Internal Revenue Bulletin 2020-7 (PDF rendition): IRS Revenue Rulings

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Bulletin No. 2020–7
February 10, 2020
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.
EMPLOYEE PLANS
Notice 2020-6, page 411.
Under pre-amended law, by January 31st, financial institu-
tions would have had to notify IRA owners who turned 70½
in 2020 about the required minimum distribution (RMD)
which would have needed to be made for 2020. The SE-
CURE Act changed the age triggering the RMD requirement
from 70½ to 72, so these notices are no longer due under
the amended law. The attached notice provides that if a
RMD statement is provided for 2020 to an IRA owner who
will attain age 70½ in 2020, the IRS will not consider such
statement to be incorrect, provided that the financial institu-
tion notifies the IRA owner no later than April 15, 2020, that
no RMD is due for 2020.
Notice 2020-7, page 411.
This notice sets forth updates on the corporate bond
monthly yield curve, the corresponding spot segment rates
for January 2020 used under § 417(e)(3)(D), the 24-month
average segment rates applicable for January 2020, and
the 30-year Treasury rates, as reflected by the application
of § 430(h)(2)(C)(iv).
EXCISE TAX
Notice 2020-8, page 415.
The notice provides the rules that claimants must follow to
make a one-time claim for the credits and payments for bio-
diesel (including renewable diesel) mixtures and alternative
fuels sold or used during calendar years 2018 and 2019.
The notice also provides instructions for how a claimant
may offset its taxable fuel liability with the alternative fuel
mixture credit for 2018 and 2019, and provides instructions
for how a claimant may make certain income tax claims for
biodiesel, second generation biofuel, and alternative fuel.
The credits had expired on December 31, 2017, but were
retroactively reinstated as part of the Further Consolidated
Appropriations Act of 2020.
INCOME TAX
Rev. Rul. 2020-3, page 409.
Federal rates; adjusted federal rates; adjusted federal long-
term rate, the long-term exempt rate, and the blended annu-
al rate. For purposes of sections 382, 1274, 1288, 7872
and other sections of the Code, tables set forth the rates
for February 2020.
Notice 2020-9, page 417.
This notice publishes the inflation adjustment factor for cal-
endar years 2018 and 2019 for the Indian coal production
credit under section 45 of the Code. The inflation adjust-
ment factor is used in determining the availability of the
credit.
Finding Lists begin on page ii.

The IRS Mission
Provide America’s taxpayers top-quality service by helping
them understand and meet their tax responsibilities and en-
force the law with integrity and fairness to all.
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.
February 10, 2020 Bulletin No. 2020–7

Part I
Section 1274.—
Determination of Issue
Price in the Case of Certain
Debt Instruments Issued for
Property
(Also Sections 42, 280G, 382, 467, 468, 482, 483,
1288, 7520, 7872.)
Rev. Rul. 2020-3
This revenue ruling provides various
prescribed rates for federal income tax
purposes for February 2020 (the current
month). Table 1 contains the short-term,
mid-term, and long-term applicable feder-
al rates (AFR) for the current month for
purposes of section 1274(d) of the Inter-
nal Revenue Code. Table 2 contains the
short-term, mid-term, and long-term ad-
justed applicable federal rates (adjusted
AFR) for the current month for purposes
of section 1288(b). Table 3 sets forth the
adjusted federal long-term rate and the
long-term tax-exempt rate described in
section 382(f). Table 4 contains the ap-
propriate percentages for determining the
low-income housing credit described in
section 42(b)(1) for buildings placed in
service during the current month. Howev-
er, under section 42(b)(2), the applicable
percentage for non-federally subsidized
new buildings placed in service after July
30, 2008, shall not be less than 9%. Final-
ly, Table 5 contains the federal rate for de-
termining the present value of an annuity,
an interest for life or for a term of years, or
a remainder or a reversionary interest for
purposes of section 7520.
REV. RUL. 2020-3 TABLE 1
Applicable Federal Rates (AFR) for February 2020
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term
AFR1.59%1.58%1.58%1.57%
110% AFR1.75%1.74%1.74%1.73%
120% AFR1.91%1.90%1.90%1.89%
130% AFR2.06%2.05%2.04%2.04%
Mid-term
AFR1.75%1.74%1.74%1.73%
110% AFR1.92%1.91%1.91%1.90%
120% AFR2.10%2.09%2.08%2.08%
130% AFR2.27%2.26%2.25%2.25%
150% AFR2.63%2.61%2.60%2.60%
175% AFR3.07%3.05%3.04%3.03%
Long-term
AFR2.15%2.14%2.13%2.13%
110% AFR2.36%2.35%2.34%2.34%
120% AFR2.59%2.57%2.56%2.56%
130% AFR2.80%2.78%2.77%2.76%
REV. RUL. 2020-3 TABLE 2
Adjusted AFR for February 2020
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term adjusted AFR1.20%1.20%1.20%1.20%
Mid-term adjusted AFR1.32%1.32%1.32%1.32%
Long-term adjusted AFR1.63% 1.62%1.62%1.61%
Bulletin No. 2020–7 409 February 10, 2020

REV. RUL. 2020-3 TABLE 3
Rates Under Section 382 for February 2020
Adjusted federal long-term rate for the current month1.63%
Long-term tax-exempt rate for ownership changes during the current month (the highest of
the adjusted federal long-term rates for the current month and the prior two months.)
1.63%
REV. RUL. 2020-3 TABLE 4
Appropriate Percentages Under Section 42(b)(1) for February 2020
Note: Under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after July
30, 2008, shall not be less than 9%.
Appropriate percentage for the 70% present value low-income housing credit7.45%
Appropriate percentage for the 30% present value low-income housing credit 3.19%
REV. RUL. 2020-3 TABLE 5
Rate Under Section 7520 for February 2020
Applicable federal rate for determining the present value of an annuity, an interest for life or
a term of years, or a remainder or reversionary interest
2.2%

Section 42.—Low-Income
Housing Credit
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
February 2020. See Rev. Rul. 2020-3, page 409.

Section 280G.—Golden
Parachute Payments
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
February 2020. See Rev. Rul. 2020-3, page 409.

Section 382.—Limitation
on Net Operating Loss
Carryforwards and
Certain Built-In Losses
Following Ownership
Change
The adjusted applicable federal long-term rate
is set forth for the month of February 2020. See
Rev. Rul. 2020-3, page 409.

Section 467.—Certain
Payments for the Use of
Property or Services
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
February 2020. See Rev. Rul. 2020-3, page 409.

Section 468.—Special
Rules for Mining and Solid
Waste Reclamation and
Closing Costs
The applicable federal short-term rates are set
forth for the month of February 2020. See Rev. Rul.
2020-3, page 409.

Section 482.—Allocation
of Income and Deductions
Among Taxpayers
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
February 2020. See Rev. Rul. 2020-3, page 409.

Section 483.—Interest on
Certain Deferred Payments
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
February 2020. See Rev. Rul. 2020-3, page 409.

Section 1288.—Treatment
of Original Issue Discount
on Tax-Exempt Obligations
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of February 2020. See Rev. Rul. 2020-3, page 409.

Section 7520.—Valuation
Tables
The applicable federal mid-term rates are set
forth for the month of February 2020. See Rev. Rul.
2020-3, page 409.

Section 7872.—Treatment
of Loans With Below-
Market Interest Rates
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
February 2020. See Rev. Rul. 2020-3, page 409.

February 10, 2020 410 Bulletin No. 2020–7

Bulletin No. 2020–7 411 February 10, 2020
Part III
Relief for Reporting
Required Minimum
Distributions for IRAs for
2020
Notice 2020-6
PURPOSE
This notice provides guidance to fi-
nancial institutions on reporting required
minimum distributions for 2020 after the
amendment of § 401(a)(9) of the Internal
Revenue Code by the Further Consolidat-
ed Appropriations Act, 2020, P. L. 116-94
(the Act).
BACKGROUND
The Act was enacted on December 20,
2019. Division O of the Act, titled “Setting
Every Community Up for Retirement En-
hancement Act of 2019” (SECURE Act),
included a number of retirement savings
provisions. Section 114 of the SECURE
Act amended § 401(a)(9) to change the
required beginning date applicable to §
401(a) plans and other eligible retirement
plans described in § 402(c)(8), including
individual retirement accounts and annu-
ities (IRAs). The new required beginning
date for an IRA owner is April 1 of the cal-
endar year following the calendar year in
which the individual attains age 72, rather
than April 1 of the calendar year following
the calendar year in which the individual
attains age 70½.
This amendment to § 401(a)(9) is ef-
fective for distributions required to be
made after December 31, 2019, with re-
spect to individuals who will attain age
70½ after that date. As a result of this
change, IRA owners who will attain age
70½ in 2020 will not have a required
beginning date of April 1, 2021. This
means that these IRA owners (who, prior
to enactment of the SECURE Act, would
have been required to take minimum dis-
tributions from their IRAs for 2020) will
have no required minimum distribution
(RMD) for 2020.
IRA REPORTING AND RELIEF
If an IRA owner has an RMD due for
2020, the financial institution that is the
trustee, custodian, or issuer maintain-
ing the IRA must file a 2019 Form 5498
(IRA Contribution Information) by June 1,
2020, and indicate by a check in Box 11
that an RMD is required for 2020. The fi-
nancial institution may also choose to pro-
vide further information in Box 12a (RMD
Date) and Box 12b (RMD Amount). Ad-
ditionally, under Notice 2002-27, 2002-1
C.B. 814, if an IRA owner has an RMD
due for 2020, the financial institution must
furnish an RMD statement to the IRA
owner by January 31, 2020, that informs
the IRA owner of the date by which the
RMD must be distributed, and either pro-
vides the amount of the RMD or offers to
calculate that amount upon request.
The RMD statement required under
Notice 2002–27 should not be sent to
IRA owners who will attain age 70½ in
2020. However, in recognition of the short
amount of time after the enactment of the
SECURE Act that financial institutions
have had to change their systems for fur-
nishing the RMD statement, relief is being
provided. Under this relief, if a financial
institution provides an RMD statement
to an IRA owner who will attain age 70½
in 2020 (including by providing a Form
5498), then the Internal Revenue Service
(IRS) will not consider such a statement to
have been provided incorrectly, but only if
the IRA owner is notified by the financial
institution no later than April 15, 2020,
that no RMD is required for 2020.
For IRA owners who will attain age
70½ in 2020, the 2019 Form 5498 should
not include a check in Box 11 or entries in
Box 12a or 12b.
OTHER MATTERS
The SECURE Act did not change the
required beginning date for IRA owners
who attained age 70½ prior to January 1,
2020. In order to reduce misunderstanding
among IRA owners, the IRS encourages
all financial institutions, in communicat-
ing these RMD changes, to remind IRA
owners who attained age 70½ in 2019, and
have not yet taken their 2019 RMDs, that
they are still required to take those distri-
butions by April 1, 2020.
The Department of the Treasury and
the IRS are considering what additional
guidance should be provided with respect
to the SECURE Act, including guidance
for plan administrators, payors, and dis-
tributees if a distribution to a plan partic-
ipant or IRA owner who will attain age
70½ in 2020 was treated as an RMD.
DRAFTING INFORMATION
The principal author of this notice is
Brandon Ford of the Office of the Asso-
ciate Chief Counsel (Employee Benefits,
Exempt Organizations, and Employment
Taxes). For further information regarding
this notice, contact Brandon Ford at (202)
317-4148 (not a toll-free number).
Update for Weighted
Average Interest Rates,
Yield Curves, and Segment
Rates
Notice 2020-7
This notice provides guidance on the
corporate bond monthly yield curve, the
corresponding spot segment rates used
under § 417(e)(3), and the 24-month aver-
age segment rates under § 430(h)(2) of the
Internal Revenue Code. In addition, this
notice provides guidance as to the interest
rate on 30-year Treasury securities under
§ 417(e)(3)(A)(ii)(II) as in effect for plan
years beginning before 2008 and the 30-
year Treasury weighted average rate under
§ 431(c)(6)(E)(ii)(I).
YIELD CURVE AND SEGMENT
RATES
Section 430 specifies the minimum
funding requirements that apply to sin-
gle-employer plans (except for CSEC

February 10, 2020 412 Bulletin No. 2020–7
plans under § 414(y)) pursuant to § 412.
Section 430(h)(2) specifies the inter-
est rates that must be used to determine
a plan’s target normal cost and funding
target. Under this provision, present val-
ue is generally determined using three
24-month average interest rates (“seg-
ment rates”), each of which applies to
cash flows during specified periods. To
the extent provided under § 430(h)(2)
(C)(iv), these segment rates are adjusted
by the applicable percentage of the 25-
year average segment rates for the period
ending September 30 of the year preced-
ing the calendar year in which the plan
year begins.
1
However, an election may
be made under § 430(h)(2)(D)(ii) to use
the monthly yield curve in place of the
segment rates.
Notice 2007-81, 2007-44 I.R.B. 899,
provides guidelines for determining the
monthly corporate bond yield curve, and
the 24-month average corporate bond
segment rates used to compute the target
normal cost and the funding target. Con-
sistent with the methodology specified in
Notice 2007-81, the monthly corporate
bond yield curve derived from December
2019 data is in Table 2019-12 at the end
of this notice. The spot first, second, and
third segment rates for the month of De-
cember 2019 are, respectively, 2.03, 3.06,
and 3.59.
The 24-month average segment rates
determined under § 430(h)(2)(C)(i)
through (iii) must be adjusted pursuant
to § 430(h)(2)(C)(iv) to be within the
applicable minimum and maximum per-
centages of the corresponding 25-year
average segment rates. For plan years be-
ginning before 2021, the applicable mini-
mum percentage is 90% and the applica-
ble maximum percentage is 110%. The
25-year average segment rates for plan
years beginning in 2018, 2019, and 2020
were published in Notice 2017-50, 2017-
41 I.R.B. 280, Notice 2018-73, 2018-40
I.R.B. 526 and Notice 2019-51, 2019-41
I.R.B. 866, respectively.
24-MONTH AVERAGE CORPORATE
BOND SEGMENT RATES
The three 24-month average corporate
bond segment rates applicable for January
2020 without adjustment for the 25-year
average segment rate limits are as follows:
24-Month Average Segment Rates Without 25-Year Average Adjustment
Applicable Month First Segment Second Segment Third Segment
January 2020 2.77 3.83 4.28
Based on § 430(h)(2)(C)(iv), the
24-month averages applicable for January
2020, adjusted to be within the applicable
minimum and maximum percentages of
the corresponding 25-year average seg-
ment rates, are as follows:
Adjusted 24-Month Average Segment Rates
For Plan Years
Beginning InApplicable MonthFirst SegmentSecond SegmentThird Segment
2018January 20203.925.526.29
2019January 20203.745.356.11
2020January 20203.645.215.94
30-YEAR TREASURY SECURITIES
INTEREST RATES
Section 431 specifies the minimum
funding requirements that apply to multi-
employer plans pursuant to § 412. Section
431(c)(6)(B) specifies a minimum amount
for the full-funding limitation described in
§ 431(c)(6)(A), based on the plan’s current
liability. Section 431(c)(6)(E)(ii)(I) pro-
vides that the interest rate used to calculate
current liability for this purpose must be
no more than 5 percent above and no more
than 10 percent below the weighted aver-
age of the rates of interest on 30-year Trea-
sury securities during the four-year period
ending on the last day before the beginning
of the plan year. Notice 88-73, 1988-2 C.B.
383, provides guidelines for determining
the weighted average interest rate. The rate
of interest on 30-year Treasury securities
for December 2019 is 2.30 percent. The
Service determined this rate as the average
of the daily determinations of yield on the
30-year Treasury bond maturing in No-
vember 2049. For plan years beginning in
January 2020, the weighted average of the
rates of interest on 30-year Treasury securi-
ties and the permissible range of rates used
to calculate current liability are as follows:
Treasury Weighted Average Rates
For Plan Years
Beginning In
30-Year Treasury
Weighted Average
Permissible Range
90% to 105%
January 20202.812.52 to 2.95
1
Pursuant to § 433(h)(3)(A), the 3
rd
segment rate determined under § 430(h)(2)(C) is used to determine the current liability of a CSEC plan (which is used to calculate the minimum amount
of the full funding limitation under § 433(c)(7)(C)).

Bulletin No. 2020–7 413 February 10, 2020
MINIMUM PRESENT VALUE
SEGMENT RATES
In general, the applicable interest rates
under § 417(e)(3)(D) are segment rates
computed without regard to a 24-month
average. Notice 2007-81 provides guide-
lines for determining the minimum pres-
ent value segment rates. Pursuant to that
notice, the minimum present value seg-
ment rates determined for December 2019
are as follows:
Minimum Present Value Segment Rates
Month First Segment Second Segment Third Segment
December 2.03 3.06 3.59
DRAFTING INFORMATION
The principal author of this notice is
Tom Morgan of the Office of the Asso-
ciate Chief Counsel (Employee Benefits,
Exempt Organizations, and Employment
Taxes). However, other personnel from
the IRS participated in the development
of this guidance. For further information
regarding this notice, contact Mr. Morgan
at 202-317-6700 or Paul Stern at 202-317-
8702 (not toll-free numbers).

February 10, 2020 414 Bulletin No. 2020–7
MaturityYieldMaturity
Table 2019-12
Monthly Yield Curve for December 2019
Derived from December 2019 Data
YieldMaturityYieldMaturityYieldMaturityYield
0.51.8520.53.4640.53.6160.53.6680.53.69
1.01.9121.03.4641.03.6161.03.6681.03.69
1.51.9621.53.4741.53.6161.53.6681.53.69
2.01.9922.03.4842.03.6162.03.6682.03.69
2.52.0222.53.4842.53.6162.53.6682.53.69
3.02.0423.03.4943.03.6263.03.6783.03.69
3.52.0723.53.4943.53.6263.53.6783.53.69
4.02.1024.03.5044.03.6264.03.6784.03.69
4.52.1424.53.5044.53.6264.53.6784.53.69
5.02.2025.03.5145.03.6265.03.6785.03.69
5.52.2625.53.5145.53.6265.53.6785.53.69
6.02.3326.03.5246.03.6366.03.6786.03.69
6.52.4026.53.5246.53.6366.5
3.6786.53.69
7.02.4827.03.5247.03.6367.03.6787.03.70
7.52.5627.53.5347.53.6367.53.6787.53.70
8.02.6428.03.5348.03.6368.03.6788.03.70
8.52.7228.53.5448.53.6368.53.6788.53.70
9.02.7929.03.5449.03.6469.03.6889.03.70
9.52.8629.53.5449.53.6469.53.6889.53.70
10.02.9230.03.5550.03.6470.03.6890.03.70
10.52.9830.53.5550.53.6470.53.6890.53.70
11.03.0431.03.5651.03.6471.03.6891.03.70
11.53.0931.53.5651.53.6471.53.6891.53.70
12.03.1332.03.5652.03.6472.03.6892.03.70
12.53.1832.53.5752.53.6472.53.6892.53.70
13.03.2133.03.5753.03.6573.03.6893.03.70
13.5
3.2533.53.5753.53.6573.53.6893.53.70
14.03.2834.03.5754.03.6574.03.6894.03.70
14.53.3034.53.5854.53.6574.53.6894.53.70
15.03.3235.03.5855.03.6575.03.6895.03.70
15.53.3435.53.5855.53.6575.53.6895.53.70
16.03.3636.03.5956.03.6576.03.6896.03.70
16.53.3836.53.5956.53.6576.53.6896.53.70
17.03.3937.03.5957.03.6577.03.6997.03.70
17.53.4037.53.5957.53.6677.53.6997.53.70
18.03.4138.03.6058.03.6678.03.6998.03.70
18.53.4238.53.6058.53.6678.53.6998.53.70
19.03.4339.03.6059.03.6679.03.6999.03.70
19.53.4439.53.6059.53.6679.53.6999.53.71
20.03.4540.03.6060.0
3.6680.03.69100.03.71

Bulletin No. 2020–7 415 February 10, 2020
Biodiesel and Alternative
Fuels; Claims for 2018-
2019
Notice 2020-8
SECTION 1. PURPOSE
This notice provides rules claimants
must follow to make a one-time claim for
payment of the credits and payments al-
lowable under §§ 6426(c), 6426(d), and
6427(e) of the Internal Revenue Code
(Code) for biodiesel (including renewable
diesel) mixtures and alternative fuels sold
or used during calendar years 2018 and
2019 (collectively, 2018 - 2019 biodies-
el and alternative fuel incentives). These
rules are prescribed under §§ 121 and 133
of the Taxpayer Certainty and Disaster
Tax Relief Act of 2019, enacted as part of
the Further Consolidated Appropriations
Act, 2020, Division Q, Pub. L. 116-94
(December 20, 2019) (the Act). This no-
tice also provides instructions for how a
claimant may offset its § 4081 liability
with the § 6426(e) alternative fuel mixture
credit for 2018 and 2019, and provides in-
structions for how a claimant may make
certain income tax claims for biodiesel,
second generation biofuel, and alternative
fuel.
SECTION 2. BACKGROUND
Section 6426(a) and (c) allows a blend-
er of a biodiesel (including renewable die-
sel) mixture to claim a $1.00 per gallon
credit against its tax liability under § 4081
(relating to the tax imposed on taxable
fuel). Similarly, § 6426(a) and (e) allows
a blender of an alternative fuel mixture to
claim a credit against its tax liability under
§ 4081, except that the credit amount is
$0.50 per gallon. Section 6426(a) and (d)
allows a person that sells or uses alterna-
tive fuel as a fuel in a motor vehicle or
motorboat or in aviation to claim a $0.50
per gallon credit against the claimant’s
tax liability under § 4041 (relating to the
tax imposed on diesel fuel and alternative
fuel).
Blenders of biodiesel (including renew-
able diesel) mixtures and persons that sell
or use alternative fuel as a fuel in a motor
vehicle or motorboat or in aviation may
claim any excess credit under § 6426(c)
or (d) as a payment under § 6427(e) or
as a refundable income tax credit under §
34. As an alternative to the payments and
credits allowed under §§ 6426, 6427, and
34, a blender of a biodiesel (including re-
newable diesel) mixture may claim a non-
refundable income tax credit under § 40A
(see Section 8 of this notice for additional
information). For federal income tax pur-
poses, a claimant reduces its § 4081 excise
tax liability by the amount of excise tax
credit allowable under § 6426(c) and its
§ 4041 excise tax liability by the amount
of excise tax credit allowable under §
6426(d) in determining its deduction for
those excise taxes or its cost of goods sold
deduction attributable to those excise tax-
es. See Notice 2015–56, 2015–35 I.R.B.
235.
The Code provisions that authorize
these credits and payments expired for
sales and uses after December 31, 2017.
Sections 121(b)(1)(A) and (B) and 133(a)
(1) and (2) of the Act reinstate the bio-
diesel mixture credit for sales and uses
through 2022, and the alternative fuel
credit and alternative fuel mixture credit
for sales and uses through 2020. Sections
121(b)(3) and 133(a)(3) of the Act direct
the Secretary of the Treasury or the Sec-
retary’s delegate (Secretary) to issue guid-
ance providing for a one-time submission
of claims under §§ 6426(c), 6426(d), and
6427(e) for 2018 and 2019. The Act re-
quires the guidance to provide for a 180-
day period for the submission of claims
(in such manner as prescribed by the Sec-
retary) to begin no later than 30 days after
the guidance is issued.
Sections 121(a) and 122 of the Act
also reinstate Code provisions authoriz-
ing credits for biodiesel and renewable
diesel used as fuel (§ 40A), and second
generation biofuel producers (§ 40(b)(6)),
respectively. The credit for biodiesel and
renewable diesel used as fuel expired for
sales and uses after December 31, 2017,
and was reinstated by the Act for sales
and uses through 2022. The second gen-
eration biofuel producer credit expired for
production after December 31, 2017, and
was reinstated by the Act for production
through 2020.
SECTION 3. SCOPE
This notice provides the procedure for
claiming 2018 - 2019 biodiesel and alter-
native fuel incentives. Claimants that filed
“protective” or anticipatory claims for
biodiesel and alternative fuel incentives
covered by this notice should refile their
claims pursuant to the procedures provid-
ed in this notice. The Internal Revenue
Service (IRS) will not treat as perfected
any such protective or anticipatory claims
previously filed with the IRS that are not
timely supplemented in accordance with
these procedures.
Except as provided by this notice, the
rules in Notice 2005–4, 2005–1 C.B. 289
(providing guidance on alcohol and bio-
diesel fuel tax credits and payments), as
modified by Notice 2005–62, 2005–2
C.B. 443 (providing guidance for certain
biodiesel issues not addressed in Notice
2005–4), and Notice 2006–92, 2006–2
C.B. 774 (providing guidance on alterna-
tive fuel and alternative fuel mixture tax-
es, credits, and payments), apply to claims
for 2018 - 2019 biodiesel and alternative
fuel incentives.
This notice also prescribes a method
for submitting claims for the alternative
fuel mixture credit relating to alternative
fuel mixtures sold or used during 2018
and/or 2019.
This notice does not affect the income
tax claims described in Section 8 of this
notice.
SECTION 4. HOW TO MAKE A
ONE-TIME CLAIM FOR CREDITS
AND PAYMENTS ALLOWABLE
UNDER §§ 6426(c), 6426(d), AND
6427(e)
Claimants must follow the procedures
listed below to make a one-time claim un-
der this notice for credits and payments
allowable under §§ 6426(c), 6426(d), and
6427(e), relating to 2018 - 2019 biodiesel
and alternative fuel incentives.
• Claimants must submit claims for
2018 - 2019 biodiesel and alternative
fuel incentives on Form 8849, Claim
for Refund of Excise Taxes.
• Claimants must include Schedule
3 (Form 8849), Certain Fuel Mix-
tures and the Alternative Fuel Cred-

February 10, 2020 416 Bulletin No. 2020–7
it, with their submission and enter
any amounts for 2018 - 2019 bio-
diesel and alternative fuel incentives
on Line 2 and Line 3 of Schedule 3
(Form 8849), as appropriate.
• Each claimant must claim all 2018
- 2019 biodiesel and alternative fuel
incentives for which the claimant is
eligible on a single Form 8849 and
Schedule 3 (Form 8849).
• Claimants must follow the instruc-
tions to Form 8849 and Schedule 3
(Form 8849) when preparing their
submission to the extent that those
instructions do not conflict with this
notice.
• Each claimant must mail its submis-
sion to the address listed for Schedule
3 (Form 8849) in the instructions to
Form 8849 under Where to File. Al-
ternatively, claimants may electroni-
cally file Form 8849 and Schedule 3
(Form 8849) through any electronic
return originator, transmitter, or in-
termediate service provider partici-
pating in the IRS e-file program for
excise taxes.
• Claimants are reminded that they
must be registered by the IRS in order
to make alternative fuel claims under
§§ 6426(d) and 6427(e). Claimants
that are not already registered by the
IRS may apply to the IRS for registra-
tion by filing Form 637, Application
for Registration (For Certain Excise
Tax Activities), in accordance with
the instructions to Form 637.
• Claimants must have and maintain
adequate records to substantiate eli-
gibility for the 2018 - 2019 biodiesel
and alternative fuel incentives.
SECTION 5. CLAIM PERIOD AND
DUE DATE FOR BIODIESEL AND
ALTERNATIVE FUEL INCENTIVES
The 180-day claim period for 2018
- 2019 biodiesel and alternative fuel in-
centives begins on February 14, 2020.
Consequently, all claims for 2018 - 2019
biodiesel and alternative fuel incentives
must be filed on or before August 11,
2020. The IRS will not process claims
filed after that date. The IRS will deem
any claim that is submitted by the method
prescribed in this notice before February
14, 2020, as filed on February 14, 2020.
If the IRS does not pay a 2018 - 2019
biodiesel and alternative fuel incentives
claim that conforms to this notice within
60 days after the claim is received, the
IRS will pay the claim with interest from
the claim filing date (February 14, 2020,
in the case of claims submitted before
that date) using the overpayment rate and
method provided by § 6621 of the Code.
SECTION 6. HOW TO MAKE AN
ALTERNATIVE FUEL MIXTURE
CLAIM UNDER § 6426(e)
Claimants must follow the procedures
listed below to claim the alternative fuel
mixture credit allowable under § 6426(e)
for 2018 and/or 2019.
• For 2018 and 2019, all alternative
fuel mixture credit claims allowed
by § 6426(e) must be made on Form
720X, Amended Quarterly Federal
Excise Tax Return.
• Claimants must file one Form 720X
for 2018 claims and a separate Form
720X for 2019 claims.
• Claimants must enter amounts for
2018 or 2019 alternative fuel mixture
credit claims on Line 2 of Form 720X
by quarter. In addition, on Line 6 of
Form 720X, claimants must identi-
fy, by quarter, the type of alternative
fuel(s) in the mixture(s) for which a
credit is being claimed and the num-
ber of gallons of alternative fuel(s)
used by the claimant in producing the
mixture(s). This information is the
same information claimants are re-
quired to report on Line 13 of Sched-
ule C to Form 720, Quarterly Federal
Excise Tax Return.
• Claimants must follow the instruc-
tions to Form 720X when preparing
their submission(s) to the extent that
those instructions do not conflict with
this notice.
• Each claimant must mail its submis-
sion(s) to the address listed for Form
720X in the instructions under Where
to File.
• Claimants must be registered by the
IRS in order to make alternative fuel
mixture credit claims under § 6426(e).
Claimants that are not already reg-
istered by the IRS may apply to the
IRS for registration by filing Form
637, Application for Registration
(For Certain Excise Tax Activities),
in accordance with the instructions to
Form 637.
• Claimants are reminded that § 6426(e)
alternative fuel mixture credit claims
for any quarter may not exceed the
claimant’s § 4081 liability incurred in
the quarter for which the credit is be-
ing claimed. Further, § 6430 provides
in part that the alternative fuel mix-
ture credit shall not be applied against
tax imposed at the Leaking Under-
ground Storage Tank Trust Fund fi-
nancing rate.
• Claimants must have and maintain
adequate records to substantiate eligi-
bility for the 2018 or 2019 § 6426(e)
credit.
• Failure to file a Form 720, Quarterly
Federal Excise Tax Return, and remit
the § 4081 tax due for any quarter
in 2018 or 2019 before submitting a
claim allowed by § 6426(e) on Form
720X will result in delayed process-
ing of the claim (and delayed pay-
ment of refunds resulting from the
credit) or denial of the claim.
• Failure to follow the claim procedure
in this section will result in delayed
processing or denial of claim(s).
SECTION 7. CLAIM PERIOD AND
DUE DATE FOR ALTERNATIVE
FUEL MIXTURE CREDITS
The claim period for 2018 or 2019 al-
ternative fuel mixture credit claims begins
on February 14, 2020. The IRS will deem
any claim that is submitted by the method
prescribed in section 6 of this notice be-
fore February 14, 2020, as filed on Feb-
ruary 14, 2020. Generally, claims for the
§ 6426(e) alternative fuel mixture credit
must be made within three years from
the time the return was filed or two years
from the time the tax was paid, whichever
is later.
SECTION 8. CLAIMS NOT
AFFECTED BY THIS NOTICE
This notice does not affect 2018 or 2019
claims for the nonrefundable income tax
credit under § 40(b)(6) for second gener-
ation biofuel producers. Taxpayers should
continue to submit these claims separately
on, and in accordance with, Form 6478,

Bulletin No. 2020–7 417 February 10, 2020
Biofuel Producer Credit. A taxpayer must
submit Form 6478 with its income tax re-
turn in accordance with the instructions to
its income tax return form. This notice also
does not affect 2018 or 2019 claims for
the nonrefundable income tax credits un-
der § 40A(b)(1) for biodiesel mixtures, §
40A(b)(2) for biodiesel (including renew-
able diesel), or § 40A(b)(4) for the small
agri-biodiesel producer credit. Taxpayers
should continue to submit these claims sep-
arately on, and in accordance with, Form
8864, Biodiesel and Renewable Diesel Fu-
els Credit. A taxpayer must submit Form
8864 with its income tax return in accor-
dance with the instructions to its income
tax return form. Taxpayers are reminded
that under § 40A(c), credits allowable un-
der § 40A must be reduced to the extent
that any benefit is claimed under §§ 6426
and 6427 with respect to the same biodiesel
(including renewable diesel).
Similarly, this notice does not affect
2018 or 2019 claims for the refundable
income tax credit under § 34 for biodies-
el mixtures or alternative fuel. Taxpayers
should continue to submit these claims
separately on, and in accordance with,
Form 4136, Credit for Federal Tax Paid on
Fuels. A taxpayer must submit Form 4136
with its income tax return in accordance
with the instructions to its income tax re-
turn form. Taxpayers are reminded that
under § 34(b), credits are not allowed un-
der § 34 for any amount properly payable
under § 6427 and claimed in a timely filed
claim. For this purpose, the IRS will treat
as timely filed any claim submitted for
amounts payable under § 6427 that con-
forms to the rules provided in this notice.
SECTION 9. DRAFTING
INFORMATION
The principal author of this notice is
Natalie A. Payne of the Office of Associ-
ate Chief Counsel (Passthroughs & Spe-
cial Industries). For further information
regarding this notice contact Ms. Payne at
(202) 317-6855 (not a toll-free number).
For further information regarding the in-
come tax treatment of the 2018 - 2019
biodiesel and alternative fuel incentives,
please contact Angella Warren at (202)
317-4718 (not a toll-free number).
Credit for Indian Coal
Production and Inflation
Adjustment Factor for
Calendar Years 2018 and
2019
Notice 2020-9
This notice publishes the inflation ad-
justment factor for calendar years 2018
and 2019 for the Indian coal production
credit under section 45 of the Internal
Revenue Code. The 2018 inflation ad-
justment factor is used in determining
the availability of the credit and applies
to calendar year 2018 sales of Indian
coal produced in the United States or a
possession thereof. The 2019 inflation
adjustment factor is used in determining
the availability of the credit and applies
to calendar year 2019 sales of Indian
coal produced in the United States or a
possession thereof. The inflation adjust-
ment factor for Indian coal for calendar
years 2018 and 2019 was published in
the Federal Register on January 21, 2020.
Section 128 of Division Q of the Further
Consolidated Appropriations Act, 2020
(Pub. L. No. 116-94) extends the cred-
it period for the Indian coal production
credit from a 12-year period beginning
on January 1, 2006, to a 15-year period
beginning on January 1, 2006. This pro-
vision is effective for coal produced in
the United States or a possession thereof
after December 31, 2017.
BACKGROUND
For calendar years 2018 and 2019,
section 45(e)(10)(A) provides in the case
of a producer of Indian coal, the credit
determined under section 45 for any tax-
able year is an amount equal to the ap-
plicable dollar amount per ton of Indian
coal (i) produced by the taxpayer at an
Indian coal production facility during
the 15-year period beginning on Janu-
ary 1, 2006, and (ii) sold by the taxpayer
(I) to an unrelated person, and (II) during
such 15-year period and such taxable
year.
Section 45(e)(10)(B)(i) defines “appli-
cable dollar amount” for any taxable year
as (I) $1.50 in the case of calendar years
2006 through 2009, and (II) $2.00 in the
case of calendar years beginning after
2009.
Section 45(d)(10) defines “Indian coal
production facility” as a facility that pro-
duces Indian coal. Section 45(c)(9) de-
fines “Indian coal” as coal which is pro-
duced from coal reserves which, on June
14, 2005 – (i) were owned by an Indian
tribe, or (ii) were held in trust by the Unit-
ed States for the benefit of an Indian tribe
or its members.
Section 45(e)(2)(B) defines the infla-
tion adjustment factor for a calendar year
as a fraction the numerator of which is the
GDP implicit price deflator for the pre-
ceding calendar year and the denominator
of which is the GDP implicit price defla-
tor for the calendar year 1992. The term
“GDP implicit price deflator” means the
most recent revision of the implicit price
deflator for the gross domestic product as
computed and published by the Depart-
ment of Commerce before March 15 of
the calendar year.
Under section 45(e)(10)(B)(ii), in the
case of any calendar year after 2006,
each of the dollar amounts under sec-
tion 45(e)(10)(B)(i) shall be equal to the
product of such dollar amount and the
inflation adjustment factor determined
under section 45(e)(2)(B) for the calen-
dar year, except that section 45(e)(2)(B)
shall be applied by substituting 2005 for
1992.
INFLATION ADJUSTMENT
FACTOR
The inflation adjustment factor for cal-
endar year 2018 for Indian coal produc-
tion is 1.2330. The inflation adjustment
factor for calendar year 2019 for Indian
coal is 1.2627.
CREDIT AMOUNT FOR INDIAN
COAL PRODUCTION
The credit for Indian coal production
for calendar year 2018 under section 45(e)
(10)(B) is $2.466 per ton on the sale of
Indian coal. The credit for Indian coal
production for calendar year 2019 under
section 45(e)(10)(B) is $2.525 per ton on
the sale of Indian coal.

February 10, 2020 418 Bulletin No. 2020–7
DRAFTING AND CONTACT
INFORMATION
The principal author of this notice
is Charles Hyde of the Office of Asso-
ciate Chief Counsel (Passthroughs &
Special Industries). For further infor-
mation regarding this notice contact Mr.
Hyde at (202) 317-6853 (not a toll-free
number).

Bulletin No. 2020–7 i February 10, 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.

February 10, 2020 ii Bulletin No. 2020–7
Numerical Finding List
1
Bulletin 2020–7
Announcements:
2020-1, 2020-5 I.R.B. 552
Notices:
2020-1, 2020-2 I.R.B. 290
2020-2, 2020-3 I.R.B. 327
2020-3, 2020-3 I.R.B. 330
2020-4, 2020-4 I.R.B. 380
2020-5, 2020-4 I.R.B. 380
2020-6, 2020-7 I.R.B. 411
2020-7, 2020-7 I.R.B. 411
2020-8, 2020-7 I.R.B. 415
2020-9, 2020-7 I.R.B. 417
Proposed Regulations:
REG-107431-19, 2020-3 I.R.B. 332
REG-122180-18, 2020-3 I.R.B. 342
REG-100956-19, 2020-4 I.R.B. 383
REG-125710-18, 2020-5 I.R.B. 554
Treasury Decisions:
9886, 2020-2 I.R.B. 285
9887, 2020-3 I.R.B. 302
9888, 2020-3 I.R.B. 306
Revenue Procedures:
2020-1, 2020-01 I.R.B. 1
2020-2, 2020-01 I.R.B. 107
2020-3, 2020-01 I.R.B. 131
2020-4, 2020-01 I.R.B. 148
2020-5, 2020-01 I.R.B. 241
2020-7, 2020-01 I.R.B. 281
2020-9, 2020-02 I.R.B. 294
2020-10, 2020-02 I.R.B. 295
2020-11, 2020-06 I.R.B. 406
Revenue Rulings:
2020-1, 2020-3 I.R.B. 296
2020-2, 2020-3 I.R.B. 298
2020-3, 2020-3 I.R.B. 409
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2018–27 through 2018–52 is in Internal Revenue Bulletin
2018–52, dated December 27, 2018.

Bulletin No. 2020–7 iii February 10, 2020
Finding List of Current Actions on
Previously Published Items
1
Bulletin 2020–7
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2018–27 through 2018–52 is in Internal Revenue Bulletin
2018–52, dated December 27, 2018.

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