purposes of this notice, the term
“transition AE&P” means, with respect to
an S corporation and its shareholders, the
amount of AE&P of the S corporation cal-
culated as of September 1, 2020, reduced
as described in section 3.02(5) of this
notice. Transition AE&P is not increased
as a result of transactions occurring (or
entity classification elections described
in § 301.7701-3 filed) after September 1,
2020.
(4) Transition AE&P Not Transferable
For purposes of this notice, transition
AE&P of an S corporation is not trans-
ferrable to another person under any pro-
vision of the Code (for example, under
§§ 312(h) or 381 by reason of § 1371(a)).
In other words, the transferee of the transi-
tion AE&P would receive AE&P not tran-
sition AE&P.
(5) Reduction Solely by Distributions
An S corporation with transition AE&P
is treated as having no transition AE&P if,
beginning after September 1, 2020, the S
corporation distributes in one or more dis-
tributions a cumulative amount of AE&P
equal to or greater than the amount of the
S corporation’s transition AE&P as of
September 1, 2020.
(6) Required Aggregate Treatment
Except as provided in Notice 2019-46,
aggregate treatment applies to an S corpo-
ration if the S corporation has not made
an election described in section 3.02(1) of
this notice to apply the transition rules. In
the case of an S corporation that has made
an election to apply entity treatment as
described in section 3.02(1) of this notice,
aggregate treatment applies beginning
with the S corporation’s first taxable year
for which the S corporation has no tran-
sition AE&P on the first day of that year,
and to each subsequent taxable year of the
S corporation. For purposes of this section
3.02(6), aggregate treatment means the
treatment of an S corporation provided
under § 1.951A-1(e).
.03 Examples
The following examples illustrate the
rules set forth in section 3.02 of this no-
tice.
2
In other words, elective entity treatment is not available when, if entity treatment otherwise applied, an S corporation would only be considered to own stock of a CFC under § 958(b) or not
at all. For example, where an individual shareholder directly owns 100 percent of the stock of a CFC, and the shareholder owns 50 percent of the stock of an S corporation, that S corporation
would be considered under §§ 318(a)(3)(C) and 958(b) to own all of the stock of CFC, but none of the stock under § 958(a). Therefore, in such a case, elective entity treatment is not available
to the S corporation.

Bulletin No. 2020–39 609 September 21, 2020
(1) Example 1 – S corporation with transition
AE&P—(a) Facts. Individual A and Individual B,
each U.S. citizens, respectively own 5% and 95%
of the single class of stock of SCX, an S corpora-
tion. SCX’s sole asset is 100% of the single class of
stock of FC, a CFC, which SCX has held since June
1, 2019. Neither Individual A or Individual B own
shares, directly or indirectly, in any other CFC. Indi-
vidual A, Individual B, SCX, and FC all use the cal-
endar year as their taxable year. On January 1, 2021,
SCX has transition AE&P of $100x and AAA of $0.
SCX elects to apply the transition rules under section
3.02(1) of this notice. During the 2021 taxable year,
FC has $200x of tested income (within the meaning
of § 1.951A-2(b)(1)) and $0 of QBAI (within the
meaning of § 1.951A-3(b)).
(b) Analysis—(i) S corporation-level. As an
S corporation with transition AE&P on the first
day of the taxable year (here, January 1, 2021),
SCX is treated as owning (within the meaning of
§ 958(a)) all the stock of FC for purposes applying
§ 951A. Accordingly, SCX, a U.S. shareholder of
FC, determines its GILTI inclusion amount under
§ 1.951A-1(c)(1) for its 2021 taxable year. SCX’s
pro rata share of FC’s tested income is $200x, and its
pro rata share of FC’s QBAI is $0. SCX’s net CFC
tested income (within the meaning of § 1.951A-1(c)
(2)) is $200x, and its net deemed tangible income re-
turn (within the meaning of § 1.951A-1(c)(3)) is $0.
As a result, SCX’s GILTI inclusion amount for 2021
is $200x. At the end of 2021, SCX increases its AAA
by $200x to reflect the GILTI inclusion amount.
Because SCX computes its income as an individual
under § 1363(b), it cannot take a § 250 deduction for
any GILTI inclusion amount. See § 1.250(a)-1(c)(1).
(ii) S corporation shareholder-level. Neither In-
dividual A nor Individual B is treated as owning the
stock in FC within the meaning of § 958(a). Accord-
ingly, Individual A and Individual B include in gross
income their pro rata shares of SCX’s GILTI inclu-
sion amount as described in § 1366(a), which is $10x
($200x x 5%) for Individual A and $190x ($200x x
95%) for Individual B.
(2) Example 2 – Effect of distribution on transi-
tion AE&P—(a) Facts. The facts are the same as in
Example 1 of this section 3.03, except that, on De-
cember 31, 2021, SCX distributes $300x to its share-
holders. In addition, FC has an additional $200x of
tested income (within the meaning of § 1.951A-2(b)
(1)) and $0 of QBAI (within the meaning of
§ 1.951A-3(b)) during the 2022 taxable year.
(b) Analysis—(i) Determination of transition
AE&P. Before taking into account the distribution on
December 31, 2021, the results for taxable year 2021
are the same as set forth in paragraphs (b)(i) and (b)
(ii) of Example 1 of this section 3.03. $200x, the por-
tion of SCX’s $300x distribution that does not ex-
ceed AAA, is subject to § 1368(c)(1). The remaining
distribution of $100x is treated as a dividend under
§ 316 to the extent of SCX’s AE&P. As of January 1,
2022, SCX has $0 of transition AE&P under section
3.02(5) of this notice because the cumulative amount
of SCX’s distributions out of AE&P after September
1, 2020, equals or exceeds the amount of SCX’s tran-
sition AE&P as of September 1, 2020.
(ii) S corporation-level. Because SCX has no
transition AE&P as of January 1, 2022, aggregate
treatment applies to SCX for its taxable year 2022
and for each subsequent taxable year. As a result, for
purposes of determining a GILTI inclusion amount
in its taxable year 2022, SCX is not treated as own-
ing (within the meaning of § 958(a)) the FC stock;
instead, SCX is treated in the same manner as a
foreign partnership for purposes of determining the
FC stock owned by Individual A and Individual B
under § 958(a)(2). See § 1.951A-1(e)(1). According-
ly, SCX does not have a GILTI inclusion amount for
its 2022 taxable year (or for any subsequent taxable
year) and therefore will not increase its AAA as a re-
sult of its ownership of FC stock for its taxable year
2022 (or for any subsequent taxable year).
(iii) S corporation shareholder-level—(A) In-
dividual A. For purposes of determining the GILTI
inclusion amount of Individual A for taxable year
2022, Individual A is treated as owning 5% of the FC
stock under § 958(a). Individual A is not, however, a
U.S. shareholder of FC because Individual A owns
(within the meaning of § 958(a) and (b)) less than
10% (that is, only 5%) of the FC stock. Accordingly,
Individual A does not have a GILTI inclusion amount
for taxable year 2022.
(B) Individual B. For purposes of determining the
GILTI inclusion amount of Individual B for taxable
year 2022, Individual B is treated as owning 95% of
the FC stock under § 958(a). In addition, Individu-
al B is a U.S. shareholder of FC because Individual
B owns (within the meaning of § 958(a) and (b)) at
least 10% (that is, 95%) of the FC stock. Accord-
ingly, Individual B’s pro rata share of FC’s tested
income is $190x ($200x x 0.95), and Individual B’s
pro rata share of FC’s QBAI is $0. Individual B’s
net CFC tested income is $190x, and Individual B’s
net deemed tangible income return is $0. As a result,
Individual B’s GILTI inclusion amount for taxable
year 2022 is $190x.
.04 PTEP Rules Addressing Transition
from Entity to Aggregate Treatment
The Treasury Department and the IRS
expect to amend the regulations under
§§ 959 and 961 concerning previously
taxed earnings and profits to provide rules
to address the transition of S corporations
from entity treatment to aggregate treat-
ment.
SECTION 4. FORTHCOMING QIP-
QBAI REGULATIONS ADDRESSING
THE TREATMENT OF QIP FOR
PURPOSES OF FDII AND GILTI
The Treasury Department and the IRS
expect the forthcoming QIP-QBAI regula-
tions under §§ 250 and 951A of the Code
to clarify that the technical amendment to
§ 168 enacted in § 2307(a) of the CARES
Act applies to determine the adjusted ba-
sis of property under § 951A(d)(3) as if it
had been enacted as part of § 13204 of the
TCJA. The Treasury Department and the
IRS have determined that this clarification
is consistent with congressional intent that
the provisions of the technical amendment
be given effect as if included in § 13204
of the TCJA.
SECTION 5. APPLICABILITY DATES
The forthcoming S corporation regula-
tions will provide that the transition rules
and examples set forth in sections 3.02
and 3.03 of this notice may be applied
to taxable years of S corporations end-
ing on or after June 22, 2019. For rules
applicable to taxable years ending before
June 22, 2019, see Notice 2019-46. Until
the date of issuance of the forthcoming S
corporation regulations, an S corporation
and its shareholders may rely on the rules
set forth in sections 3.02 and 3.03 of this
notice provided that the S corporation and
its shareholders that are U.S. shareholders
of the CFC consistently apply the rules set
forth in sections 3.02 and 3.03 of this no-
tice with respect to all CFCs whose stock
the S corporation owns within the mean-
ing of § 958(a) of the Code.
Consistent with § 2307(b) of the
CARES Act, the forthcoming QIP-QBAI
regulations will provide that the rules
described in section 4 of this notice will
apply retroactively. In the case of the
regulations under § 951A, the forthcom-
ing QIP-QBAI regulations will apply to
taxable years of foreign corporations be-
ginning after December 31, 2017, and to
taxable years of United States sharehold-
ers in which or with which such taxable
years of foreign corporations end. In the
case of the regulations under § 250, the
forthcoming QIP-QBAI regulations will
apply to taxable years of U.S. persons
beginning after December 31, 2017. See
§ 7805(b)(2). Before the issuance of the
forthcoming QIP-QBAI regulations, U.S.
shareholders and domestic corporations
(including any individuals that elect to ap-
ply § 962) may rely on the rules described
in section 4 of this notice for a taxable
year beginning after December 31, 2017,
provided they consistently apply those
rules for purposes of FDII and GILTI un-
der §§ 250 and 951A to such taxable year
and all subsequent taxable years.
Pursuant to Section IV. of the Policy
Statement on the Tax Regulatory Process
issued by the Treasury Department and
the IRS on March 5, 2019, if no proposed
regulations or other guidance is released

September 21, 2020 610 Bulletin No. 2020–39
within 18 months after September 21,
2020, taxpayers may continue to rely on
the rules described in this notice but, until
additional guidance is issued, the Treasury
Department and the IRS will not assert a
position adverse to the taxpayer based in
whole or in part on this notice.
SECTION 6. REQUEST FOR
COMMENTS
The Treasury Department and the IRS
request comments regarding the impact
of the forthcoming regulations set forth
in sections 3 and 4 of this notice on small
entities, within the meaning of § 601(6) of
the Regulatory Flexibility Act (5 U.S.C.
chapter 6).
In addition, the Treasury Department
and the IRS request comments addressing
the intended transition rules of the forth-
coming S corporation regulations set forth
in section 3 of this notice.
The Treasury Department and the IRS
also request comments on the rules of
the forthcoming QIP-QBAI regulations
described in section 4 of this notice. The
Treasury Department and the IRS request
comments on whether an alternative rule
should be provided that would allow a
corrective adjustment in the first taxable
year ending after the rules in section 4 of
this notice become final for taxpayers that
took a position that is inconsistent with
the rules described in section 4 of this no-
tice on a return filed before September 1,
2020, and do not file an amended return
for such year. Comments on this issue
should address what limitations might be
needed on any such alternative rule, such
as in cases where there have been changes
in ownership of a CFC.
Comments should be submitted by
November 2, 2020. Commenters are
strongly encouraged to submit public
comments electronically via the Federal
eRulemaking Portal at www.regulations.
gov (indicate IRS and Notice 2020-69) by
following the online instructions for sub-
mitting comments. Once submitted to the
Federal eRulemaking Portal, comments
cannot be edited or withdrawn. The IRS
expects to have limited personnel avail-
able to process public comments that are
submitted on paper through mail. Until
further notice, any comments submitted
on paper will be considered to the extent
practicable. The Treasury Department
and the IRS will publish for public avail-
ability any comment submitted electron-
ically, and to the extent practicable any
comment submitted on paper, to its pub-
lic docket. Send paper submissions to:
CC:PA:LPD:PR (Notice 2020-69), room
5203, Internal Revenue Service, PO Box
7604, Ben Franklin Station, Washington,
DC 20044.
SECTION 7. PAPERWORK
REDUCTION ACT
The collections of information in sec-
tion 3.02(2) of this notice are reflected in
the submission to the Office of Manage-
ment and Budget (OMB) for review in
accordance with Paperwork Reduction
Act (44 U.S.C. § 3507(c)) (PRA) that is
associated with OMB control number
1545-2291. The collections of informa-
tion in section 3.02(2) of this notice will
be submitted to IRS in in conjunction with
Form 1120S, which is approved under
OMB control number 1545-0123. These
submissions will be updated in the ordi-
nary course.
An agency may not conduct or sponsor,
and a person is not required to respond
to, a collection of information unless the
collection of information displays a valid
OMB control number.
The collections of information are
required to notify the IRS both that an
S corporation has elected to apply enti-
ty treatment described in section 3.02 of
this notice and of the amount of transi-
tion AE&P described in section 3.02(3)
of this notice. The collections of infor-
mation are required in order for the tran-
sition rules described in section 3.02 of
this notice to apply. The likely respon-
dents are business or other for-profit in-
stitutions.
The estimated total reporting and/or re-
cordkeeping burden of this Notice is 1,844
hours. The estimated burden per respon-
dent/recordkeeper is half an hour. The
estimated number of respondents and/or
recordkeepers is 3,688.
Books or records relating to a collec-
tion of information must be retained as
long as their contents may become mate-
rial in the administration of any internal
revenue law. Generally, tax returns and tax
return information are confidential, as re-
quired by § 6103.
SECTION 8. DRAFTING AND
CONTACT INFORMATION
The principal authors of this notice are
Jennifer N. Keeney of the Office of As-
sociate Chief Counsel (Passthroughs &
Special Industries) and Edward J. Tracy,
Jorge M. Oben, and Larry R. Pounders
of the Office of Associate Chief Counsel
(International). For further information
regarding the S corporation issues de-
scribed in this notice, contact Ms. Kee-
ney at (202) 317-6850 or Mr. Tracy at
(202) 317-6934 (not toll-free numbers).
For further information regarding the
QIP-QBAI issues described in this no-
tice, contact Jorge M. Oben or Larry R.
Pounders at (202) 317-6934 (not a toll-
free number).

Bulletin No. 2020–39 i September 21, 2020
Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the
effect:
Amplified describes a situation where
no change is being made in a prior pub-
lished position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that
the same principle also applies to B, the
earlier ruling is amplified. (Compare with
modified, below).
Clarified is used in those instances
where the language in a prior ruling is be-
ing made clear because the language has
caused, or may cause, some confusion. It
is not used where a position in a prior rul-
ing is being changed.
Distinguished describes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modified is used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
with amplified and clarified, above).
Obsoleted describes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transactions.
This term is most commonly used in a ruling
that lists previously published rulings that
are obsoleted because of changes in laws or
regulations. A ruling may also be obsoleted
because the substance has been included in
regulations subsequently adopted.
Revoked describes situations where the
position in the previously published ruling
is not correct and the correct position is
being stated in a new ruling.
Superseded describes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a
period of time in separate rulings. If the
new ruling does more than restate the sub-
stance of a prior ruling, a combination of
terms is used. For example, modified and
superseded describes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previous-
ly published ruling in a new ruling that is
self contained. In this case, the previously
published ruling is first modified and then,
as modified, is superseded.
Supplemented is used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names
in subsequent rulings. After the original
ruling has been supplemented several
times, a new ruling may be published that
includes the list in the original ruling and
the additions, and supersedes all prior rul-
ings in the series.
Suspended is used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of cas-
es in litigation, or the outcome of a Ser-
vice study.
Abbreviations
The following abbreviations in current use
and formerly used will appear in material
published in the Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Cooperative.
Ct.D.—Court Decision.
CY—County.
D—Decedent.
DC—Dummy Corporation.
DE—Donee.
Del. Order—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Employer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduciary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor.
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
M—Minor.
Nonacq.—Nonacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Personal Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Partnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
U.S.C.—United States Code.
X—Corporation.
Y—Corporation.
Z—Corporation.

September 21, 2020 ii Bulletin No. 2020–39
Numerical Finding List
1
Bulletin 2020–39
Announcements:
2020-8, 2020-32 I.R.B. 244
2020-9, 2020-32 I.R.B. 244
2020-10, 2020-33 I.R.B. 385
2020-11, 2020-33 I.R.B. 385
2020-13, 2020-35 I.R.B. 492
2020-14, 2020-36 I.R.B. 549
2020-15, 2020-38 I.R.B. 577
2020-16, 2020-38 I.R.B. 578
Notices:
2020-43, 2020-27 I.R.B. 1
2020-45, 2020-27 I.R.B. 3
2020-46, 2020-27 I.R.B. 7
2020-47, 2020-27 I.R.B. 7
2020-49, 2020-27 I.R.B. 8
2020-50, 2020-28 I.R.B. 35
2020-48, 2020-29 I.R.B. 72
2020-51, 2020-29 I.R.B. 73
2020-52, 2020-29 I.R.B. 79
2020-53, 2020-30 I.R.B. 151
2020-54, 2020-31 I.R.B. 226
2020-56, 2020-32 I.R.B. 239
2020-57, 2020-32 I.R.B. 240
2020-58, 2020-34 I.R.B. 419
2020-55, 2020-35 I.R.B. 467
2020-61, 2020-35 I.R.B. 468
2020-62, 2020-35 I.R.B. 476
2020-63, 2020-35 I.R.B. 491
2020-60, 2020-36 I.R.B. 514
2020-64, 2020-36 I.R.B. 519
2020-65, 2020-38 I.R.B. 567
2020-68, 2020-38 I.R.B. 567
2020-69, 2020-39 I.R.B. 604
Proposed Regulations:
REG-119307-19, 2020-28 I.R.B. 44
REG-112339-19, 2020-30 I.R.B. 155
REG-117589-18, 2020-30 I.R.B. 184
REG-125716-18, 2020-30 I.R.B. 197
REG-123027-19, 2020-31 I.R.B. 229
REG-130081-19, 2020-32 I.R.B. 246
REG-127732-19, 2020-33 I.R.B. 385
REG-111879-20, 2020-34 I.R.B. 421
REG-112042-19, 2020-34 I.R.B. 422
REG-132766-18, 2020-34 I.R.B. 436
REG-132434-17, 2020-35 I.R.B. 508
REG-116475-19, 2020-37 I.R.B. 553
Revenue Procedures:
2020-16, 2020-27 I.R.B. 10
2020-31, 2020-27 I.R.B. 12
Revenue Procedures:—Continued
2020-35, 2020-29 I.R.B. 82
2020-36, 2020-32 I.R.B. 243
2020-37, 2020-33 I.R.B. 381
2020-38, 2020-36 I.R.B. 522
2020-39, 2020-36 I.R.B. 546
2020-40, 2020-38 I.R.B. 575
Revenue Rulings:
2020-14, 2020-28 I.R.B. 33
2020-15, 2020-32 I.R.B. 233
2020-16, 2020-37 I.R.B. 550
2020-17, 2020-37 I.R.B. 552
2020-18, 2020-39 I.R.B. 584
Treasury Decisions:
9899, 2020-29 I.R.B. 62
9900, 2020-30 I.R.B. 143
9903, 2020-32 I.R.B. 235
9901, 2020-33 I.R.B. 266
9902, 2020-33 I.R.B. 349
9904, 2020-34 I.R.B. 413
9907, 2020-38 I.R.B. 559
9906, 2020-39 I.R.B. 579
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2019–27 through 2019–52 is in Internal Revenue Bulletin
2019–52, dated December 27, 2019.

Bulletin No. 2020–39 iii September 21, 2020
Finding List of Current Actions on
Previously Published Items
1
Bulletin 2020–39
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2019–27 through 2019–52 is in Internal Revenue Bulletin
2019–52, dated December 27, 2019.

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INTERNAL REVENUE BULLETIN
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