Internal Revenue Bulletin 2020-19 (PDF rendition): IRS Announcements

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Bulletin No. 2020–19
May 4, 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.
ADMINISTRATIVE
REG-117138-17, page 796.
This guidance contains proposed amendments to the regu-
lations relating to the imposition of certain user fees on tax
return preparers. Pursuant to the guidelines in OMB Circular
A-25, the IRS has recalculated its cost of providing PTINs
and has determined that the full cost of administering the
PTIN program going forward has been reduced. Therefore,
the regulations propose to reduce the amount of the user
fee to obtain or renew a PTIN from $33 to $21, plus $14.95
payable directly to a third-party contractor.
Rev. Rul. 2020-8, page 775.
This item is a revenue ruling that suspends Rev. Rul. 71-533
entirely and also suspends Rev. Rul. 68-150 in part. The
revenue rulings are suspended pending reconsideration by
the Department of the Treasury and the Internal Revenue
Service of whether the ten-year limitations period provided
by section 6511(d)(3)(A) of the Internal Revenue Code ap-
plies to claims for refund or credit of an overpayment result-
ing from a foreign tax credit carryback arising as a result
of a net operating loss carryback from a subsequent year.
ADMINISTRATIVE, INCOME TAX
Rev. Proc. 2020-28, page 792.
This revenue procedure provides tax return filing procedures
for certain eligible individuals who are not otherwise required
to file 2019 Federal income tax returns to facilitate their re-
ceipt of the allowed economic impact payments provided
by the Coronavirus Aid, Relief, and Economic Security Act
(CARES Act), Public Law 116-136, 134 Stat. 281, 334-7
(March 27, 2020).
EMPLOYEE PLANS
Notice 2020-27, page 778.
This notice sets forth updates on the corporate bond month-
ly yield curve, the corresponding spot segment rates for
April 2020 used under § 417(e)(3)(D), the 24-month average
segment rates applicable for April 2020, and the 30-year
Treasury rates, as reflected by the application of § 430(h)
(2)(C)(iv).
INCOME TAX
Announcement 2020-5, page 796.
The Announcement provides clarity to Connecticut home-
owners who receive financial assistance from the Connecti-
cut Foundation Solutions Indemnity Company, Inc. for the
repair of premature deterioration of the concrete founda-
tions of their homes due to the mineral pyrrhotite.
Notice 2020-28, page 781.
This notice publishes the reference price under section
45K(d)(2)(C) of the Internal Revenue Code for calendar
year 2019. The reference price applies in determining the
amount of the enhanced oil recovery credit under § 43,
the marginal well production credit for qualified crude oil
production under § 45I, and the applicable percentage un-
der § 613A to be used in determining percentage depletion
in the case of oil and natural gas produced from marginal
properties.
Notice 2020-30, page 781.
The notice announces that under § 613A(c)(6)(C) of the In-
ternal Revenue Code, the applicable percentage for purpos-
es of determining percentage depletion on marginal prop-
erties for calendar year 2020 is 15 percent. The format of
the notice is identical to the format of notices previously
published on this issue.
Finding Lists begin on page ii.

Notice 2020-31, page 783.
The notice announces the inflation adjustment factor and
phase-out amount for the enhanced oil recovery credit for
taxable years beginning in the 2020 calendar year. The
notice concludes that because the reference price for the
2019 calendar year ($55.55) exceeds $28 multiplied by the
inflation adjustment factor for the 2019 calendar year ($28
multiplied by 1.7640 = $49.392) by $6.16, the enhanced
oil recovery credit for qualified costs paid or incurred in
2020 is phased out completely.
Rev. Rul. 2020-11, page 776.
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 May 2020.
Rev. Proc. 2020-25, page 785.
This revenue procedure provides guidance allowing a tax-
payer to change its depreciation under section 168 for
certain qualified improvement property. This revenue pro-
cedure also allows a taxpayer to make a late election, or to
revoke or withdraw an election, under § 168(g)(7), (k)(5), (k)
(7) or (k)(10) of the Code for certain years.

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.
May 4, 2020 Bulletin No. 2020–19

Part I
Section 6511.—Limitations
on Credit or Refund
26 CFR 301.6511(d)–3: Special rules applicable to
credit against income tax for foreign taxes
Rev. Rul. 2020-8
This revenue ruling suspends Rev. Rul.
71-533, 1971-2 C.B. 413, pending recon-
sideration by the Department of the Trea-
sury (Treasury Department) and the Inter-
nal Revenue Service (Service) of whether
the ten-year limitations period provided
by section 6511(d)(3)(A) of the Internal
Revenue Code (Code) applies to claims
for refund or credit of an overpayment
resulting from a foreign tax credit (FTC)
carryback arising as a result of a net oper-
ating loss (NOL) carryback from a subse-
quent year. As part of the reconsideration
of Rev. Rul. 71-533, Rev. Rul. 68-150,
1968-1 C.B. 564, is also being reconsid-
ered and is suspended in part as discussed
in the “ANALYSIS” section of this ruling.
REVENUE RULING
In Rev. Rul. 71-533, the Service consid-
ered whether the special ten-year period of
limitations provided by section 6511(d)(3)
(A) can apply to claims for refund or credit
of an overpayment resulting from an FTC
carryback that arose as a result of an NOL
carryback from a subsequent year. The tax-
payer incurred an NOL in 1969 that it car-
ried back to 1966, eliminating the taxpayer’s
entire taxable income for 1966. In its orig-
inal 1966 return, the taxpayer had claimed
an FTC for the foreign taxes it had paid that
year. There was no change to the computa-
tion or amount of the creditable foreign tax-
es reported as paid in 1966. When the NOL
carryback eliminated the taxpayer’s taxable
income for 1966, the entire amount of taxes
it paid to foreign countries for that year ex-
ceeded the amount allowable as an FTC for
1966. As a result, the taxpayer carried the
excess FTC back from 1966 to 1964, which
generated an overpayment in that year for
which the taxpayer filed a claim for refund.
The ruling held that the refund claim was
subject to the limitations period provided by
section 6511(d)(3)(A).
In Rev. Rul. 68-150, the Service ad-
dressed the scope of section 6511(d)(3)(A)
and concluded, in relevant part, that it ap-
plied to “claims for credit or refund based
on the correction of mathematical errors in
the computation of taxes subject to the pro-
visions of that section... or any other ad-
justments to the size of the foreign tax cred-
it, including those due to the payment of
additional foreign taxes” (emphasis added).
L AW
Section 6511(d)(3)(A) provides, in
part, that when “the claim for credit or
refund relates to an overpayment attribut-
able to any taxes paid or accrued to any
foreign country,” the limitations period is
ten years from the due date of the return
for the year in which the foreign taxes
were paid or accrued.
Section 6511(d)(2)(A) provides, in
part, that when “the claim for credit or
refund relates to an overpayment attribut-
able to a net operating loss carryback or
a capital loss carryback,” the limitations
period is three years from the due date of
the return for the year of the net operating
loss or net capital loss that results in such
carryback.
ANALYSIS
The Treasury Department and the Ser-
vice are reconsidering whether the ten-
year limitations period provided by sec-
tion 6511(d)(3)(A) applies to the refund
claim at issue in Rev. Rul. 71-533. Under
the facts of Rev. Rul. 71-533, there would
not have been any excess FTC available
to be carried back from 1966 to generate
an overpayment in 1964 if the taxpayer
had not first carried the NOL back from
1969 to 1966. As is the case with FTCs,
claims for credit or refund that relate to
overpayments attributable to NOL carry-
backs have a special limitations provision
in section 6511(d)(2)(A) of the Code. The
1964 overpayment resulted from the inter-
action of the NOL carryback from 1969
and FTC carryback from 1966, but Rev.
Rul. 71-533 does not consider whether
the three-year limitations period provid-
ed by section 6511(d)(2)(A) of the Code
should apply to the refund. Whether sec-
tion 6511(d)(2)(A) should apply to the
refund claim at issue in Rev. Rul. 71-533
instead of section 6511(d)(3) is an issue
that is being reconsidered by the Treasury
Department and the Service.
Accordingly, Rev. Rul. 71-533 is sus-
pended pending reconsideration by the
Treasury Department and the Service.
As part of its reconsideration of Rev.
Rul. 71-533, the Treasury Department and
Service are also reconsidering the portion
of Rev. Rul. 68-150, 1968-1 C.B. 564, that
refers to “the correction of mathematical
errors in the computation of taxes subject
to the provisions of that section... or any
other adjustments to the size of the foreign
tax credit.” Therefore, this portion of Rev.
Rul. 68-150 is suspended, with respect to
adjustments that arise from a change to the
FTC limitation, including as the result of
the correction of mathematical errors or
the application of an NOL carryback.
PROSPECTIVE APPLICATION
While the Treasury Department and
Service are reconsidering whether section
6511(d)(3)(A) applies to claims for refund
or credit of an overpayment resulting from
an FTC carryback arising as a result of an
NOL carryback from a subsequent year, the
suspension of Rev. Rul. 71-533 and the par-
tial suspension of Rev. Rul. 68-150 will not
be applied adversely to a taxpayer that filed
or files a claim for credit or refund within
the limitations period of section 6511(d)(3)
of the Code in accordance with Rev. Rul.
71-533 and Rev. Rul. 68-150.
EFFECT ON OTHER REVENUE
RULINGS
Rev. Rul. 71-533 is suspended, and
Rev. Rul. 68-150 is suspended in part.
DRAFTING INFORMATION
The principal author of this revenue
ruling is Marshall French of the Office of
the Associate Chief Counsel (Procedure
& Administration). For further informa-
tion regarding this revenue ruling, contact
Marshall French at (202) 317-6845 (not a
toll-free number).
Bulletin No. 2020–19 775 May 4, 2020

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. 2020-11
This revenue ruling provides vari-
ous prescribed rates for federal income
tax purposes for May 2020 (the current
month). Table 1 contains the short-
term, mid-term, and long-term applica-
ble federal rates (AFR) for the current
month for purposes of section 1274(d)
of the Internal Revenue Code. Table 2
contains the short-term, mid-term, and
long-term adjusted applicable federal
rates (adjusted AFR) for the current
month for purposes of section 1288(b).
Table 3 sets forth the adjusted feder-
al long-term rate and the long-term
tax-exempt rate described in section
382(f). Table 4 contains the appropri-
ate percentages for determining the
low-income housing credit described in
section 42(b)(1) for buildings placed in
service during the current month. How-
ever, under section 42(b)(2), the appli-
cable percentage for non-federally sub-
sidized new buildings placed in service
after July 30, 2008, shall not be less
than 9%. Finally, Table 5 contains the
federal rate for determining 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. 2020-11 TABLE 1
Applicable Federal Rates (AFR) for May 2020
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term
AFR0.25%0.25%0.25%0.25%
110% AFR0.28%0.28%0.28%0.28%
120% AFR0.30%0.30%0.30%0.30%
130% AFR0.33%0.33%0.33%0.33%
Mid-term
AFR0.58%0.58%0.58%0.58%
110% AFR0.64%0.64%0.64%0.64%
120% AFR0.70%0.70%0.70%0.70%
130% AFR0.75%0.75%0.75%0.75%
150% AFR0.87%0.87%0.87%0.87%
175% AFR1.02%1.02%1.02%1.02%
Long-term
AFR1.15%1.15%1.15%1.15%
110% AFR1.27%1.27%1.27%1.27%
120% AFR1.38%1.38%1.38%1.38%
130% AFR1.51%1.50%1.50%1.50%
REV. RUL. 2020-11 TABLE 2
Adjusted AFR for May 2020
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term adjusted AFR0.19%0.19%0.19%0.19%
Mid-term adjusted AFR0.44%0.44%0.44%0.44%
Long-term adjusted AFR0.87%0.87%0.87%0.87%
May 4, 2020 776 Bulletin No. 2020–19

Bulletin No. 2020–19 777 May 4, 2020
REV. RUL. 2020-11 TABLE 3
Rates Under Section 382 for May 2020
Adjusted federal long-term rate for the current month.87%
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.)
1.47%
REV. RUL. 2020-11 TABLE 4
Appropriate Percentages Under Section 42(b)(1) for May 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 credit7.20%
Appropriate percentage for the 30% present value low-income housing credit 3.08%
REV. RUL. 2020-11 TABLE 5
Rate Under Section 7520 for May 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
.8%
Section 42.—Low-Income
Housing Credit
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
May 2020. See Rev. Rul. 2020-11, page 776.
Section 280G.—Golden
Parachute Payments
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
May 2020. See Rev. Rul. 2020-11, page 776.
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 May 2020. See Rev.
Rul. 2020-11, page 776.
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
May 2020. See Rev. Rul. 2020-11, page 776.
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 May 2020. See Rev. Rul.
2020-11, page 776.
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
May 2020. See Rev. Rul. 2020-11, page 776.

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
May 2020. See Rev. Rul. 2020-11, page 776.
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
May 2020. See Rev. Rul. 2020-11, page 776.
Section 7520.—Valuation
Tables
The applicable federal mid-term rates are set
forth for the month of May 2020. See Rev. Rul.
2020-11, page 776.
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
May 2020. See Rev. Rul. 2020-11, page 776.

May 4, 2020 778 Bulletin No. 2020–19
Part III
Update for Weighted
Average Interest Rates,
Yield Curves, and Segment
Rates
Notice 2020-27
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
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 seg-
ment rates used to compute the target nor-
mal cost and the funding target. Consistent
with the methodology specified in Notice
2007-81, the monthly corporate bond
yield curve derived from March 2020 data
is in Table 2020-3 at the end of this notice.
The spot first, second, and third segment
rates for the month of March 2020 are, re-
spectively, 2.22, 3.08, and 3.73
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 appli-
cable minimum and maximum percentag-
es of the corresponding 25-year average
segment rates. For plan years beginning
before 2021, the applicable minimum per-
centage is 90% and the applicable maxi-
mum percentage is 110%. The 25-year
average segment rates for plan years be-
ginning in 2019 and 2020 were published
in 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 April
2020 without adjustment for the 25-year
average segment rate limits are as fol-
lows:
24-Month Average Segment Rates Without 25-Year Average Adjustment
Applicable Month First Segment Second Segment Third Segment
April 2020 2.68 3.71 4.19
Based on § 430(h)(2)(C)(iv), the
24-month averages applicable for April
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 Month
First
Segment
Second
Segment
Third
Segment
2019April 20203.745.356.11
2020April 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.
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. 2020–19 779 May 4, 2020
383, provides guidelines for determining
the weighted average interest rate. The
rate of interest on 30-year Treasury secu-
rities for March 2020 is 1.46 percent. The
Service determined this rate as the average
of the daily determinations of yield on the
30-year Treasury bond maturing in Febru-
ary 2050. For plan years beginning in April
2020, the weighted average of the rates of
interest on 30-year Treasury securities and
the permissible range of rates used to cal-
culate current liability are as follows:
Treasury Weighted Average Rates
For Plan Years
Beginning In
30-Year Treasury
Weighted Average
Permissible Range
90% to 105%
April 20202.702.43 to 2.83
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 March 2020 are
as follows:
Minimum Present Value Segment Rates
Month First Segment Second Segment Third Segment
March 2020 2.22 3.08 3.73
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).

May 4, 2020 780 Bulletin No. 2020–19
Table 2020-3
Monthly Yield Curve for March 2020
Derived from March 2020 Data
MaturityYieldMaturityYieldMaturityYieldMaturityYieldMaturityYield
0.52.1520.53.5140.53.7660.53.8480.53.88
1.02.1721.03.5341.03.7661.03.8481.03.89
1.52.1921.53.5441.53.7661.53.8481.53.89
2.02.2022.03.5542.03.7762.03.8582.03.89
2.52.2122.53.5642.53.7762.53.8582.53.89
3.02.2223.03.5743.03.7763.03.8583.03.89
3.52.2223.53.5743.53.7863.53.8583.53.89
4.02.2424.03.5844.03.7864.03.8584.03.89
4.52.2724.53.5944.53.7864.53.8584.53.89
5.02.3125.03.6045.03.7865.03.8585.03.89
5.52.3625.53.6145.53.7965.53.8685.53.89
6.02.4126.03.6246.03.7966.03.8686.03.89
6.52.4726.53.6246.53.7966.53.8686.53.89
7.02.5427.03.6347.03.7967.03.8687.03.89
7.52.6027.53.6447.53.8067.53.8687.53.89
8.02.6728.03.6448.03.8068.03.8688.03.90
8.52.7428.53.6548.53.8068.53.8688.53.90
9.02.8029.03.6649.03.8069.03.8689.03.90
9.52.8629.53.6649.53.8069.53.8689.53.90
10.02.9230.03.6750.03.8170.03.8790.03.90
10.52.9830.53.6750.53.8170.53.8790.53.90
11.03.0331.03.6851.03.8171.03.8791.03.90
11.53.0831.53.6851.53.8171.53.8791.53.90
12.03.1232.03.6952.03.8172.03.8792.03.90
12.53.1632.53.6952.53.8272.53.8792.53.90
13.03.2033.03.7053.03.8273.03.8793.03.90
13.53.2433.53.7053.53.8273.53.8793.53.90
14.03.2734.03.7154.03.8274.03.8794.03.90
14.53.3034.53.7154.53.8274.53.8794.53.90
15.03.3235.03.7255.03.8275.03.8895.03.90
15.53.3535.53.7255.53.8375.53.8895.53.90
16.03.3736.03.7356.03.8376.03.8896.03.91
16.53.3936.53.7356.53.8376.53.8896.53.91
17.03.4137.03.7357.03.8377.03.8897.03.91
17.53.4337.53.7457.53.8377.53.8897.53.91
18.03.4438.03.7458.03.8378.03.8898.03.91
18.53.4638.53.7458.53.8478.53.8898.53.91
19.03.4739.03.7559.03.8479.03.8899.03.91
19.53.4939.53.7559.53.8479.53.8899.53.91
20.03.5040.03.7560.03.8480.03.88100.03.91

Bulletin No. 2020–19 781 May 4, 2020
2019 Section 45K(d)(2)(C)
Reference Price
Notice 2020-28
SECTION 1. PURPOSE
This notice publishes the reference
price under § 45K(d)(2)(C) of the In-
ternal Revenue Code for calendar year
2019. The credit period for the noncon-
ventional source production credit under
§ 45K ended on December 31, 2013, for
facilities producing coke or coke gas
(other than from petroleum based prod-
ucts). However, the reference price con-
tinues to apply in determining the amount
of the enhanced oil recovery credit under
§ 43, the marginal well production cred-
it for qualified crude oil production un-
der § 45I, and the applicable percentage
under § 613A to be used in determining
percentage depletion in the case of oil
and natural gas produced from marginal
properties.
SECTION 2. BACKGROUND
Section 45K(d)(2)(C) provides that the
term “reference price” means, with respect
to a calendar year, the Secretary’s estimate
of the annual average wellhead price per
barrel for all domestic crude oil the price
of which is not subject to regulation by the
United States.
Section 43(a) provides that, for pur-
poses of § 38, the enhanced oil recovery
credit for any taxable year is an amount
equal to 15 percent of the taxpayer’s qual-
ified enhanced oil recovery costs for such
taxable year.
Section 43(b)(1) provides that the
amount of enhanced oil recovery credit
for any taxable year shall be reduced by
an amount which bears the same ratio to
the amount of such credit (determined
without regard to this paragraph) as -
(A) the amount by which the reference
price for the calendar year preceding the
calendar year in which the taxable year
begins exceeds $28, bears to (B) $6.
Section 43(b)(2) provides that the term
“reference price” means, with respect
to any calendar year, the reference price
determined for such calendar year under
§ 45K(d)(2)(C).
Section 45I(a) provides that, for pur-
poses of § 38, the marginal well pro-
duction credit for any taxable year is an
amount equal to the product of the credit
amount and the qualified crude oil pro-
duction and the qualified natural gas pro-
duction which is attributable to the tax-
payer.
Section 45I(b)(1) provides that for
crude oil production, the amount of the
marginal well production credit is $3 per
barrel of qualified crude oil production.
Section 45I(b)(2) provides that the
$3 amount under § 45I(b)(1) shall be
reduced (but not below zero) by an
amount which bears the same ratio to
such amount (determined without regard
to this paragraph) as – (i) the excess (if
any) of the applicable reference price
over $15, bears to (ii) $3. The applica-
ble reference price for a taxable year is
the reference price of the calendar year
preceding the calendar year in which the
taxable year begins.
Section 45I(b)(2)(C) provides that for
qualified crude oil production the term
“reference price” means, with respect to
any calendar year, the reference price de-
termined under § 45K(d)(2)(C).
Section 613A(c)(6)(A) provides, in
general, that the allowance for depletion
under § 611 shall be computed in accor-
dance with § 613 with respect to - (i) so
much of the taxpayer’s average daily mar-
ginal production of domestic crude oil as
does not exceed the taxpayer’s depletable
oil quantity (determined without regard
to paragraph (3)(A)(ii)), and (ii) so much
of the taxpayer’s average daily margin-
al production of domestic natural gas as
does not exceed the taxpayer’s depletable
natural gas quantity (determined without
regard to paragraph (3)(A)(ii)), and the
applicable percentage shall be deemed to
be specified in subsection (b) of § 613 for
purposes of subsection (a) of that section.
Section 613A(c)(6)(C) provides that
the term “applicable percentage” means
the percentage (not greater than 25 per-
cent) equal to the sum of - (i) 15 percent,
plus (ii) 1 percentage point for each whole
dollar by which $20 exceeds the refer-
ence price for crude oil for the calendar
year preceding the calendar year in which
the taxable year begins. For purposes of
this paragraph, the term “reference price”
means, with respect to any calendar year,
the reference price determined for such
calendar year under § 45K(d)(2)(C).
SECTION 3. REFERENCE PRICE
The reference price under § 45K(d)(2)
(C) for calendar year 2019 is $55.55.
SECTION 4. DRAFTING
INFORMATION
The principal author of this notice
is Christopher F. Price of the Office of
Associate Chief Counsel (Passthroughs
& Special Industries). For further infor-
mation regarding this notice, contact Mr.
Price on (202) 317-6853 (not a toll-free
number).
2020 Marginal Production
Rates
Notice 2020-30
This notice announces the applicable
percentage under § 613A of the Internal
Revenue Code to be used in determining
percentage depletion for marginal proper-
ties for the 2020 calendar year.
Section 613A(c)(6)(C) defines the term
“applicable percentage” for purposes of
determining percentage depletion for oil
and gas produced from marginal prop-
erties. The applicable percentage is the
percentage (not greater than 25 percent)
equal to the sum of 15 percent, plus one
percentage point for each whole dollar
by which $20 exceeds the reference price
(determined under § 45K(d)(2)(C)) for
crude oil for the calendar year preceding
the calendar year in which the taxable year
begins. The reference price determined

May 4, 2020 782 Bulletin No. 2020–19
under § 45K(d)(2)(C) for the 2019 calen-
dar year is $55.55.
The following table contains the appli-
cable percentages for marginal production
for taxable years beginning in calendar
years 1991 through 2020.
Notice 2020-30
APPLICABLE PERCENTAGE FOR MARGINAL PRODUCTION
Calendar Year Applicable Percentage
1991 15 percent
1992 18 percent
1993 19 percent
1994 20 percent
1995 21 percent
1996 20 percent
1997 16 percent
1998 17 percent
1999 24 percent
2000 19 percent
2001 15 percent
2002 15 percent
2003 15 percent
2004 15 percent
2005 15 percent
2006 15 percent
2007 15 percent
2008 15 percent
2009 15 percent
2010 15 percent
2011 15 percent
2012 15 percent
2013 15 percent
2014 15 percent
2015 15 percent
2016 15 percent
2017 15 percent
2018 15 percent
2019 15 percent
2020 15 percent
The principal author of this notice
is Brendan P. Coppinger of the Office of
Associate Chief Counsel (Passthroughs
and Special Industries). For further infor-
mation regarding this notice contact Mr.
Coppinger at (202) 317-6853 (not a toll-
free number).

Bulletin No. 2020–19 783 May 4, 2020
2020 Section 43 Inflation
Adjustment
Notice 2020-31
Section 43(a) provides that for purpos-
es of section 38, the enhanced oil recovery
credit for any taxable year is an amount
equal to 15 percent of the taxpayer’s qual-
ified enhanced oil recovery costs for such
taxable year.
Section 43(b)(1) provides that the
amount of the credit determined under
subsection (a) for any taxable year shall
be reduced by an amount which bears the
same ratio to the amount of such credit
(determined without regard to this para-
graph) as – (A) the amount by which
the reference price for the calendar year
preceding the calendar year in which the
taxable years begins exceeds $28, bears to
(B) $6.
Section 43(b)(3)(B) of the Internal
Revenue Code requires the Secretary to
publish an inflation adjustment factor. The
enhanced oil recovery credit under § 43
for any taxable year is reduced if the “ref-
erence price,” determined under § 45K(d)
(2)(C), for the calendar year preceding the
calendar year in which the taxable year be-
gins is greater than $28 multiplied by the
inflation adjustment factor for that year.
The term “inflation adjustment factor”
means, with respect to any calendar year,
a fraction the numerator of which is the
GNP implicit price deflator for the preced-
ing calendar year and the denominator of
which is the GNP implicit price deflator
for 1990.
Because the reference price for the
2019 calendar year ($55.55) exceeds $28
multiplied by the inflation adjustment fac-
tor for the 2019 calendar year ($28 multi-
plied by 1.7640= $49.392) by $6.16, the
enhanced oil recovery credit for qualified
costs paid or incurred in 2020 is phased
out completely.
Table 1 contains the GNP implicit price
deflator used for the 2020 calendar year,
as well as the previously published GNP
implicit price deflators used for the 1991
through 2019 calendar years.
Notice 2020-31 TABLE 1
GNP IMPLICIT PRICE DEFLATORS
Calendar Year GNP Implicit Price Deflator
1990 112.9 (used for 1991)
1991 117.0 (used for 1992)
1992 120.9 (used for 1993)
1993 124.1 (used for 1994)
1994 126.0 (used for 1995)*
1995 107.5 (used for 1996)
1996 109.7 (used for 1997)**
1997 112.35 (used for 1998)
1998 112.64 (used for 1999)***
1999 104.59 (used for 2000)
2000 106.89 (used for 2001)
2001 109.31 (used for 2002)
2002 110.63 (used for 2003)
2003 105.67 (used for 2004)****
2004 108.23 (used for 2005)
2005 112.129 (used for 2006)
2006 116.036 (used for 2007)
2007 119.656 (used for 2008)
2008 122.407 (used for 2009)
2009 109.764 (used for 2010)*****
2010 110.654 (used for 2011)
2011 113.347 (used for 2012)******
2012 115.387 (used for 2013)
2013 106.710 (used for 2014)*******

May 4, 2020 784 Bulletin No. 2020–19
2014 108.407 (used for 2015)********
2015 109.868 (used for 2016)
2016 111.528 (used for 2017)
2017 113.500 (used for 2018)
2018 110.308 (used for 2019)*********
2019 112.257 (used for 2020)
* Beginning in 1995, the GNP implicit price deflator was rebased relative to 1992. The 1990 GNP implicit price deflator used to
compute the 1996 § 43 inflation adjustment factor is 93.6.
** Beginning in 1997, two digits follow the decimal point in the GNP implicit price
deflator. The 1990 GNP price deflator used to compute the 1998 § 43 inflation adjustment factor is 93.63.
*** Beginning in 1999, the GNP implicit price deflator was rebased relative to 1996. The 1990 GNP implicit price deflator used to
compute the 2000 § 43 inflation adjustment factor is 86.53.
**** Beginning in 2003, the GNP implicit price deflator was rebased, and the 1990 GNP implicit price deflator used to compute the
2004 § 43 inflation adjustment factor is 81.589.
***** Beginning in 2009, the GNP implicit price deflator was rebased, and the 1990 GNP implicit price deflator used to compute the
2010 § 43 inflation adjustment factor is 72.199.
****** Beginning in 2011, the 1990 GNP implicit price deflator used to compute the 2012 § 43 inflation adjustment factor is 72.260.
******* Beginning in 2013, the GNP implicit price deflator was rebased, and the 1990 GNP implicit price deflator used to compute
the 2014 § 43 inflation adjustment factor is 66.803.
******** Beginning in 2014, the 1990 GNP implicit price deflator used to compute the 2015 § 43 inflation adjustment factor is
66.732.
********* Beginning in 2018, the 1990 GNP implicit price deflator used to compute the 2019 § 43 inflation adjustment factor is
63.637.
Table 2 contains the inflation adjust-calendar year as well as the previously beginning in the 1991 through 2019 cal-
ment factor and the phase-out amount published inflation adjustment factors endar years.
for taxable years beginning in the 2020 and phase-out amounts for taxable years
Notice 2020-31 TABLE 2
INFLATION ADJUSTMENT FACTORS AND
PHASE-OUT AMOUNTS
Calendar Year
1991
Inflation Adjustment Factor
1.0000
Phase-out Amount
0
19921.03630
19931.07080
19941.09920
19951.11600
19961.14850
19971.17200
19981.19990
19991.20300
20001.20870
20011.23530
20021.26330
20031.27850
20041.29520
20051.32660

Bulletin No. 2020–19 785 May 4, 2020
20061.3743100 percent
20071.4222100 percent
20081.4666100 percent
20091.5003100 percent
20101.5203100 percent
20111.5326100 percent
2012 1.5686100 percent
2013 1.5968100 percent
2014 1.5974100 percent
2015 1.6245100 percent
2016 1.64640
2017 1.67130
2018 1.70081.069 percent
2019 1.7334100 percent
2020 1.7640100 percent
DRAFTING INFORMATION
The principal author of this notice is
Brendan P. Coppinger of the Office of
Associate Chief Counsel (Passthroughs
and Special Industries). For further in-
formation regarding this notice contact
Mr. Coppinger at (202) 317-6853 (not a
toll-free number).
26 CFR 1.168(k)-2: Additional first year deprecia-
tion deduction for property acquired and placed in
service after September 27, 2017.
(Also Part I, §§ 168, 446; 1.446-1)
Rev. Proc. 2020-25
SECTION 1. PURPOSE
This revenue procedure provides guid-
ance allowing a taxpayer to change its
depreciation under § 168 of the Internal
Revenue Code (Code) for qualified im-
provement property placed in service by
the taxpayer after December 31, 2017,
in its taxable year ending in 2018 (2018
taxable year), 2019 (2019 taxable year),
or 2020 (2020 taxable year). This revenue
procedure also allows a taxpayer to make
a late election, or to revoke or withdraw an
election, under § 168(g)(7), (k)(5), (k)(7),
or (k)(10) of the Code for the taxpayer’s
2018 taxable year, 2019 taxable year, or
2020 taxable year.
SECTION 2. BACKGROUND
.01 Qualified Improvement Property.
(1) Section 13204 of Public Law 115-
97, 131 Stat. 2054, 2109 (2017), com-
monly referred to as the Tax Cuts and
Jobs Act (TCJA), amended § 168(b)(3),
(e), and (k) effective for property placed
in service after December 31, 2017. See
TCJA § 13204(h)(1). Section 168(b)(3),
as amended by § 13204(a)(2) of the TCJA,
provides that qualified improvement prop-
erty as described in § 168(e)(6) is depre-
ciated by using the straight-line method of
depreciation for purposes of the general
depreciation system under § 168(a) (GDS).
Section 168(e)(6), as added by § 13204(a)
(4)(B)(i) the TCJA, provides the definition
of qualified improvement property. Sec-
tion 168(k)(2)(A)(i)(IV) and (k)(3), which
had provided that qualified improvement
property was a separate class of property
eligible for the additional first year depre-
ciation deduction under § 168(k) prior to
amendment by the TCJA, were repealed
by § 13204(a)(4)(A)(iii) and (B)(ii) of the
TCJA, respectively. Because the amend-
ments made by §§12001(b)(13), 13201(a),
(b)(1), (2)(B)–(g), 13203(a), (b), 13205(a),
and 13504(b)(1) of the TCJA also did not
specify a class of property under § 168(e)
for qualified improvement property placed
in service after December 31, 2017, such
property was classified as nonresidential
real property under § 168(e)(2)(B) and,
consequently, not eligible for the addition-
al first year depreciation deduction under
§ 168(k).
(2) Section 2307 of the Coronavirus
Aid, Relief, and Economic Security Act,
Pub. L. 116-136, 134 Stat. 281 (March 27,
2020) (CARES Act) amended § 168(e)(3)
(E), (e)(6), and (g)(3)(B). Section 2307(a)
(1)(A) of the CARES Act added a new
clause (vii) to the end of § 168(e)(3)(E)
to provide that qualified improvement
property is classified as 15-year proper-
ty. Section 2307(a)(1)(B) of the CARES
Act amended the definition of qualified
improvement property in § 168(e)(6) by
providing that the improvement must be
“made by the taxpayer.” In addition, sec-
tion 2307(a)(2) of the CARES Act amend-
ed the table in § 168(g)(3)(B) to provide a
recovery period of 20 years for qualified
improvement property for purposes of
the alternative depreciation system under
§ 168(g) (ADS). These amendments to
§ 168(e) and (g) are effective as if includ-
ed in § 13204 of the TCJA. (Hereinafter,
all references in this revenue procedure to
qualified improvement property are refer-
ences to qualified improvement property
as defined in § 168(e)(6) as amended by
the CARES Act unless otherwise indicat-
ed.)
(3) As a result of the amendments to
§ 168(e) and (g) made by § 2307 of the

May 4, 2020 786 Bulletin No. 2020–19
CARES Act, the depreciation of qualified
improvement property placed in service
by the taxpayer after December 31, 2017,
has changed. Such property is depreciat-
ed under the GDS using the straight-line
method of depreciation, a 15-year recov-
ery period, and the half-year or mid-quar-
ter convention, as applicable, pursuant to
§ 168(b)(3), (c), and (d), and is depreciat-
ed under the ADS using the straight-line
method of depreciation, a 20-year recov-
ery period, and the half-year or mid-quar-
ter convention, as applicable, pursuant to
§ 168(g)(2) and (3)(B). Further, assum-
ing all requirements of § 168(k) and §
1.168(k)-2 of the Income Tax Regulations
are met, qualified improvement property
acquired by the taxpayer after September
27, 2017, and placed in service by the tax-
payer after December 31, 2017, is eligible
for the additional first year depreciation
deduction under § 168(k), as amended by
the TCJA. Similarly, assuming all require-
ments of § 168(k), prior to amendment by
the TCJA, and § 1.168(k)-1 are met, quali-
fied improvement property, as defined in §
168(k)(3) as in effect prior to amendment
by the TCJA, acquired by the taxpayer
before September 28, 2017, and placed
in service by the taxpayer after Decem-
ber 31, 2017, is eligible for the additional
first year depreciation deduction under §
168(k) as in effect prior to amendment by
the TCJA.
.02 Elections under § 168(g)(7) and
(k).
(1) Section 168(g)(7) allows a taxpay-
er to make an election to depreciate under
the ADS any class of property placed in
service by the taxpayer during the taxable
year (§ 168(g)(7) election). If the § 168(g)
(7) election is made, the election applies
to all property that is in the same class of
property and placed in service in the same
taxable year. However, for nonresidential
real property and residential rental proper-
ty, the election may be made separately for
each property. Once made, the § 168(g)
(7) election is irrevocable. See § 168(g)
(7)(B). Section 301.9100-7T(a)(2) and
(3) of the Procedure and Administration
Regulations provide the time and manner
of making the § 168(g)(7) election. Such
election is made by the due date, includ-
ing extensions, of the Federal income
tax return or Form 1065, U.S. Return of
Partnership Income, for the taxable year
in which the property is placed in service
by the taxpayer, and is made by attaching
a statement to such return. The instruc-
tions to Form 4562, Depreciation and
Amortization, provide that the § 168(g)(7)
election is made by completing line 20 of
Form 4562.
(2) Section 168(k)(5)(A) allows a tax-
payer to make an election to apply the spe-
cial rules of § 168(k)(5) to one or more
specified plants that are planted, or grafted
to a plant that has already been planted, by
the taxpayer in the ordinary course of its
farming business, as defined in § 263A(e)
(4) (§ 168(k)(5) election). The rules and
procedures for making the § 168(k)(5)
election are set forth in § 1.168(k)-2(f)
(2). Pursuant to § 1.168(k)-2(f)(2)(ii), the
§ 168(k)(5) election is made by the due
date, including extensions, of the Feder-
al income tax return or Form 1065 for the
taxable year in which the taxpayer planted
or grafted the specified plant to which the
§ 168(k)(5) election applies, and is made
in the manner prescribed on Form 4562
and its instructions. For specified plants
planted, or grafted to a plant that was pre-
viously planted, by the taxpayer before the
applicability date set forth in § 1.168(k)-
2(h) for § 1.168(k)-2, section 4.05 of Rev.
Proc. 2017-33, 2017-19 I.R.B. 1236, pro-
vides the time and manner for making the
§ 168(k)(5) election and such procedures
are the same as in § 1.168(k)-2(f)(2)(ii).
Further, if a taxpayer timely filed its Fed-
eral income tax return or Form 1065 for
the taxpayer’s taxable year beginning in
2017 and ending on or after September
28, 2017, sections 4.01(2) and 4.02 of
Rev. Proc. 2019-33, 2019-34 I.R.B. 662,
provide special procedures to allow the
taxpayer to make a deemed § 168(k)(5)
election or a late § 168(k)(5) election for
a specified plant planted, or grafted to a
plant that was previously planted, by the
taxpayer after September 27, 2017.
(3) Section 168(k)(7) allows a taxpay-
er to make an election not to deduct the
additional first year depreciation for any
class of property that is qualified prop-
erty placed in service during the taxable
year (§ 168(k)(7) election). The rules and
procedures for making the § 168(k)(7)
election are set forth in § 1.168(k)-2(f)
(1). Section 1.168(k)-2(f)(1)(ii) defines
“class of property” for purposes of the §
168(k)(7) election. Under § 1.168(k)-2(f)
(1)(ii), qualified improvement property is
included in the 15-year property class and
is not a separate class of property. How-
ever, qualified improvement property, as
defined in § 168(k)(3) as in effect prior
to amendment by the TCJA, acquired by
the taxpayer after September 27, 2017,
and placed in service by the taxpayer be-
fore January 1, 2018, is a separate class of
property under § 1.168(k)-2(f)(1)(ii)(D).
Pursuant to § 1.168(k)-2(f)(1)(iii), the
§ 168(k)(7) election is made by the due
date, including extensions, of the Feder-
al income tax return or Form 1065 for the
taxable year in which the qualified prop-
erty is placed in service by the taxpayer,
and is made in the manner prescribed on
Form 4562 and its instructions. For qual-
ified property placed in service by the
taxpayer before the applicability date set
forth in § 1.168(k)-2(h) for § 1.168(k)-2,
section 4.04 of Rev. Proc. 2017-33 pro-
vides the time and manner for making the
§ 168(k)(7) election and such procedures
are the same as in § 1.168(k)-2(f)(1)(iii).
Further, if a taxpayer timely filed its Fed-
eral income tax return or Form 1065 for
the taxpayer’s taxable year beginning in
2017 and ending on or after September 28,
2017, sections 5.02(2) and 5.03 of Rev.
Proc. 2019-33 provide special procedures
to allow the taxpayer to make a deemed
§ 168(k)(7) election or a late § 168(k)
(7) election for a class of property that is
qualified property acquired by the taxpay-
er after September 27, 2017, and placed in
service by the taxpayer during such tax-
able year.
(4) Section 168(k)(10) allows a tax-
payer to make an election to deduct 50
percent, instead of 100 percent, additional
first year depreciation for: (a) all qualified
property acquired by the taxpayer after
September 27, 2017, and placed in service
by the taxpayer during its taxable year that
includes September 28, 2017; and (b) all
specified plants that are planted, or grafted
to a plant that has already been planted,
after September 27, 2017, by the taxpay-
er in the ordinary course of the taxpay-
er’s farming business during its taxable
year that includes September 28, 2017, if
the taxpayer makes the § 168(k)(5) elec-
tion for that taxable year (§ 168(k)(10)
election). The rules and procedures for
making the § 168(k)(10) election are set
forth in § 1.168(k)-2(f)(3). Pursuant to §

Bulletin No. 2020–19 787 May 4, 2020
1.168(k)-2(f)(3)(ii), the § 168(k)(10) elec-
tion is made by the due date, including ex-
tensions, of the Federal income tax return
or Form 1065 for the taxpayer’s taxable
year that includes September 28, 2017,
and is made in the manner prescribed on
the 2017 Form 4562 and its instructions.
For qualified property placed in service,
and specified plants planted, or grafted to
a plant that was previously planted, by the
taxpayer before the applicability date set
forth in § 1.168(k)-2(h) for § 1.168(k)-2,
section 6.02 of Rev. Proc. 2019-33 pro-
vides the time and manner for making the
§ 168(k)(10) election and such procedures
are the same as in § 1.168(k)-2(f)(3)(ii).
Further, if a taxpayer timely filed its Fed-
eral income tax return or Form 1065 for
the taxpayer’s taxable year beginning in
2017 and ending on or after September
28, 2017, sections 6.03(2) and 6.04 of
Rev. Proc. 2019-33 provide special pro-
cedures to allow the taxpayer to make a
deemed § 168(k)(10) election or a late §
168(k)(10) election for all qualified prop-
erty acquired by the taxpayer after Sep-
tember 27, 2017, and placed in service by
the taxpayer during such taxable year, or
for all specified plants planted, or grafted
to a plant that was previously planted, by
the taxpayer after September 27, 2017.
(5) Section 1.168(k)-2(f)(5) provides
that, in general, the § 168(k)(5) election,
§ 168(k)(7) election, and § 168(k)(10)
election, once made, may be revoked only
by filing a request for a private letter rul-
ing and obtaining the written consent of
the Commissioner of Internal Revenue
(Commissioner) to revoke the election.
Further, if a taxpayer timely filed its Fed-
eral income tax return or Form 1065 for
the taxpayer’s taxable year beginning in
2017 and ending on or after September
28, 2017, sections 4.03, 5.04, and 6.05 of
Rev. Proc. 2019-33 provide special proce-
dures to allow the taxpayer to revoke its
§ 168(k)(5) election, § 168(k)(7) election,
and § 168(k)(10) election, respectively,
made for such taxable year. As noted in
section 2.02(1) of this revenue procedure,
section 168(g)(7)(B) provides that the §
168(g)(7) election, once made, is irrevo-
cable.
.03 Method of accounting.
(1) Section 446(e) and § 1.446-1(e)(2)
require a taxpayer to secure the consent
of the Commissioner before changing a
method of accounting for Federal income
tax purposes. Section 1.446-1(e)(3)(ii)
authorizes the Commissioner to prescribe
administrative procedures setting forth the
limitations, terms, and conditions neces-
sary to permit a taxpayer to obtain consent
to change a method of accounting.
(2) Section 2.05 of Rev. Proc. 2015-
13, 2015-5 I.R.B 419, 425, provides that
a taxpayer may not request, or otherwise
make, a retroactive change in method of
accounting, unless specifically authorized
by the Commissioner or by statute.
(3) Section 1.446-1(e)(2)(ii)(d)(3)(iii)
provides that the making of a late depreci-
ation election or the revocation of a timely
valid depreciation election is not a change
in method of accounting, except as other-
wise expressly provided by the Code, the
regulations under the Code, or other guid-
ance published in the Internal Revenue
Bulletin.
(4) With the enactment of the CARES
Act, immediate guidance is needed un-
der § 168 for taxpayers who are affected
by the various amendments to the Code,
including, for example, the retroactive
changes made to § 168(e) and (g) for
qualified improvement property. Accord-
ingly, this revenue procedure permits cer-
tain taxpayers to file an amended return,
administrative adjustment request under
section 6227 (AAR), or a Form 3115,
Application for Change in Accounting
Method, to change their depreciation of
qualified improvement property placed in
service after December 31, 2017, in the
taxpayers’ 2018, 2019, or 2020 taxable
year. See section 3 of this revenue proce-
dure for the procedures for changing the
depreciation of qualified improvement
property. Further, this revenue procedure
permits taxpayers to make a late election
under § 168(g)(7), (k)(5), (k)(7), or (k)
(10), to revoke an election under § 168(k)
(5), (k)(7), or (k)(10), or to withdraw an
election under § 168(g)(7), for property
placed in service by the taxpayer during
its 2018, 2019, or 2020 taxable year, for
a limited period of time. Because of the
administrative burden of filing amended
returns and AARs, the Department of the
Treasury and the Internal Revenue Ser-
vice (IRS) also have determined that it is
appropriate to treat the making of a late
election under § 168(g)(7), (k)(5), (k)(7),
or (k)(10), or the revocation of the revo-
cable election under § 168(k)(5), (k)(7),
or (k)(10), for property placed in service
by taxpayers during their 2018, 2019, or
2020 taxable years, as a change in method
of accounting with a § 481(a) adjustment
for a limited period of time. See sections
4 and 5 of this revenue procedure for the
procedures to make these late elections, to
revoke these elections, or to withdraw the
irrevocable election under § 168(g)(7).
SECTION 3. QUALIFIED
IMPROVEMENT PROPERTY
.01 Scope. This section 3 applies to
qualified improvement property placed
in service by the taxpayer after December
31, 2017, in the taxpayer’s 2018, 2019, or
2020 taxable year. However, this section 3
does not apply to:
(1) Qualified improvement property
placed in service after December 31, 2017,
by a taxpayer that made a late election, or
withdrew an election, under § 163(j)(7)
(B) (electing real property trade or busi-
ness) or § 163(j)(7)(C) (electing farming
business) for the taxable year in which the
qualified improvement property is placed
in service by the taxpayer, in accordance
with Rev. Proc. 2020-22, 2020-18 I.R.B.
745 (April 27, 2020), released on www.irs.
gov on April 10, 2020. Any changes to de-
preciation for such qualified improvement
property, or other depreciable property,
affected by the late election or withdrawn
election under § 163(j)(7)(B) or 163(j)(7)
(C) are made in accordance with sections
4.02 and 4.03, or 5.02 of Rev. Proc. 2020-
22, as applicable; or
(2) Qualified improvement property for
which the taxpayer deducted or deducts
the cost or other basis of such property as
an expense.
.02 Impermissible method to permissi-
ble method of determining depreciation.
(1) In general. A taxpayer changing
the depreciation of qualified improvement
property within the scope of this section
3 to the depreciation method, recovery
period, and convention described in sec-
tion 2.01(3) of this revenue procedure is
changing from an impermissible method
of accounting to a permissible method
of accounting. Similarly, a change from
not claiming to claiming the additional
first year depreciation deduction under §
168(k) for qualified improvement proper-

May 4, 2020 788 Bulletin No. 2020–19
ty that is within the scope of this section 3
and is eligible for the additional first year
depreciation deduction is a change from
an impermissible method of accounting to
a permissible method of accounting.
(2) One-year qualified improvement
property. For qualified improvement
property that is within the scope of this
section 3 and is placed in service by the
taxpayer in the taxable year immediately
preceding the year of change, as defined
in section 3.19 of Rev. Proc. 2015-13 (1-
year QIP), the taxpayer may change from
the impermissible method of determining
depreciation to the permissible method of
determining depreciation for the 1-year
QIP by filing a Form 3115 for this change
in accordance with section 3.02(3)(b) of
this revenue procedure, provided the §
481(a) adjustment reported on the Form
3115 includes the amount of any adjust-
ment attributable to all property, including
the 1-year QIP, subject to the Form 3115.
Alternatively, the taxpayer may change
from the impermissible method of deter-
mining depreciation to the permissible
method of determining depreciation for
the 1-year QIP by filing an amended re-
turn or AAR in accordance with section
3.02(3)(a) of this revenue procedure.
(3) Changing to the permissible meth-
od of determining depreciation. The tax-
payer may change from the impermissible
method of determining depreciation to the
permissible method of determining depre-
ciation for qualified improvement prop-
erty within the scope of this section 3 by
filing either:
(a) Except as provided in Rev. Proc.
2020-23, 2020-18 I.R.B. 749, (April 27,
2020), released on www.irs.gov on April
8, 2020, regarding the time to file amend-
ed returns by a partnership subject to the
centralized partnership audit regime en-
acted as part of the Bipartisan Budget Act
of 2015 (BBA partnership) for taxable
years beginning in 2018 and 2019, a Fed-
eral amended income tax return or amend-
ed Form 1065 for the placed-in-service
year of the qualified improvement proper-
ty on or before October 15, 2021, but in
no event later than the applicable period of
limitations on assessment for the taxable
year for which the amended return is be-
ing filed. In the case of a BBA partnership
that chooses not to file an amended Form
1065 as permitted under Rev. Proc. 2020-
23 or that cannot file an amended Form
1065 because the placed-in-service year
of the qualified improvement property is a
taxable year that is not within the scope of
Rev. Proc. 2020-23, the BBA partnership
may file an AAR for the placed-in-service
year of the qualified improvement proper-
ty on or before October 15, 2021, but in
no event later than the applicable period of
limitations on making adjustments under §
6235 for the reviewed year as defined in §
301.6241-1(a)(8). This amended return or
AAR must include the adjustment to tax-
able income for the change in determining
depreciation of the qualified improvement
property and any collateral adjustments
to taxable income or to tax liability. Such
collateral adjustments also must be made
on original or amended Federal returns or
AARs for any affected succeeding taxable
years; or
(b) A Form 3115 with the taxpayer’s
timely filed Federal income tax return or
Form 1065 under the automatic change
procedures in Rev. Proc. 2015-13. See sec-
tion 6.03(1) of this revenue procedure for
the procedures for making this change in
method of accounting.
SECTION 4. AUTOMATIC
EXTENSION OF TIME TO FILE
CERTAIN ELECTIONS UNDER
SECTION 168
.01 Scope. This section 4 applies to:
(1) A taxpayer that (a) placed in ser-
vice depreciable property during its 2018,
2019, or 2020 taxable year, (b) timely filed
its Federal income tax return or Form 1065
for the placed-in-service year of such de-
preciable property and such return was
filed on or before April 17, 2020, (c) wants
to make a § 168(g)(7) election, § 168(k)(5)
election, or § 168(k)(7) election for such
depreciable property, and (d) did not previ-
ously revoke or withdraw such election(s)
in accordance with section 5.02 of this rev-
enue procedure. The taxpayer makes the §
168(g)(7) election, § 168(k)(5) election,
or § 168(k)(7) election in accordance with
section 2.02(1), (2), or (3), respectively, of
this revenue procedure or under section
4.02 of this revenue procedure; or
(2) A taxpayer that (a) timely filed its
Federal income tax return or Form 1065
for the taxpayer’s taxable year that in-
cludes September 28, 2017, (b) wants
to make a § 168(k)(10) election for such
taxable year, and (c) did not previously re-
voke a § 168(k)(10) election for such tax-
able year in accordance with section 5.02
of this revenue procedure. The taxpayer
makes the § 168(k)(10) in accordance with
section 2.02(4) of this revenue procedure
or under section 4.02 of this revenue pro-
cedure.
.02 Time and manner of making a late
§ 168(g)(7), (k)(5), (k)(7), or (k)(10) elec-
tion. A taxpayer within the scope of this
section 4 may make the late § 168(g)(7),
(k)(5), (k)(7), or (k)(10) election by filing
either:
(1) Except as provided in Rev. Proc.
2020-23 regarding the time to file amend-
ed returns by BBA partnerships for tax-
able years beginning in 2018 and 2019,
a Federal amended income tax return or
amended Form 1065 for the placed-in-ser-
vice year of the property on or before Oc-
tober 15, 2021, but in no event later than
the applicable period of limitations on as-
sessment for the taxable year for which the
amended return is being filed. In the case
of a BBA partnership that chooses not to
file an amended Form 1065 as permitted
under Rev. Proc. 2020-23 or that cannot
file an amended Form 1065 because the
placed-in-service year of the property is a
taxable year that is not within the scope of
Rev. Proc. 2020-23, the BBA partnership
may file an AAR for the placed-in-service
year of the property on or before October
15, 2021, but in no event later than the
applicable period of limitations on mak-
ing adjustments under § 6235 for the re-
viewed year as defined in § 301.6241-1(a)
(8). This amended return or AAR must in-
clude the adjustment to taxable income for
the late election and any collateral adjust-
ments to taxable income or to tax liability.
Such collateral adjustments also must be
made on original or amended Federal re-
turns or AARs for any affected succeeding
taxable years; or
(2) A Form 3115 with the taxpayer’s
timely filed original Federal income tax
return or Form 1065 (a) for the taxpay-
er’s first or second taxable year suc-
ceeding the taxable year in which the
taxpayer placed in service the property,
or (b) that is filed on or after April 17,
2020, and on or before October 15, 2021.
The late § 168(g)(7), (k)(5), (k)(7), or (k)
(10) election under this section 4.02(2)

Bulletin No. 2020–19 789 May 4, 2020
will be treated as a change in method of
accounting with a § 481(a) adjustment
only during this limited period of time.
The time and manner of making this late
election are described in section 6.03(2)
of this revenue procedure.
SECTION 5. CONSENT TO REVOKE
OR WITHDRAW CERTAIN
ELECTIONS UNDER SECTION 168
.01 Scope. This section 5 applies to:
(1) A taxpayer that (a) placed in ser-
vice depreciable property during its 2018,
2019, or 2020 taxable year, (b) made a
§ 168(k)(5) election or § 168(k)(7) elec-
tion on its timely filed original Federal
income tax return or Form 1065 for the
placed-in-service year of such depreciable
property and such return was filed on or
before April 17, 2020, or made a § 168(k)
(5) election or § 168(k)(7) election in ac-
cordance with section 4 or 5 of Rev. Proc.
2019-33, respectively, for the placed-in-
service year of such depreciable property
on or before April 17, 2020, and (c) wants
to revoke such election. If the taxpayer
revokes the § 168(k)(7) election in accor-
dance with section 5.02(2) of this revenue
procedure, the revocation applies to all
property included in the class of proper-
ty and placed in service during the same
taxable year;
(2) A taxpayer that made a § 168(k)
(10) election on its timely filed original
Federal income tax return or Form 1065
for the taxpayer’s taxable year that in-
cludes September 28, 2017, and such
return was filed on or before April 17,
2020, or made a § 168(k)(10) election in
accordance with section 6 of Rev. Proc.
2019-33 for the taxpayer’s taxable year
that includes September 28, 2017, on or
before April 17, 2020, and that wants to
revoke the § 168(k)(10) election. If the
taxpayer revokes the § 168(k)(10) elec-
tion in accordance with section 5.02(2)
of this revenue procedure, the revoca-
tion applies to (a) all qualified property
acquired by the taxpayer after Septem-
ber 27, 2017, and placed in service by
the taxpayer during its taxable year that
includes September 28, 2017, and (b)
all specified plants that are planted, or
grafted to a plant that has already been
planted, after September 27, 2017, by
the taxpayer in the ordinary course of the
taxpayer’s farming business during its
taxable year that includes September 28,
2017, if the taxpayer made the § 168(k)
(5) election for that taxable year; or
(3) A taxpayer that (a) placed in ser-
vice depreciable property during its
2018, 2019, or 2020 taxable year, (b)
made a § 168(g)(7) election on its timely
filed original Federal income tax return
or Form 1065 for the placed-in-service
year of such depreciable property and
such return was filed on or before April
17, 2020, and (c) wants to withdraw such
election. If the taxpayer withdraws the
§ 168(g)(7) election in accordance with
section 5.02(3) of this revenue proce-
dure, the taxpayer will be treated as if the
election was never made for all proper-
ty included in the class of property and
placed in service during the same taxable
year. However, if the taxpayer withdraws
the § 168(g)(7) election for an item of
nonresidential real property or residen-
tial rental property in accordance with
section 5.02(3) of this revenue proce-
dure, the taxpayer will be treated as if the
election was not made for that specific
item of nonresidential real property or
residential rental property.
.02 Consent granted to revoke or with-
draw election.
(1) In general. The Commissioner
grants a taxpayer within the scope of this
section 5 consent to revoke its § 168(k)(5)
election, § 168(k)(7) election, or § 168(k)
(10) election, or consent to withdraw its §
168(g)(7) election, provided the taxpayer
makes this revocation or withdrawal, as
applicable, in the time and manner de-
scribed in this section 5.02.
(2) Revocation of § 168(k)(5), (7), or
(10) election. A taxpayer within the scope
of this section 5 may revoke its § 168(k)
(5) election, § 168(k)(7) election, or §
168(k)(10) election by filing either:
(a) Except as provided in Rev. Proc.
2020-23 regarding the time to file amend-
ed returns by BBA partnerships for tax-
able years beginning in 2018 and 2019,
a Federal amended income tax return or
amended Form 1065 for the placed-in-ser-
vice year of the property on or before Oc-
tober 15, 2021, but in no event later than
the applicable period of limitations on as-
sessment for the taxable year for which the
amended return is being filed. In the case
of a BBA partnership that chooses not to
file an amended Form 1065 as permitted
under Rev. Proc. 2020-23 or that cannot
file an amended Form 1065 because the
placed-in-service year of the property is a
taxable year that is not within the scope of
Rev. Proc. 2020-23, the BBA partnership
may file an AAR for the placed-in-service
year of the property on or before October
15, 2021, but in no event later than the
applicable period of limitations on mak-
ing adjustments under § 6235 for the re-
viewed year as defined in § 301.6241-1(a)
(8). This amended return or AAR must in-
clude the adjustment to taxable income for
the revocation of the § 168(k)(5), (k)(7), or
(k)(10) election and any collateral adjust-
ments to taxable income or to tax liability.
Such collateral adjustments also must be
made on original or amended Federal re-
turns or AARs for any affected succeeding
taxable years; or
(b) A Form 3115 with the taxpayer’s
timely filed original Federal income tax
return or Form 1065 (i) for the taxpayer’s
first or second taxable year succeeding the
taxable year in which the taxpayer placed
in service the property, or (ii) that is filed
on or after April 17, 2020, and on or before
October 15, 2021. The revocation of the
§ 168(k)(5), (k)(7), or (k)(10) election un-
der this section 5.02(2)(b) will be treated
as a change in method of accounting with
a § 481(a) adjustment only during this lim-
ited period of time. The time and manner
of making this revocation are described in
section 6.03(2) of this revenue procedure.
(3) Withdrawal of § 168(g)(7) election.
A taxpayer within the scope of this sec-
tion 5 may withdraw a § 168(g)(7) elec-
tion by filing an amended Federal income
tax return, amended Form 1065, or AAR,
as applicable. Except as provided in Rev.
Proc. 2020-23 regarding the time to file
amended returns by BBA partnerships for
taxable years beginning in 2018 and 2019,
the Federal amended income tax return
or amended Form 1065 for the placed-in-
service year of the property must be filed
on or before October 15, 2021, but in no
event later than the applicable period of
limitations on assessment for the taxable
year for which the amended return is be-
ing filed. In the case of a BBA partnership
that chooses not to file an amended Form
1065 as permitted under Rev. Proc. 2020-
23 or that cannot file an amended Form
1065 because the placed-in-service year

May 4, 2020 790 Bulletin No. 2020–19
of the property is a taxable year that is not
within the scope of Rev. Proc. 2020-23,
the BBA partnership may file an AAR for
the placed-in-service year of the property
on or before October 15, 2021, but in no
event later than the applicable period of
limitations on making adjustments under
§ 6235 for the reviewed year as defined
in § 301.6241-1(a)(8). This amended re-
turn or AAR must include the adjustment
to taxable income for the withdrawal of
the § 168(g)(7) election and any collater-
al adjustments to taxable income or to tax
liability. Such collateral adjustments also
must be made on original or amended Fed-
eral returns or AARs for any affected suc-
ceeding taxable years.
SECTION 6. CHANGE IN METHOD
OF ACCOUNTING
.01 In general. The making of a late
election, or the revocation of an election,
under sections 4.02(2) and 5.02(2)(b)
of this revenue procedure is treated as a
change in method of accounting for a lim-
ited period of time to which §§ 446(e) and
481, and the corresponding regulations,
apply. A taxpayer that wants to make a
late election, or revoke an election, un-
der sections 4.02(2) and 5.02(2)(b) of this
revenue procedure must use the automatic
change procedures in Rev. Proc. 2015-13
or its successor.
.02 Modifications to existing automatic
changes.
(1) Section 6.01(1)(c) of Rev. Proc.
2019-43, 2019-48 I.R.B. 1107, is modi-
fied by:
(a) At the end of section 6.01(1)(c)(xv),
deleting “or”;
(b) At the end of section 6.01(1)(c)
(xvi), deleting the period and adding “;”
in its place;
(c) Adding new sections 6.01(1)(c)
(xvii) and (xviii) to read as follows:
(xvii) any qualified improvement prop-
erty, as defined in § 168(e)(6), placed in
service by the taxpayer after December
31, 2017, to which section 6.19 of this
revenue procedure applies; or
(xviii) any property to which section 4
or 5 of Rev. Proc. 2020-22, 2020-18 I.R.B.
745, applies. (See sections 4.02 and 4.03,
or 5.02 of Rev. Proc. 2020-22, as applica-
ble, for making any changes to deprecia-
tion for such property.)
(2) Section 6.04 of Rev. Proc. 2019-43
is modified by revising 6.04(1) to read as
follows:
(1) Description of change.
(a) Applicability. This change applies
to a taxpayer that wants to change the
method of accounting for general asset
account treatment of MACRS proper-
ty (as defined in § 1.168(b)-1(a)(2)) to
the method of accounting provided in
§ 1.168(i)-1(c)(2)(ii)(I) or § 1.168(i)-1(h)
(2), which applies when there is a change
in the use of MACRS property pursuant to
§ 1.168(i)-4(d).
(b) Inapplicability. The changes de-
scribed in section 6.04(1)(a) of this
revenue procedure do not apply to any
property to which section 4 or 5 of Rev.
Proc. 2020-22, 2020-18 I.R.B. 745, ap-
plies. (See sections 4.02 and 4.03, or
5.02 of Rev. Proc. 2020-22, as applica-
ble, for making such changes for such
property.)
(3) Section 6.05 of Rev. Proc. 2019-43
is modified by revising 6.05(1) to read as
follows:
(1) Description of change.
(a) Applicability. This change applies
to a taxpayer that wants to (i) change
the method of accounting for deprecia-
tion of MACRS property (as defined in
§ 1.168(b)-1(a)(2)) to the method of ac-
counting for depreciation provided in
§ 1.168(i)-4, which applies when there
is a change in the use of MACRS prop-
erty, or (ii) revoke the election provided
in § 1.168(i)-4(d)(3)(ii) to disregard a
change in the use of MACRS property.
See § 1.168(i)-4(g)(2).
(b) Inapplicability. The change de-
scribed in section 6.05(1)(a)(i) of this
revenue procedure does not apply to any
property to which section 4 or 5 of Rev.
Proc. 2020-22, 2020-18 I.R.B. 745, ap-
plies. (See sections 4.02 and 4.03, or 5.02
of Rev. Proc. 2020-22, as applicable, for
making such change for such property.)
.03 New automatic changes.
(1) Rev. Proc. 2019-43 is modified to
add new section 6.19 to read as follows:
6.19 Qualified improvement proper-
ty placed in service after December 31,
2017.
(1) Description of change.
(a) Applicability. This change applies
to a taxpayer that wants to change from
an impermissible to a permissible method
of accounting for depreciation of any item
of qualified improvement property, as de-
fined in § 168(e)(6):
(i) that is placed in service by the tax-
payer after December 31, 2017;
(ii) for which the taxpayer used the
impermissible method of accounting in at
least two taxable years immediately pre-
ceding the year of change (but see section
6.19(1)(b) of this revenue procedure for
qualified improvement property placed
in service in the taxable year immediately
preceding the year of change); and
(iii) that is owned by the taxpayer at
the beginning of the year of change (but
see section 6.07 of this revenue procedure
for property disposed of before the year of
change).
(b) Taxpayer has not adopted a meth-
od of accounting for the qualified im-
provement property. If a taxpayer does
not satisfy section 6.19(1)(a)(ii) of this
revenue procedure for an item of quali-
fied improvement property because the
item of qualified improvement property
is placed in service by the taxpayer in the
taxable year immediately preceding the
year of change (1-year QIP), the taxpay-
er may change from the impermissible
method of determining depreciation to
the permissible method of determining
depreciation for the 1-year QIP by filing
a Form 3115 for this change, provided
the § 481(a) adjustment reported on the
Form 3115 includes the amount that is
attributable to all property (including the
1-year QIP) subject to the Form 3115.
Alternatively, the taxpayer may change
from the impermissible method of de-
termining depreciation to the permissi-
ble method of determining depreciation
for the 1-year QIP by filing an amended
Federal income tax return, or an adminis-
trative adjustment request under section
6227 (AAR), for the property’s placed-
in-service year prior to the date the tax-
payer files its Federal income tax return
or Form 1065, as applicable, for the tax-
able year succeeding the placed-in-ser-
vice year. In addition, if the 1-year QIP
is within the scope of section 3 of Rev.
Proc. 2020-25, 2020-19 I.R.B. 785, the
taxpayer may change from the impermis-
sible method of determining depreciation
to the permissible method of determining
depreciation for the 1-year QIP by filing
a Federal amended income tax return,

Bulletin No. 2020–19 791 May 4, 2020
amended Form 1065, or AAR, as appli-
cable, in accordance with section 3.02(3)
(a) of Rev. Proc. 2020-25.
(c) Inapplicability. This change does
not apply to:
(i) any qualified improvement property
placed in service by a taxpayer that made a
late election, or withdrew an election, un-
der § 163(j)(7)(B) (electing real property
trade or business) or § 163(j)(7)(C) (elect-
ing farming business) for the taxable year
in which the qualified improvement prop-
erty is placed in service by the taxpayer,
in accordance with Rev. Proc. 2020-22,
2020-18 I.R.B. 745. Any changes to de-
preciation for such qualified improvement
property, or other depreciable property,
affected by the late election or withdrawn
election under § 163(j)(7)(B) or (C) are
made in accordance with sections 4.02 and
4.03, or 5.02 of Rev. Proc. 2020-22, as ap-
plicable;
(ii) any qualified improvement proper-
ty for which the taxpayer is changing from
deducting the cost or other basis as an ex-
pense to capitalizing and depreciating the
cost or other basis, or vice versa; or
(iii) any qualified improvement prop-
erty for which the taxpayer is changing
its method of accounting for depreciation
to the method of accounting for depre-
ciation provided in § 1.168(i)-4, which
applies when there is a change in use of
the property (but see section 6.04 or 6.05
of this revenue procedure for making this
change).
(2) Certain eligibility rules temporar-
ily inapplicable. For an item of qualified
improvement property placed in service
by the taxpayer after December 31, 2017,
in its taxable year ending in 2018, 2019,
or 2020, the eligibility rules in section
5.01(1)(d) and (f) of Rev. Proc. 2015-13,
2015-5 I.R.B. 419, do not apply to this
change for the taxpayer’s first or second
taxable year succeeding the taxable year
in which the item of qualified improve-
ment property is placed in service by
the taxpayer or, if later, for any taxable
year for which the taxpayer timely files
an original Federal income tax return
or Form 1065, as applicable, on or after
April 17, 2020, and on or before October
15, 2021.
(3) Reduced filing requirement. A tax-
payer making a change under this sec-
tion 6.19 is required to complete only
the following information on Form 3115
(Rev. December 2018):
(a) The identification section of page 1
(above Part I);
(b) The signature section at the bottom
of page 1;
(c) Part I;
(d) Part II, all lines except lines 11, 12,
13, 15, 16, 17, and 19;
(e) Part IV, all lines; and
(f) Schedule E, all lines except lines 1,
4b, 5, and 6.
(4) Concurrent automatic change.
(a) A taxpayer making this change for
more than one asset for the same year of
change should file a single Form 3115 for
all such assets and provide a single net
§ 481(a) adjustment for all the changes in-
cluded in that Form 3115.
(b) A taxpayer making this change and
the change in section 6.01 or 6.20 of this
revenue procedure for the same year of
change should file a single Form 3115
for all such changes and must enter the
designated automatic accounting method
change numbers on the appropriate line
on the Form 3115. See section 6.03(1)(b)
of Rev. Proc. 2015-13 for information on
making concurrent changes.
(5) Designated automatic accounting
method change number. The designat-
ed automatic accounting method change
number for a change to the method of ac-
counting under this section 6.19 is “244.”
(6) Contact information. For further
information regarding a change under this
section, contact Elizabeth R. Binder at
(202) 317-7005 (not a toll-free number).
(2) Rev. Proc. 2019-43 is modified to
add new section 6.20 to read as follows:
6.20 Late elections under § 168(g)(7),
(k)(5), (k)(7), and (k)(10) or revocation of
elections under § 168(k)(5), (k)(7), and (k)
(10).
(1) Description of change.
(a) Applicability. This change applies
to a taxpayer within the scope of sec-
tion 4 of Rev. Proc. 2020-25, 2020-19
I.R.B. 785, that wants to make a late elec-
tion provided in section 4.02(2) of Rev.
Proc. 2020-25 under § 168(g)(7), (k)(5),
(k)(7), or (k)(10). This change also applies
to a taxpayer within the scope of section 5
of Rev. Proc. 2020-25 that wants to revoke
an election provided in section 5.02(2)(b)
of Rev Proc. 2020-25 under § 168(k)(5),
(k)(7), or (k)(10).
(b) Inapplicability. The IRS will treat
the making of a late election provided in
section 4 of Rev. Proc. 2020-25 under
§ 168(g)(7), (k)(5), (k)(7), and (k)(10),
or the revocation of an election provided
in section 5 of Rev. Proc. 2020-25 un-
der § 168(k)(5), (k)(7), and (k)(10), as a
change in method of accounting with a
§ 481(a) adjustment only for the taxable
years specified in section 6.20(2) of this
revenue procedure. This treatment does
not apply to a taxpayer that makes these
late elections or revocations before or af-
ter the time specified in section 6.20(2) of
this revenue procedure, and any such late
election or revocation is not a change in
method of accounting pursuant to § 1.446-
1(e)(2)(ii)(d)(3)(iii).
(2) Time for making the change. The
change under this section 6.20 must be
made for (a) the taxpayer’s first or second
taxable year succeeding the taxable year
in which the taxpayer placed in service the
property affected by the late election un-
der § 168(g)(7), (k)(5), (k)(7), or (k)(10),
as applicable, or revocation of the election
under § 168(k)(5), (k)(7), or (k)(10), as
applicable, or, if later, (b) any taxable year
for which the taxpayer timely files an orig-
inal Federal income tax return or Form
1065, as applicable, on or after April 17,
2020, and on or before October 15, 2021.
(3) Certain eligibility rules inapplica-
ble. The eligibility rules in section 5.01(1)
(d) and (f) of Rev. Proc. 2015-13, 2015-5
I.R.B. 419, do not apply to this change for
the taxpayer’s first or second taxable year
succeeding the taxable year in which the
taxpayer placed in service the property af-
fected by the late election under § 168(g)
(7), (k)(5), (k)(7), or (k)(10), as applica-
ble, or revocation of the election under
§ 168(k)(5), (k)(7), or (k)(10), as appli-
cable, or if later, for any taxable year for
which the taxpayer timely files an original
Federal income tax return or Form 1065,
as applicable, on or after April 17, 2020,
and on or before October 15, 2021.
(4) Reduced filing requirement. A tax-
payer making a change under this sec-
tion 6.20 is required to complete only
the following information on Form 3115
(Rev. December 2018):
(a) The identification section of page 1
(above Part I);
(b) The signature section at the bottom
of page 1;

May 4, 2020 792 Bulletin No. 2020–19
(c) Part I;
(d) Part II, all lines except lines 11, 12,
13, 15, 16, 17, and 19;
(e) Part IV, all lines; and
(f) Schedule E, all lines except lines 1,
4b, 5, and 6.
(5) Concurrent automatic change.
(a) A taxpayer making one or more late
elections, and/or revoking one or more
elections, under sections 4 and 5 of Rev.
Proc. 2020-25 for the same year of change
should file a single Form 3115 for all such
changes. The single Form 3115 must pro-
vide a single net § 481(a) adjustment for
all such changes.
(b) A taxpayer making this change and
the change in section 6.01 or 6.19 of this
revenue procedure for the same year of
change should file a single Form 3115
for all such changes and must enter the
designated automatic accounting method
change numbers on the appropriate line
on the Form 3115. See section 6.03(1)(b)
of Rev. Proc. 2015-13 for information on
making concurrent changes.
(6) Designated automatic accounting
method change number. The designat-
ed automatic accounting method change
number for a change to the method of ac-
counting under this section 6.20 is “245.”
(7) Contact information. For further
information regarding a change under this
section 6.20, contact Elizabeth R. Binder
at (202) 317-7005 (not a toll-free number).
SECTION 7. REMODEL-REFRESH
SAFE HARBOR
.01 Section 5.02(3)(b)(ii) of Rev. Proc.
2015-56, 2015-49 I.R.B. 827, is modified
to read as follows:
(ii) Classification under § 168(e). For
purposes of determining the appropriate
classification under § 168(e) for property
placed in service by the taxpayer after De-
cember 31, 2017, the capital expenditure
portion is treated as qualified improvement
property (as defined in § 168(e)(6)) un-
der § 168(e)(3)(E)(vii), only to the extent
that the taxpayer can substantiate that the
capital expenditure portion is qualified im-
provement property. For property placed
in service by the taxpayer before January
1, 2018, the capital expenditure portion is
treated as qualified leasehold improvement
property (as defined in § 168(e)(6) prior
to amendment by Public Law 115-97, 131
Stat. 2054 (2017), commonly referred to as
the Tax Cuts and Jobs Act (TCJA)) under
§ 168(e)(3)(E)(iv) prior to amendment by
the TCJA, as qualified restaurant property
(as defined in § 168(e)(7) prior to amend-
ment by the TCJA) under § 168(e)(3)(E)
(v) prior to amendment by the TCJA, or as
qualified retail improvement property (as
defined in § 168(e)(8) prior to amendment
by the TCJA) under § 168(e)(3)(E)(ix) pri-
or to amendment by the TCJA, as appli-
cable, only to the extent that the taxpayer
can substantiate that the capital expenditure
portion is qualified leasehold improvement
property, qualified restaurant property, or
qualified retail improvement property, as
applicable. The remaining capital expendi-
ture portion is classified as nonresidential
real property under § 168(e)(2)(B). Also,
if § 168(e)(3)(E)(iv), (v), or (ix) (prior to
amendment by the TCJA), or § 168(e)(3)
(E)(vii), as applicable, is not in effect when
the taxpayer places in service the capital
expenditure portion, the capital expendi-
ture portion is classified as nonresidential
real property under § 168(e)(2)(B).
SECTION 8. EFFECT ON OTHER
DOCUMENTS
.01 Section 5.02(3)(b)(ii) of Rev. Proc.
2015-56 is modified.
.02 Section 6 of Rev. Proc. 2019-43 is
modified to include the modifications pro-
vided in section 6.02 of this revenue pro-
cedure and the accounting method chang-
es provided in section 6.03 of this revenue
procedure.
SECTION 9. EFFECTIVE DATE
This revenue procedure is effective
April 17, 2020.
SECTION 10. DRAFTING
INFORMATION
The principal authors of this revenue
procedure are Kathleen Reed and Eliz-
abeth Binder of the Office of Associate
Chief Counsel (Income Tax & Account-
ing). For further information regarding
this revenue procedure, contact Ms. Bind-
er at (202) 317-4869 (not a toll-free call)
or Ms. Reed at (202) 317-4660 (not a toll-
free number).
26 CFR 1.6012-1: Individuals required to make re-
turns of income.
(Also: Part 1, §1.6017-1)
Rev. Proc. 2020-28
SECTION 1. PURPOSE
.01 This revenue procedure provides
procedures for eligible individuals who
are not otherwise required to file Federal
income tax returns for taxable year 2019
to receive economic impact payments un-
der the Coronavirus Aid, Relief, and Eco-
nomic Security Act (CARES Act), Public
Law 116-136, 134 Stat. 281 (March 27,
2020).
.02 Eligible individuals who voluntari-
ly wish to file a Federal income tax return
only to receive allowed economic impact
payments can use the simplified return fil-
ing procedure set forth in section 3 of this
revenue procedure to file their Federal in-
come tax return for taxable year 2019 and
will receive their allowed economic impact
payment after following the simplified fil-
ing procedure. These eligible individuals
are encouraged to use the “Non-Filers:
Enter Payment Info Here” tool, available
at www.irs.gov/coronavirus, to submit in-
formation to the Internal Revenue Service
(IRS) to receive their allowed economic
impact payment much more quickly than
if they filed a paper return. To ensure that
allowed economic impact payments are
made to the maximum number of eligible
individuals, such eligible individuals who
do not wish to use the “Non-Filers: Enter
Payment Info Here” tool can alternatively
file their return for taxable year 2019 using
alternative tax return preparation software
or paper returns that follow the simplified
return filing procedure in section 3 of this
revenue procedure.
.03 The Department of the Treasury
(Treasury Department) and the IRS are
aware that individuals otherwise not re-
quired by law to file Federal income tax
returns may prepare income tax returns
for State or local governments (for pur-
poses such as establishing qualification
for State or local government benefits)
using tax return preparation software that
can concurrently prepare both Federal and
State or local tax returns. The IRS is also
aware that individuals having an adjusted
gross income (AGI) of zero (as opposed

Bulletin No. 2020–19 793 May 4, 2020
to AGI of $1 or more) are not able to file
Federal income tax returns electronical-
ly to receive allowed economic impact
payments due to tax return preparation
software and return processing parame-
ters. Section 4 of this revenue procedure
provides a special procedure for eligible
individuals with zero AGI who voluntarily
wish to file a complete Federal income tax
return electronically for taxable year 2019
to receive allowed economic impact pay-
ments. The special procedure in section 4
of this revenue procedure does not apply
to a return filed on paper, which should be
filed in accordance with the applicable in-
structions.
.04 An eligible individual who has al-
ready filed a Federal income tax return
for taxable year 2019 will not need to file
any additional forms or otherwise contact
the IRS to receive their economic impact
payment automatically. See § 6428(f)(1)
and (3). An eligible individual who filed
a Federal income tax return for 2018 will
also not need to file any additional forms
or otherwise contact the IRS to receive
their allowed economic impact payment
automatically, unless the individual had
a change in circumstances in 2019 that
would increase the amount of their eco-
nomic impact payment or a change of
address or direct deposit information. See
§ 6428(f)(5). Likewise, a social security,
railroad retirement, or other Federal ben-
eficiary to whom an automatic economic
impact payment may be made—who is
not otherwise required to file a Federal in-
come tax return for taxable years 2018 and
2019, who does not have any qualifying
children, and whose spouse, if any, also
received these benefits—will not need to
file any additional forms or otherwise con-
tact the IRS to receive their allowed eco-
nomic impact payment automatically. See,
for example, Treasury Department Press
Release, “Social Security Recipients Will
Automatically Receive Economic Impact
Payments,” dated April 1, 2020, avail-
able at https://home.treasury.gov/news/
press-releases/sm967.
SECTION 2. BACKGROUND
.01 Section 2201(a) of the CARES
Act added § 6428 to the Internal Reve-
nue Code (Code). Section 6428(a) pro-
vides an eligible individual a refundable
tax credit against the individual’s Federal
income tax liability (as imposed by sub-
title A of the Code) for the first taxable
year beginning in 2020. In general, the
amount of that credit equals the sum of
(1) $1,200 ($2,400 in the case of two el-
igible individuals filing a joint return),
plus (2) an amount equal to the product
of $500 multiplied by the number of
qualifying children (within the meaning
of § 24(c) of the Code) of the eligible
individual. But see § 6428(c) (providing
graduated reductions of the total credit
amount based on the eligible individual’s
AGI).
.02 Section 6428(d) defines the term
“eligible individual” for purposes of
§ 6428 to mean any individual other than
(1) a nonresident alien individual, (2) an
individual who can be claimed as a depen-
dent for a deduction under § 151 of the
Code for the taxable year, or (3) an estate
or trust. Section 6428(g) provides that an
eligible individual must have a social se-
curity number (SSN) that is valid for em-
ployment (or have filed a joint return with
an individual who has an SSN that is valid
for employment if one of the joint return
filers is a member of the Armed Forces
of the United States at any time during
the taxable year) to qualify for the credit.
For the purpose of determining the credit
amount under § 6428(a), a child must be
under the age of 17 and have an SSN that
is valid for employment or an adoption
taxpayer identification number (ATIN).
.03 Section 6428(f) addresses the pay-
ment of advanced refunds and credits (that
is, economic impact payments) during
calendar year 2020. In general, § 6428(f)
(1) provides that each individual who was
an eligible individual for taxable year
2019 is treated as having made a payment
against the Federal income tax for taxable
year 2019 in an amount equal to the eco-
nomic impact payment amount. Section
6428(f)(2) provides that this economic
impact payment amount is the amount
that would have been allowed as a credit
under § 6428 for taxable year 2019 if §
6428 (other than subsections (e) and (f) of
§ 6428) had applied to taxable year 2019.
.04 Section 6428(f)(5) permits the Sec-
retary of the Treasury or his delegate (Sec-
retary) to provide economic impact pay-
ments to eligible individuals who have not
filed a Federal income tax return for tax-
able year 2019. Specifically, § 6428(f)(5)
(A) provides that, if an eligible individual
has not filed a Federal income tax return
for taxable year 2019, the Secretary may
determine the amount of the economic
impact payment based on information re-
ported on the eligible individual’s Federal
income tax return filed for taxable year
2018. If that eligible individual has not
filed such a return for taxable year 2018,
§ 6428(f)(5)(B) provides that the Secre-
tary may use information with respect to
that eligible individual for calendar year
2019 provided in (1) Form SSA-1099,
Social Security Benefit Statement, or (2)
Form RRB-1099, Social Security Equiva-
lent Benefit Statement.
.05 Section 6428(h) requires the Sec-
retary to prescribe such guidance as may
be necessary to carry out the purposes of §
6428, which include the purpose set forth
in § 6428(f)(3)(A) of providing economic
impact payments “as rapidly as possible.”
.06 Because the IRS has not received the
returns or forms described in § 6428(f)(1)
and (5) for eligible individuals described
in section 3.02 or 4.02 of this revenue pro-
cedure, the IRS currently lacks necessary
information to make the allowed econom-
ic impact payments in calendar year 2020
to such eligible individuals. Accordingly,
pursuant to § 6428(h)—
(1) Section 3 of this revenue procedure
provides a simplified Federal income tax
return filing procedure for eligible in-
dividuals who are not required to file a
Federal income tax return for taxable year
2019; and
(2) Section 4 of this revenue procedure
provides a special procedure for eligible
individuals who are not required to file a
Federal income tax return for taxable year
2019 and have zero AGI for that taxable
year to file a complete Federal income tax
return electronically.
.07 The procedure described in section
4 accommodates zero AGI filers (as de-
fined in section 4.02 of this revenue proce-
dure) who (i) need to provide more detail
in filing State or local tax returns than that
allowed by the simplified procedure pro-
vided by section 3, or (ii) utilize tax return
preparation software that does not permit
filing under the simplified procedure pro-
vided by section 3. Otherwise, taxpayers
should use the simplified procedure de-
scribed in section 3.

May 4, 2020 794 Bulletin No. 2020–19
.08 Eligible individuals described in
section 3.02 or 4.02 of this revenue proce-
dure will receive an economic impact pay-
ment after following the Federal income
tax return filing procedures provided in
sections 3 or 4 of this revenue procedure,
as applicable. The economic impact pay-
ment will be offset for past-due child sup-
port under § 6402(c) of the Code.
SECTION 3. SIMPLIFIED
PROCEDURE FOR FILING PAPER
OR ELECTRONIC TAX RETURN
IF ELIGIBLE INDIVIDUAL IS NOT
REQUIRED TO FILE A FEDERAL
INCOME TAX RETURN FOR
TAXABLE YEAR 2019
.01 Federal income tax return filed by
mail or electronically. A simplified return
filer (as defined in section 3.02 of this rev-
enue procedure) will receive an economic
impact payment if the simplified return
filer files a Federal income tax return on
Form 1040, U.S. Individual Income Tax
Return, or Form 1040-SR, U.S. Tax Re-
turn for Seniors, for taxable year 2019,
on paper or electronically, pursuant to the
simplified procedure set forth in this sec-
tion 3.
.02 Definition of simplified return
filer. For purposes of this section 3, a
“simplified return filer” is an eligible in-
dividual described in section 2.02 of this
revenue procedure who is not required to
file a Federal income tax return for tax-
able year 2019 and has not filed a Federal
income tax return for that taxable year.
In addition, a simplified return filer must
have an SSN that is valid for employment
or file a joint return with an individual
who has an SSN that is valid for employ-
ment if one of the joint return filers is a
member of the Armed Forces of the Unit-
ed States at any time during taxable year
2019.
.03 Filing deadline. As soon as possible
but not later than October 15, 2020, a sim-
plified return filer following the procedure
set forth in this section 3 must file a Fed-
eral income tax return. This filing deadline
ensures that the IRS will have sufficient
time to process all Federal income tax re-
turns filed under section 3 of this revenue
procedure and make all resulting econom-
ic impact payments before December 31,
2020, the last day economic impact pay-
ments may be made under § 6428(f)(3)
(A). Simplified return filers are encour-
aged to file their tax returns electronically
to speed the issuance of their economic
impact payments.
.04 Simplified filing method.
(1) Overview. In the case of a simpli-
fied return filer, the IRS will process the
simplified return filer’s Form 1040 or
Form 1040-SR for taxable year 2019 to
provide an economic impact payment,
if the form is prepared in the manner re-
quired in this section 3.04. The Form 1040
or Form 1040-SR should include only the
information described in this section 3.04.
(2) Write “EIP2020” on form. A simpli-
fied return filer must designate “EIP2020”
on Form 1040 or Form 1040-SR.
(a) If filing the Federal income tax
return by mail, this text must be placed
above the printed material at the top of
page 1 of the Form 1040 or Form 1040-
SR.
(b) If electronically filing the Federal
income tax return, this text must be placed
in the correct spot of the electronic filing
record.
(3) Filing status. A simplified return
filer must select their filing status as of
the end of taxable year 2019 at the top of
Form 1040 or Form 1040-SR.
(4) Required general information. A
simplified return filer must enter their
name, mailing address, and SSN, and the
name and SSN of their spouse if filing a
joint return, on the appropriate lines of
Form 1040 or Form 1040-SR. If a simpli-
fied return filer and their spouse file a joint
return and either the simplified return filer
or the spouse is a member of the Armed
Forces of the United States at any time
during taxable year 2019, then an SSN for
one spouse and either an SSN or an IRS
individual taxpayer identification num-
ber (that is, an ITIN) for the other spouse
must be entered on the appropriate lines of
Form 1040 or Form 1040-SR.
(5) Individuals who could be claimed
as dependents by other taxpayers. A sim-
plified return filer must check all applica-
ble boxes under the address lines for each
individual who could be claimed as a de-
pendent by any other taxpayer for taxable
year 2019.
(6) General information regarding de-
pendents. If applicable, a simplified return
filer should provide information regarding
each dependent who was under the age of
17 at the end of taxable year 2019 on the
appropriate lines of Form 1040 or Form
1040-SR. For each dependent, a simpli-
fied return filer must provide the name,
SSN or ATIN, and relationship to the in-
dividual. Column (4) of each line on the
form must be left blank.
(7) Limited information to provide in
lines 1 through 24. Except as provided in
this section 3.04(7), a simplified return fil-
er should leave blank lines 1 through 24 of
Form 1040 or Form 1040-SR, even if the
values for these lines are in fact not zero.
(a) Lines 2b, 7b, and 8b. A simplified
return filer who files their Federal income
tax return electronically must enter $1.00
on lines 2b, 7b, and 8b.
(b) Line 9. A simplified return filer
who files their Federal income tax return
electronically must enter the applicable
standard deduction amount for their filing
status on line 9.
(c) Line 11b. A simplified return filer
must enter $0.00 on line 11b.
(d) Line 21a. A simplified return filer
must not check the box on line 21a be-
cause the economic impact payment may
not be divided among multiple accounts.
(e) Lines 21b through 21d. A simplified
return filer may request the direct depos-
it of their economic impact payment into
their account at a bank or other financial
institution by entering their direct depos-
it information on lines 21b through 21d.
A simplified return filer must not request
their economic impact payment to be de-
posited into an account that is not in the
name of that simplified return filer (for
example, a simplified return filer must not
request a direct deposit of their economic
impact payment into their tax return pre-
parer’s account).
05. Signature. A simplified return filer
must provide their identity protection per-
sonal identification number (that is, their
IP PIN), if applicable, and sign the return
under penalties of perjury. In addition,
a simplified return filer may enter their
identifying information of any third-party
designee, if applicable, at the bottom of
page 2 of Form 1040 or Form 1040-SR.
A simplified return filer who has been as-
signed an IP PIN, but has misplaced it,
may retrieve the IP PIN at https://www.irs.
gov/identity-theft-fraud-scams/retrieve-
your-ip-pin.

Bulletin No. 2020–19 795 May 4, 2020
.06 Computation of economic impact
payment. Based on the information pro-
vided by a simplified return filer on Form
1040 or Form 1040-SR for taxable year
2019, the IRS will compute the amount of
the economic impact payment that will be
paid to the simplified return filer in calen-
dar year 2020.
.07 Accuracy of return. The IRS will
not challenge the accuracy of the items of
income reported on a Federal income tax
return filed by a simplified return filer in
accordance with this section 3.
SECTION 4. SPECIAL PROCEDURE
FOR FILING ELECTRONIC
TAX RETURN IF ELIGIBLE
INDIVIDUAL HAS NO TAXABLE
YEAR 2019 ADJUSTED GROSS
INCOME
.01 Federal income tax return filed
electronically. A zero AGI filer (as defined
in section 4.02 of this revenue procedure)
will receive an economic impact payment
if the zero AGI filer electronically files a
Federal income tax return on Form 1040
or Form 1040-SR for taxable year 2019
pursuant to the requirements set forth in
sections 4.03 through 4.06 of this revenue
procedure. The special procedure set forth
in this section 4 applies only to an elec-
tronically filed return and does not apply
to a return filed on paper.
.02 Definition of zero AGI filer. For
purposes of this section 4, a “zero AGI
filer” is an eligible individual described
in section 2.02 of this revenue procedure
who has zero AGI for taxable year 2019
(that is, the eligible individual has zero
AGI for taxable year 2019 reportable on
line 8b of Form 1040 or Form 1040-SR)
and has not yet filed a Federal income tax
return for taxable year 2019. In addition,
a zero AGI filer must have an SSN that is
valid for employment or file a joint return
with an individual who has an SSN that is
valid for employment if one of the joint
return filers is a member of the Armed
Forces of the United States at any time
during taxable year 2019.
.03 Filing deadline. As soon as possi-
ble but not later than October 15, 2020,
a zero AGI filer must electronically file
their Federal income tax return under the
procedure set forth in this section 4. This
filing deadline ensures that the IRS will
have sufficient time to process all Federal
income tax returns filed under section 4 of
this revenue procedure and make all re-
sulting economic impact payments before
December 31, 2020, the last day econom-
ic impact payments may be made under
§ 6428(f)(3)(A).
.04 Required information. In addition
to all other information required to be en-
tered on Form 1040 or Form 1040-SR, a
zero AGI filer must enter the following:
(1) $1.00 as taxable interest on line 2b
of the form;
(2) $1.00 as total income on line 7b of
the form; and
(3) $1.00 as AGI on line 8b of the form.
.05 Signature. A zero AGI filer must
provide their identity protection person-
al identification number (that is, their IP
PIN), if applicable, and sign the return un-
der penalties of perjury. In addition, a zero
AGI filer may enter the identifying infor-
mation of any third-party designee, if ap-
plicable, at the bottom of page 2 of Form
1040 or Form 1040-SR. A zero AGI filer
who has been assigned an IP PIN, but has
misplaced it, may retrieve the IP PIN at
https://www.irs.gov/identity-theft-fraud-
scams/retrieve-your-ip-pin.
.06 Computation of economic impact
payment. Based on the information pro-
vided by the zero AGI filer on Form 1040
or Form 1040-SR for taxable year 2019,
the IRS will compute the amount of the
economic impact payment that will be
paid to the zero AGI filer in calendar year
2020.
.07 Accuracy of return. The IRS will
not challenge the accuracy of the items of
income reported on a Federal income tax
return filed by a zero AGI filer for taxable
year 2019 in accordance with this section
4.
SECTION 5. “GET MY PAYMENT”
AND “NON-FILERS: ENTER
PAYMENT INFO HERE” TOOLS
Visit www.irs.gov/coronavirus for ad-
ditional details about economic impact
payments. The “Get My Payment” tool
provides the most up-to-date information
regarding the status of an eligible indi-
vidual’s economic impact payment. The
“Non-Filers: Enter Payment Info Here”
tool permits simplified return filers to sub-
mit information to the IRS pursuant to the
simplified procedure set forth in section 3
of this revenue procedure.
SECTION 6. DRAFTING
INFORMATION
The principal author of this revenue
procedure is the Office of Associate Chief
Counsel (Procedure and Administration).

May 4, 2020 796 Bulletin No. 2020–19
Part IV
Tax Treatment of Payments
Made on Behalf of,
and Reimbursements
Received by, Connecticut
Homeowners Affected by
Deteriorating Concrete
Foundations Containing the
Mineral Pyrrhotite
Announcement 2020-5
This announcement addresses the Fed-
eral income tax treatment of financial as-
sistance provided to Connecticut home-
owners for the repair of deteriorating
concrete foundations due to pyrrhotite.
Pyrrhotite is a mineral that oxidizes in the
presence of water and oxygen, leading to
the formation of expansive mineral prod-
ucts. Pyrrhotite is naturally found in cer-
tain stone aggregates used to produce con-
crete and can cause concrete to deteriorate
prematurely in certain cases.
In August 2015, agencies of the State
of Connecticut began investigating nu-
merous complaints by homeowners con-
cerning the premature deterioration of
the concrete foundations of their homes.
These agencies concluded that the prema-
ture deterioration of the concrete founda-
tions was due to the presence of pyrrhotite
in the concrete mixture used to pour the
foundations (deteriorating concrete foun-
dations).
In response to the agencies’ investi-
gation, the State of Connecticut enacted
legislation to allow a Connecticut resident
owning a home with a concrete founda-
tion the option to request a reassessment
of the assessed value of the home based
on a written evaluation from a licensed
engineer indicating the home had a dete-
riorating concrete foundation.
In 2017, the State of Connecticut man-
dated the establishment and funding of an
entity, the Connecticut Foundation Solu-
tions Indemnity Company, Inc. (CFSIC),
to assist homeowners with the expeditious
repair of the most severe cases of deteri-
orating concrete foundations. In addition
to establishing the CFSIC, the State of
Connecticut authorized the CFSIC to raise
funds and augment the monies bonded by
the state to remedy the issue of deteriorat-
ing concrete foundations.
In January 2019, the CFSIC began
accepting applications from homeown-
ers seeking financial assistance to repair
their deteriorating concrete foundations.
All claims require a contract between the
homeowner and a contractor for repair
or replacement of the foundation. The
contract must set forth the total cost of
repair. The CFSIC pays the lesser of: (1)
the expenses pertaining to the repair of
the crumbling foundation to a structurally
safe level, or (2) $175,000, per residential
building. There are two types of claims
that homeowners can make. The first type
of claim requests that the CFSIC pay the
contractor directly, on behalf of the home-
owner, for eligible expenses before and
during the performance of the repair work.
The second type of claim requests that the
CFSIC reimburse the homeowner directly
for eligible expenses previously paid to
the contractor. Payments under both types
of claims commenced in 2019.
Guidance published in 2017 and 2018
by the Department of the Treasury and the
Internal Revenue Service (IRS) provided
a safe harbor that allows a homeowner,
under certain conditions, to treat amounts
paid to repair damage to a personal resi-
dence with a deteriorating concrete foun-
dation as a casualty loss under section 165
of the Internal Revenue Code (Code) so
long as the taxpayer was not fully reim-
bursed by insurance or otherwise before
filing a Federal income tax return for the
year the loss was sustained. See Reve-
nue Procedure 2017-60, 2017-50 I.R.B.
559; Revenue Procedure 2018-14, 2018-9
I.R.B. 378.
If a Connecticut homeowner who paid
amounts to repair damage to a personal
residence with a deteriorating concrete
foundation has claimed a deduction under
the safe harbor or otherwise on an origi-
nal or amended Federal income tax return
for an earlier taxable year, then payments
received by the homeowner from the CF-
SIC in a subsequent taxable year must
be included in the homeowner’s gross
income in the Federal income tax return
for the subsequent taxable year to the ex-
tent the deduction claimed for the earlier
taxable year resulted in a Federal income
tax benefit. See section 111 of the Code.
For example, if a homeowner claimed a
deduction of $125,000 for such amounts
in an earlier taxable year and the entire de-
duction resulted in a reduction in Federal
income tax from the tax that would apply
without the deduction, a $125,000 recov-
ery must be included as gross income in
the homeowner’s Federal income tax re-
turn for the subsequent taxable year.
Existing guidance does not specifical-
ly address the Federal income tax treat-
ment of a payment made by the CFSIC
to a Connecticut homeowner who has
not claimed a Federal income tax deduc-
tion for amounts paid to repair damage to
a personal residence with a deteriorating
concrete foundation.
If a Connecticut homeowner has not
claimed a Federal income tax deduction
for amounts paid to repair damage to a
principal residence under the safe harbor
or otherwise, or to the extent such a de-
duction did not result in a Federal income
tax benefit, payments from the CFSIC to
contractors (on behalf of the homeowner)
or reimbursements paid to the homeowner
will not be treated as includible in gross
income of the homeowner in the year the
payment or reimbursement is paid. Reim-
bursed repair costs cannot be deducted or
included in the basis of a home.
For further information regarding this
announcement, contact Martin Osborne
of the Office of Associate Chief Counsel
(Income Tax & Accounting) at (202) 317-
7006 (not a toll-free number).
Notice of Proposed
Rulemaking
Preparer Tax Identification
Number (PTIN) User Fee
Update
REG-117138-17
AGENCY: Internal Revenue Service
(IRS), Treasury.

Bulletin No. 2020–19 797 May 4, 2020
ACTION: Notice of proposed rulemaking.
SUMMARY: This document contains
proposed amendments to the regulations
relating to the imposition of certain user
fees on tax return preparers. The proposed
regulations reduce the amount of the user
fee to apply for or renew a preparer tax
identification number (PTIN) and affect
individuals who apply for or renew a
PTIN. The Independent Offices Appropri-
ations Act of 1952 authorizes the charging
of user fees.
DATES: Written or electronic comments
and requests for a public hearing must be
received by May 18, 2020. Requests for a
public hearing must be submitted as pre-
scribed in the “Comments and Requests
for a Public Hearing” section.
ADDRESSES: Commenters are strong-
ly encouraged to submit public com-
ments electronically. Submit electronic
submissions via the Federal eRulemak-
ing Portal at www.regulations.gov (in-
dicate IRS and REG-117138-17) by
following the online instructions for
submitting comments. Once submit-
ted to the Federal eRulemaking Portal,
comments cannot be edited or with-
drawn. The IRS expects to have limited
personnel available to process public
comments that are submitted on pa-
per through mail. Until further notice,
any comments submitted on paper will
be considered to the extent practica-
ble. The Department of the Treasury
(Treasury Department) and the IRS
will publish for public availability any
comment submitted electronically, and
to the extent practicable on paper, to its
public docket. Send paper submissions
to: CC:PA:LPD:PR (REG-117138-17),
room 5203, Internal Revenue Service,
PO Box 7604, Ben Franklin Station,
Washington, D.C. 20044.
FOR FURTHER INFORMATION CON-
TACT: Concerning the proposed reg-
ulations, Michael A. Franklin at (202)
317-6844; concerning cost methodology,
Michael A. Weber at (202) 803-9738; con-
cerning submissions of comments and/
or requests for a public hearing, Regina
Johnson, (202) 317-5177 (not toll-free
numbers).
SUPPLEMENTARY INFORMATION:
Background and Explanation of
Provisions
This document contains proposed
amendments to 26 CFR part 300 regard-
ing user fees.
Regulations require a tax return prepar-
er who prepares all or substantially all of
a tax return or claim for refund to provide
a PTIN as their identifying number on any
tax return or claim for refund prepared for
compensation. To account for its costs of
providing PTIN application and renew-
al services, the IRS charges a user fee to
apply for or renew a PTIN. This proposal
would reduce the user fee from $33 per
application or renewal to $21.
A. User Fee Authority
The Independent Offices Appropria-
tions Act of 1952 (IOAA), which is cod-
ified at 31 U.S.C. 9701, authorizes agen-
cies to prescribe regulations that establish
user fees for services provided by the
agency. The IOAA provides that regula-
tions implementing user fees are subject
to policies prescribed by the President;
these policies are set forth in the Office of
Management and Budget (OMB) Circular
A-25, 58 FR 38142 (July 15, 1993) (OMB
Circular A-25).
Under OMB Circular A-25, federal
agencies that provide services that con-
fer benefits on identifiable recipients are
to establish user fees that recover the full
cost of providing the service. An agency
that seeks to impose a user fee for gov-
ernment-provided services must calculate
the full cost of providing those services.
In general, a user fee should be set at an
amount that allows the agency to recover
the direct and indirect costs of providing
the service, unless the OMB grants an ex-
ception. OMB Circular A-25 provides that
agencies are to review user fees biennially
and update them as necessary.
B. PTIN Requirement
Section 6109(a)(4) of the Internal
Revenue Code authorizes the Secretary
of the Treasury or his delegate to pre-
scribe regulations for the inclusion of a
tax return preparer’s identifying number
on a return, statement, or other docu-
ment required to be filed with the IRS.
On September 30, 2010, the Treasury
Department and the IRS published final
regulations under section 6109 (REG-
134235-08) in the Federal Register (TD
9501) (75 FR 60315) (PTIN regulations)
to provide that, for returns or claims for
refund filed after December 31, 2010,
the identifying number of a tax return
preparer is the individual’s PTIN or such
other number prescribed by the IRS in
forms, instructions, or other appropriate
guidance. The PTIN regulations require a
tax return preparer who prepares or who
assists in preparing all or substantially all
of a tax return or claim for refund after
December 31, 2010 to have a PTIN.
The PTIN regulations also state that the
IRS will set forth in forms, instructions, or
other appropriate guidance PTIN applica-
tion and renewal procedures, including the
requirement to pay a user fee to obtain or
renew a PTIN. Pursuant to the authority
granted in section 6109(c) and in accor-
dance with §1.6109-2(d) of the PTIN reg-
ulations, the IRS has set forth application
and renewal procedures in Form W-12,
IRS Paid Preparer Tax Identification
Number (PTIN) Application and Renewal,
and the Form W-12 Instructions. Individ-
uals may also apply for or renew a PTIN
and pay the user fee online at irs.gov/ptin.
The annual PTIN application and renewal
period generally begins in the fall of the
year preceding the filing season to which
the PTIN relates.
Section 1.6109-2(d) states that only
individuals authorized to practice before
the IRS under 31 U.S.C. 330 are eligible
to obtain a PTIN. Under §1.6109-2(h), the
IRS may prescribe in forms, instructions,
or other appropriate guidance exceptions
to the requirements of the PTIN regula-
tions, including the requirement that an
individual must be authorized to practice
before the IRS to be eligible to receive a
PTIN. On December 30, 2010, the Trea-
sury Department and the IRS released
Notice 2011-6 (2011-3 IRB 315 (Jan. 17,
2011)), which stated that, until December
31, 2013, a provisional PTIN could be re-
newed upon proper application and pay-
ment of the applicable user fee, even if the
individual holding the provisional PTIN
was not authorized to practice before the
IRS.

May 4, 2020 798 Bulletin No. 2020–19
On June 3, 2011, the Treasury Depart-
ment and the IRS published in the Fed-
eral Register (76 FR 32286) amendments
to Treasury Department Circular No. 230
(31 CFR part 10), to regulate all tax return
preparers under 31 U.S.C. 330. In Loving
v. IRS, 917 F.Supp.2d 67 (D.D.C. 2013),
the district court concluded that the Trea-
sury Department and the IRS lacked statu-
tory authority to regulate tax return prepa-
ration as practice before the IRS under
31 U.S.C. 330 and enjoined the Treasury
Department and the IRS from enforcing
the regulations issued under that section.
The district court subsequently modified
its order to clarify that the IRS’s authority
to require that tax return preparers obtain a
PTIN is unaffected by the injunction. Lov-
ing v. IRS, 920 F.Supp.2d 108, 109 (D.D.C.
2013) (stating “Congress has specifically
authorized the PTIN scheme by statute .
. . [and that] scheme, therefore, does not
fall within the scope of the injunction and
may proceed as promulgated.”). The Unit-
ed States Court of Appeals for the District
of Columbia Circuit affirmed the district
court’s decision and order for injunction.
Loving v. IRS, 742 F.3d 1013 (D.C. Cir.
2014).
C. PTIN User Fee
Final regulations (REG-139343-08)
published in the Federal Register (TD
9503) (75 FR 60316) (initial PTIN user
fee regulations) on September 30, 2010,
established a $50 user fee to apply for
or renew a PTIN, in addition to a portion
payable directly to the contractor, which
was $14.25 for new applications and $13
for renewal applications. The $50 user fee
was based on an annual PTIN renewal pe-
riod and an estimate that 1.2 million indi-
viduals would be applying for or renewing
a PTIN each year.
The Treasury Department and the IRS
determined that a $50 user fee to apply
for or renew a PTIN would recover the
full direct and indirect costs that the gov-
ernment would incur to administer the
PTIN application and renewal process.
As explained in the preamble to the ini-
tial PTIN user fee regulations, the pro-
jected costs included the development
and maintenance of the IRS information
technology system that would interface
with a third-party contractor, the devel-
opment and maintenance of internal ap-
plications that would have the capacity
to process and administer the anticipated
increase in PTIN applications, and cus-
tomer service support activities, which
included website development and main-
tenance and call center staffing to respond
to questions regarding PTIN usage and
renewal. The $50 user fee was also de-
termined to recover costs for personnel,
administrative, and management support
needed to evaluate and address tax com-
pliance issues of individuals applying for
and renewing a PTIN, to investigate and
address conduct and suitability issues,
and otherwise support and enforce the
programs that required an individual to
apply for and renew a PTIN.
Pursuant to the guidelines in OMB Cir-
cular A-25, the IRS re-calculated its costs
associated with providing PTINs in 2015.
The IRS determined that the full cost of
administering the PTIN program going
forward was reduced from $50 to $33 per
application or renewal, plus a $17 fee per
application or renewal payable directly to
a third-party contractor. Final regulations
(REG-121496-15) published in the Fed-
eral Register (TD 9781) (81 FR 52766)
(2016 PTIN user fee regulations) on Au-
gust 10, 2016, superseded and adopted
temporary regulations (TD 9742) (80 FR
66794) and established the $33 annual
user fee to apply for or renew a PTIN,
plus $17 per application or renewal pay-
able directly to a third-party contractor.
The reduction in the fee amount was at-
tributable to several factors, which includ-
ed the reduced number of PTIN holders
(approximately 700,000) from the number
originally projected (1.2 million) in 2010,
which reduced associated costs; the ab-
sorption of certain development costs in
the early years of the program; and the
fact that certain activities that would have
been conducted in relation to registered
tax return preparers would not be per-
formed. In particular, the determination of
the user fee no longer included expenses
for personnel who performed functions
primarily related to continuing educa-
tion and testing for registered tax return
preparers. Additionally, expenses related
to personnel who performed continuing
education and testing for enrolled agents
and enrolled retirement plan agents were
removed from the user fee.
In 2017, the IRS again conducted a
biennial review of the PTIN user fee
and determined that the amount of the
fee going forward should be reduced to
$31 per application or renewal, plus an
amount payable directly to a third-party
contractor. The reduction was primari-
ly attributable to reductions in contract
support costs and salary and benefits. On
June 1, 2017, before a notice of proposed
rulemaking proposing to reduce the
amount of the fee was issued, the IRS was
enjoined from charging a PTIN user fee.
In Steele v. United States, 260 F. Supp. 3d
52 (D.D.C. 2017), the United States Dis-
trict Court for the District of Columbia
concluded that the Treasury Department
and the IRS lacked the statutory authority
to charge a PTIN user fee and enjoined
the IRS from charging a PTIN user fee.
The government filed an appeal and on
March 1, 2019, the United States Court
of Appeals for the District of Columbia
Circuit reversed the district court’s de-
cision and lifted the injunction against
charging the PTIN user fee. See Montrois
v. United States, 916 F.3d 1056 (D.C.
Cir. 2019) (holding that a PTIN provides
tax return preparers a specific benefit by
allowing them to provide an identifying
number that is not a social security num-
ber on returns they prepare and stating
that the permissible amount of the fee
would be the same regardless of whether
the specific benefit was instead the ability
to prepare tax returns for compensation).
The case is currently on remand in the
United States District Court for the Dis-
trict of Columbia regarding the amount
of the fee. Id. at 1068.
Pursuant to the guidelines in OMB
Circular A-25, the IRS has re-calculated
its cost of providing PTINs. The IRS has
determined that the full cost of adminis-
tering the PTIN program going forward
has been reduced to $21 per application
or renewal, plus $14.95 payable directly
to a third-party contractor. The govern-
ment is authorized to charge a PTIN user
fee under the IOAA because, in exchange
for the fee, it provides a service by issuing
and maintaining PTINs, which provide
tax return preparers a specific benefit by
allowing them to provide an identifying

Bulletin No. 2020–19 799 May 4, 2020
number that is not a social security num-
ber on returns and to prepare returns for
compensation.
D. Calculation of User Fees Generally
The IRS follows generally accepted
accounting principles (GAAP) in cal-
culating the full cost of administering
PTIN applications and renewals. The
Federal Accounting Standards Advi-
sory Board (FASAB) is the body that
establishes GAAP that apply for fed-
eral reporting entities, such as the IRS.
FASAB publishes the FASAB Hand-
book of Accounting Standards and Other
Pronouncements, as Amended (Current
Handbook), available at https://files.
fasab.gov/pdffiles/2019_fasab-hand-
book.pdf. Current Handbook includes
the Statement of Federal Financial
Accounting Standards (SFFAS) No. 4:
Managerial Cost Accounting Concepts
and Standards for the Federal Govern-
ment. SFFAS No. 4 establishes internal
costing standards to accurately measure
and manage the full cost of federal pro-
grams, and the methodology below is in
accordance with SFFAS No. 4.
1. Cost Center Allocation
The IRS determines the cost of its
services and the activities involved in
producing them through a cost-account-
ing system that tracks costs to organiza-
tional units. The lowest organizational
unit in the IRS’s cost-accounting system
is a cost center. Cost centers are usually
separate offices that are distinguished
by subject-matter area of responsibility
or geographic region. All costs of oper-
ating a cost center are recorded in the
IRS’s cost-accounting system. The costs
charged to a cost center are the direct costs
for the cost center’s activities in addition
to allocated overhead. Some cost centers
work on different services across the IRS
and are not fully devoted to the services
for which the IRS charges user fees.
2. Cost Estimation of Direct Costs
The IRS uses various cost-measurement
techniques to estimate the cost attributable
to the program. These techniques include
using various timekeeping systems to
measure the time required to accomplish
activities, or using information provided
by subject-matter experts on the time de-
voted to a program. To determine the labor
and benefits cost incurred to provide the
service of providing a PTIN, the IRS esti-
mated the number of full-time employees
required to conduct activities related to the
costs of issuing and renewing PTINs. The
number of full-time employees is based
on both current employment numbers and
future hiring estimates. Other direct costs
associated with administering the PTIN
program include contract costs and travel,
training, supplies, printing, and other mis-
cellaneous costs.
3. Overhead
When the indirect cost of a service or
activity is not specifically identified from
the cost-accounting system, an overhead
rate is added to the identifiable direct cost
to arrive at full cost. Overhead is an indi-
rect cost of operating an organization that
is not specifically identifiable with an ac-
tivity. Overhead includes costs of resourc-
es that are jointly or commonly consumed
by one or more organizational unit’s activ-
ities but are not specifically identifiable to
a single activity.
These costs can include:
• General management and administra-
tive services of sustaining and sup-
porting organizations.
• Facilities management and ground
maintenance services (security, rent,
utilities, and building maintenance).
• Procurement and contracting ser-
vices.
• Financial management and account-
ing services.
• Information technology services.
• Services to acquire and operate prop-
erty, plants, and equipment.
• Publication, reproduction, and graph-
ics and video services.
• Research, analytical, and statistical
services.
• Human resources/personnel services.
• Library and legal services.
To calculate the overhead allocable to
a service, the IRS multiplies an overhead
rate by the estimated direct costs. The
IRS calculates the overhead rate annu-
ally based on the Statement of Net Cost
included in the IRS annual financial state-
ments. The financial statements are audit-
ed by the Government Accountability Of-
fice. The overhead rate is the ratio of the
IRS’s indirect costs divided by direct costs
of its organizational units. Indirect costs
are labor, benefits, and non-labor costs
(excluding IT related to taxpayer services,
enforcement, and business system mod-
ernization) from the supporting and sus-
taining organizational units. Direct costs
are labor, benefits, and non-labor costs for
the IRS’s organizational units that interact
directly with taxpayers.
For the PTIN user fee review, an over-
head rate of 57.58 percent was used. The
rate was calculated based on the FY 2019
Statement of Net Cost as follows:
Total Indirect Costs $4,006,706,430
Total Direct Costs ÷ $6,957,940,668
Overhead Rate 57.58%
E. Calculation of PTIN User Fee
The IRS projected the direct costs as-
sociated with the PTIN program for fis-
cal years 2020 through 2022. Direct costs
are incurred by the Return Preparer Of-
fice (RPO) and include staffing and other
direct costs related to administering the
PTIN program. Staffing costs relate to con-
ducting certain suitability checks, foreign
preparer processing, handling compliance
and complaint activities, information tech-
nology and contract-related support, com-
munications, budgeting and finance, and
program oversight and support. The labor
and benefits for the work performed relat-
ed to the PTIN program is projected to be
$30,816,935 in total over fiscal years 2020
through 2022. Other direct costs associat-
ed with administering the PTIN program
include contract costs and travel, training,
supplies, printing, and other miscellaneous
costs. The total amount of these other direct
costs over fiscal years 2020 through 2022
is projected to be $463,750. Total direct
costs for fiscal years 2020 through 2022 are
therefore projected to be $31,280,685. Add-
ing overhead expenses to the total direct
costs results in total costs of $49,292,103
as shown below:
Total Direct Costs $ 31,280,685
Overhead (57.58%) $ 18,011,418
Total Direct Costs and
Overhead $ 49,292,103

May 4, 2020 800 Bulletin No. 2020–19
The number of users annually is estimat-
ed to be 800,000, based on numbers of PTIN
holders in prior fiscal years. Dividing the to-
tal cost by the projected population of users
for fiscal years 2020 through 2022 results in
a cost per application of $21 as shown below:
Total Costs $ 49,292,103
Number of Applications ÷ 2,400,000
Cost Per Application $ 21
Taking into account the full amount of
these costs, the amount of the PTIN user
fee per application or renewal is $21. The
revised amount takes into account a re-
duction in contract support costs, a reduc-
tion in the cost of salary and benefits, and
the current fiscal year overhead rate.
A third-party contractor performs cer-
tain functions, including processing ap-
plications to obtain or renew a PTIN and
operating a call center, and charges a rea-
sonable fee, which will be set at $14.95
per application or renewal, in addition to
the amount charged by the government.
The third-party contractor was chosen
through a competitive bidding process.
The amount of the contractor portion may
change in 2021 when the contract expires
and will be re-computed.
Special Analyses
The OMB’s Office of Information and
Regultory Analysis has determined that
this regulation is significant and subject
to review under section 6(b) of Executive
Order 12866.
Pursuant to the Regulatory Flexibility
Act (5 U.S.C. chapter 6), it is hereby cer-
tified that these proposed regulations will
not have a significant economic impact
on a substantial number of small entities.
The proposed regulations affect all indi-
viduals who prepare or assist in preparing
all or substantially all of a tax return or
claim for refund for compensation. Only
individuals, not businesses, can have a
PTIN. Thus, the economic impact of these
regulations on any small entity generally
will be a result of an individual tax return
preparer who is required to have a PTIN
owning a small business or a small busi-
ness otherwise employing an individual
tax return preparer who is required to have
a PTIN. The Treasury Department and the
IRS estimate that approximately 800,000
individuals will apply annually for an ini-
tial or renewal PTIN. Although the final
regulations will likely affect a substantial
number of small entities, the econom-
ic impact on those entities is not signifi-
cant. The final regulations will establish a
$21 fee per application or renewal (plus
$14.95 payable directly to the contractor),
which is a reduction from the previously
established fee of $33 (plus $17 payable
directly to the contractor) per application
or renewal and will not have a significant
economic impact on a small entity. Ac-
cordingly, the Secretary certifies that the
rule will not have a significant economic
impact on a substantial number of small
entities.
Pursuant to section 7805(f), this notice
of proposed rulemaking has been submit-
ted to the Chief Counsel of the Office of
Advocacy of the Small Business Adminis-
tration for comment on its impact on small
business.
Comments and Requests for a Public
Hearing
Before these proposed amendments
to the regulations are adopted as final
regulations, consideration will be given
to comments that are submitted timely
to the IRS as prescribed in the preamble
under the “ADDRESSES” section. The
Treasury Department and the IRS request
comments on all aspects of the proposed
regulations. Any electronic comments
submitted, and to the extent practicable
any paper comments submitted, will be
made available at www.regulations.gov or
upon request.
A public hearing will be scheduled if
requested in writing by any person who
timely submits electronic or written com-
ments. Requests for a public hearing are
also encouraged to be made electronically.
If a public hearing is scheduled, notice of
the date and time for the public hearing
will be published in the Federal Regis-
ter. Announcement 2020-4, 2020-17 IRB
1, provides that until further notice, pub-
lic hearings conducted by the IRS will be
held telephonically. Any telephonic hear-
ing will be made accessible to people with
disabilities.
Drafting Information
The principal author of these regula-
tions is Michael A. Franklin, Office of the
Associate Chief Counsel (Procedure and
Administration). Other personnel from the
Treasury Department and the IRS partic-
ipated in the development of the regula-
tions.
List of Subjects in 26 CFR Part 300
Reporting and recordkeeping require-
ments, User fees.
Proposed Amendments to the
Regulations
Accordingly, 26 CFR part 300 is pro-
posed to be amended as follows:
PART 300 – USER FEES
Paragraph 1. The authority citation for
part 300 continues to read as follows:
Authority: 31 U.S.C. 9701.
Par. 2. Section 300.12 is amended by
revising paragraphs (b) and (d) to read as
follows:
§300.13 Fee for obtaining a preparer
tax identification number.
* * * * *
(b) Fee. The fee to apply for or renew
a preparer tax identification number is
$21 per year and is in addition to the fee
charged by the contractor.
* * * * *
(d) Applicability date. This section ap-
plies to applications for or renewal of a
preparer tax identification number filed on
or after [the date that is 30 days after these
regulations are published as final regula-
tions in the Federal Register].
Sunita Lough,
Deputy Commissioner for Services
and Enforcement.
(Filed by the Office of the Federal Register on April
15, 2020, 8:45 a.m., and published in the issue of the
Federal Register for April 16, 2020, 85 F.R. 21126)

Bulletin No. 2020–19 i May 4, 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.

May 4, 2020 ii Bulletin No. 2020–19
Numerical Finding List
1
Bulletin 2020–19
AOD:
2020-1, 2020-12 I.R.B. 521
2020-2, 2020-14 I.R.B. 558
2020-3, 2020-17 I.R.B. 663
Announcements:
2020-1, 2020-5 I.R.B. 552
2020-2, 2020-15 I.R.B. 609
2020-3, 2020-15 I.R.B. 655
2020-4, 2020-17 I.R.B. 667
2020-5, 2020-19 I.R.B. 796
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
2020-10, 2020-10 I.R.B. 456
2020-11, 2020-11 I.R.B. 492
2020-12, 2020-11 I.R.B. 495
2020-13, 2020-11 I.R.B. 502
2020-14, 2020-13 I.R.B. 555
2020-15, 2020-14 I.R.B. 559
2020-16, 2020-14 I.R.B. 559
2020-17, 2020-15 I.R.B. 590
2020-18, 2020-15 I.R.B. 590
2020-19, 2020-15 I.R.B. 591
2020-20, 2020-16 I.R.B. 660
2020-21, 2020-16 I.R.B. 660
2020-22, 2020-17 I.R.B. 664
2020-23, 2020-18 I.R.B. 742
2020-26, 2020-18 I.R.B. 744
2020-27, 2020-19 I.R.B. 778
2020-28, 2020-19 I.R.B. 781
2020-30, 2020-19 I.R.B. 781
2020-31, 2020-19 I.R.B. 783
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
REG-132741-17, 2020-10 I.R.B. 458
REG-100814-19, 2020-12 I.R.B. 542
REG-132529-17, 2020-12 I.R.B. 667
REG-106013-19, 2020-18 I.R.B. 757
REG-117138-17, 2020-19 I.R.B. 796
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
2020-8, 2020-08 I.R.B. 447
2020-12, 2020-11 I.R.B. 511
2020-13, 2020-11 I.R.B. 515
2020-17, 2020-12 I.R.B. 539
2020-18, 2020-15 I.R.B. 592
2020-14, 2020-16 I.R.B. 661
2020-22, 2020-18 I.R.B. 745
2020-23, 2020-18 I.R.B. 749
2020-24, 2020-18 I.R.B. 750
2020-26, 2020-18 I.R.B. 753
2020-25, 2020-19 I.R.B. 785
2020-28, 2020-19 I.R.B. 792
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
2020-4, 2020-4 I.R.B. 444
2020-5, 2020-5 I.R.B. 454
2020-6, 2020-11 I.R.B. 490
2020-7, 2020-12 I.R.B. 522
2020-9, 2020-15 I.R.B. 563
2020-10, 2020-15 I.R.B. 565
2020-8, 2020-19 I.R.B. 775
2020-11, 2020-19 I.R.B. 776
Treasury Decisions:
9886, 2020-2 I.R.B. 285
9887, 2020-3 I.R.B. 302
9888, 2020-3 I.R.B. 306
9891, 2020-8 I.R.B. 419
9892, 2020-8 I.R.B. 439
9893, 2020-9 I.R.B. 449
9895, 2020-15 I.R.B. 565
9896, 2020-18 I.R.B. 681
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. 2020–19 iii May 4, 2020
Finding List of Current Actions on
Previously Published Items
1
Bulletin 2020–19
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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