Internal Revenue Bulletin 2020-35 (PDF rendition): IRS Announcements

Preserve advance releases and the authoritative Internal Revenue Bulletin rendition; directory timestamps are file-publication metadata, not legal effective dates. HTML bulletins begin June 2003; earlier available issues require full PDF parsing. Whole bulletin rendition: numbered items are identified below; other legal material and publisher context remain included. This is not a new standalone advance release.

Bulletin No. 2020–35
August 24, 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-132434-17, page 508.
These proposed regulations interpret new section 7602(f)’s
restrictions on the non-governmental persons (contractors)
to whom the IRS may provide books, papers, records, or
other data for the sole purpose of providing expert evalua-
tion and assistance to the IRS. Ancillary contractors, such as
court reporters, translators or interpreters, photocopy ser-
vices, providers of data processing programs or equipment,
litigation support services, and other similar contractors may
continue to assist the IRS in its examinations of taxpayers,
but the IRS will not hire certain types of non-governmental
attorneys for these purposes. No person other than an of-
ficer or employee of the IRS or IRS Chief Counsel may, on
behalf of the IRS, question a witness under oath as part of
an examination, but IRS contractors who are court reporters
or foreign language interpreters may continue to play their
customary roles in asking a witness certain non-substantive
questions in a summons interview.
ADMINISTRATIVE, EXCISE TAX
Notice 2020-55, page 467.
Notice 2020-55 provides expanded disaster relief, in the
form of postponing until October 31, 2020, certain Feder-
al excise tax filing and payment deadlines, and associated
interest, penalties, and additions to tax, for taxpayers who
owe a federal excise tax for sales of sport fishing or archery
equipment for the first quarter of 2020.
EMPLOYEE PLANS
Notice 2020-61, page 468.
The notice provides guidance regarding the special rules
relating to single-employer defined benefit pension plans un-
der § 3608 of the CARES Act. Under these special rules, a
contribution that would otherwise be required to be made to
such a plan during 2020 is required to be made by January
1, 2021, and special interest adjustment rules apply to a
contribution that is made after the otherwise applicable dead-
line. In addition, an employer may elect to apply the benefit
restrictions for underfunded plans under § 436 of the Code
for the 2020 plan year (or a fiscal plan year that contains any
part of 2020) using the plan’s funded status for the last plan
year ending in 2019.
Notice 2020-62, page 476.
Notice 2020-62 modifies the two safe harbor explanations in
Notice 2018-74, 2018-40 I.R.B. 529, that may be provided
to recipients of eligible rollover distributions to satisfy the
notice requirements under § 402(f). The safe harbor explana-
tions, as modified by this notice, take into consideration cer-
tain legislative changes, including changes related to the Set-
ting Every Community Up for Retirement Enhancement Act of
2019 (“SECURE Act”), and include other clarifying changes.
INCOME TAX
Announcement 2020-13, page 492.
A copy of the Competent Authority Arrangement en-
tered into by the competent authorities of the United
States of America and Switzerland, arranging the im-
plementation of the arbitration process provided for in
paragraphs 6 and 7 of Article 25 of the Convention
Between the United States of America and the Swiss
Confederation for the Avoidance of Double Taxation
with respect to Taxes on Income.
Notice 2020-63, page 491.
This notice modifies Notice 2006-09, 2006-6 I.R.B. 413 and
Notice 2008-33, 2008-12 I.R.B. 642, 2008, by providing a
new address to which a vehicle manufacturer (or, in the case
of a foreign vehicle manufacturer, its domestic distributor)
must send vehicle certifications and quarterly reports.
Finding Lists begin on page ii.

The IRS Mission
Provide America’s taxpayers top-quality service by helping
them understand and meet their tax responsibilities and en-
force the law with integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument
of the Commissioner of Internal Revenue for announcing of-
ficial rulings and procedures of the Internal Revenue Service
and for publishing Treasury Decisions, Executive Orders, Tax
Conventions, legislation, court decisions, and other items of
general interest. It is published weekly.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application
of the tax laws, including all rulings that supersede, revoke,
modify, or amend any of those previously published in the
Bulletin. All published rulings apply retroactively unless other-
wise indicated. Procedures relating solely to matters of inter-
nal management are not published; however, statements of
internal practices and procedures that affect the rights and
duties of taxpayers are published.
Revenue rulings represent the conclusions of the Service
on the application of the law to the pivotal facts stated in
the revenue ruling. In those based on positions taken in rul-
ings to taxpayers or technical advice to Service field offices,
identifying details and information of a confidential nature are
deleted to prevent unwarranted invasions of privacy and to
comply with statutory requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned
against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—1986 Code.
This part includes rulings and decisions based on provisions
of the Internal Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B,
Legislation and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative
Rulings. Bank Secrecy Act Administrative Rulings are issued
by the Department of the Treasury’s Office of the Assistant
Secretary (Enforcement).
Part IV.—Items of General Interest.
This part includes notices of proposed rulemakings, disbar-
ment and suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.
The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
August 24, 2020 Bulletin No. 2020–35

Part III
Relief for Taxpayers
Affected by Ongoing
Coronavirus Disease
Pandemic, Related to Sport
Fishing Equipment and
Bows and Arrows Excise
Tax Filing and Payment
Deadlines
Notice 2020-55
SECTION 1. PURPOSE
On March 13, 2020, the President of
the United States issued an emergency
declaration under the Robert T. Stafford
Disaster Relief and Emergency Assistance
Act in response to the ongoing Coronavi-
rus Disease 2019 (COVID-19) pandemic
(Emergency Declaration). The Emergen-
cy Declaration instructed the Secretary of
the Treasury “to provide relief from tax
deadlines to Americans who have been
adversely affected by the COVID-19
emergency, as appropriate, pursuant to 26
U.S.C. 7508A(a).” Pursuant to the Emer-
gency Declaration, this notice provides re-
lief under section 7508A(a) of the Internal
Revenue Code (Code) for the persons de-
scribed in section 3 of this notice that the
Secretary of the Treasury has determined
to be affected by the COVID-19 emergen-
cy. Notice 2020-48, 2020-29 IRB 72 (July
13, 2020), previously postponed certain
federal tax filing and payment deadlines
related to second quarter 2020 sport fish-
ing equipment and bows and arrows ex-
cise taxes.
SECTION 2. BACKGROUND
Section 7508A of the Code provides
the Secretary of the Treasury or his del-
egate (Secretary) with authority to post-
pone the time for performing certain acts
under the internal revenue laws for a tax-
payer determined by the Secretary to be
affected by a federally declared disaster
as defined in § 165(i)(5)(A) of the Code.
Pursuant to § 7508A(a), a period of up to
one year may be disregarded in determin-
ing whether the performance of those acts
is timely under the internal revenue laws.
Section 40.0-1(a) of the Excise Tax
Procedural Regulations applies the part 40
procedural regulations to various excise
taxes including those imposed on sporting
goods by chapter 32, subchapter D, part
I of the Code. Section 40.6011(a)-1(a)
(1) provides that the return of any tax to
which part 40 applies must be made on
Form 720 (Quarterly Federal Excise Tax
Return) according to the instructions ap-
plicable to the form. The requirement for
filing a return under part 40 applies sepa-
rately to each tax listed by IRS Number
on Form 720.
The federal sporting goods excise taxes
are imposed by § 4161(a) on sport fishing
equipment and by § 4161(b) on bows and
arrows. These taxes are reported on Form
720, Part II, IRS Numbers: 41 (sport fish-
ing equipment (other than fishing rods
and fishing poles)), 110 (fishing rods and
fishing poles), 42 (electric outboard mo-
tors), 114 (fishing tackle boxes), 44 (bows,
quivers, broadheads, and points), and 106
(arrow shafts) (hereafter the “sport fishing
and archery equipment numbers”). Under
§ 40.6011(a)-1(a), an entry for each IRS
Number on Form 720 constitutes a sep-
arate return. The Form 720 due on April
30, 2020, covers the first calendar quarter
(January, February, March) of the year
2020.
SECTION 3. GRANT OF RELIEF
Any person (as defined in § 7701(a)
(1) of the Code) with a federal sporting
goods excise tax payment due and the re-
quirement to file a return under the sport
fishing and archery equipment numbers
on Part II of Form 720, on April 30, 2020
(the first quarter of 2020), is determined to
be affected by the COVID-19 emergency
for purposes of the relief described in this
section 3 (Affected Taxpayer).
For an Affected Taxpayer, the April
30, 2020, due date for filing Form 720 for
the sport fishing and archery equipment
numbers and making corresponding fed-
eral sporting goods excise tax payments
is automatically postponed to October 31,
2020. This postponement of the due date
is automatic; Affected Taxpayers do not
have to call the IRS or file any extension
forms.
An Affected Taxpayer who has already
filed a first quarter Form 720 for excise
taxes and fully paid the corresponding
excise taxes on sport fishing and archery
equipment by the normal due date (April
30, 2020) may disregard this notice and
does not need to do anything further. An
Affected Taxpayer who has already filed a
first quarter Form 720 for excise taxes on
sport fishing and archery equipment but
has not fully paid such excise taxes may
pay those taxes by the postponed deadline
of October 31, 2020. An Affected Taxpay-
er who has not already filed its first quar-
ter Form 720 and who takes advantage of
this postponement should file only one
Form 720 for the sport fishing and archery
equipment numbers for the first quarter of
2020 by the postponed deadline of Octo-
ber 31, 2020.
Any Affected Taxpayer that, pursuant
to this notice, files its first quarter Form
720 for the sport fishing and archery
equipment numbers after August 7, 2020,
but by October 31, 2020, must adhere to
the following instructions to take advan-
tage of the postponed deadline of October
31, 2020, to file and pay such excise taxes:
• Any Affected Taxpayer that has not
already filed a first quarter Form 720
that wants to take advantage of the
postponement must file a paper Form
720, rather than an electronic Form
720, to file its return for excise taxes
on sport fishing and archery equip-
ment. An Affected Taxpayer should
file only one Form 720 for the sport
fishing and archery equipment num-
bers for the first quarter of 2020 by
the postponed deadline of October
31, 2020. In addition, an Affected
Taxpayer must write “Notice 2020-
55” on the top-center of the Form 720
on which its first quarter 2020 excise
taxes on sport fishing and archery
equipment are reported after August
7, 2020.
• If any Affected Taxpayer that wants to
take advantage of this postponement
in filing is required to file a Form 720
for excise taxes other than for sport
Bulletin No. 2020–35 467 August 24, 2020

fishing and archery equipment on
April 30, 2020, and has not done so,
such an Affected Taxpayer should file
a Form 720 reporting such excise tax-
es as soon as possible with the sport
fishing and archery lines blank, to
stop the further accrual of late filing
penalties.
• Any Affected Taxpayer that wants to
take advantage of the postponement
must not combine first quarter (the
calendar quarter containing Janu-
ary, February, and March 2020) with
second or third quarter (the calendar
quarters containing April, May, and
June, and July, August, and Septem-
ber 2020, respectively) excise taxes
onto one Form 720. Affected Taxpay-
ers who are seeking the second quar-
ter relief provided by Notice 2020-48
should follow the filing procedures
described in that notice. Affected
Taxpayers must file separate Forms
720 for the first, second, and third
quarters by October 31, 2020. More-
over, first, second, and third quarter
Form 720 excise tax payments must
be made separately, and Affected
Taxpayers should clearly designate
payments with respect to the type of
tax and tax period for which the pay-
ment is made.
As a result of the postponement of the
April 30, 2020, due date for timely filing
Forms 720 for the excise taxes on sport
fishing and archery equipment and time-
ly making such excise tax payments to
October 31, 2020, the period beginning
on May 1, 2020, and ending on Octo-
ber 31, 2020, will be disregarded in the
calculation of any interest, penalty, or
addition to tax for failure to file a Form
720 for the excise taxes on sport fishing
and archery equipment or to pay such ex-
cise taxes shown on that form and post-
poned by this notice. Interest, penalties,
and additions to tax with respect to such
postponed Forms 720 and payments will
begin to accrue on November 1, 2020, if
the taxes are then unpaid or the Forms are
not timely filed.
Affected Taxpayers that have been
assessed penalties and interest with re-
spect to untimely filing or payment for
first quarter 2020 sport fishing and ar-
chery equipment excise taxes may re-
quest abatement pursuant to this notice.
If an Affected Taxpayer receives a late
filing or late payment penalty notice
from the IRS regarding interest, penal-
ties, or additions to tax calculated for
the period prior to November 1, 2020,
with respect to first quarter sport fish-
ing and archery equipment excise taxes,
the Affected Taxpayer should call the
telephone number listed on the applica-
ble IRS billing notice to have any such
amount abated.
SECTION 4. CONTACT
INFORMATION
For further information regarding this
notice, you may call the COVID-19 Di-
saster Relief Hotline at (202) 317-5436
(not a toll-free number).
Special Funding and
Benefit Limitation Rules for
Single-Employer Defined
Benefit Pension Plans
under the CARES Act
Notice 2020-61
I. Purpose
This notice provides guidance on the
special rules relating to funding of sin-
gle-employer defined benefit pension
plans, and related benefit limitations, un-
der § 3608 of the Coronavirus Aid, Relief,
and Economic Security Act (CARES Act),
Pub. L. No. 116-136 (134 Stat. 281).
II. Background
A. Minimum funding rules for single
employer defined benefit plans
1. General timing requirements
Section 412 of the Internal Revenue
Code (Code) provides that a sponsor of
a qualified defined benefit plan (other
than a multiemployer plan as defined in
§ 414(f) or a CSEC plan as defined in
§ 414(y)) must make contributions to or
under the plan for the plan year that, in
the aggregate, are not less than the min-
imum required contribution determined
under § 430 for the plan year. Section
4971(a) imposes an excise tax on an
employer that sponsors a plan subject to
§ 412 that has an unpaid minimum re-
quired contribution within the meaning
of § 4971(c)(4) as of the end of the plan
year.
Section 430(j)(1) provides that the
due date for the payment of any mini-
mum required contribution for a plan year
is 8½ months after the close of the plan
year. Section 430(j)(2) provides that any
payment made on a date other than the
valuation date for the plan year must be
adjusted for interest accruing for the pe-
riod between the valuation date and the
payment date, determined using the plan’s
effective interest rate under § 430(h)(2)
(A) for the plan year.
Section 430(j)(3) provides that if the
plan had a funding shortfall (as defined
in § 430(c)(4)) for the preceding plan
year, then the plan sponsor must pay four
quarterly installments toward the required
minimum contribution for the plan year.
The due dates for the installments are
April 15, July 15, and October 15 of the
plan year, and January 15 of the follow-
ing year (adjusted for a plan year that is
not a calendar year under § 1.430(j)-1(c)
(6)). Section 430(j)(3)(D)(i) provides that
each quarterly installment is 25 percent of
the required annual payment defined in
§ 430(j)(3)(D)(ii). Section 430(j)(3)(A)
provides that if a quarterly installment is
paid after the due date for that installment,
then the interest rate that applies for the
period of underpayment (in lieu of the in-
terest rate that would apply under § 430(j)
(2)) is the plan’s effective interest rate plus
5 percentage points.
Section 430(g)(4)(A) provides that if a
plan sponsor makes a contribution to the
plan after the valuation date for the plan
year in which the contribution is made,
and the contribution is for a preceding
plan year, the contribution is taken into
account as an asset of the plan for the plan
year in which it is made, except that only
the present value (determined as of the
valuation date) of that contribution may
be taken into account. For this purpose,
the present value of the contribution is de-
termined using the effective interest rate
for the preceding plan year for which the
contribution is made.
August 24, 2020 468 Bulletin No. 2020–35

Bulletin No. 2020–35 469 August 24, 2020
2. CARES Act changes
Section 3608(a)(1) of the CARES Act
provides that any minimum required con-
tribution that would otherwise be due un-
der § 430(j) of the Code (and § 303(j) of
the Employee Retirement Income Securi-
ty Act, Pub. L. 93-406, as amended (ERI-
SA)) during calendar year 2020 (including
quarterly installments under § 430(j)(3) of
the Code and § 303(j)(3) of ERISA) are
due on January 1, 2021. Section 3608(a)
(2) of the CARES Act provides that those
contributions and installments are to be
increased with interest accruing for the
period between the original due date for
the contribution or installment and the
date of the payment at the effective inter-
est rate for the plan for the plan year that
includes the payment date.
B. Benefit limitations for underfunded
defined benefit plans
1. General rules regarding benefit
limitations
Section 436 of the Code provides lim-
its on benefits and benefit accruals under
single-employer defined benefit pension
plans, which are applied based on the
plan’s adjusted funding target attainment
percentage (AFTAP) for a plan year. Sec-
tion 436(b) provides generally that un-
predictable contingent event benefits re-
sulting from an event may not be paid if,
taking into account the payment of those
benefits, the plan’s AFTAP would be less
than 60 percent. Section 436(c) provides
generally that no amendment increasing
liabilities may take effect if, after taking
into account that amendment, the plan’s
AFTAP would be less than 80 percent.
Section 436(d) provides generally that
the plan may not pay certain accelerated
forms of benefit (such as a single-sum dis-
tribution) if the plan’s AFTAP is less than
80 percent. Section 436(e) provides gen-
erally that benefit accruals must cease if
the plan’s AFTAP is less than 60 percent.
2. CARES Act changes
Section 3608(b) of the CARES Act
provides that for purposes of applying
§ 436 of the Code (and § 206(g) of ERI-
SA), a plan sponsor may elect to treat the
plan’s AFTAP for the last plan year end-
ing before January 1, 2020, as the AFTAP
for plan years that include calendar year
2020.
C. Other rules related to contributions
and benefit limitations
Under § 430(f), the plan sponsor of
a defined benefit plan that is not a mul-
tiemployer plan may elect to maintain a
prefunding balance that may be used, at
the plan sponsor’s election, to offset the
minimum required contribution for a plan
year.
1
Under § 430(f)(6)(B)(i), a plan
sponsor may elect to add contributions
that exceed the minimum required contri-
bution for a plan year (adjusted with inter-
est using the effective interest rate for the
plan year in accordance with § 430(f)(6)
(B)(ii)) to the plan’s prefunding balance.
A plan sponsor may also elect to reduce
the plan’s prefunding balance or the fund-
ing standard carryover balance as provid-
ed in § 430(f)(5). Section 1.430(f)-1(f)(1)
(i) generally provides that any election
under § 430(f) by the plan sponsor must
be made by providing written notification
of the election to the plan’s enrolled ac-
tuary and the plan administrator. Section
1.430(f)-1(f)(2)(i) generally provides that
any election under § 430(f) with respect
to a plan year must be made no later than
the last date for making the minimum
required contribution for the plan year
as described in § 430(j)(1), or such later
date as prescribed in guidance published
in the Internal Revenue Bulletin. Howev-
er, § 1.430(f)-1(f)(2)(iii) provides that any
election to reduce the prefunding balance
or funding standard carryover balance for
a plan year (for example, in order to avoid
or terminate a benefit restriction under §
436) must be made by the end of the plan
year to which the election relates.
Section 436(h) provides rules that ap-
ply prior to the certification of the AF-
TAP for a plan year by the plan’s actuary.
Under § 436(h)(1), if a benefit limitation
applied to a plan on the last day of the pre-
ceding plan year, then the current year’s
AFTAP generally is presumed to be equal
to the prior year’s AFTAP for the period
beginning on the first day of the plan year
and ending when the plan’s enrolled ac-
tuary certifies the AFTAP for the current
plan year. Under § 436(h)(3), if (i) the
plan’s enrolled actuary has not certified
the AFTAP for the current plan year by the
first day of the 4th month of the plan year,
and (ii) the AFTAP for the prior plan year
did not result in the application of a ben-
efit limitation for that prior plan year (but
would have resulted in the application of a
benefit limitation had that AFTAP been 10
percentage points lower), then the AFTAP
for the current plan year is presumed to be
equal to 10 percentage points less than the
AFTAP for the prior plan year, for the peri-
od beginning on that first day of the fourth
month and ending when the enrolled actu-
ary of the plan certifies the plan’s AFTAP
for the current plan year. Under § 436(h)
(2), if no certification of the AFTAP for
the current plan year is made before the
first day of the 10th month of that year,
then the AFTAP for the current plan year
is presumed to be less than 60 percent as
of that first day.
Sections 436(b)(2) and (c)(2) provide
rules that allow a plan sponsor to avoid
or terminate benefit restrictions under
§ 436(b) or (c) by making an additional
contribution of a certain amount to the
plan. Section 1.436-1(f) provides rules for
these contributions, which are referred to
as § 436 contributions. Section 1.436-1(f)
(2)(i)(A) provides that any § 436 contri-
bution made by a plan sponsor on a date
other than the valuation date for the plan
year must be adjusted with interest at the
plan’s effective interest rate for the plan
year. If the plan’s effective interest rate for
the plan year has not been determined at
the time of the contribution, then this in-
terest adjustment must be made using the
highest of the three segment rates as appli-
cable for the plan year. In such a case, if
the effective interest rate for the plan year
is subsequently determined to be less than
that highest rate, the excess is recharac-
terized as an employer contribution taken
into account under § 430 for the current
plan year.
The regulations under § 436 address
the calculation of a plan’s AFTAP. Section
1.436-1(h)(4)(iii) provides rules relating
to changes in a plan’s AFTAP after it has
1
Similar elections to maintain a funding standard carryover balance and to use that balance to offset the minimum required contribution are available to the plan sponsor.

August 24, 2020 470 Bulletin No. 2020–35
been certified, and the effect of such a
change depends on whether the change is
material (within the meaning of § 1.436-
1(h)(4)(iii)(B)) or immaterial (within the
meaning of § 1.436-1(h)(4)(iii)(C)). In
general, a material change in AFTAP is
defined as a change under which plan op-
erations would have been different based
on the subsequent AFTAP determination,
and an immaterial change in AFTAP is
defined as a change that is not material.
Under § 1.436-1(h)(4)(iv)(A), a material
change in a plan’s AFTAP will cause a
plan to fail to comply with § 401(a).
Section 1.436-1(h)(4)(iii)(C) provides
a special rule that, subject to certain con-
ditions, deems a change in a plan’s AFTAP
to be immaterial (even if the change would
otherwise be material) if the change results
from an event specified in § 1.436-1(h)(4)
(iii)(C)(1) through (8). Section 1.436-1(h)
(4)(iii)(C)(9) provides authority for the
expansion of the list of events for which
a resulting change in AFTAP may be
deemed immaterial through publication
of guidance in the Internal Revenue Bul-
letin. Deemed immaterial treatment under
§ 1.436-1(h)(4)(iii)(C) with respect to an
event that results in a change in AFTAP
is conditioned on the AFTAP being recer-
tified as soon as reasonably practicable
after the event. The effect of this deemed
immaterial treatment is that the change in
the plan’s AFTAP will not cause the plan
to fail to comply with § 401(a) merely be-
cause of the change, provided that the plan
administrator reflects the new AFTAP in
plan operations on a prospective basis be-
ginning with the date of the recertification.
Section 404 provides rules regarding
the deductibility of employer contribu-
tions to an employees’ trust or annuity
plan and compensation under a deferred
payment plan. Under § 404(a)(1)(A), con-
tributions paid to the trust of a qualified
defined benefit pension plan are deduct-
ible in the taxable year when paid, subject
to the applicable limits. Under § 404(a)
(6), a taxpayer making a contribution in
a taxable year is deemed to have made the
contribution on the last day of the preced-
ing taxable year if the payment is on ac-
count of that preceding taxable year and
is made not later than the time prescribed
by law for filing the return for that pre-
ceding taxable year (including extensions
thereof).
Under § 101 of Reorganization Plan No.
4 of 1978 (43 FR 47713) and § 3002(c) of
ERISA, the Secretary of the Treasury has
interpretive jurisdiction over the subject
matter addressed in this notice for purpos-
es of ERISA, as well as the Code. Thus,
the provisions of this notice pertaining to
§§ 430 and 436 of the Code also apply for
purposes of §§ 303 and 206(g) of ERISA.
III. Questions & Answers
The following questions and answers
provide guidance regarding § 3608 of the
CARES Act. To the extent the instructions
for Schedule SB, “Single-Employer De-
fined Benefit Plan Actuarial Information”
of Form 5500, “Annual Return/Report of
Employee Benefit Plan” are inconsistent
with this guidance, this guidance super-
sedes those instructions.
A. Extended deadline for contributions
and interest adjustments
Q-1: To which plans does the extended
contribution due date of January 1, 2021,
under § 3608(a)(1) of the CARES Act, ap-
ply?
A-1: The extended contribution due
date of January 1, 2021, applies to a de-
fined benefit plan for which the minimum
required contribution is determined under
§ 430. Thus, this extended contribution
due date of January 1, 2021, does not ap-
ply to a multiemployer plan, a CSEC plan,
a fully-insured plan described in § 412(e)
(3), or a money purchase pension plan.
Q-2: How is a contribution adjusted for
interest between the valuation date and the
payment date for the contribution, taking
into account the interest adjustment rules
of § 3608(a)(2) of the CARES Act?
A-2: To determine the portion of the
minimum required contribution for a plan
year that is satisfied by a contribution,
§ 430(j)(2) of the Code and § 1.430(j)-
1(b)(4)(i) provide that the contribution
is adjusted for interest for the period be-
tween the valuation date for the plan year
and the payment date for the contribution,
at the plan’s effective interest rate for
the plan year. Under § 3608(a)(2) of the
CARES Act, any payment that is made
after the original due date for the contri-
bution and by the extended due date under
§ 3608(a)(1) must be increased for the pe-
riod between the original due date and the
payment date at the effective interest rate
for the plan year that includes the payment
date. Thus, if a contribution for a plan
year were to be made during this period,
the amount of the contribution must be
larger to account for interest (determined
using the plan’s effective interest rate for
the plan year that includes the payment
date) for the period between the original
due date and the payment date in order to
satisfy the minimum required contribu-
tion for the plan year to the same extent
as a contribution made on the original due
date. The following example illustrates
the application of the interest adjustment
described in this A-2:
(a) Plan A has a plan year that is the
calendar year and has a 2019 minimum
required contribution, calculated as of
the January 1, 2019, valuation date, of
$1,000,000. The effective interest rate for
the 2019 plan year is 5.75%, and the ef-
fective interest rate for the 2020 plan year
is 5.65%. Plan A had no funding shortfall
for 2018 (so there are no quarterly install-
ment requirements for 2019), and the plan
sponsor made no contributions for 2019
(and no elections to use a funding standard
carryover balance or prefunding balance)
before September 15, 2020. The actuary
takes into account February 29, 2020, in
counting the number of days in 2020 for
purposes of calculating interest.
(b) In the absence of § 3608(a) of the
CARES Act, the final contribution for the
2019 plan year would have been due on
September 15, 2020. A final contribution
of $1,100,009 made on September 15,
2020, would satisfy the 2019 minimum
required contribution. This is because a
contribution of $1,100,009 made on that
date, discounted using the 2019 effective
interest rate to January 1, 2019, would
equal the $1,000,000 minimum required
contribution ($1,100,009 ÷1.0575
(258/366 +
365/365)
= $1,000,000).
(c) Pursuant to § 3608(a)(1) of the
CARES Act, the plan sponsor has un-
til January 1, 2021, to satisfy the 2019
minimum required contribution for Plan
A. If, on December 31, 2020, the plan
sponsor were to make a single contribu-
tion necessary to satisfy the 2019 mini-
mum required contribution for Plan A, the
contribution would be $1,117,827. This
is because a contribution of $1,117,827

Bulletin No. 2020–35 471 August 24, 2020
made on December 31, 2020, discounted
using the 2020 effective interest rate back
to September 15, 2020, and the 2019 ef-
fective interest rate from September 15,
2020, to January 1, 2019, would equal
the $1,000,000 minimum required con-
tribution ($1,117,827 ÷ 1.0565
(107/366)
÷
1.0575
(258/366 + 365/365)
= $1,000,000).
Q-3: What is the result if the contribu-
tion that the plan sponsor makes is less
than the amount that was due on the orig-
inal due date for the minimum required
contribution, as increased with interest
pursuant to § 3608(a)(2) of the CARES
Act?
A-3: If, after the original due date for
the minimum required contribution for a
plan year, the plan sponsor makes a con-
tribution that is less than the amount that
was due on that date, as adjusted for ad-
ditional interest to account for the period
between the original due date and the date
of payment of the contribution (at the ef-
fective interest rate for the plan year in
which the payment is made), then a por-
tion of the minimum required contribution
for that plan year would remain unpaid.
The unpaid portion of the minimum re-
quired contribution, determined as of the
valuation date and based on contributions
made on or before January 1, 2021, with
the contributions discounted for interest to
the valuation date as described in A-2 of
this notice, would give rise to an unpaid
minimum required contribution within the
meaning of § 4971(c)(4) of the Code that
would be subject to an excise tax under
§ 4971(a). Furthermore, a contribution
made after January 1, 2021, to satisfy that
unpaid minimum required contribution
must be adjusted for interest for the peri-
od between the date that the contribution
is made and the valuation date at the ef-
fective interest rate for the plan year for
which the contribution is made (with ad-
ditional interest as required to reflect any
late quarterly installments for the plan
year). The following example illustrates
the situation described in this A-3:
The facts are the same as in the ex-
ample in A-2 of this notice, except that
the plan sponsor makes a contribution of
$1,100,009 on December 31, 2020, and
makes no other contributions by January
1, 2021. The $1,100,009 contribution is
discounted using the 2020 effective in-
terest rate back to September 15, 2020,
and the 2019 effective interest rate from
September 15, 2020, to January 1, 2019,
resulting in $984,061 toward satisfaction
of the 2019 plan year minimum required
contribution ($1,100,009 ÷ 1.0565
(107/366)
÷
1.0575
(258/366 + 365/365)
= $984,061). Because
the contribution is discounted for a longer
period, this amount of the discounted con-
tribution is not enough to satisfy the mini-
mum required contribution of $1,000,000
as of January 1, 2019, resulting in an
unpaid minimum required contribution
of $15,939 ($1,000,000 - $984,061=
$15,939). The $15,939 unpaid minimum
required contribution is subject to excise
tax under § 4971(a).
Q-4: Does the extended due date under
§ 3608(a) of the CARES Act apply to con-
tributions in excess of the amount needed
to satisfy the minimum required contribu-
tion?
A-4: Yes, if the contribution deadline
under § 430(j)(1) of the Code for a plan
year is during 2020, a contribution in ex-
cess of the amount needed to satisfy the
minimum required contribution for the
plan year that is made by January 1, 2021,
may be designated as a contribution for
that plan year. The present value of the ex-
cess contributions for a plan year, which
can be used to increase the prefunding
balance, is determined using the interest
rate adjustment described in A-2 of this
notice. In accordance with § 1.430(f)-1(b)
(1)(iv)(A), this present value is increased
for interest for the period between the val-
uation date for the plan year and the first
day of the next plan year. In general, this
increase for interest is made using the
plan’s effective interest rate for the plan
year for which the contributions are made.
However, pursuant to § 1.430(f)-1(b)(3)
(iii), this present value is instead adjusted
using the plan’s investment experience to
the extent that the excess results from the
use of a funding balance to offset the min-
imum required contribution.
Q-5: How is the amount of a quarter-
ly installment determined, if the extended
due date under § 3608(a) of the CARES
Act applies to the installment?
A-5: Section 3608(a)(2) of the CARES
Act specifies that, to determine the
amount of a quarterly installment due by
the extended due date under § 3608(a)(1)
of the CARES Act of January 1, 2021, the
amount of that installment is increased
from the installment’s original due date to
the payment date at the effective interest
rate for the plan year that includes the date
the quarterly installment is paid. Section
1.430(j)-1(c)(3)(ii) provides that if a con-
tribution is made before the due date for
the required installment to which it is al-
located, then the amount credited toward
that installment includes interest on the
contribution from the date of the contri-
bution to the due date for the installment
(at the plan’s effective interest rate for
the plan year for which the installment is
paid). The following example illustrates
the application of the interest adjustment
described in this A-5:
(a) The facts are the same as in the ex-
ample in A-2 of this notice. In addition,
for 2020, Plan A has required quarterly
installments of $250,000.
(b) In the absence of § 3608(a)(1) of
the CARES Act, the first quarterly install-
ment for the 2020 plan year would be due
on April 15, 2020. Under § 3608(a)(1) of
the CARES Act, the plan sponsor’s dead-
line for satisfying this quarterly install-
ment is January 1, 2021. If the contribu-
tion is made on December 31, 2020, then
the amount necessary to satisfy the first
quarterly installment under § 3608(a)(2)
of the CARES Act is $259,954 ($250,000
× 1.0565
(260/366)
= $259,954).
(c) Under the extended deadline of §
3608(a) of the CARES Act, the quarterly
installments for Plan A that were originally
due July 15, 2020, and October 15, 2020,
are also now due on January 1, 2021. The
amount of these quarterly installments
would be calculated in the same manner
as shown in paragraph (b) of this example,
except that the increase for interest would
be for the period between the original due
date and the payment date.
(d) If, instead of waiting until Decem-
ber 31, 2020, the plan sponsor makes a
contribution of $400,000 on June 1, 2020,
then some of that contribution will satisfy
the first quarterly installment (originally
due April 15, 2020) and the balance of
that contribution will be applied towards
the second quarterly installment (orig-
inally due July 15, 2020). The portion
of the June 1 contribution that is used
to satisfy the first quarterly installment
is $251,771 ($250,000 × 1.0565
(47/366)
=
$251,771). Therefore, the balance of that
contribution, which will be applied to the

August 24, 2020 472 Bulletin No. 2020–35
second quarterly installment, is $148,229
($400,000 - $251,771 = $148,229). The re-
maining contribution needed to satisfy the
second quarterly installment on its origi-
nal due date of July 15, 2020, is $100,788
($250,000 - $148,229 × 1.0565
(44/366)
=
$100,788). If the contribution necessary
to satisfy that quarterly installment is not
made before that due date, but is made lat-
er in the year, then the contribution neces-
sary to satisfy the unpaid installment must
be increased with interest at the effective
interest rate for the plan year from July 15,
2020, until it is made.
Q-6: For a quarterly installment orig-
inally due during 2020 for which the due
date is extended under § 3608(a) of the
CARES Act to January 1, 2021, what is
the result if a plan sponsor does not satisfy
that installment?
A-6: If a plan sponsor does not satisfy a
quarterly installment originally due during
2020 by the extended due date under §
3608(a) of the CARES Act of January 1,
2021, then under § 430(j)(3)(A) of the
Code, the unpaid portion of that install-
ment is subject to a higher interest rate for
the period during which the installment
(or a portion of the installment) remains
unpaid when determining the amount of
the minimum required contribution that
is satisfied by a contribution. As a result
of § 3608(a) of the CARES Act, the peri-
od of underpayment does not begin until
January 1, 2021. The unpaid portion of the
quarterly installment as of that date, if any,
is re-determined as of the original due date
for the installment (based on contributions
made on or before January 1, 2021, and
discounted for interest as described in A-5
of this notice) and then increased from the
original due date to January 1, 2021, using
the effective interest rate for the plan year
for which the installment is due. The fol-
lowing examples illustrate the application
of these rules:
Example 1: (a) The facts are the same
as in the example in A-5 of this notice.
The plan sponsor of Plan A makes a con-
tribution of $100,788 on July 15, 2020. As
shown in paragraph (d) of the example in
A-5 of this notice, the first two quarterly
installments have been satisfied by their
original due dates. The plan sponsor does
not make any additional contributions by
the extended due date of January 1, 2021.
As a result, the third quarterly installment
of $250,000 (originally due on October
15, 2020) remains unpaid as of that date,
and this unpaid installment is increased
using the effective interest rate for 2020,
resulting in an unpaid installment on Jan-
uary 1, 2021 of $252,945 ($250,000 ×
1.0565
(78/366)
).
(b) If the plan sponsor makes its next
contribution to Plan A on February 15,
2021, the first $252,945 of that contribu-
tion will be used to satisfy the missed third
quarterly installment. The interest rate
used to discount the late required install-
ment back to the due date will include the
5 percentage point increase for the peri-
od of time from February 15, 2021, to the
extended due date of January 1, 2021, re-
sulting in $249,809 as of January 1, 2021
($252,945 ÷ 1.1065
(45/365)
). Therefore, the
first $252,945 of that contribution that is
used to satisfy the third quarterly install-
ment would result in $236,449 toward sat-
isfaction of the 2020 plan year minimum
required contribution for Plan A ($249,809
as of January 1, 2021, divided by 1.0565).
Example 2: (a) The facts are the same
as in the first example in this A-6, except
that Plan A has a plan year that began Oc-
tober 1, 2019, and ended September 30,
2020, and the required quarterly install-
ments for that plan year are $200,000.
In addition, Plan A’s effective interest
rate is 5.71% for the plan year beginning
October 1, 2019, and 5.61% for the plan
year beginning October 1, 2020. The first
three quarterly installments for the plan
year were paid by the original due dates
and the fourth quarterly installment of
$200,000 (originally due October 15,
2020) is not paid by January 1, 2021. Be-
cause this quarterly installment was not
paid by January 1, 2021, under the rules of
this A-6, the unpaid portion of the install-
ment is increased to January 1, 2021, us-
ing the effective interest rate for the plan
year beginning October 1, 2019, resulting
in an unpaid installment on that date of
$202,387 ($200,000 × 1.0571
(78/365)
).
(b) Note that if the contributions made
by January 1, 2021, satisfy some, but not
all, of the fourth quarterly installment,
then the unpaid portion of that installment
would be re-determined as of October 15,
2020, by discounting those contributions
from the date of the contribution to Oc-
tober 15, 2020 (using the 5.61% effective
interest rate for the plan year in which the
contributions are made). The resulting
unpaid quarterly installment is increased
with interest to January 1, 2021 (using
the 5.71% effective interest rate for the
plan year for which the installment is due,
rather than the 5.61% effective interest
rate for the 2020 plan year). For example,
if a contribution of $120,000 was made
on December 15, 2020, then the unpaid
portion of the quarterly installment as of
January 1, 2021, is $82,058 (($200,000 –
($120,000 ÷ 1.0561
(61/365)
)) × 1.0571
(78/365)
).
Q-7: How are the interest adjustments
determined if the plan’s effective interest
rate for the plan year in which the contri-
bution is made has not been determined at
the time the payment is made?
A-7: If the plan’s effective interest rate
for the plan year in which the contribution
is made has not been determined at the
time the payment is made, then the rules
for determining the interest rate for this
adjustment are the same as the rules for
determining the interest rate for the in-
terest adjustment under § 1.436-1(f)(2)(i)
(A). Thus, the interest adjustment must be
made using the highest of the three seg-
ment rates for the plan year. However, if
the effective interest rate for the plan year
in which the contribution is made is subse-
quently determined to be less than the in-
terest rate that was used under the preced-
ing sentence, the difference in the present
value of the contribution as of the valua-
tion date may be added to the prefunding
balance for the plan year. The following
example illustrates the situation described
in this A-7:
(a) The facts are the same as in the ex-
ample in A-3 of this notice, except that
the plan sponsor realizes that the Decem-
ber 31, 2020, contribution that was made
would result in an unpaid minimum re-
quired contribution for 2019 and wishes
to make a final contribution on January 1,
2021. However, the 2021 effective inter-
est rate is not known as of the date of the
contribution.
(b) Under this A-7, the amount neces-
sary to avoid an unpaid minimum required
contribution for 2019 is determined using
the highest of the three segment rates for
the 2021 plan year in accordance with the
rules of § 1.436-1(f)(2)(i)(A). For pur-
poses of this example, it is assumed that
the highest of the three segment rates for
the 2021 plan year is 5.45%. Therefore,

Bulletin No. 2020–35 473 August 24, 2020
the amount of the contribution needed to
avoid an unpaid minimum required con-
tribution if made on January 1, 2021, is
$17,810 ($15,939 x 1.0575
(258/366 + 365/365)
x
1.0545
(108/366)
).
(c) Later during 2021, the 2021 ef-
fective interest rate is determined to be
5.15%. The $17,810 contribution made
on January 1, 2021, results in $15,953
($17,810 ÷ 1.0515
(108/366)
÷ 1.0575
(258/366 +
365/365)
) toward the 2019 minimum required
contribution. As a result, the plan sponsor
has excess contributions for 2019, which
have a present value as of January 1, 2019,
of $14 ($15,953 - $15,939). This amount,
adjusted for interest in accordance with §
1.430(f)-1(b)(1)(iv), may be added to the
prefunding balance as of January 1, 2020.
Q-8: If a plan sponsor makes a contri-
bution for a plan year after the original
due date for the plan year, but on or before
the extended due date under § 3608(a)
of the CARES Act, how is it reported on
Schedule SB of Form 5500?
A-8: Except as provided in this A-8,
there are no special rules for reporting
contributions that are made for a plan year
after the original due date for the plan year
but on or before the extended due date un-
der § 3608(a) of the CARES Act. Thus, a
plan’s actuary may not report contributions
on Schedule SB of Form 5500 that will be
made after the actuary signs the Schedule
SB. If any contributions are made after
the actuary signs the Schedule SB and the
Form 5500 for a plan year has been filed
but before the extended due date under §
3608(a) of the CARES Act, then the con-
tributions may be designated as for that
prior plan year only if an amended Form
5500 that includes an amended Schedule
SB reflecting those contributions is filed.
In addition, if a plan sponsor makes a
contribution for a plan year (including a
quarterly installment) after the original
due date for that contribution but on or be-
fore the extended due date under § 3608(a)
of the CARES Act, the plan’s actuary
must attach to the Schedule SB a schedule
supporting the line 19 entry for discounted
employer contributions showing the dates
and amounts of individual contributions,
the year to which the contributions (or
portion of the individual contributions)
are applied, the effective interest rate or
rates that apply to those contributions (in-
cluding the effective rate of interest for the
plan year in which a payment subject to
§ 3608(a) of the CARES Act occurs), the
5 percentage point increase that applies
for late quarterly installments, the periods
during which each such rate applies, and
the interest-adjusted employer contribu-
tions for the plan year. This schedule must
be attached even if the contributions were
made by the due date under § 3608(a) of
the CARES Act.
Q-9: Is a contribution for a plan year
that is made after the original due date
for the plan year (but on or before the ex-
tended due date for the plan year under §
3608(a) of the CARES Act) taken into ac-
count for purposes of determining the val-
ue of plan assets for a plan year following
the plan year for which the contribution is
made?
A-9: Yes, for purposes of § 430, a con-
tribution that is made after the original due
date for a plan year (but on or before the
extended due date for the plan year under
§ 3608(a) of the CARES Act) is taken
into account as of a valuation date for a
plan year after the plan year for which the
contribution was made. Under § 1.430(g)-
1(d)(1)(i), for purposes of determining the
value of plan assets, if an employer makes
a contribution to the plan after the valu-
ation date for the current plan year and
the contribution is for an earlier plan year,
then the present value of the contribution
determined as of that valuation date is tak-
en into account as an asset of the plan as
of the valuation date, provided the contri-
bution is made before a specified deadline.
The specified deadline is the deadline for
contributions under § 430(j)(1) for the
plan year immediately preceding the cur-
rent plan year. However, that deadline is
extended by § 3608(a)(1) of the CARES
Act. Furthermore, the interest adjustment
rules of § 3608(a)(2) of the CARES Act
(as described in A-2 of this notice) over-
ride the discounting rules that apply gen-
erally for this purpose. Note, however, un-
der § 1.436-1(h)(4)(i)(B), certification of
the AFTAP for a plan year must not take
into account contributions that are expect-
ed to be made after the certification date.
The following example illustrates the ap-
plication of these rules:
(a) Plan C has a plan year that begins on
October 1 and ends on September 30, and
a valuation date that is the first day of the
plan year. A contribution of $1,000,000 is
made on December 31, 2020, for the plan
year beginning on October 1, 2018.
(b) As of October 1, 2019 (the valuation
date for the plan year following the plan
year for which the December 31, 2020,
contribution was made), the present val-
ue of the contribution is included in plan
assets for purposes of § 430 as a contribu-
tion receivable. That present value is de-
termined by discounting the contribution
from December 31, 2020, to June 15, 2020
(the original due date for the minimum re-
quired contribution for the plan year), at
the effective interest rate for the plan year
beginning October 1, 2020 (the plan year
in which the contribution is made), and fur-
ther discounting the contribution from June
15, 2020, to October 1, 2019, at the effec-
tive interest rate for the plan year beginning
October 1, 2018 (the plan year for which
the contribution is made).
(c) As of October 1, 2020 (the valua-
tion date for the second plan year follow-
ing the plan year for which the December
31, 2020, contribution was made), the
present value of the contribution is includ-
ed in plan assets for purposes of § 430 as
a contribution receivable. That present
value is determined by discounting the
contribution from December 31, 2020, to
October 1, 2020, at the effective interest
rate for the plan year beginning October 1,
2020 (the plan year in which the contribu-
tion is made).
Q-10: Does the extended due date un-
der § 3608(a) of the CARES Act change
the date by which a plan sponsor may
make an election to increase a prefunding
balance or to use a prefunding balance or
a funding standard carryover balance to
offset the minimum funding requirement
for a plan year?
A-10: Yes, if the plan year is a plan
year for which the extended due date for
minimum required contributions under §
3608(a) of the CARES Act applies, then
the deadline for a plan sponsor’s election
to increase a prefunding balance or to use
a prefunding balance or a funding stan-
dard carryover balance to offset the min-
imum required contribution for that plan
year is extended to January 1, 2021.
Q-11: Does the extended due date un-
der § 3608(a) of the CARES Act change
the date by which a contribution must be
made in order to be deducted for a taxable
year under § 404 of the Code?

August 24, 2020 474 Bulletin No. 2020–35
A-11: No, the extended due date un-
der § 3608(a) of the CARES Act does not
change the date by which a contribution
must be made in order to be deducted for
a taxable year under § 404 of the Code.
Under § 404(a)(6), a taxpayer is deemed
to have made a payment on the last day of
the preceding taxable year if the payment
is on account of that taxable year and is
made no later than the time prescribed by
law for filing the return for that taxable
year (including extensions).
B. Use of prior year AFTAP for benefit
restrictions
Q-12: May a plan sponsor make an
election under § 3608(b) of the CARES
Act (to apply the AFTAP for the last plan
year ending before January 1, 2020) for a
plan with a plan year that is not a calendar
year?
A-12: Yes, a plan sponsor may make an
election under § 3608(b) of the CARES
Act for a plan year that includes any por-
tion of calendar year 2020. If the election
is made for such a plan year, the AFTAP
that applies for the plan year pursuant to
the election is the AFTAP certified for
the last plan year that ends on or before
December 31, 2019. For example, if a
plan sponsor makes an election under §
3608(b) of the CARES Act for a plan year
that runs from July 1, 2019, to June 30,
2020, then the AFTAP that applies to de-
termine benefit limitations under § 436 of
the Code for that plan year is the certified
AFTAP from the plan year that ends on
June 30, 2019. In addition, that plan spon-
sor may separately elect to use that same
AFTAP for the plan year that begins on
July 1, 2020.
Q-13: What procedures must a plan
sponsor follow for making an election un-
der § 3608(b) of the CARES Act?
A-13: The election described in §
3608(b) of the CARES Act must be made
using the procedures that apply for elec-
tions relating to funding balances speci-
fied in § 1.430(f)-1(f)(1)(i). Thus, the plan
sponsor must provide written notification
of the election to the plan’s actuary and
the plan administrator. However, a plan
sponsor’s election made using a different
procedure will not be treated as invalid
provided that, by September 30, 2020, the
plan sponsor complies with the require-
ment described in the first sentence of this
A-13.
Q-14: If a plan’s actuary has not cer-
tified the plan’s AFTAP for a plan year
before the plan sponsor makes an election
under § 3608(b) of the CARES Act, what
is the effect of the election for purposes of
the presumption rules of § 436(h) of the
Code?
A-14: If a plan’s actuary has not certi-
fied the plan’s AFTAP for a plan year be-
fore the plan sponsor makes the election
under § 3608(b) of the CARES Act, then
the plan sponsor’s election is treated as a
certification of the AFTAP for purposes of
the presumption rules of § 436(h) of the
Code. Thus, beginning with the date of
the election, the AFTAP for the last plan
year ending on or before December 31,
2019, applies for the plan year for which
the election is made, rather than any pre-
sumed AFTAP determined under § 1.436-
1(h)(1), (2), or (3). The following example
illustrates the operation of this rule:
(a) Plan B, which is not a collectively
bargained plan, has a plan year that is a
calendar year. On September 30, 2019, the
actuary for Plan B certified the 2019 AF-
TAP to be 82%. On April 30, 2020, before
the actuary has certified the AFTAP for
2020, the plan sponsor makes an election
under § 3608(b) of the CARES Act to ap-
ply the 2019 AFTAP to the 2020 plan year.
(b) Section 1.436-1(h)(2) applies to
the plan (because, as of April 1, 2020, the
plan’s actuary has not certified the plan’s
AFTAP for 2020 and the AFTAP for 2019
was at least 80 percent and less than 90
percent). Accordingly, under § 1.436-1(h)
(2)(iii), the presumed AFTAP for 2020 is
reduced to 72 percent beginning on April
1, 2020.
(c) The plan sponsor’s election under
§ 3608(b) of the CARES Act is treated
as a certification of the plan’s AFTAP for
the plan year. Accordingly, under § 1.436-
1(h)(2)(v), the 2019 AFTAP of 82 percent
is used for the plan beginning April 30,
2020.
Q-15: Is a plan’s actuary required to
certify the plan’s AFTAP for a plan year
for which the plan sponsor makes the elec-
tion under § 3608(b) of the CARES Act?
A-15: A plan’s actuary generally is
required to certify the plan’s AFTAP for
a plan year for which the plan sponsor
makes the election under § 3608(b) of the
CARES Act. This is because, as provided
in A-18 of this notice, the certified AFTAP
generally is relevant for the next plan year.
However, if the plan sponsor makes the
election under § 3608(b) of the CARES
Act for a plan year that begins in 2019 and
ends in 2020 and also makes an election
for the next plan year, then the actuary is
not required to certify the plan’s AFTAP
for the plan year that begins in 2019.
If the plan’s actuary has certified an
AFTAP for a plan year, then the Schedule
SB of Form 5500 for that plan year should
reflect the certified AFTAP. Without re-
gard to whether the plan’s actuary has cer-
tified an AFTAP for a plan year, if the plan
sponsor made an election under § 3608(b)
of the CARES Act, then the plan’s actuary
should attach to the Schedule SB a state-
ment relating to the line 15 entry stating
that the plan sponsor made that election,
the date of that election, and the AFTAP
that applied for the plan year pursuant to
the election.
Q-16: If a plan’s actuary certified the
plan’s AFTAP for a plan year for which
the plan sponsor later makes the election
under § 3608(b) of the CARES Act, what
is the effect of that certification?
A-16: If a plan’s actuary certified the
plan’s AFTAP for a plan year before the
plan sponsor makes the election under §
3608(b) of the CARES Act, then the plan
sponsor’s election is treated as a subse-
quent determination of the AFTAP for that
plan year. However, pursuant to § 1.436-
1(h)(4)(iii)(C)(9) and this notice, the plan
sponsor’s election is eligible for deemed
immaterial treatment (and for purposes of
§ 1.436-1(h)(4)(iii)(C), the plan sponsor’s
election is treated as the recertification on
the part of the actuary that is otherwise
required for deemed immaterial treat-
ment pursuant to § 1.436-1(h)(4)(v)(D)).
Thus, the AFTAP that applies pursuant to
the plan sponsor’s election is applied on a
prospective basis beginning with the date
of the election.
If a plan’s actuary certifies the plan’s
AFTAP for a plan year after the plan spon-
sor makes the election under § 3608(b) of
the CARES Act for that plan year, then
that certified AFTAP does not apply for
that plan year unless the plan sponsor re-
vokes the election. Any revocation must
be made using the same procedures as
the election, and, in that case, the certified

Bulletin No. 2020–35 475 August 24, 2020
AFTAP is treated as a subsequent deter-
mination of the AFTAP that is not eligible
for deemed immaterial treatment under
§ 1.436-1(h)(4)(iii)(C).
Q-17: How does the restriction on
plan amendments and unpredictable con-
tingent event benefits apply if the AFTAP
that applies is pursuant to a plan spon-
sor’s election under § 3608(b) of the
CARES Act?
A-17: If the AFTAP that applies is
pursuant to a plan sponsor’s election un-
der § 3608(b) of the CARES Act, then
the restriction on plan amendments and
unpredictable contingent event benefits
is applied using the rules of § 1.436-1(g)
(2) through (4) (which apply for the peri-
od in a plan year during which a § 436(h)
presumption applies), except that the
AFTAP that applies pursuant to the plan
sponsor’s election is substituted for the
presumed AFTAP. Thus, for example, the
AFTAP that applies pursuant to the plan
sponsor’s election will be used to calcu-
late a presumed adjusted funding target
pursuant to § 1.436-1(g)(2)(ii) and an in-
clusive presumed AFTAP as described in
§ 1.436-1(g)(2)(iii). The following exam-
ple illustrates the application of the rules
described in this A-17:
(a) The facts are the same as in the ex-
ample in A-14 of this notice. Additionally,
as of January 1, 2020, Plan B has assets
of $8,600,000, and a prefunding balance
of $400,000. During the period January 1,
2020, through June 30, 2020, the plan’s
actuary did not certify the plan’s AFTAP
for 2020, no contributions were made for
2019, no § 436 contributions were made,
and the plan sponsor made no elections
under § 430(f). Plan B’s sponsor amends
the plan to increase benefits effective on
July 1, 2020. The amendment would in-
crease Plan B’s funding target as of Janu-
ary 1, 2020, by $500,000.
(b) The determination of whether the
amendment is permitted to take effect is
made by applying the rules of § 1.436-
1(g)(2) through (4) but substituting the
elected AFTAP of 82% for the presumed
AFTAP. Thus, this determination is made
based on a comparison of the presumed
adjusted funding target (calculated using
an AFTAP of 82%) with the updated inter-
im value of adjusted plan assets.
(c) Plan B’s interim value of adjust-
ed plan assets as of the valuation date is
$8,200,000 (that is, $8,600,000 minus
the prefunding balance of $400,000). Be-
cause there were no events that must be
reflected in an update to the interim val-
ue of adjusted plan assets under the rules
of § 1.436-1(g)(2)(iii)(A), the updated
interim value of adjusted plan assets re-
mains $8,200,000. Prior to reflecting the
amendment, Plan B’s presumed adjust-
ed funding target as of January 1, 2020,
is $10,000,000 ($8,200,000, divided by
the AFTAP of 82%). Increasing Plan
B’s presumed adjusted funding target by
$500,000 to reflect the amendment results
in an inclusive presumed adjusted funding
target of $10,500,00 and would result in
an AFTAP of 78% (that is, the updated in-
terim value of adjusted plan assets as of
January 1, 2020, of $8,200,000 divided by
the inclusive presumed adjusted funding
target of $10,500,000).
(d) Because Plan B’s AFTAP was over
80% prior to taking the amendment into
account but would be less than 80% if
the amendment were taken into account,
§ 436(c) prohibits the plan amendment
from taking effect unless the updated in-
terim value of adjusted plan assets is in-
creased so that the AFTAP would equal
80%. This would require an increase of
$200,000 (that is, 80% of the presumed
adjusted funding target of $10,500,000
less the interim value of adjusted plan as-
sets of $8,200,000). Therefore, the plan
sponsor may either elect to reduce Plan
B’s prefunding balance as of January 1,
2020, by $200,000, or make a $200,000 §
436 contribution (with interest to the date
of payment) in order to increase the AF-
TAP to 80% (that is, an updated interim
value of adjusted plan assets as of January
1, 2020, of $8,400,000 divided by the in-
clusive presumed adjusted funding target
of $10,500,000).
Q-18: Does the AFTAP that applies
pursuant to a plan sponsor’s election for
a plan year apply for purposes of the pre-
sumptions under § 436(h) used in a subse-
quent plan year?
A-18: The AFTAP that applies pursu-
ant to a plan sponsor’s election for a plan
year generally will not apply for purposes
of the presumptions under § 436(h) used
in a subsequent plan year. Instead, the
actual AFTAP for the plan year that was
certified by the plan’s actuary generally
is used for purposes of applying the pre-
sumption rules under § 436(h) for the sub-
sequent plan year.
If, taking into account an election made
under § 3608(b) of the CARES Act for a
plan year, no benefit limitation applied to
a plan on the last day of the plan year, then
there is no presumption of continued under-
funding under § 1.436-1(h)(1) as of the be-
ginning of the subsequent plan year and the
rules of § 1.436-1(g)(3) apply. Under those
rules, no benefit limitation would apply un-
der § 436(d) and (e) during the first three
months of the subsequent plan year. How-
ever, under § 1.436-1(g)(3)(ii), the limita-
tions on unpredictable contingent event
benefits and plan amendments that increase
benefit liabilities must be applied during
that period, based on the inclusive pre-
sumed adjusted funding target determined
using the prior plan year’s certified AFTAP
(as opposed to the AFTAP that applied for
that prior plan year pursuant to an election
under § 3608(b) of the CARES Act).
If a benefit limitation applied to a plan
on the last day of the plan year for which
an election under § 3608(b) of the CARES
Act is made, then the rules providing a pre-
sumption of continued underfunding un-
der § 1.436-1(h)(1) apply. Thus, as of the
beginning of the subsequent plan year, the
benefit limitations are applied based on a
presumed AFTAP that is equal to the certi-
fied AFTAP for the plan year for which the
election was made (rather than the AFTAP
that applied for that plan year pursuant to
an election under § 3608(b) of the CARES
Act). This presumed AFTAP is used until
the earliest of the four events specified in
§ 1.436-1(h)(1)(iv)(A) through (D). See
A-14 of this notice for the rule that treats
the plan sponsor’s election under § 3608(b)
of the CARES Act as a certification de-
scribed in § 1.436-1(h)(1)(iv)(D).
Without regard to whether a benefit lim-
itation applied to a plan on the last day of
the plan year for which an election under
§ 3608(b) of the CARES Act is made, if a
plan’s actuary has not certified an AFTAP
for the subsequent plan year before the first
day of the fourth month of that year (and
the plan sponsor has not made an election
under § 3608(b) of the CARES Act for that
plan year by that date), then the rules un-
der § 1.436-1(h)(2) are applied based on
the certified AFTAP for the plan year for
which the election was made (rather than
the AFTAP that applied for the plan year

August 24, 2020 476 Bulletin No. 2020–35
pursuant to an election under § 3608(b)
of the CARES Act). For example, if for a
calendar year plan year, the plan sponsor
made an election under § 3608(b) of the
CARES Act to use the 2019 AFTAP of
82% for 2020, but the plan actuary certified
the AFTAP for 2020 at 81%, then under
§ 1.436-1(h)(2)(i), the plan will be subject
to limitations of § 1.436-1(d)(3) beginning
April 1, 2021, based on a presumed AFTAP
of 71% for 2020 (the certified AFTAP for
2020 reduced by 10 percentage points), un-
less the actuary has certified an AFTAP for
2021 by that date.
In order to properly reflect § 436(h)
(3) in light of the CARES Act, the plan
year following a plan year for which an
election under § 3608(b) of the CARES
Act is made must be treated as the first ef-
fective plan year, so that the special rule
of § 1.436-1(h)(2)(ii) applies. Thus, if in
the example in the preceding paragraph of
this A-18, the plan’s actuary certified an
AFTAP for 2020 of 78%, then beginning
April 1, 2021, the plan will be subject to
the limitations of § 1.436-1(d)(3) based on
a presumed AFTAP of 68% (the certified
AFTAP for 2020 reduced by 10 percent-
age points), unless the plan’s actuary has
certified an AFTAP for 2021 by that date.
Paperwork Reduction Act
The collections of information con-
tained in this notice have been reviewed
and approved by the Office of Manage-
ment and Budget in accordance with the
Paperwork Reduction Act (44 U.S.C. §
3507) under control number 1545-2095.
An agency may not conduct or sponsor,
and a person is not required to respond
to, a collection of information unless the
collection of information displays a valid
OMB control number.
The collections of information in this
notice are in A-13 of this notice. The col-
lections of information are required to im-
plement the application of § 3608 of the
CARES Act. The collections of informa-
tion are mandatory for those plan sponsors
making an election under § 3608 of the
CARES Act.
The likely respondents are sponsors of
single-employer defined benefit plans.
Any potential changes on burden will
be reported through the renewal of the
current OMB approval numbers.
Estimates of the annualized cost to re-
spondents are not available at this time.
Books or records relating to a collec-
tion of information must be retained as
long as their contents may become mate-
rial in the administration of any internal
revenue law. Generally, tax returns and tax
return information are confidential, as re-
quired by § 6103.
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
or Linda Marshall at 202-317-6700 (not a
toll-free number).
Safe Harbor Explanations
– Eligible Rollover
Distributions
Notice 2020-62
I. PURPOSE
This notice modifies the two safe
harbor explanations in Notice 2018-74,
2018-40 I.R.B. 529, that may be used to
satisfy the requirement under § 402(f) of
the Internal Revenue Code (Code) that
certain information be provided to recip-
ients of eligible rollover distributions. The
safe harbor explanations as modified by
this notice take into consideration certain
legislative changes, including changes
related to the Setting Every Community
Up for Retirement Enhancement Act of
2019 (SECURE Act), which was enacted
as part of the Further Consolidated Ap-
propriations Act, 2020, Pub. L. 116-94,
133 Stat. 2534 (2019). The SECURE Act
adds § 72(t)(2)(H) of the Code as a new
exception to the 10% additional tax under
§ 72(t)(1) for qualified birth or adoption
distributions. The SECURE Act also in-
cludes an amendment to § 401(a)(9)(C)(i)
(I) of the Code that increases the age for
required minimum distributions to age 72
for employees born after June 30, 1949.
To assist with the implementation of
the modified safe harbor explanations,
this notice includes an appendix with two
model safe harbor explanations: one for
distributions that are not from a designat-
ed Roth account, and the other for distri-
butions from a designated Roth account.
II. BACKGROUND
A. Section 402(f)
Section 402(f) requires the plan admin-
istrator of a plan qualified under § 401(a)
to provide the written explanation de-
scribed in § 402(f)(1) to any recipient of
an eligible rollover distribution, as defined
in § 402(c)(4). In addition, §§ 403(a)(4)
(B) and 457(e)(16)(B) require the plan
administrator of a § 403(a) plan, or an el-
igible § 457(b) plan maintained by a gov-
ernmental employer described in § 457(e)
(1)(A), to provide the written explanation
to any recipient of an eligible rollover dis-
tribution. Further, § 403(b)(8)(B) requires
a payor under a § 403(b) plan to provide
the written explanation to any recipient of
an eligible rollover distribution.
Section 1.402(f)-1, Q&A-1(a), pro-
vides that the plan administrator of a qual-
ified plan is required, within a reasonable
period of time before making an eligible
rollover distribution, to provide the dis-
tributee with the written explanation de-
scribed in § 402(f) (§ 402(f) notice).
Notice 2018-74 sets forth two safe harbor
explanations that reflect relevant law as of
September 19, 2018: one safe harbor expla-
nation is for payments not from a designated
Roth account and the other safe harbor ex-
planation is for payments from a designated
Roth account. Notice 2018-74 provides that
the safe harbor explanations may be used
by plan administrators and payors to satisfy
§ 402(f) to the extent that the explanations
accurately reflect current law.
B. Recent Statutory Changes Related
to Distributions
1. Qualified Birth or Adoption
Distributions
Section 72(t)(1) generally provides
for a 10% additional tax on a distribution

Bulletin No. 2020–35 477 August 24, 2020
from a qualified retirement plan, unless
the distribution qualifies for one of the ex-
ceptions in § 72(t)(2). Section 113 of the
SECURE Act amended § 72(t)(2) of the
Code to add § 72(t)(2)(H), which permits
an individual to receive up to $5,000 for
a qualified birth or adoption distribution
from an applicable eligible retirement
plan (defined in § 72(t)(2)(H)(vi)(I) as
an eligible retirement plan as defined in
§ 402(c)(8)(B) other than a defined ben-
efit plan). The distribution is not subject
to the 10% additional tax under § 72(t)(1)
to the extent it meets the requirements of
a qualified birth or adoption distribution.
A qualified birth or adoption distribution
is defined in § 72(t)(2)(H)(iii)(I) as any
distribution from an applicable eligible
retirement plan to an individual if made
during the 1-year period beginning on the
date on which the child of the individual
is born or on which the legal adoption by
the individual of an eligible adoptee is fi-
nalized.
Section 72(t)(2)(H)(v)(I) provides
that the individual may recontribute a
qualified birth or adoption distribution
(not to exceed the amount of the distri-
bution) to an applicable eligible retire-
ment plan in which the taxpayer is a
beneficiary and to which a rollover can
be made. However, § 72(t)(2)(H)(vi)(II)
provides that a qualified birth or adop-
tion distribution is not treated as an eligi-
ble rollover distribution for purposes of
the direct rollover rules of § 401(a)(31),
the notice requirement under § 402(f), or
the mandatory withholding rules under
§ 3405. Thus, although a qualified birth
or adoption distribution generally may
be recontributed to an applicable eligible
retirement plan, a plan administrator is
not required to provide a § 402(f) notice
to a recipient of a qualified birth or adop-
tion distribution.
2. Required Minimum Distributions
Section 114 of the SECURE Act amend-
ed § 401(a)(9) of the Code to change the
required beginning date applicable to §
401(a) plans and other eligible retirement
plans described in § 402(c)(8), including a
§ 401(a) qualified plan, a § 403(a) annu-
ity plan, a § 403(b) annuity contract, a §
457(b) plan maintained by a governmen-
tal employer, and an individual retirement
account or annuity (IRA) described in §
408(a) or (b). The new required beginning
date for an employee or an IRA owner
is April 1 of the calendar year following
the calendar year in which the individual
attains age 72, rather than April 1 of the
calendar year following the calendar year
in which the individual attains age 70½.
This amendment to § 401(a)(9) is effec-
tive for distributions required to be made
after December 31, 2019, with respect to
individuals who will attain age 70½ after
that date. As a result of this change, em-
ployees and IRA owners who will attain
age 70½ in 2020 will not have a required
beginning date of April 1, 2021.
3. Coronavirus-related Distributions
Section 2202(a) of the Coronavirus Aid,
Relief, and Economic Security Act, Pub.
L. 116-136, 134 Stat. 281 (2020) (CARES
Act) permits an individual to receive a
coronavirus-related distribution from an
eligible retirement plan (as defined in §
402(c)(8)(B)). Section 2202(a)(4)(A) of
the CARES Act defines a coronavirus-re-
lated distribution as any distribution from
an eligible retirement plan made on or af-
ter January 1, 2020, and before December
31, 2020, to a qualified individual. Sec-
tion 2202(a)(2) of the CARES Act limits
the amount of the aggregate distributions
from all eligible retirement plans that can
be treated as coronavirus-related distribu-
tions to no more than $100,000. A coro-
navirus-related distribution under section
2202(a) of the CARES Act is not subject
to the 10% additional tax under § 72(t)(1).
In addition, the coronavirus-related distri-
bution may be included in gross income
ratably over the 3-year period beginning
with the taxable year of the distribution.
Section 2202(a)(3) of the CARES Act
provides that a qualified individual may
recontribute a coronavirus-related distri-
bution (not to exceed the amount of the
distribution) to an applicable eligible re-
tirement plan in which the taxpayer is a
beneficiary and to which a rollover can
be made. However, a coronavirus-relat-
ed distribution is not an eligible rollover
distribution for purposes of the direct
rollover rules of § 401(a)(31), the notice
requirement under § 402(f), or the man-
datory withholding rules under § 3405.
Thus, although a coronavirus-related dis-
tribution generally may be recontributed
to an applicable eligible retirement plan,
a plan administrator is not required to pro-
vide a § 402(f) notice to a recipient of a
coronavirus-related distribution. For more
information relating to section 2202 of the
CARES Act, see Notice 2020-50, 2020-28
I.R.B. 35.
III. MODIFICATIONS TO THE SAFE
HARBOR EXPLANATIONS
Two updated safe harbor explanations
are appended to this notice (see the Ap-
pendix). The safe harbor explanations
modify the safe harbor explanations in
Notice 2018-74 to reflect certain legisla-
tive changes made after October 1, 2018,
including: (1) the exception to the 10%
additional tax under § 72(t)(1) for quali-
fied birth or adoption distributions, and
(2) the increase to age 72 for minimum
required distributions for employees born
after June 30, 1949. The safe harbor ex-
planations also include other minor modi-
fications to improve their clarity, including
adding that payments of certain premiums
for health and accident insurance are not
eligible rollover distributions, rearranging
bullets for readability, and spelling out ac-
ronyms when first used.
The updated safe harbor explanations
provided in this notice may be used by
plan administrators and payors to satisfy
§ 402(f). However, the updated safe har-
bor explanations will not satisfy § 402(f)
to the extent the explanations are no lon-
ger accurate because of a change in the
relevant law occurring after August 6,
2020.
The first safe harbor explanation re-
flects the rules relating to distributions not
from a designated Roth account. Thus,
the first safe harbor explanation should
be used only for a distribution that is not
from a designated Roth account. The sec-
ond safe harbor explanation reflects the
rules relating to distributions from a des-
ignated Roth account. Thus, the second
safe harbor explanation should be used
only for a distribution from a designated
Roth account. Both explanations should
be provided to a participant if the partici-
pant is eligible to receive eligible rollover
distributions from both a designated Roth
account and an account other than a desig-
nated Roth account.

August 24, 2020 478 Bulletin No. 2020–35
The safe harbor explanation in this no-
tice for distributions not from a designat-
ed Roth account meets the requirements
of § 402(f) for an eligible rollover distri-
bution that is not from a designated Roth
account if provided to the recipient of the
eligible rollover distribution within a rea-
sonable period of time before the distri-
bution is made. Similarly, the safe harbor
explanation in this notice for distributions
from a designated Roth account meets the
requirements of § 402(f) for an eligible
rollover distribution from a designated
Roth account if provided to the recipient
of the eligible rollover distribution within
a reasonable period of time before the dis-
tribution is made.
Section 1.402(f)-1, Q&A-2, provides,
in general, that a reasonable period of time
for providing an explanation is no less than
30 days (subject to waiver) and no more
than 90 days before the date on which the
distribution is made. However, proposed
§ 1.402(f)-1, Q&A-2(a), pursuant to sec-
tion 1102(a)(1)(B) of the Pension Protec-
tion Act of 2006, Pub. L. 109-280, 120 Stat.
780 (2006), provides that a notice required
to be provided under § 402(f) may be pro-
vided to a participant as much as 180 days
before the date on which the distribution is
made (or the annuity starting date). These
proposed regulations further provide that,
with respect to the extended period for
notices, plans may rely on the proposed
regulations for notices provided during the
period beginning on the first day of the first
plan year beginning on or after January 1,
2007, and ending on the effective date of
final regulations. Thus, the § 402(f) notice
may be provided as many as 180 days be-
fore the date on which the distribution is
made (or the annuity starting date).
A plan administrator or payor may cus-
tomize a safe harbor explanation by omit-
ting any information that does not apply to
the plan. For example, if the plan does not
hold after-tax employee contributions, it
would be appropriate to eliminate the sec-
tion “If your payment includes after-tax
contributions” in the explanation for
payments not from a designated Roth ac-
count. Similarly, if the plan does not pro-
vide for distributions of employer stock or
other employer securities, it would be ap-
propriate to eliminate the section “If your
payment includes employer stock that you
do not roll over.” Other information that
may not be relevant to a particular plan in-
cludes, for example, the sections “If your
payment is from a governmental section
457(b) plan” and “If you are an eligible
retired public safety officer and your pay-
ment is used to pay for health coverage
or qualified long-term care insurance.” In
addition, the plan administrator or payor
may provide additional information with a
safe harbor explanation if the information
is not inconsistent with § 402(f).
Alternatively, a plan administrator or
payor may satisfy § 402(f) by providing
an explanation that is different from a
safe harbor explanation. Any explanation
must include the information required by
§ 402(f) and must be written in a manner
designed to be easily understood.
IV. EFFECT ON OTHER
DOCUMENTS
Notice 2018-74 is modified.
DRAFTING INFORMATION
The principal author of this notice is
Vernon Carter of the Office of Associate
Chief Counsel (Employee Benefits, Ex-
empt Organizations, and Employment
Taxation). For further information regard-
ing this notice, contact Mr. Carter at (202)
317-6799 (not a toll-free number).

Bulletin No. 2020–35 479 August 24, 2020
Appendix
For Payments Not From a
Designated Roth Account
YOUR ROLLOVER OPTIONS
You are receiving this notice because all or a portion of a payment you are receiving from the [INSERT NAME OF PLAN] (the
“Plan”) is eligible to be rolled over to an IRA or an employer plan. This notice is intended to help you decide whether to do such a
rollover.
This notice describes the rollover rules that apply to payments from the Plan that are not from a designated Roth account (a type of
account in some employer plans that is subject to special tax rules). If you also receive a payment from a designated Roth account
in the Plan, you will be provided a different notice for that payment, and the Plan administrator or the payor will tell you the amount
that is being paid from each account.
Rules that apply to most payments from a plan are described in the “General Information About Rollovers” section. Special rules that
only apply in certain circumstances are described in the “Special Rules and Options” section.
GENERAL INFORMATION ABOUT ROLLOVERS
How can a rollover affect my taxes?
You will be taxed on a payment from the Plan if you do not roll it over. If you are under age 59½ and do not do a rollover, you will also
have to pay a 10% additional income tax on early distributions (generally, distributions made before age 59½), unless an exception
applies. However, if you do a rollover, you will not have to pay tax until you receive payments later and the 10% additional income
tax will not apply if those payments are made after you are age 59½ (or if an exception to the 10% additional income tax applies).
What types of retirement accounts and plans may accept my rollover?
You may roll over the payment to either an IRA (an individual retirement account or individual retirement annuity) or an employer
plan (a tax-qualified plan, section 403(b) plan, or governmental section 457(b) plan) that will accept the rollover. The rules of the IRA
or employer plan that holds the rollover will determine your investment options, fees, and rights to payment from the IRA or employer
plan (for example, IRAs are not subject to spousal consent rules, and IRAs may not provide loans). Further, the amount rolled over
will become subject to the tax rules that apply to the IRA or employer plan.
How do I do a rollover?
There are two ways to do a rollover. You can do either a direct rollover or a 60-day rollover.
If you do a direct rollover, the Plan will make the payment directly to your IRA or an employer plan. You should contact the IRA
sponsor or the administrator of the employer plan for information on how to do a direct rollover.
If you do not do a direct rollover, you may still do a rollover by making a deposit into an IRA or eligible employer plan that will
accept it. Generally, you will have 60 days after you receive the payment to make the deposit. If you do not do a direct rollover, the
Plan is required to withhold 20% of the payment for federal income taxes (up to the amount of cash and property received other than
employer stock). This means that, in order to roll over the entire payment in a 60-day rollover, you must use other funds to make up
for the 20% withheld. If you do not roll over the entire amount of the payment, the portion not rolled over will be taxed and will be
subject to the 10% additional income tax on early distributions if you are under age 59½ (unless an exception applies).
How much may I roll over?
If you wish to do a rollover, you may roll over all or part of the amount eligible for rollover. Any payment from the Plan is eligible
for rollover, except:
• Certain payments spread over a period of at least 10 years or over your life or life expectancy (or the joint lives or joint life ex-
pectancies of you and your beneficiary);

August 24, 2020 480 Bulletin No. 2020–35
• Required minimum distributions after age 70½ (if you were born before July 1, 1949), after age 72 (if you were born after June
30, 1949), or after death;
• Hardship distributions;
• Payments of employee stock ownership plan (ESOP) dividends;
• Corrective distributions of contributions that exceed tax law limitations;
• Loans treated as deemed distributions (for example, loans in default due to missed payments before your employment ends);
• Cost of life insurance paid by the Plan;
• Payments of certain automatic enrollment contributions that you request to withdraw within 90 days of your first contribution;
• Amounts treated as distributed because of a prohibited allocation of S corporation stock under an ESOP (also, there generally
will be adverse tax consequences if you roll over a distribution of S corporation stock to an IRA); and
• Distributions of certain premiums for health and accident insurance.
The Plan administrator or the payor can tell you what portion of a payment is eligible for rollover.
If I don’t do a rollover, will I have to pay the 10% additional income tax on early distributions?
If you are under age 59½, you will have to pay the 10% additional income tax on early distributions for any payment from the Plan
(including amounts withheld for income tax) that you do not roll over, unless one of the exceptions listed below applies. This tax
applies to the part of the distribution that you must include in income and is in addition to the regular income tax on the payment not
rolled over.
The 10% additional income tax does not apply to the following payments from the Plan:
• Payments made after you separate from service if you will be at least age 55 in the year of the separation;
• Payments that start after you separate from service if paid at least annually in equal or close to equal amounts over your life or
life expectancy (or the joint lives or joint life expectancies of you and your beneficiary);
• Payments from a governmental plan made after you separate from service if you are a qualified public safety employee and you
will be at least age 50 in the year of the separation;
• Payments made due to disability;
• Payments after your death;
• Payments of ESOP dividends;
• Corrective distributions of contributions that exceed tax law limitations;
• Cost of life insurance paid by the Plan;
• Payments made directly to the government to satisfy a federal tax levy;
• Payments made under a qualified domestic relations order (QDRO);
• Payments of up to $5,000 made to you from a defined contribution plan if the payment is a qualified birth or adoption distribu-
tion;
• Payments up to the amount of your deductible medical expenses (without regard to whether you itemize deductions for the tax-
able year);
• Certain payments made while you are on active duty if you were a member of a reserve component called to duty after September
11, 2001 for more than 179 days;
• Payments of certain automatic enrollment contributions that you request to withdraw within 90 days of your first contribution;
• Payments excepted from the additional income tax by federal legislation relating to certain emergencies and disasters; and
• Phased retirement payments made to federal employees.
If I do a rollover to an IRA, will the 10% additional income tax apply to early distributions from the IRA?
If you receive a payment from an IRA when you are under age 59½, you will have to pay the 10% additional income tax on early
distributions on the part of the distribution that you must include in income, unless an exception applies. In general, the exceptions to
the 10% additional income tax for early distributions from an IRA are the same as the exceptions listed above for early distributions
from a plan. However, there are a few differences for payments from an IRA, including:
• The exception for payments made after you separate from service if you will be at least age 55 in the year of the separation (or
age 50 for qualified public safety employees) does not apply;
• The exception for qualified domestic relations orders (QDROs) does not apply (although a special rule applies under which, as
part of a divorce or separation agreement, a tax-free transfer may be made directly to an IRA of a spouse or former spouse); and

Bulletin No. 2020–35 481 August 24, 2020
• The exception for payments made at least annually in equal or close to equal amounts over a specified period applies without
regard to whether you have had a separation from service.
Additional exceptions apply for payments from an IRA, including:
• Payments for qualified higher education expenses;
• Payments up to $10,000 used in a qualified first-time home purchase; and
• Payments for health insurance premiums after you have received unemployment compensation for 12 consecutive weeks (or
would have been eligible to receive unemployment compensation but for self-employed status).
Will I owe State income taxes?
This notice does not address any State or local income tax rules (including withholding rules).
SPECIAL RULES AND OPTIONS
If your payment includes after-tax contributions
After-tax contributions included in a payment are not taxed. If you receive a partial payment of your total benefit, an allocable portion
of your after-tax contributions is included in the payment, so you cannot take a payment of only after-tax contributions. However,
if you have pre-1987 after-tax contributions maintained in a separate account, a special rule may apply to determine whether the af-
ter-tax contributions are included in the payment. In addition, special rules apply when you do a rollover, as described below.
You may roll over to an IRA a payment that includes after-tax contributions through either a direct rollover or a 60-day rollover. You
must keep track of the aggregate amount of the after-tax contributions in all of your IRAs (in order to determine your taxable income
for later payments from the IRAs). If you do a direct rollover of only a portion of the amount paid from the Plan and at the same
time the rest is paid to you, the portion rolled over consists first of the amount that would be taxable if not rolled over. For example,
assume you are receiving a distribution of $12,000, of which $2,000 is after-tax contributions. In this case, if you directly roll over
$10,000 to an IRA that is not a Roth IRA, no amount is taxable because the $2,000 amount not rolled over is treated as being after-tax
contributions. If you do a direct rollover of the entire amount paid from the Plan to two or more destinations at the same time, you
can choose which destination receives the after-tax contributions.
Similarly, if you do a 60-day rollover to an IRA of only a portion of a payment made to you, the portion rolled over consists first of
the amount that would be taxable if not rolled over. For example, assume you are receiving a distribution of $12,000, of which $2,000
is after-tax contributions, and no part of the distribution is directly rolled over. In this case, if you roll over $10,000 to an IRA that
is not a Roth IRA in a 60-day rollover, no amount is taxable because the $2,000 amount not rolled over is treated as being after-tax
contributions.
You may roll over to an employer plan all of a payment that includes after-tax contributions, but only through a direct rollover (and
only if the receiving plan separately accounts for after-tax contributions and is not a governmental section 457(b) plan). You can do
a 60-day rollover to an employer plan of part of a payment that includes after-tax contributions, but only up to the amount of the
payment that would be taxable if not rolled over.
If you miss the 60-day rollover deadline
Generally, the 60-day rollover deadline cannot be extended. However, the IRS has the limited authority to waive the deadline under
certain extraordinary circumstances, such as when external events prevented you from completing the rollover by the 60-day rollover
deadline. Under certain circumstances, you may claim eligibility for a waiver of the 60-day rollover deadline by making a written
self-certification. Otherwise, to apply for a waiver from the IRS, you must file a private letter ruling request with the IRS. Private let-
ter ruling requests require the payment of a nonrefundable user fee. For more information, see IRS Publication 590-A, Contributions
to Individual Retirement Arrangements (IRAs).
If your payment includes employer stock that you do not roll over
If you do not do a rollover, you can apply a special rule to payments of employer stock (or other employer securities) that are either
attributable to after-tax contributions or paid in a lump sum after separation from service (or after age 59½, disability, or the partic-
ipant’s death). Under the special rule, the net unrealized appreciation on the stock will not be taxed when distributed from the Plan

August 24, 2020 482 Bulletin No. 2020–35
and will be taxed at capital gain rates when you sell the stock. Net unrealized appreciation is generally the increase in the value of
employer stock after it was acquired by the Plan. If you do a rollover for a payment that includes employer stock (for example, by
selling the stock and rolling over the proceeds within 60 days of the payment), the special rule relating to the distributed employer
stock will not apply to any subsequent payments from the IRA or, generally, the Plan. The Plan administrator can tell you the amount
of any net unrealized appreciation.
If you have an outstanding loan that is being offset
If you have an outstanding loan from the Plan, your Plan benefit may be offset by the outstanding amount of the loan, typically when
your employment ends. The offset amount is treated as a distribution to you at the time of the offset. Generally, you may roll over all
or any portion of the offset amount. Any offset amount that is not rolled over will be taxed (including the 10% additional income tax
on early distributions, unless an exception applies). You may roll over offset amounts to an IRA or an employer plan (if the terms of
the employer plan permit the plan to receive plan loan offset rollovers).
How long you have to complete the rollover depends on what kind of plan loan offset you have. If you have a qualified plan loan
offset, you will have until your tax return due date (including extensions) for the tax year during which the offset occurs to complete
your rollover. A qualified plan loan offset occurs when a plan loan in good standing is offset because your employer plan terminates,
or because you sever from employment. If your plan loan offset occurs for any other reason (such as a failure to make level loan
repayments that results in a deemed distribution), then you have 60 days from the date the offset occurs to complete your rollover.
If you were born on or before January 1, 1936
If you were born on or before January 1, 1936 and receive a lump sum distribution that you do not roll over, special rules for calcu-
lating the amount of the tax on the payment might apply to you. For more information, see IRS Publication 575, Pension and Annuity
Income.
If your payment is from a governmental section 457(b) plan
If the Plan is a governmental section 457(b) plan, the same rules described elsewhere in this notice generally apply, allowing you to
roll over the payment to an IRA or an employer plan that accepts rollovers. One difference is that, if you do not do a rollover, you will
not have to pay the 10% additional income tax on early distributions from the Plan even if you are under age 59½ (unless the payment
is from a separate account holding rollover contributions that were made to the Plan from a tax-qualified plan, a section 403(b) plan,
or an IRA). However, if you do a rollover to an IRA or to an employer plan that is not a governmental section 457(b) plan, a later dis-
tribution made before age 59½ will be subject to the 10% additional income tax on early distributions (unless an exception applies).
Other differences include that you cannot do a rollover if the payment is due to an “unforeseeable emergency” and the special rules
under “If your payment includes employer stock that you do not roll over” and “If you were born on or before January 1, 1936” do
not apply.
If you are an eligible retired public safety officer and your payment is used to pay for health coverage or qualified long-term
care insurance
If the Plan is a governmental plan, you retired as a public safety officer, and your retirement was by reason of disability or was after
normal retirement age, you can exclude from your taxable income Plan payments paid directly as premiums to an accident or health
plan (or a qualified long-term care insurance contract) that your employer maintains for you, your spouse, or your dependents, up to
a maximum of $3,000 annually. For this purpose, a public safety officer is a law enforcement officer, firefighter, chaplain, or member
of a rescue squad or ambulance crew.
If you roll over your payment to a Roth IRA
If you roll over a payment from the Plan to a Roth IRA, a special rule applies under which the amount of the payment rolled over
(reduced by any after-tax amounts) will be taxed. In general, the 10% additional income tax on early distributions will not apply.
However, if you take the amount rolled over out of the Roth IRA within the 5-year period that begins on January 1 of the year of the
rollover, the 10% additional income tax will apply (unless an exception applies).
If you roll over the payment to a Roth IRA, later payments from the Roth IRA that are qualified distributions will not be taxed (in-
cluding earnings after the rollover). A qualified distribution from a Roth IRA is a payment made after you are age 59½ (or after your
death or disability, or as a qualified first-time homebuyer distribution of up to $10,000) and after you have had a Roth IRA for at least

Bulletin No. 2020–35 483 August 24, 2020
5 years. In applying this 5-year rule, you count from January 1 of the year for which your first contribution was made to a Roth IRA.
Payments from the Roth IRA that are not qualified distributions will be taxed to the extent of earnings after the rollover, including the
10% additional income tax on early distributions (unless an exception applies). You do not have to take required minimum distribu-
tions from a Roth IRA during your lifetime. For more information, see IRS Publication 590-A, Contributions to Individual Retirement
Arrangements (IRAs), and IRS Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs).
If you do a rollover to a designated Roth account in the Plan
You cannot roll over a distribution to a designated Roth account in another employer’s plan. However, you can roll the distribution over
into a designated Roth account in the distributing Plan. If you roll over a payment from the Plan to a designated Roth account in the
Plan, the amount of the payment rolled over (reduced by any after-tax amounts directly rolled over) will be taxed. In general, the 10%
additional income tax on early distributions will not apply. However, if you take the amount rolled over out of the Roth IRA within the
5-year period that begins on January 1 of the year of the rollover, the 10% additional income tax will apply (unless an exception applies).
If you roll over the payment to a designated Roth account in the Plan, later payments from the designated Roth account that are qual-
ified distributions will not be taxed (including earnings after the rollover). A qualified distribution from a designated Roth account
is a payment made both after you are age 59½ (or after your death or disability) and after you have had a designated Roth account
in the Plan for at least 5 years. In applying this 5-year rule, you count from January 1 of the year your first contribution was made
to the designated Roth account. However, if you made a direct rollover to a designated Roth account in the Plan from a designated
Roth account in a plan of another employer, the 5-year period begins on January 1 of the year you made the first contribution to the
designated Roth account in the Plan or, if earlier, to the designated Roth account in the plan of the other employer. Payments from
the designated Roth account that are not qualified distributions will be taxed to the extent of earnings after the rollover, including the
10% additional income tax on early distributions (unless an exception applies).
If you are not a Plan participant
Payments after death of the participant. If you receive a distribution after the participant’s death that you do not roll over, the distribu-
tion generally will be taxed in the same manner described elsewhere in this notice. However, the 10% additional income tax on early
distributions and the special rules for public safety officers do not apply, and the special rule described under the section “If you were
born on or before January 1, 1936” applies only if the deceased participant was born on or before January 1, 1936.
If you are a surviving spouse. If you receive a payment from the Plan as the surviving spouse of a deceased participant, you have
the same rollover options that the participant would have had, as described elsewhere in this notice. In addition, if you choose to
do a rollover to an IRA, you may treat the IRA as your own or as an inherited IRA.
An IRA you treat as your own is treated like any other IRA of yours, so that payments made to you before you are age 59½ will be
subject to the 10% additional income tax on early distributions (unless an exception applies) and required minimum distributions
from your IRA do not have to start until after you are age 70½ (if you were born before July 1, 1949) or age 72 (if you were born
after June 30, 1949).
If you treat the IRA as an inherited IRA, payments from the IRA will not be subject to the 10% additional income tax on early
distributions. However, if the participant had started taking required minimum distributions, you will have to receive required min-
imum distributions from the inherited IRA. If the participant had not started taking required minimum distributions from the Plan,
you will not have to start receiving required minimum distributions from the inherited IRA until the year the participant would
have been age 70½ (if the participant was born before July 1, 1949) or age 72 (if the participant was born after June 30, 1949).
If you are a surviving beneficiary other than a spouse. If you receive a payment from the Plan because of the participant’s death
and you are a designated beneficiary other than a surviving spouse, the only rollover option you have is to do a direct rollover to an
inherited IRA. Payments from the inherited IRA will not be subject to the 10% additional income tax on early distributions. You
will have to receive required minimum distributions from the inherited IRA.
Payments under a QDRO. If you are the spouse or former spouse of the participant who receives a payment from the Plan under a
QDRO, you generally have the same options and the same tax treatment that the participant would have (for example, you may roll
over the payment to your own IRA or an eligible employer plan that will accept it). However, payments under the QDRO will not be
subject to the 10% additional income tax on early distributions.

August 24, 2020 484 Bulletin No. 2020–35
If you are a nonresident alien
If you are a nonresident alien and you do not do a direct rollover to a U.S. IRA or U.S. employer plan, instead of withholding 20%,
the Plan is generally required to withhold 30% of the payment for federal income taxes. If the amount withheld exceeds the amount
of tax you owe (as may happen if you do a 60-day rollover), you may request an income tax refund by filing Form 1040NR and
attaching your Form 1042-S. See Form W-8BEN for claiming that you are entitled to a reduced rate of withholding under an income
tax treaty. For more information, see also IRS Publication 519, U.S. Tax Guide for Aliens, and IRS Publication 515, Withholding of
Tax on Nonresident Aliens and Foreign Entities.
Other special rules
If a payment is one in a series of payments for less than 10 years, your choice whether to do a direct rollover will apply to all later
payments in the series (unless you make a different choice for later payments).
If your payments for the year are less than $200 (not including payments from a designated Roth account in the Plan), the Plan is not
required to allow you to do a direct rollover and is not required to withhold federal income taxes. However, you may do a 60-day
rollover.
Unless you elect otherwise, a mandatory cashout of more than $1,000 (not including payments from a designated Roth account in the
Plan) will be directly rolled over to an IRA chosen by the Plan administrator or the payor. A mandatory cashout is a payment from a
plan to a participant made before age 62 (or normal retirement age, if later) and without consent, where the participant’s benefit does
not exceed $5,000 (not including any amounts held under the plan as a result of a prior rollover made to the plan).
You may have special rollover rights if you recently served in the U.S. Armed Forces. For more information on special rollover rights
related to the U.S. Armed Forces, see IRS Publication 3, Armed Forces’ Tax Guide. You also may have special rollover rights if you
were affected by a federally declared disaster (or similar event), or if you received a distribution on account of a disaster. For more
information on special rollover rights related to disaster relief, see the IRS website at www.irs.gov.
FOR MORE INFORMATION
You may wish to consult with the Plan administrator or payor, or a professional tax advisor, before taking a payment from the Plan.
Also, you can find more detailed information on the federal tax treatment of payments from employer plans in: IRS Publication 575,
Pension and Annuity Income; IRS Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs); IRS Publica-
tion 590-B, Distributions from Individual Retirement Arrangements (IRAs); and IRS Publication 571, Tax-Sheltered Annuity Plans
(403(b) Plans). These publications are available from a local IRS office, on the web at www.irs.gov, or by calling 1-800-TAX-FORM.

Bulletin No. 2020–35 485 August 24, 2020
For Payments From a
Designated Roth Account
YOUR ROLLOVER OPTIONS
You are receiving this notice because all or a portion of a payment you are receiving from the [INSERT NAME OF PLAN] (the
“Plan”) is eligible to be rolled over to a Roth IRA or designated Roth account in an employer plan. This notice is intended to help
you decide whether to do a rollover.
This notice describes the rollover rules that apply to payments from the Plan that are from a designated Roth account. If you also
receive a payment from the Plan that is not from a designated Roth account, you will be provided a different notice for that payment,
and the Plan administrator or the payor will tell you the amount that is being paid from each account.
Rules that apply to most payments from a designated Roth account are described in the “General Information About Rollovers” sec-
tion. Special rules that only apply in certain circumstances are described in the “Special Rules and Options” section.
GENERAL INFORMATION ABOUT ROLLOVERS
How can a rollover affect my taxes?
After-tax contributions included in a payment from a designated Roth account are not taxed, but earnings might be taxed. The tax
treatment of earnings included in the payment depends on whether the payment is a qualified distribution. If a payment is only part of
your designated Roth account, the payment will include an allocable portion of the earnings in your designated Roth account.
If the payment from the Plan is not a qualified distribution and you do not do a rollover to a Roth IRA or a designated Roth account
in an employer plan, you will be taxed on the portion of the payment that is earnings. If you are under age 59½, a 10% additional
income tax on early distributions (generally, distributions made before age 59½) will also apply to the earnings (unless an exception
applies). However, if you do a rollover, you will not have to pay taxes currently on the earnings and you will not have to pay taxes
later on payments that are qualified distributions.
If the payment from the Plan is a qualified distribution, you will not be taxed on any part of the payment even if you do not do a roll-
over. If you do a rollover, you will not be taxed on the amount you roll over and any earnings on the amount you roll over will not be
taxed if paid later in a qualified distribution.
A qualified distribution from a designated Roth account in the Plan is a payment made after you are age 59½ (or after your death or
disability) and after you have had a designated Roth account in the Plan for at least 5 years. In applying the 5-year rule, you count
from January 1 of the year your first contribution was made to the designated Roth account. However, if you did a direct rollover to
a designated Roth account in the Plan from a designated Roth account in another employer plan, your participation will count from
January 1 of the year your first contribution was made to the designated Roth account in the Plan or, if earlier, to the designated Roth
account in the other employer plan.
What types of retirement accounts and plans may accept my rollover?
You may roll over the payment to either a Roth IRA (a Roth individual retirement account or Roth individual retirement annuity) or
a designated Roth account in an employer plan (a tax-qualified plan, section 403(b) plan, or governmental section 457 plan) that will
accept the rollover. The rules of the Roth IRA or employer plan that holds the rollover will determine your investment options, fees,
and rights to payment from the Roth IRA or employer plan (for example, Roth IRAs are not subject to spousal consent rules, and
Roth IRAs may not provide loans). Further, the amount rolled over will become subject to the tax rules that apply to the Roth IRA or
the designated Roth account in the employer plan. In general, these tax rules are similar to those described elsewhere in this notice,
but differences include:
• If you do a rollover to a Roth IRA, all of your Roth IRAs will be considered for purposes of determining whether you have sat-
isfied the 5-year rule (counting from January 1 of the year for which your first contribution was made to any of your Roth IRAs).
• If you do a rollover to a Roth IRA, you will not be required to take a distribution from the Roth IRA during your lifetime and
you must keep track of the aggregate amount of the after-tax contributions in all of your Roth IRAs (in order to determine your
taxable income for later Roth IRA payments that are not qualified distributions).
• Eligible rollover distributions from a Roth IRA can only be rolled over to another Roth IRA.

August 24, 2020 486 Bulletin No. 2020–35
How do I do a rollover?
There are two ways to do a rollover. You can either do a direct rollover or a 60-day rollover.
If you do a direct rollover, the Plan will make the payment directly to your Roth IRA or designated Roth account in an employer plan.
You should contact the Roth IRA sponsor or the administrator of the employer plan for information on how to do a direct rollover.
If you do not do a direct rollover, you may still do a rollover by making a deposit (generally within 60 days) into a Roth IRA, whether
the payment is a qualified or nonqualified distribution. In addition, you can do a rollover by making a deposit within 60 days into a
designated Roth account in an employer plan if the payment is a nonqualified distribution and the rollover does not exceed the amount
of the earnings in the payment. You cannot do a 60-day rollover to an employer plan of any part of a qualified distribution. If you
receive a distribution that is a nonqualified distribution and you do not roll over an amount at least equal to the earnings allocable to
the distribution, you will be taxed on the amount of those earnings not rolled over, including the 10% additional income tax on early
distributions if you are under age 59½ (unless an exception applies).
If you do a direct rollover of only a portion of the amount paid from the Plan and a portion is paid to you at the same time, the portion
directly rolled over consists first of earnings.
If you do not do a direct rollover and the payment is not a qualified distribution, the Plan is required to withhold 20% of the earnings
for federal income taxes (up to the amount of cash and property received other than employer stock). This means that, in order to roll
over the entire payment in a 60-day rollover to a Roth IRA, you must use other funds to make up for the 20% withheld.
How much may I roll over?
If you wish to do a rollover, you may roll over all or part of the amount eligible for rollover. Any payment from the Plan is eligible
for rollover, except:
• Certain payments spread over a period of at least 10 years or over your life or life expectancy (or the joint lives or joint life ex-
pectancies of you and your beneficiary);
• Required minimum distributions after age 70½ (if you were born before July 1, 1949), after age 72 (if you were born after June
30, 1949), or after death;
• Hardship distributions;
• Payments of employee stock ownership plan (ESOP) dividends;
• Corrective distributions of contributions that exceed tax law limitations;
• Loans treated as deemed distributions (for example, loans in default due to missed payments before your employment ends);
• Cost of life insurance paid by the Plan;
• Payments of certain automatic enrollment contributions that you request to withdraw within 90 days of your first contribution;
and
• Amounts treated as distributed because of a prohibited allocation of S corporation stock under an ESOP (also, there generally
will be adverse tax consequences if S corporation stock is held by an IRA); and
• Distributions of certain premiums for health and accident insurance.
The Plan administrator or the payor can tell you what portion of a payment is eligible for rollover.
If I don’t do a rollover, will I have to pay the 10% additional income tax on early distributions?
If a payment is not a qualified distribution and you are under age 59½, you will have to pay the 10% additional income tax on early
distributions with respect to the earnings allocated to the payment that you do not roll over (including amounts withheld for income
tax), unless one of the exceptions listed below applies. This tax is in addition to the regular income tax on the earnings not rolled over.
The 10% additional income tax does not apply to the following payments from the Plan:
• Payments made after you separate from service if you will be at least age 55 in the year of the separation;
• Payments that start after you separate from service if paid at least annually in equal or close to equal amounts over your life or
life expectancy (or the joint lives or joint life expectancies of you and your beneficiary);
• Payments from a governmental plan made after you separate from service if you are a qualified public safety employee and you
will be at least age 50 in the year of the separation;

Bulletin No. 2020–35 487 August 24, 2020
• Payments made due to disability;
• Payments after your death;
• Payments of ESOP dividends;
• Corrective distributions of contributions that exceed tax law limitations;
• Cost of life insurance paid by the Plan;
• Payments made directly to the government to satisfy a federal tax levy;
• Payments made under a qualified domestic relations order (QDRO);
• Payments of up to $5,000 made to you from a defined contribution plan if the payment is a qualified birth or adoption distribu-
tion;
• Payments up to the amount of your deductible medical expenses (without regard to whether you itemize deductions for the tax-
able year);
• Certain payments made while you are on active duty if you were a member of a reserve component called to duty after September
11, 2001 for more than 179 days;
• Payments of certain automatic enrollment contributions that you request to withdraw within 90 days of your first contribution;
and
• Payments excepted from the additional income tax by federal legislation relating to certain emergencies and disasters.
If I do a rollover to a Roth IRA, will the 10% additional income tax apply to early distributions from the IRA?
If you receive a payment from a Roth IRA when you are under age 59½, you will have to pay the 10% additional income tax on early
distributions on the earnings paid from the Roth IRA, unless an exception applies or the payment is a qualified distribution. In general,
the exceptions to the 10% additional income tax for early distributions from a Roth IRA listed above are the same as the exceptions
for early distributions from a plan. However, there are a few differences for payments from a Roth IRA, including:
• The exception for payments made after you separate from service if you will be at least age 55 in the year of the separation (or
age 50 for qualified public safety employees) does not apply;
• The exception for qualified domestic relations orders (QDROs) does not apply (although a special rule applies under which, as
part of a divorce or separation agreement, a tax-free transfer may be made directly to a Roth IRA of a spouse or former spouse);
and
• The exception for payments made at least annually in equal or close to equal amounts over a specified period applies without
regard to whether you have had a separation from service.
Additional exceptions apply for payments from an IRA, including:
• Payments for qualified higher education expenses;
• Payments up to $10,000 used in a qualified first-time home purchase; and
• Payments for health insurance premiums after you have received unemployment compensation for 12 consecutive weeks (or
would have been eligible to receive unemployment compensation but for self-employed status).
Will I owe State income taxes?
This notice does not address any State or local income tax rules (including withholding rules).
SPECIAL RULES AND OPTIONS
If you miss the 60-day rollover deadline
Generally, the 60-day rollover deadline cannot be extended. However, the IRS has the limited authority to waive the deadline under
certain extraordinary circumstances, such as when external events prevented you from completing the rollover by the 60-day rollover
deadline. Under certain circumstances, you may claim eligibility for a waiver of the 60-day rollover deadline by making a written
self-certification. Otherwise, to apply for a waiver from the IRS, you must file a private letter ruling request with the IRS. Private let-
ter ruling requests require the payment of a nonrefundable user fee. For more information, see IRS Publication 590-A, Contributions
to Individual Retirement Arrangements (IRAs).

August 24, 2020 488 Bulletin No. 2020–35
If your payment includes employer stock that you do not roll over
If you receive a payment that is not a qualified distribution and you do not roll it over, you can apply a special rule to payments of
employer stock (or other employer securities) that are paid in a lump sum after separation from service (or after age 59½, disability,
or the participant’s death). Under the special rule, the net unrealized appreciation on the stock included in the earnings in the payment
will not be taxed when distributed to you from the Plan and will be taxed at capital gain rates when you sell the stock. If you do a
rollover to a Roth IRA for a nonqualified distribution that includes employer stock (for example, by selling the stock and rolling over
the proceeds within 60 days of the distribution), you will not have any taxable income and the special rule relating to the distributed
employer stock will not apply to any subsequent payments from the Roth IRA or, generally, the Plan. Net unrealized appreciation is
generally the increase in the value of the employer stock after it was acquired by the Plan. The Plan administrator can tell you the
amount of any net unrealized appreciation.
If you receive a payment that is a qualified distribution that includes employer stock and you do not roll it over, your basis in the stock
(used to determine gain or loss when you later sell the stock) will equal the fair market value of the stock at the time of the payment
from the Plan.
If you have an outstanding loan that is being offset
If you have an outstanding loan from the Plan, your Plan benefit may be offset by the outstanding amount of the loan, typically when
your employment ends. The offset amount is treated as a distribution to you at the time of the offset. Generally, you may roll over all
or any portion of the offset amount. If the distribution attributable to the offset is not a qualified distribution and you do not roll over
the offset amount, you will be taxed on any earnings included in the distribution (including the 10% additional income tax on early
distributions, unless an exception applies). You may roll over the earnings included in the loan offset to a Roth IRA or designated
Roth account in an employer plan (if the terms of the employer plan permit the plan to receive plan loan offset rollovers). You may
also roll over the full amount of the offset to a Roth IRA.
How long you have to complete the rollover depends on what kind of plan loan offset you have. If you have a qualified plan loan off-
set, you will have until your tax return due date (including extensions) for the tax year during which the offset occurs to complete your
rollover. A qualified plan loan offset occurs when a plan loan in good standing is offset because your employer plan terminates, or
because you sever from employment. If your plan loan offset occurs for any other reason (such as a failure to make level repayments
that results in a deemed distribution), then you have 60 days from the date the offset occurs to complete your rollover.
If you receive a nonqualified distribution and you were born on or before January 1, 1936
If you were born on or before January 1, 1936, and receive a lump sum distribution that is not a qualified distribution and that you do
not roll over, special rules for calculating the amount of the tax on the earnings in the payment might apply to you. For more infor-
mation, see IRS Publication 575, Pension and Annuity Income.
If your payment is from a governmental section 457(b) plan
If the Plan is a governmental section 457(b) plan, the same rules described elsewhere in this notice generally apply, allowing you to
roll over the payment to an IRA or an employer plan that accepts rollovers. One difference is that, if you receive a payment that is
not a qualified distribution and you do not roll it over, you will not have to pay the 10% additional income tax on early distributions
with respect to the earnings allocated to the payment that you do not roll over, even if you are under age 59½ (unless the payment is
from a separate account holding rollover contributions that were made to the Plan from a tax-qualified plan, a section 403(b) plan,
or an IRA). However, if you do a rollover to an IRA or to an employer plan that is not a governmental section 457(b) plan, a later
distribution that is not a qualified distribution made before age 59½ will be subject to the 10% additional income tax on earnings
allocated to the payment (unless an exception applies). Other differences include that you cannot do a rollover if the payment is due
to an “unforeseeable emergency” and the special rules under “If your payment includes employer stock that you do not roll over” and
“If you were born on or before January 1, 1936” do not apply.
If you receive a nonqualified distribution, are an eligible retired public safety officer, and your payment is used to pay for
health coverage or qualified long-term care insurance
If the Plan is a governmental plan, you retired as a public safety officer, and your retirement was by reason of disability or was after
normal retirement age, you can exclude from your taxable income nonqualified distributions paid directly as premiums to an accident
or health plan (or a qualified long-term care insurance contract) that your employer maintains for you, your spouse, or your depen-

Bulletin No. 2020–35 489 August 24, 2020
dents, up to a maximum of $3,000 annually. For this purpose, a public safety officer is a law enforcement officer, firefighter, chaplain,
or member of a rescue squad or ambulance crew.
If you are not a Plan participant
Payments after death of the participant. If you receive a distribution after the participant’s death that you do not roll over, the distri-
bution generally will be taxed in the same manner described elsewhere in this notice. However, whether the payment is a qualified
distribution generally depends on when the participant first made a contribution to the designated Roth account in the Plan. Also,
the 10% additional income tax on early distributions and the special rules for public safety officers do not apply, and the special rule
described under the section “If you receive a nonqualified distribution and you were born on or before January 1, 1936” applies only
if the deceased participant was born on or before January 1, 1936.
If you are a surviving spouse. If you receive a payment from the Plan as the surviving spouse of a deceased participant, you have
the same rollover options that the participant would have had, as described elsewhere in this notice. In addition, if you choose to
do a rollover to a Roth IRA, you may treat the Roth IRA as your own or as an inherited Roth IRA.
A Roth IRA you treat as your own is treated like any other Roth IRA of yours, so that you will not have to receive any required
minimum distributions during your lifetime and earnings paid to you in a nonqualified distribution before you are age 59½ will be
subject to the 10% additional income tax on early distributions (unless an exception applies).
If you treat the Roth IRA as an inherited Roth IRA, payments from the Roth IRA will not be subject to the 10% additional income
tax on early distributions. An inherited Roth IRA is subject to required minimum distributions. If the participant had started taking
required minimum distributions from the Plan, you will have to receive required minimum distributions from the inherited Roth
IRA. If the participant had not started taking required minimum distributions, you will not have to start receiving required mini-
mum distributions from the inherited Roth IRA until the year the participant would have been age 70½ (if the participant was born
before July 1, 1949) or age 72 (if the participant was born after June 30, 1949).
If you are a surviving beneficiary other than a spouse. If you receive a payment from the Plan because of the participant’s death
and you are a designated beneficiary other than a surviving spouse, the only rollover option you have is to do a direct rollover to
an inherited Roth IRA. Payments from the inherited Roth IRA, even if made in a nonqualified distribution, will not be subject to
the 10% additional income tax on early distributions. You will have to receive required minimum distributions from the inherited
Roth IRA.
Payments under a QDRO. If you are the spouse or a former spouse of the participant who receives a payment from the Plan under a
QDRO, you generally have the same options and the same tax treatment that the participant would have (for example, you may roll
over the payment to your own Roth IRA or to a designated Roth account in an eligible employer plan that will accept it).
If you are a nonresident alien
If you are a nonresident alien, you do not do a direct rollover to a U.S. IRA or U.S. employer plan, and the payment is not a qualified
distribution, the Plan is generally required to withhold 30% (instead of withholding 20%) of the earnings for federal income taxes. If
the amount withheld exceeds the amount of tax you owe (as may happen if you do a 60-day rollover), you may request an income tax
refund by filing Form 1040NR and attaching your Form 1042-S. See Form W-8BEN for claiming that you are entitled to a reduced
rate of withholding under an income tax treaty. For more information, see also IRS Publication 519, U.S. Tax Guide for Aliens, and
IRS Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities.
Other special rules
If a payment is one in a series of payments for less than 10 years, your choice whether to do a direct rollover will apply to all later
payments in the series (unless you make a different choice for later payments).
If your payments for the year (only including payments from the designated Roth account in the Plan) are less than $200, the Plan is
not required to allow you to do a direct rollover and is not required to withhold federal income taxes. However, you can do a 60-day
rollover.
Unless you elect otherwise, a mandatory cashout from the designated Roth account in the Plan of more than $1,000 will be directly
rolled over to a Roth IRA chosen by the Plan administrator or the payor. A mandatory cashout is a payment from a plan to a participant

August 24, 2020 490 Bulletin No. 2020–35
made before age 62 (or normal retirement age, if later) and without consent, where the participant’s benefit does not exceed $5,000
(not including any amounts held under the plan as a result of a prior rollover made to the plan).
You may have special rollover rights if you recently served in the U.S. Armed Forces. For more information on special rollover rights
related to the U.S. Armed Forces, see IRS Publication 3, Armed Forces’ Tax Guide. You also may have special rollover rights if you
were affected by a federally declared disaster (or similar event), or if you received a distribution on account of a disaster. For more
information on special rollover rights related to disaster relief, see the IRS website at www.irs.gov.
FOR MORE INFORMATION
You may wish to consult with the Plan administrator or payor, or a professional tax advisor, before taking a payment from the Plan.
Also, you can find more detailed information on the federal tax treatment of payments from employer plans in: IRS Publication 575,
Pension and Annuity Income; IRS Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs); IRS Publica-
tion 590-B, Distributions from Individual Retirement Arrangements (IRAs); and IRS Publication 571, Tax-Sheltered Annuity Plans
(403(b) Plans). These publications are available from a local IRS office, on the web at www.irs.gov, or by calling 1-800-TAX-FORM.

Bulletin No. 2020–35 491 August 24, 2020
Notice 2020-63
SECTION 1. PURPOSE
This notice modifies Notice 2006-09,
2006-6 I.R.B. 413 and Notice 2008-33,
2008-12 I.R.B. 642, 2008, by providing a
new address to which a vehicle manufac-
turer (or, in the case of a foreign vehicle
manufacturer, its domestic distributor)
must send vehicle certifications and quar-
terly reports.
SECTION 2. BACKGROUND
On February 6, 2006, the Internal Rev-
enue Service (“Service”) published Notice
2006-9, which provides guidance regard-
ing the credit under § 30B(a)(2) for new
advanced lean burn technology motor
vehicle credit and the new qualified hy-
brid motor vehicle credit under § 30B(a)
(3) and (d). Notice 2006-9 sets forth pro-
cedures for a vehicle manufacturer (or, in
the case of a foreign vehicle manufacturer,
its domestic distributor) to certify to the
Service both:
(1) That a passenger automobile or light
truck of a particular make, model,
and model year meets certain require-
ments that must be satisfied to claim
the new advanced lean burn tech-
nology motor vehicle credit under §
30B(a)(2) and (c) or the new qualified
hybrid motor vehicle credit under §
30B(a)(3) and (d); and
(2) The amount of the credit allowable
with respect to that vehicle.
In addition, Notice 2006-9 sets forth
procedures for a manufacturer (or, in the
case of a foreign vehicle manufacturer, its
domestic distributor) that has received an
acknowledgment of its certification from
the Service to submit to the Service a re-
port of the number of qualified plug-in
electric drive motor vehicles sold by the
manufacturer (or, in the case of a foreign
vehicle manufacturer, its domestic distrib-
utor) to consumers or retail dealers during
the calendar quarter.
Section 6.03 of Notice 2006-9 provides
the address to which a vehicle manufac-
turer (or, in the case of a foreign vehicle
manufacturer, its domestic distributor)
must send certifications and quarterly re-
ports under Notice 2006-9.
On March 24, 2008, the Service pub-
lished Notice 2008-33, which sets forth a
similar procedure to that in Notice 2006-
9 for fuel cell motor vehicle that allows a
vehicle manufacturer (or, in the case of a
foreign vehicle manufacturer, its domestic
distributor) to certify to the Service that a
vehicle of a particular make, model, and
model year meets the requirements for the
fuel cell motor vehicle under § 30B(a)(1)
and (b).
The Energy Policy Act of 2005, Pub.
L. 109-58, 119 Stat. 594, added § 30B,
allowing a credit for certain alternative
motor vehicles. The Consolidated Appro-
priations Act, 2016, Pub. L. 114-113, 129
Stat. 2242, extended the § 30B(a)(1) cred-
it for qualified fuel cell motor vehicles
credit for qualified vehicles acquired after
December 31, 2014, and before January 1,
2017. The Bipartisan Budget Act of 2018,
Pub. L. 115-123, 132 Stat 2242, extended
the § 30B(a)(1) credit for qualified fuel
cell motor vehicles credit for qualified ve-
hicles acquired after December 31, 2016,
and before January 1, 2018. The Further
Consolidated Appropriations Act of 2020,
Pub. L. 116-94, 133 Stat 2534, extended
the § 30B(a)(1) credit for qualified fuel
cell motor vehicles credit for qualified ve-
hicles acquired after December 31, 2017,
and before January 1, 2021.
This notice modifies both Notice 2006-
9 and Notice 2008-33 by providing an
updated address for taxpayers who wish
to submit to the Service the material de-
scribed in those notices.
SECTION 3. MODIFICATION TO
NOTICE 2006-9 AND NOTICE 2008-33
This notice modifies the address in Sec-
tion 6.03 of Notice 2006-9 and in Section
6.02 of Notice 2008-33 to read as follows:
Internal Revenue Service
Director, Eastern Compliance Practice
Area
2001 Butterfield Road, Mail Stop 5413
Downers Grove, IL 60515
In the future, please refer to www.irs.
gov for any changes to this address.
SECTION 4. EFFECTIVE DATE
This notice is effective for certifica-
tions and quarterly reports submitted un-
der Notice 2006-9 and Notice 2008-33
after [Date of Publication].
SECTION 5. EFFECT ON OTHER
DOCUMENTS
Notice 2006-9 and Notice 2008-33
are modified as provided in this notice.
Except as explicitly provided, this notice
does not otherwise affect the guidance or
procedures provided in Notice 2006-9 and
Notice 2008-33.
SECTION 6. DRAFTING
INFORMATION
The principal author of this notice is
Christopher F. Price of the Office of As-
sociate Chief Counsel (Passthroughs &
Special Industries). For further informa-
tion regarding this notice, contact Mr.
Price on (202) 317-6853 (not a toll-free
number).

August 24, 2020 492 Bulletin No. 2020–35
Part IV
Swiss-U.S. Competent
Authority Arrangement
Regarding Treaty
Arbitration Clause
Announcement 2020-13
The following is a copy of the Com-
petent Authority Arrangement entered
into by the competent authorities of the
United States of America and Switzer-
land, regarding the implementation of
the arbitration process provided for in
paragraphs 6 and 7 of Article 25 of the
Convention Between the United States
of America and the Swiss Confederation
for the Avoidance of Double Taxation
with respect to Taxes on Income signed
at Washington on October 2, 1996, as
Amended by the Protocols signed on Oc-
tober 2, 1996, and September 23, 2009
(the “Convention”) and the exchange of
notes accompanying the 2009 Protocol
which is annexed to the Convention as
Annex A and which forms an integral
part of the Convention.
The text of the Competent Authority
Arrangement is as follows:
IMPLEMENTING ARRANGEMENT
REGARDING PARAGRAPHS 6
AND 7 OF ARTICLE 25 OF THE
CONVENTION BETWEEN THE
UNITED STATES OF AMERICA AND
THE SWISS CONFEDERATION
FOR THE AVOIDANCE OF DOUBLE
TAXATION WITH REPECT TO
TAXES ON INCOME
Introduction
The competent authorities of Switzer-
land and of the United States of America
have established this arrangement to im-
plement the arbitration process provided
for in paragraphs 6 and 7 of Article 25
of the Convention Between the United
States of America and the Swiss Con-
federation for the Avoidance of Double
Taxation with respect to Taxes on In-
come signed at Washington on October
2, 1996, as Amended by the Protocols
signed on October 2, 1996, and Septem-
ber 23, 2009 (the “Convention”) and the
exchange of notes accompanying the
2009 Protocol which is annexed to the
Convention as Annex A (“Treaty Annex
A”) and which forms an integral part of
the Convention.
Subject to certain exceptions described
in paragraph 4, this arbitration process
applies to cases that the competent au-
thorities of Switzerland and the United
States have determined are suitable for
assistance under the mutual agreement
procedure of Article 25 of the Convention
in accordance with published guidance,
in the case of Switzerland the “Factsheet
on the mutual agreement procedure” of
May 2018 or any amendment or successor
provisions thereof, and in the case of the
United States, Revenue Procedure 2015-
40 or any amendment or successor provi-
sions thereof.
This arrangement is adopted in accor-
dance with paragraphs 6 and 7 of Article
25 of the Convention and subparagraphs
a) and q) of paragraph 1 of the Treaty An-
nex A.
The competent authorities of both Con-
tracting States, the presenter of the case,
and the arbitrators will follow the proce-
dures in this arrangement in good faith.
1. Definitions
A. “MAP” is the abbreviation for
the Mutual Agreement Procedure
proceedings of competent au-
thorities under Article 25 of the
Convention.
B. The term “Concerned Person”
means the presenter of a case to
a competent authority for consid-
eration under Article 25 of the
Convention and all other per-
sons, if any, whose tax liability
to either Contracting State may
be directly affected by a mutual
agreement arising from that con-
sideration.
C. The “Commencement Date”
for a case is the earliest date on
which the information necessary
to undertake substantive consid-
eration for a mutual agreement
has been received by the com-
petent authorities of both Con-
tracting States. The Commence-
ment Date will be determined
in accordance with paragraph 5
or, with respect to a case origi-
nally submitted as a request for
an advance pricing arrangement
(“APA”), in accordance with
paragraph 21.
2. Competent Authority Assistance in
General
A. A request for competent author-
ity assistance must comply with
the requirements as set out for
the United States in Revenue
Procedure 2015-40, or subse-
quent guidance, and for Swit-
zerland in the “Factsheet on the
mutual agreement procedure” of
May 2018, or any applicable sub-
sequent guidance.
B. Taxpayers shall submit their re-
quests for competent authority
assistance pursuant to Article 25,
paragraph 1 of the Convention.
3. Cases Eligible for Arbitration
A. According to paragraphs 6 and
7 of Article 25 of the Conven-
tion, arbitration will be available
where:
1. pursuant to a mutual agree-
ment procedure under Arti-
cle 25 of the Convention the
competent authorities have
endeavored but are unable to
reach a complete agreement;
and
2. all the requirements pre-
scribed in paragraphs 6 and
7 of Article 25 of the Con-
vention, paragraph 1 of the
Treaty Annex A, and this ar-
rangement are satisfied.
B. An unresolved competent au-
thority request which originated
with a bilateral APA request will
be subject to arbitration proce-
dures in accordance with para-
graph 21.
C. Once a case is accepted into
the MAP, neither competent au-
thority will cease unilaterally to
consider a case, except for the
circumstances described in para-
graph 4.
4. Cases Not Eligible for Arbitration
A. Arbitration is not available for
cases that a competent authority

Bulletin No. 2020–35 493 August 24, 2020
has not accepted, or in which a
competent authority ceases to
provide assistance, in accordance
with the Convention, the Proto-
col or published guidance.
1. The Swiss competent au-
thority will generally not
accept a request for compe-
tent authority assistance or
will generally cease provid-
ing assistance to a taxpay-
er, and thus not provide for
arbitration if the taxpayer
does not comply with the
requirements or under cir-
cumstances as described in
the “Factsheet on the mutu-
al agreement procedure” of
May 2018 (or any applicable
subsequent guidance).
2. The U.S. competent author-
ity generally will not accept
a request for competent au-
thority assistance or will
cease providing assistance
to a taxpayer, and thus not
provide for arbitration in
the circumstances described
in section 7.02 (Denial and
Termination of Assistance)
of Revenue Procedure 2015-
40 (or any applicable subse-
quent guidance). In addition,
the U.S. competent authority
will not provide for arbitra-
tion for a case in which the
taxpayer has reached a set-
tlement on the issue with
IRS Appeals (including an
Appeals settlement through
the Appeals arbitration pro-
cess) or with Chief Coun-
sel pursuant to an executed
closing agreement or other
written agreement such as
Form 870-AD, unless other-
wise permitted by Revenue
Procedure 2015 40 (or any
applicable subsequent guid-
ance).
B. Arbitration is not available for
cases that have been accepted
for competent authority consid-
eration, but for which the com-
petent authorities agree that the
particular case is not suitable for
determination by arbitration and
have notified the presenter of the
case of such decision before the
date on which arbitration pro-
ceedings would otherwise begin.
C. Arbitration is not available where
a decision with respect to an un-
resolved case has been rendered
by a court or administrative tri-
bunal of either Contracting State.
5. Commencement Date
A. Within 60 days of receipt of a
MAP request for assistance each
competent authority will review
the request and verify whether
it contains the information nec-
essary to undertake substantive
consideration for a mutual agree-
ment, pursuant to subparagraph
b) of paragraph 7 of Article 25 of
the Convention.
B. If a competent authority deter-
mines that the request for assis-
tance is not complete, that com-
petent authority will inform the
taxpayer in writing within 60
days of receipt of the request,
what information is necessary
consistent with Rev. Proc. 2015-
40 (or subsequent guidance) or
the information required under
Switzerland’s “Factsheet on the
mutual agreement procedure” of
May 2018 (or subsequent guid-
ance).
C. Once complete information is
provided, each competent au-
thority will inform the other
competent authority of the date
it received the information nec-
essary to undertake substantive
consideration for a mutual agree-
ment. The latter of these dates
will be the Commencement Date,
except as described in paragraph
21 with respect to cases that orig-
inated as an APA.
D. Contemporaneously, the compe-
tent authorities will confirm with
each other that each has received
the same information.
E. When the Commencement Date
is established:
1. the competent authorities of
both Contracting States will
exchange correspondence
with each other confirming
the Commencement Date
and the date the arbitration
proceedings potentially shall
begin for any subsequently
necessary arbitration, and
2. each competent authority
will inform the Concerned
Person(s) resident in its
territory in writing of the
Commencement Date and
the date the arbitration pro-
ceedings potentially shall
begin for any subsequently
necessary arbitration.
6. Date Arbitration Proceedings Begin
A. An arbitration proceeding with
respect to a case will begin on a
date (hereinafter “Date Arbitra-
tion Proceedings Begin”) which
is the latest of:
1. two years after the Com-
mencement Date of that
case, unless both competent
authorities have previously
agreed to a different date
and notified the presenter of
the case (as provided in sub-
paragraphs B and C), and
2. the earliest date upon which
the nondisclosure agree-
ments have been received
by both competent authori-
ties. (See subparagraph c) of
paragraph 7 of Article 25 of
the Convention.)
B. As provided in Article 25(7)(c)(i)
of the Convention, the competent
authorities of both Contracting
States may decide that the Date
Arbitration Proceedings Begin
with respect to a case should be
earlier or later than what it would
have been without such decision
in appropriate situations. Such
appropriate situations could be,
for example, where the com-
petent authorities are close to
reaching a mutual agreement
to resolve the case, where there
has been a delay by a Concerned
Person in providing information
in the MAP of the case, where
MAP is suspended by a request
from the presenter of the case, or
where a Concerned Person has
provided significant new infor-
mation after the Commencement
Date of the case.

August 24, 2020 494 Bulletin No. 2020–35
C. If the competent authorities of
both Contracting States decide
the Date Arbitration Proceed-
ings Begin with respect to a
case under subparagraph B,
then the competent authorities
will confirm that date in writing
to each other and to the Con-
cerned Persons resident in their
territory.
7. Confidentiality
According to subparagraph c) of
paragraph 6 and subparagraphs d)
and f) of paragraph 7 of Article 25 of
the Convention and subparagraphs
d) and n) of paragraph 1 of the Trea-
ty Annex A, the confidentiality of a
case will be maintained in the fol-
lowing manner:
A. All Concerned Persons and their
authorized representatives or
agents must agree prior to the
beginning of arbitration proceed-
ings not to disclose to any other
person any information received
during the course of the arbitra-
tion proceeding from the com-
petent authorities of either Con-
tracting State or the arbitration
panel, other than the determina-
tion of the panel.
B. No information relating to an ar-
bitration proceeding (including
the determination of the arbi-
tration panel) may be disclosed
by the members of the arbitra-
tion panel or their staffs or by
the competent authorities of the
Contracting States, except as
permitted by the Convention and
the domestic laws of the Con-
tracting States. In addition, all
material prepared in the course
of, or relating to, an arbitration
proceeding will be considered
to be information exchanged
between the competent authori-
ties pursuant to Article 26 of the
Convention.
C. For purposes of an arbitration
proceeding under paragraphs 6
and 7 of Article 25 of the Con-
vention, the members of arbitra-
tion panel (hereinafter referred to
as “arbitrators”) and their staffs
will be considered to be “persons
or authorities” to whom informa-
tion may be disclosed under Arti-
cle 26 of the Convention.
D. The competent authorities of
both Contracting States will en-
sure that all arbitrators (and any
of their staff which will assist
them in carrying on the arbi-
tration), prior to their acting in
an arbitration proceeding, agree
in a Declaration of Arbitrator
specified by both of the com-
petent authorities (see, e.g., At-
tachment 4 to this arrangement)
to not disclose any information
relating to an arbitration pro-
ceeding (including the determi-
nation of the arbitration panel),
and to abide by and be subject
to the confidentiality and non-
disclosure provisions of Article
26 of the Convention and sim-
ilar provisions of relevant do-
mestic laws of the Contracting
States. However, the members
of the arbitration panel or their
staff will disclose the determi-
nation of the arbitration panel to
the competent authorities. In the
event those provisions conflict,
the most restrictive condition
shall apply. The arbitrators must
send their staff’s non-disclosure
agreement to both of the compe-
tent authorities.
8. Eligibility of Arbitrators
A. In order to be eligible as an arbi-
trator:
1. the individual is not an em-
ployee nor has been an em-
ployee within the twelve-
month period prior to the
Date Arbitration Proceed-
ings Begin of the tax admin-
istration, the Treasury De-
partment, or the Ministry of
Finance of the Contracting
State which identifies him or
her;
2. the individual does not have
any prior involvement with
the specific matters at issue
in the arbitration proceeding
for which he or she is being
considered as an arbitrator;
and
3. in addition, the individual
who will serve as the chair
of the arbitration panel
(“Chair”) is not a citizen or
resident of either Contract-
ing State.
B. The competent authorities of
both Contracting States will
identify and jointly agree on 5 to
10 persons who are qualified and
willing to serve as the Chair of an
arbitration panel. The competent
authorities will review and revise
this list as necessary every three
years or earlier if required.
C. The arbitrator must maintain the
impartiality and independence
conditions set out in clauses 1 to
3 of subparagraph A throughout
the proceedings and avoid any
conduct for 12 months after the
date the arbitration panel delivers
its decision under paragraph 18
which may damage the appear-
ance of impartiality and indepen-
dence.
D. The arbitrators will undertake to
promptly disclose to both com-
petent authorities, in writing, any
new facts or circumstances that
arise during or following the ar-
bitration proceedings that might
give rise to doubts with respect
to their impartiality or indepen-
dence.
E. The staff person of an arbitrator
will be subject to the same con-
flict of interest rules applicable
to the arbitrators as described in
subparagraph A of paragraph 8.
9. Appointment of Arbitrators
A. Each competent authority of the
Contracting States will appoint
one arbitrator to the arbitra-
tion panel by sending a written
communication (that includes a
copy of the Declaration of Arbi-
trator identified in subparagraph
D of paragraph 7, signed by the
arbitrator) indicating their ap-
pointment to the other compe-
tent authority within 90 days of
the Date Arbitration Proceed-
ings Begin. (See subparagraph
e) of paragraph 1 of the Treaty
Annex A).
B. In the event that the competent
authority of a Contracting State
fails to make such appointment

Bulletin No. 2020–35 495 August 24, 2020
in the manner and within the
time period in this paragraph,
the appointed arbitrator shall
contact the competent authority
that appointed him or her. That
competent authority shall con-
tact the highest-ranking member
of the Secretariat at the Centre
for Tax Policy and Adminis-
tration of the Organization for
Economic Co-operation and
Development (OECD) who is
not a citizen or resident of ei-
ther Switzerland or the United
States, who shall appoint an ar-
bitrator by written notice to both
countries within 60 days of the
date of such failure.
C. The procedure in subparagraph
B will not apply, where the fail-
ure of such appointment within
the period in subparagraph A is
due to the fact that an individ-
ual who had agreed to serve as
an arbitrator becomes unable to
serve because of circumstances
outside his or her control (for
example, death, serious illness
or natural disaster). The com-
petent authorities of both Con-
tracting States will determine
the appropriate time period for
the appointment of an arbitrator
in such a case.
D. Within 60 days of the date on
which the second communica-
tion of the country-appointed
arbitrator is sent, the arbitra-
tors so appointed will appoint a
third arbitrator who shall serve
as Chair of the panel among the
list established pursuant to sub-
paragraph B of paragraph 8. The
third arbitrator so selected will
inform the competent authori-
ties of both Contracting States
of his or her appointment as
soon as possible and send the
Declaration of Arbitrator to the
competent authorities. The com-
petent authority which received
the request for assistance will
inform the presenter of the case
of the date of the Chair’s ap-
pointment.
E. If the two initial arbitrators fail
to select the third arbitrator in
the manner and within the time
period in this paragraph, the two
initial arbitrators will be dis-
missed, and each competent au-
thority of the Contracting States
will select a new arbitrator of
the arbitration panel within 30
days of the dismissal of the orig-
inal members.
F. The procedure in subparagraph
E will not apply, where the fail-
ure of such selection within the
time period in subparagraph D is
due to the fact that the individu-
al selected to serve as Chair be-
comes unable to serve because of
circumstances outside his or her
control (for example, death, se-
rious illness or natural disaster).
In such a case, unless otherwise
decided, the two arbitrators will
appoint a third arbitrator to serve
as Chair from among the list of
candidates described in subpara-
graph B of paragraph 8.
G. The arbitrators will be selected
from individuals who:
1. satisfy the eligibility re-
quirements identified in sub-
paragraph A of paragraph 8
at the time of accepting an
appointment to serve, and
are reasonably expected to
remain so during the entire
arbitration proceeding and
for a reasonable time there-
after in accordance with sub-
paragraph C of paragraph 8;
and
2. have significant experience
in international tax matters
(he or she need not, howev-
er, have experience as either
a judge or arbitrator).
H. An arbitrator will be deemed ap-
pointed on the date on which he
or she signs the Declaration of
Arbitrator of intent to so serve
required by subparagraph D of
paragraph 7, such Declaration
of Arbitrator to be in the form
agreed by the competent authori-
ties of both Contracting States.
I. Where one of the two initial ar-
bitrators becomes ineligible for
service as an arbitrator (e.g., vi-
olates the Declaration of Arbitra-
tor identified in subparagraph D
of paragraph 7) or for any other
reason it is necessary to replace
an arbitrator after the arbitrator
was appointed, the competent
authority who had selected that
individual will select a replace-
ment as soon as possible and no
later than 30 days after the posi-
tion becomes vacant.
J. Where the third arbitrator (the
Chair) becomes ineligible for
service as an arbitrator (e.g., vi-
olates the Declaration of Arbitra-
tor identified in subparagraph D
of paragraph 7) or for any other
reason it is necessary to replace
the third arbitrator after he or she
was appointed, the two initial
arbitrators will select a replace-
ment among the list established
pursuant to subparagraph B of
paragraph 8 as soon as possible
and no later than 14 days after
the position becomes vacant.
K. If any arbitrator is unable to ful-
fill his or her duties, the compe-
tent authorities will consult with
the remaining panel members
to determine a new timetable, if
necessary.
L. Should it come to light that an
arbitrator has a conflict of inter-
est which would have prevented
that arbitrator’s original appoint-
ment, the arbitrator must recuse
himself or herself from consider-
ation of the case and inform the
competent authorities.
10. Terms of Reference
A. As soon as possible after the
Date Arbitration Proceedings
Begin, the competent authorities
of both Contracting States will
develop a brief Statement of
Information which will identi-
fy the Concerned Person(s) and
contain a general description
of the proposed adjustments or
similar issues to be resolved in a
case. The competent authority of
a Contracting State, or an arbi-
trator selected by the competent
authority of a Contracting State,
may disclose the Statement of
Information, if the confidential-
ity of the information is ensured

August 24, 2020 496 Bulletin No. 2020–35
by first obtaining an Affirmation
of Confidentiality (see, e.g., At-
tachment 5 to this arrangement)
and such disclosure is permitted
by the law of the Contracting
State, to a candidate to be an
arbitrator of the case to check
whether that candidate satis-
fies the eligibility requirements
identified in subparagraph A of
paragraph 8.
B. The competent authorities of
both Contracting States under-
take to develop, within 30 days
after the Date Arbitration Pro-
ceedings Begin, a “Terms of Ref-
erence” for a case to include:
1. description of the relevant
business activities of the
Concerned Person(s);
2. description of the adjust-
ments or similar issues in
dispute in the case;
3. description of the matters to
be considered for the reso-
lution of the case; including
identification of all mat-
ters in the case previously
agreed between the compe-
tent authorities; and
4. a description of the final
position taken by each com-
petent authority in the ne-
gotiation of the unresolved
matters which prevent the
mutual agreement between
the competent authorities.
The competent authorities may
also provide logistical or proce-
dural information in the Terms of
Reference.
C. The Terms of Reference will be
communicated to the Chair on
the date of his or her appoint-
ment, or as soon thereafter as
possible.
D. If the Terms of Reference has
not been completed by the date
for submission of the Proposed
Resolutions and Position Papers,
the competent authorities of both
Contracting States will send to
the Chair their most recent writ-
ten proposals for the Terms of
Reference along with their Pro-
posed Resolutions and Position
Papers. All the matters identi-
fied as unresolved in these draft
Terms of References are treated
as unresolved for the purpose of
the subsequent proceedings.
11. Proposed Resolutions, Position Pa-
pers, and Reply Submissions
A. As provided in subparagraph g)
of paragraph 1 of the Treaty An-
nex A, the competent authority
of each of the Contracting States
will be permitted to submit a Pro-
posed Resolution, not to exceed
five pages in total, addressing
each adjustment or similar issue
raised in a case. Such Proposed
Resolution will be a resolution of
the entire case, and will reflect,
without modification, all matters
in the case previously agreed be-
tween the competent authorities
of both Contracting States. Such
Proposed Resolution will be lim-
ited to a disposition of the specif-
ic monetary amounts of income,
expense or taxation reportable to
the Contracting States, for each
adjustment or similar issue in the
case, based on the application of
the Convention to the case. The
competent authority of each of
the Contracting States will also
be permitted to submit a sup-
porting Position Paper, not to ex-
ceed 30 pages plus annexes, for
consideration by the arbitration
panel.
B. The submission of a Proposed
Resolution and supporting Posi-
tion Paper by the competent au-
thority of a Contracting State will
be made by posting it (or similar-
ly sending it via express deliv-
ery service) to the Chair within
60 days of the appointment of
the Chair. Unless alternative ar-
rangements are made, the Chair
will in turn send a copy of each
competent authority’s Proposed
Resolution and supporting Po-
sition Paper to the other panel
members and the other compe-
tent authority within 5 days of
receipt of the later submission by
the panel.
C. In the event that only one of
the competent authorities of the
Contracting States submits a
Proposed Resolution within the
allotted time, then that Proposed
Resolution shall be deemed to
be the determination of the arbi-
tration panel in that case and the
arbitration panel shall be termi-
nated.
D. As provided in subparagraph
g) of paragraph 1 of the Treaty
Annex A, each of the competent
authorities of the Contracting
States will be permitted to sub-
mit a Reply Submission, not to
exceed 10 pages, plus annexes,
to the arbitration panel in order
to address any points raised by
the Proposed Resolution or sup-
porting Position Paper submitted
by the other competent authori-
ty. In this Reply Submission, the
competent authority may also
comment upon any Presenter
Position Paper submitted under
the provisions of paragraph 12.
If the competent authority exer-
cises its option to also comment
upon a Presenter Position Paper,
its Reply Submission should not
exceed 20 pages, plus annex-
es. The submission of a Reply
Submission by the competent
authority will be made by post-
ing it (or similarly sending it
via express delivery service)
to the Chair within 120 days of
appointment of the Chair. Un-
less alternative arrangements
are made, the Chair will send a
copy of each competent author-
ity’s Reply Submission paper to
the other panel members and the
other competent authority within
5 days of receipt of the later reply
by the panel.
E. In a particular case, the compe-
tent authorities of both Contract-
ing States may decide to use a
different presentation or page
limitation for the Proposed Res-
olutions, supporting Position Pa-
pers, or Reply Submissions, such
as provided in paragraphs 13 and
14.
F. Any annex to a supporting Posi-
tion Paper or Reply Submission
which does not reflect infor-
mation widely available to the

Bulletin No. 2020–35 497 August 24, 2020
general public must be a docu-
ment previously made available
for the competent authorities of
both Contracting States to use
in negotiation. Any factual in-
formation used in a supporting
Position Paper or Reply Submis-
sion, which does not reflect in-
formation widely available to the
general public, must be what was
contained in a document previ-
ously made available for both
competent authorities to use in
negotiation.
G. Except with respect to the final
position taken by the competent
authority of the other Contract-
ing State as described in clause 4
of subparagraph B of paragraph
10, the competent authority of
a Contracting State will only be
permitted to refer to a propos-
al for resolution made by either
competent authority of the Con-
tracting States during negotia-
tions if that proposal is submitted
to the arbitration panel for con-
sideration as a Proposed Resolu-
tion.
H. The arbitration panel may ask
both competent authorities in
writing for additional informa-
tion. Such additional information
may be submitted to the arbi-
tration panel only at its request
and copies of the panel’s request
and the competent authority’s
response shall be provided to
the competent authority of the
other Contracting State on the
date on which the request or the
response is submitted. The pan-
el shall establish a deadline for
responding to the request. If the
panel requests information or
analyses that have not previously
been available or considered for
purposes of the negotiation, the
competent authorities will con-
sult with each other to determine
how to respond to the panel’s re-
quest. The panel may not request
additional information from the
presenter of the case.
I. Unless otherwise decided be-
tween the competent authorities
of both Contracting States and
the Chair, the competent author-
ities will send to the Chair four
copies of each document submit-
ted to the arbitration panel, for
distribution to the other arbitra-
tors and the other competent au-
thority.
J. Unless otherwise decided be-
tween the competent authori-
ties of both Contracting States,
any information which does
not reflect information widely
available to the general public
(including any information pro-
vided by the presenter of a case
or his authorized representatives
or agents in writing or orally) that
was not available to both compe-
tent authorities before the Date
Arbitration Proceedings Begin
will not be taken into account
for purposes of the arbitration
decision. Furthermore, any Re-
ply Submission or any additional
information that was provided
to the panel after the deadline
specified in subparagraph D or
H respectively will not be taken
into account for purposes of the
arbitration decision.
K. To the extent needed, the arbi-
tration panel may adopt any ad-
ditional procedures necessary for
the conduct of its business, pro-
vided that the procedures are not
inconsistent with any provision
of Article 25 of the Convention,
the Treaty Annex A, or this ar-
rangement or any other proce-
dural rules decided between the
competent authorities of both
Contracting States. If the arbitra-
tion panel adopts any additional
procedures, the Chair will pro-
vide a written copy of them to the
competent authorities.
12. Presenter Position Paper
A. According to subparagraph h) of
paragraph 1 of the Treaty Annex
A, within 90 days of the appoint-
ment of the Chair, the presenter
of a case may submit a Position
Paper (“Presenter Position Pa-
per”) not to exceed 30 pages,
plus annexes. The position, argu-
ments, or analyses raised in the
Presenter Position Paper must be
positions, arguments, or analyses
previously provided to the com-
petent authorities for their con-
sideration in negotiation prior to
the Date Arbitration Proceedings
Begin. Any annex of the Present-
er Position Paper which does not
reflect information widely avail-
able to the general public must be
a document made available to the
competent authorities for their
consideration prior to the Date
Arbitration Proceedings Begin.
B. Any Presenter Position Pa-
per should be sent so that each
competent authority receives it
simultaneously. The competent
authority initiating the MAP will
deliver copies of the Presenter
Position Paper to the panel, ac-
cording to the instructions of the
Chair no later than 7 days after
receipt of the original Presenter
Position Paper.
13. Multiple Adjustments
A. Where an arbitration proceeding
concerns a case comprising mul-
tiple adjustments or similar is-
sues each requiring a disposition
of specific monetary amounts of
income, expense or taxation, the
Proposed Resolution may pro-
pose a separate disposition for
each adjustment or similar issue.
B. Unless the competent authorities
of both Contracting States decide
upon a different presentation to
the arbitration panel, the Pro-
posed Resolution and supporting
Position Paper in such a case will
address each adjustment sepa-
rately, within the overall page
limitation.
C. The arbitration panel will make
a determination on each adjust-
ment or similar issue, separate-
ly. Thus, the final determination
of the arbitration panel may be
comprised of a Proposed Resolu-
tion from the competent authori-
ty of a Contracting State on one
adjustment and a Proposed Res-
olution from the competent au-
thority of the other Contracting
State on another adjustment.
14. Permanent Establishment, Residency,
and Other Threshold Questions

August 24, 2020 498 Bulletin No. 2020–35
A. In the case of an arbitration pro-
ceeding concerning:
1. the taxation of an individ-
ual with respect to whom
the competent authorities
of the Contracting States
have been unable to reach
an agreement regarding the
Contracting State of which
the individual is resident;
2. the taxation of the business
profits of an enterprise with
respect to which the com-
petent authorities have been
unable to reach an agree-
ment on whether a perma-
nent establishment exists; or
3. such other issues the de-
termination of which are
contingent on resolution of
similar threshold questions;
the competent authorities
may submit Proposed Res-
olutions separately address-
ing the relevant threshold
questions as described in
clause 1, 2, or 3 (for exam-
ple, the question of whether
a permanent establishment
exists) and the contingent
determinations (for exam-
ple, the determination of the
amount of profit attributable
to such permanent establish-
ment).
B. In such a case, a competent au-
thority is allowed to submit a
Proposed Resolution and sup-
porting Position Paper which
will address each issue separate-
ly, taking alternative positions
as appropriate. For example, the
competent authority is allowed
to take a position that no per-
manent establishment exists in
one Proposed Resolution, and to
propose an amount of business
profit to be attributable to a per-
manent establishment in another
Proposed Resolution in case the
arbitration panel determines that
a permanent establishment ex-
ists.
C. The arbitration panel will make
a determination on the thresh-
old question and the contingent
determination separately. For
example, if the competent au-
thorities have not reached an
agreement on the existence of
a permanent establishment, the
panel must first determine wheth-
er a permanent establishment ex-
ists. Once it is determined that a
permanent establishment exists,
the panel must then determine
the amount of profits attributable
to that permanent establishment.
15. Communication
A. Before the Chair is appointed,
the competent authorities of both
Contracting States will send any
correspondence concurrently to
both arbitrators.
B. After the Chair is appointed, un-
less otherwise agreed between
the Chair and competent author-
ities, the competent authorities
will send any correspondence to
the Chair. Similarly, the Chair
will send any correspondence
concurrently to the competent
authorities.
C. No competent authority of the
Contracting States will have any
ex parte communications, except
for administrative or logistical
reasons, with an arbitrator.
D. All communication, except for
logistical matters, between the
competent authorities of both
Contracting States and the panel
must be in writing. Written com-
munication by fax or email is al-
lowed, however, no information
that may identify the taxpayer(s)
may be included in an email un-
less other security precautions to
protect taxpayer information are
agreed upon by both competent
authorities. Express mail or air
mail shall be used for all corre-
spondence other than that sent
via facsimile or email.
E. The arbitrators may communi-
cate by telephone, videocon-
ference, fax or face-to-face
meetings. Arbitrators may com-
municate by e-mail; however,
they must not include any tax-
payer information in the e-mail.
F. All arbitrators must be present
(physically or remotely) during
substantive discussions.
G. No arbitrator shall have commu-
nications regarding the issues or
matters before the panel with the
presenter of the case, the taxpay-
ers involved in the case, or their
representatives during or subse-
quent to the arbitration process.
16. Competent Authority Initiating the
MAP
A. For requests for competent au-
thority assistance concerning an
adjustment raised in either Swit-
zerland or the United States, the
competent authority of the coun-
try that proposed the adjustment
(or in the case where there is no
adjustment, denied the credit or
claim) is considered the compe-
tent authority initiating the MAP.
B. For requests originally submit-
ted as an APA, the competent
authority of the country in which
the parent company is located
is considered the competent au-
thority initiating the MAP. For
APA requests originally submit-
ted by associated enterprises oth-
er than the parent company, the
competent authorities will de-
termine the competent authority
that is considered the competent
authority initiating the MAP.
C. Meeting facilities, related re-
sources, financial management,
other logistical support, and gen-
eral administrative coordination
of the arbitration proceeding
will be provided, at its own cost,
by the Contracting State whose
competent authority initiated the
MAP in a case. (See subpara-
graph o) of paragraph 1 of the
Treaty Annex A.)
D. The competent authorities en-
courage the arbitrators to use tele-
and videoconferencing. If a face-
to-face meeting is necessary, the
Chair will contact the competent
authority of the Contracting State
who initiated the MAP in a case
and ask it to arrange facilities for
the meeting. The competent au-
thority initiating the MAP in a
case may arrange meeting facil-
ities in a location that minimizes
the arbitration panel’s travel time
and expenses. Each competent

Bulletin No. 2020–35 499 August 24, 2020
authority may arrange a meeting
in the other’s meeting facilities,
as needed.
17. Fees and Expenses
A. The fees and expenses will be
borne equally by the Contracting
States. (See subparagraph o) of
paragraph 1 of the Treaty Annex
A.)
B. Neither competent authority
of both Contracting States will
charge any Concerned Persons
for costs associated with the ar-
bitration procedure itself. The
recharge of potential costs re-
lated to the mutual agreement
procedure to the Concerned Per-
son pursuant to domestic law re-
mains reserved.
C. The fees of the arbitrators will
be set at the fixed amount of
$2000 (two thousand United
States dollars) or the equivalent
in Swiss francs per day, subject
to modification by the competent
authorities. (See subparagraph o)
of paragraph 1 of the Treaty An-
nex A.) The competent author-
ities will not compensate a staff
member of an arbitrator. The
competent authorities anticipate
that the arbitrators will be able to
perform their duties without the
use of staff.
D. In general, each arbitrator will be
compensated for no more than
seven days of work on the arbi-
tration (e.g., five days of prepa-
ration and two meeting days). If
the arbitrators feel they require
additional time to properly con-
sider the case, the Chair will
contact the competent authori-
ties to request additional time.
As a general rule, the competent
authorities envision that the pan-
el will be able to complete their
joint consideration of the case
through telecommunications.
E. In general, the expenses of the
arbitrators will be set in accor-
dance with the International Cen-
tre for Settlement of Investment
Disputes Schedule of Fees for
arbitrators in effect on the Date
Arbitration Proceedings Begin,
subject to modification by the
competent authorities. (See sub-
paragraph o) of paragraph 1 of
the Treaty Annex A.) This applies
in particular for hotel, meals and
incidental costs. With regard to
travel expenses, the arbitrators
will be reimbursed for economy
class travel.
18. Arbitration Panel Determination
A. The arbitration panel shall de-
liver a written determination
concurrently to the competent
authorities of both Contracting
States within six months of the
appointment of its Chair (or,
where subparagraph I or J of
paragraph 9 applies, unless oth-
erwise decided by the competent
authorities of both Contracting
States, within six months of the
appointment of the new arbitra-
tor).
B. In making its determination, the
arbitration panel will apply, as
necessary and in descending or-
der of priority:
1. the provisions of the Con-
vention, as interpreted ac-
cording to the customary
rules of international law;
2. any agreed commentaries
or explanations of the Con-
tracting States concerning
the Convention;
3. the laws of the Contracting
States to the extent they are
not inconsistent with each
other; and
4. any OECD Commentary,
Guidelines, or Reports re-
garding relevant analogous
portions of the OECD Tax
Model Convention.
C. The determination of the arbitra-
tion panel will be limited to one
of the Proposed Resolutions sub-
mitted by the competent authori-
ties of the Contracting States for
each adjustment or similar issue
and any threshold questions, and
will not include a rationale or any
other explanation of the determi-
nation. The determination of the
arbitration panel has no prec-
edential value with respect to the
application of the Convention to
any other case.
D. Unless the Concerned Persons
do not accept the determination
of the arbitration panel, such
determination shall constitute a
resolution by mutual agreement
under Article 25 of the Conven-
tion and shall be binding on both
competent authorities with re-
spect to that case.
E. The determination of the panel
will be decided on the basis of a
majority vote.
F. Each Concerned Person must,
within 30 days of receiving the
determination of the panel from
the competent authority to which
the case was first presented, ad-
vise that competent authority in
writing whether that Concerned
Person accepts the determination
of the panel. If the Concerned
Persons fail to accept the deter-
mination within 30 days, the de-
termination is considered reject-
ed.
G. If any Concerned Person fails to
advise the competent authority
within that period of time, the
determination will be considered
not to have been accepted and the
case will be closed.
H. If a Concerned Person has not
renounced domestic legal rem-
edies with respect to all of the
issues covered by the arbitration
decision by the time that person
accepts the panel’s determina-
tion, the determination is consid-
ered rejected and the case will be
closed.
I. Where the determination of the
arbitration panel is not accepted,
the case may not subsequently be
the subject of an arbitration pro-
ceeding.
J. The treatment of any interest or
penalties will be determined by
applicable domestic law of Swit-
zerland or the United States.
K. In the event that the panel does
not agree on a determination
within six months of the appoint-
ment of its Chair (or, where sub-
paragraph I or J of paragraph 9
applies, unless otherwise decided
by the competent authorities of
both Contracting States, within

August 24, 2020 500 Bulletin No. 2020–35
six months of the appointment of
the new arbitrator), the Compe-
tent authorities will agree on the
procedure to apply.
19. Terminating Proceedings
A. If at any time before the arbitra-
tion panel delivers a determina-
tion to the competent authorities
of the Contracting States:
1. the competent authorities
notify in writing the arbitra-
tors and the presenter of the
case that they have reached a
mutual agreement to resolve
the case pursuant to Article
25 of the Convention;
2. the competent authorities
notify in writing the arbi-
trators that the presenter of
the case has withdrawn its
request for assistance;
3. a decision concerning the
case is rendered by a court
or administrative tribunal
of one of the Contracting
States during the arbitration
proceeding; or
4. if any Concerned Person or
their authorized represen-
tative or agents violates the
written nondisclosure state-
ment required by subpara-
graph d) of paragraph 7 of
Article 25 of the Conven-
tion, and the competent au-
thorities of both Contracting
States agree that such viola-
tion should result in the ter-
mination of the arbitration
proceeding;
then the MAP, including the arbi-
tration proceeding, with respect
to the case will terminate.
B. If the arbitration proceeding and
MAP with respect to the case is
terminated under clauses 2, 3, or
4 of subparagraph A, the compe-
tent authorities of both Contract-
ing States will exchange letters
to close the MAP case unagreed.
C. If the presenter terminates an
arbitration proceeding by with-
drawing its request for assis-
tance, the presenter will not or-
dinarily be allowed access to the
competent authority procedures
for the same matter and same
years
D. The presenter’s death is not an
event triggering the termination
of the arbitration proceeding, un-
less explicitly requested by the
heirs.
E. At the termination of any proceed-
ing each arbitrator must imme-
diately destroy all documents or
other information received from
either competent authority of the
Contracting State, or that other-
wise reflect the considerations or
discussions of the arbitration pan-
el, and delete all information that
may be stored on any computer,
personal data assistant or other
electronic device or media.
20. Miscellaneous
A. In computing the days necessary
for an action in this arrangement,
the day when the event begin-
ning this computation occurred
will not be counted.
B. Any due date which falls upon
a weekend of holiday for either
competent authority will be ex-
tended to the next calendar day
which is a business day for both
competent authorities.
21. Advance Pricing Agreements
A. A case initially submitted to the
competent authorities as a re-
quest for an APA is eligible for
arbitration, but only with respect
to tax years covered by the APA
for which tax returns have been
filed. Tax years prior to those
covered by the APA for which
the taxpayer has requested a
rollback will be covered by the
arbitration determination only if
both competent authorities have
agreed to cover those years in
their position papers and only to
the extent the tax years are still
open to assessment according to
the time limits in the domestic
law of both Contracting States.
B. For APA years for which tax
returns have not been filed, the
competent authorities agree to
apply the transfer pricing method
used in the Position Paper of the
competent authority whose result
the panel determined was the
better result, provided the trans-
fer pricing method is sufficiently
described in the supporting Posi-
tion Paper.
C. For purposes of establishing a
Commencement Date for a case
initially submitted as a request
for an APA, the information nec-
essary to undertake substantive
consideration for a mutual agree-
ment in the United States is the
information required to be sub-
mitted to the Internal Revenue
Service under Revenue Proce-
dure 2015-41, section 3 (or any
applicable successor provisions).
In Switzerland, the information
is that which would be required
under instructions or commen-
taries published by the Federal
Department of Finance.
D. Once complete information is
provided, the Commencement
Date of the case, for purposes
of any subsequently necessary
arbitration, will be the earlier of
i) the date on which the compe-
tent authorities have exchanged
position papers setting forth their
initial negotiating positions or ii)
two years from the earliest date
on which the information nec-
essary to undertake substantive
consideration for a mutual agree-
ment concerning the APA has
been received by both competent
authorities. The arbitration pro-
ceedings will begin on the date
determined under paragraph 6.
E. For requests originally submit-
ted as an APA, the competent
authority of the country in which
the parent company is locat-
ed is considered the competent
authority initiating the Mutual
Agreement Procedure. For APA
requests originally submitted by
associated enterprises other than
the parent company, the compe-
tent authorities will determine
the competent authority serving
as the one initiating the MAP.
F. The provisions of paragraphs 1
through 20 and 22 apply as ap-
propriate.

Bulletin No. 2020–35 501 August 24, 2020
22. Coordination with Protocol Entry
into Force
Notwithstanding subparagraphs A
through D of paragraph 5 and sub-
paragraph D of paragraph 21, the
Commencement Date for a MAP case
(or a case that was initially submitted
as an APA) that was already under
consideration by the competent au-
thorities as of September 20, 2019
will be September 20, 2019. (See sub-
paragraph c) of paragraph 2 of Article
5 of the 2009 Protocol.)
Agreed:
For Switzerland For the United States of America
____________________________ ______________________________
Pascal Duss Douglas W. O’Donnell
State Secretariat for International United States Competent Authority
Financial Matters SIF Commissioner, Large Business and International Division
Date: Date:

August 24, 2020 502 Bulletin No. 2020–35
Attachments:
1. Sample Taxpayer Nondisclosure Statement
2. Sample Nondisclosure Statement of Taxpayer’s Authorized Representative
3. Sample Taxpayer Authorization to Disclose Tax Information for Purposes of Treaty MAP Arbitration Proceedings
4. Sample Declaration of Arbitrator
5. Sample Affirmation of Confidentiality

Bulletin No. 2020–35 503 August 24, 2020
Attachment 1
SAMPLE TAXPAYER NONDISCLOSURE STATEMENT
_________________________________________________________________________________________________________
NAME OF TAXPAYER
_________________________________________________________________________________________________________
ADDRESS
_________________________________________________________________________________________________________
CITY STATE/CANTON COUNTRY POSTAL CODE (ZIP CODE)
The above-named taxpayer hereby consents to the competent authorities of the United States and Switzerland undertaking an ar-
bitration proceeding described in paragraphs 6 and 7 of Article 25 (Mutual Agreement Procedure) of the Convention Between the
United States of America and the Swiss Confederation for the Avoidance of Double Taxation with Respect to Taxes on Income singed
at Washington on October 2, 1996 as Amended by the Protocols signed on October 2, 1996, and September 23, 2009 (Convention)
as necessary in order to reach a mutual agreement under Article 25 regarding the request filed with the [United States/Switzerland]
Competent Authority on [date] .
This consent and nondisclosure statement also covers the following concerned persons
1
that the taxpayer has the legal authority to bind:
[Enter name and address of each such concerned person. If none, enter “Not Applicable.”]
The following concerned persons, if any, are not covered by this consent and nondisclosure statement (and therefore must submit
a separate consent and nondisclosure statement on their own behalf): [Enter name and address of each such concerned person. If
none, enter “Not Applicable.”]
In making this consent, the taxpayer and, if applicable, each of the concerned persons covered by this consent and nondisclosure state-
ment, agrees not to disclose to any person (other than the taxpayer’s authorized representative or agent, another concerned person, its
authorized representative or agent, or one of the competent authorities or its authorized representative
2
) any information received during
the course of the arbitration proceeding from either Contracting State or the arbitration board, other than the determination of such board.
The following persons are all of the representatives or agents of the taxpayer or, if applicable, the specified concerned person, who
have been authorized to assist the taxpayer or specified concerned person in the mutual agreement procedure to which this consent
and nondisclosure statement applies. Attached to this consent and nondisclosure statement are the nondisclosure statements of each
of these representatives and agents, as is required by paragraphs 6 and 7 of Article 25 of the Convention.
[Enter name and address of each such representative or agent and the concerned person(s) for which each is acting. If none, enter
“Not Applicable.”]
[Under penalties of perjury]
3
, I declare that I have examined this consent and nondisclosure statement and any accompanying attach-
ments and to the best of my knowledge and belief, they are true, correct, and complete. Furthermore, I certify that I have the legal
authority to execute this consent and nondisclosure statement on behalf of each concerned person covered by it and to bind each
concerned person to its terms.
__________________ _________________________________________
Date Signature
__________________________________________
Printed Name
_________________________________________
Position
1
As defined in the relevant treaty provisions, the term “concerned person” means the taxpayer requesting mutual agreement procedure assistance from a competent authority under Article 25
of the Convention and any other person whose tax liability to either the United States or Switzerland may be directly affected by the mutual agreement arising from that request. A concerned
person that has the legal authority to bind any other concerned person(s) on this matter may do so in a comprehensive statement.
2
The U.S. Competent Authority has authorized the International Centre for Dispute Resolution (ICDR), a division of the American Arbitration Association, to act on its behalf with respect to
certain designated matters concerning the arbitration proceeding.
3
For use in the United States.

August 24, 2020 504 Bulletin No. 2020–35
Attachment 2
SAMPLE NONDISCLOSURE STATEMENT OF TAXPAYER’S AUTHORIZED REPRESENTATIVE
I hereby agree that neither I nor any member of my firm’s office staff nor any other person who may assist me or the firm in the mutual
agreement proceeding requested in the letter of [date] submitted by [name of taxpayer] to the competent authorities of the United
States and Switzerland will disclose to any person (other than the taxpayer, another concerned person,
1
its authorized representative
or agent, or one of the competent authorities or its authorized representative
2
) any information received during the course of the arbi-
tration proceeding from either Contracting State or the arbitration board, other than the determination of such board.
__________________ _________________________________________
Date Signature
__________________________________________
Printed Name
_________________________________________
Position
1
As defined in the relevant treaty provisions, the term “concerned person” means the taxpayer requesting mutual agreement procedure assistance from a competent authority under Article
25 of the Convention Between the United States of America and the Swiss Confederation for the Avoidance of Double Taxation with Respect to Taxes on Income signed at Washington on
October 2, 1996, as Amended by the Protocols signed on October 2, 1996, and September 23, 2009, and any other person whose tax liability to either the United States or Switzerland may
be directly affected by the mutual agreement arising from that request.
2
The U.S. Competent Authority has authorized the International Centre for Dispute Resolution (ICDR), a division of the American Arbitration Association to act on its behalf with respect to
certain designated matters concerning the arbitration proceeding

Bulletin No. 2020–35 505 August 24, 2020
Attachment 3
SAMPLE TAXPAYER AUTHORIZATION TO DISCLOSE TAX INFORMATION
FOR PURPOSES OF TREATY MAP ARBITRATION PROCEEDINGS
_________________________________________________________________________________________________________
NAME OF TAXPAYER
_________________________________________________________________________________________________________
U.S. OR SWISS TAX IDENTIFICATION NUMBER (e.g., EIN)
_________________________________________________________________________________________________________
ADDRESS
_________________________________________________________________________________________________________
CITY STATE/CANTON COUNTRY POSTAL CODE (ZIP CODE)
The above-named taxpayer, in accordance with the competent authorities of the United States and Switzerland undertaking an arbi-
tration proceeding described in paragraphs 6 and 7 of Article 25 of the Convention Between the United States of America and the
Swiss Confederation for the Avoidance of Double Taxation with Respect to Taxes on Income singed at Washington on October 2,
1996 as Amended by the Protocols signed on October 2, 1996 and September 23, 2009 (Convention), consents to the disclosure by
the competent authorities of Switzerland and the United States of any and all returns and return information with respect to the tax-
payer’s mutual agreement procedure (MAP) request submitted to the competent authorities on [date], to the individuals appointed
(or identified for potential appointment pending clearance) by the respective competent authorities to arbitrate the MAP case, the in-
dividual appointed (or identified for potential appointment pending clearance) as the Chair of the arbitration panel, and the following
representatives, if any, of the respective competent authorities who are authorized by the competent authority to act on its behalf with
respect to certain designated matters concerning the arbitration proceeding:
In the case of the United States: International Centre for Dispute Resolution (ICDR), a
division of the American Arbitration Association
In the case of Switzerland: __________________________________________.
In the case of a consolidated group of U.S. corporations, this consent is made in regard to all such information concerning the follow-
ing members of the consolidated group, who are the subjects of the mutual agreement request:
[Enter name and address of each consolidated group member, if any, who is a concerned person.
1
If none, enter “Not Applicable.”]
I certify that I have the legal authority to execute a request for or consent to disclose a return or return information to disclose infor-
mation to third parties and I hereby make this consent on behalf of the taxpayer, including each of the members of the consolidated
group listed above.
2
In the case of married Swiss tax resident filing jointly and involved in an arbitration, both spouses shall sign the authorization to
disclose tax information for purposes of treaty MAP arbitration proceedings.
__________________ _________________________________________
Date Signature
__________________________________________
Printed Name
_________________________________________
Position
1
As defined in the relevant treaty provisions, the term “concerned person” means the taxpayer requesting mutual agreement procedure assistance from a competent authority under Article 25
of the Convention and any other person whose tax liability to either the United States or Switzerland may be directly affected by the mutual agreement arising from that request.
2
Each taxpayer or concerned person (as defined in footnote 1) whose U.S. tax liability may be directly affected by the mutual agreement procedure request must sign a consent. In the case
of a consolidated group (as defined in Treas. Reg. 1.1502-1(h)), a person authorized by law to act for the common parent should execute the consent on behalf of the group. See Treas. Reg.
§1.1502-77(a).

August 24, 2020 506 Bulletin No. 2020–35
Attachment 4
SAMPLE DECLARATION OF ARBITRATOR
In the matter of the Mutual Agreement Procedure case under Article 25 of the Convention Between the United States of America and
the Swiss Confederation for the Avoidance of Double Taxation with Respect to Taxes on Income singed at Washington on October
2, 1996 as Amended by the Protocols singed on October 2, 1996, and September 23, 2009 (Convention) involving the following
Concerned Persons:
[Names and addresses of taxpayers that will be directly affected by the decision]
Paragraphs 6 and 7 of Article 25 (Mutual Agreement Procedure) of the Convention and the Implementing Arrangement regarding
paragraphs 6 and 7 of Article 25 of the Convention between the Competent Authorities of Switzerland and the United States (Imple-
menting Arrangement) provide rules and procedures under which the United States - Switzerland arbitration process (the Proceeding)
will operate. As provided in subparagraphs A and C of paragraph 8 of the Implementing Arrangement, I certify that I can serve impar-
tially in this case, and that I am independent of the Contracting States and Concerned Persons at this time and shall remain so during
the entire arbitration proceeding and for a reasonable period of time thereafter.
Past or existing facts or circumstances that might be likely to give rise to justifiable doubts as to my impartiality or independence, if
any, are identified in an Attachment to this Declaration.
Notwithstanding such relationships and interests, if any, I believe that I can be impartial and can exercise independent judgment in
making my decisions in the Proceeding and thus to the best of my knowledge and belief, there is no reason why I should not serve
as an Arbitrator with respect to the above-noted case
.
If, at any stage during the Proceeding, any new fact or circumstance arises that
might give rise to such doubts, I shall promptly disclose such fact or circumstance to both competent authorities.
I understand that with regard to any information received from International Centre for Dispute Resolution, a division of the Amer-
ican Arbitration Association, the Swiss State Secretariat for International Finance, and the U.S. Internal Revenue Service in connec-
tion with the Proceeding, I and my staff, if any, are considered to be among the “persons or authorities” involved in the administration
of taxes covered by Article 26 (Exchange of Information) of the Convention. I and my staff agree to abide by and be subject to the
confidentiality and nondisclosure provisions of Articles 25 (Mutual Agreement Procedure) and 26 (Exchange of Information) of the
Convention and the applicable domestic laws of Switzerland and the United States concerning the confidentiality of tax information.
In the event those provisions conflict, the most restrictive condition shall apply. I confirm that I have the legal authority to bind my
staff in this matter and will ensure they are aware of their obligations regarding confidentiality and non-disclosure. In particular, I
agree that I may not disclose any information relating to the Proceeding, except as permitted by the Convention and the domestic laws
of Switzerland and the United States. In addition, all material received and prepared in the course of, or relating to the Proceeding
shall be considered to be information exchanged between the Switzerland and the United States and shall be destroyed in accordance
with subparagraph E of paragraph 19 of the Implementing Arrangement referenced above.
[Under penalties of perjury]
1
, I hereby accept appointment as an Arbitrator in this case and will fairly decide the matters in contro-
versy between the Competent Authorities of Switzerland and the United States in accordance with the Convention and the related
agreements referred to above. I declare that these statements and any accompanying attachments are, to the bet of my knowledge and
belief, true, correct, and complete.
__________________ _________________________________________
Date Signature
__________________________________________
Printed Name
_________________________________________
Address
1
For use in the United States.

Bulletin No. 2020–35 507 August 24, 2020
Attachment 5
SAMPLE AFFIRMATION OF CONFIDENTIALITY
This affirmation is provided in order to consider the acceptance of an appointment as an arbitrator in the MAP case number xxx
(hereinafter referred to as the Proceeding) based on Article 25 (Mutual Agreement Procedure) of the Convention Between the United
States of America and the Swiss Confederation for the Avoidance of Double Taxation with Respect to Taxes on Income singed at
Washington on October 2, 1996 as Amended by the Protocols singed on October 2, 1996, and September 23, 2009 (hereinafter re-
ferred to as the Convention).
I understand that with regard to any information received from the International Centre for Dispute Resolution, a division of the
American Arbitration Association, the Swiss State Secretariat for International Finance, and the U.S. Internal Revenue Service in
connection with the Proceeding, I am considered to be among the “persons or authorities” involved in the administration of taxes
covered by Article 26 (Exchange of Information) of the Convention. I agree to abide by and be subject to the confidentiality and non-
disclosure provisions of Article 25 (Mutual Agreement Procedure) and Article 26 (Exchange of Information) of the Convention and
the applicable domestic laws of the United States and Switzerland concerning the confidentiality of tax information. In the event those
provisions conflict, the most restrictive condition shall apply. In particular, I agree that I may not disclose any information relating
to the Proceeding, except as permitted by the Convention and the domestic laws of the United States and Switzerland. In addition,
all material received and prepared in the course of, or relating to the Proceeding shall be considered to be information exchanged be-
tween United States and Switzerland, and shall be destroyed in accordance with subparagraph E of paragraph 19 of the Implementing
Arrangement regarding paragraphs 6 and 7 of Article 25 of the Convention between the Competent Authorities of Switzerland and
the United States.
__________________ _________________________________________
Date Signature
__________________________________________
Printed Name
_________________________________________
Address

August 24, 2020 508 Bulletin No. 2020–35
Notice of Proposed
Rulemaking
Certain Non-Government
Persons Not Authorized to
Participate in Examinations
of Books and Witnesses
as a Section 6103(n)
Contractor
REG-132434-17
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTIONS: Withdrawal of notice of pro-
posed rulemaking; notice of proposed
rulemaking.
SUMMARY: This document withdraws
a notice of proposed rulemaking (REG-
132434-17) published in the Federal
Register on March 28, 2018, which
contained proposed regulations that ad-
dressed the participation of persons de-
scribed under section 6103(n) of the
Code in the interview of a summoned
witness and excluded certain non-gov-
ernment attorneys from participating in
an IRS examination.
This document also contains new pro-
posed regulations to implement section
7602(f) of the Internal Revenue Code
(Code), which was added to the Code by
the Taxpayer First Act of 2019. The new
proposed regulations implement new
section 7602(f) regarding the persons
who may be provided books, papers, re-
cords, or other data obtained pursuant to
section 7602 for the sole purpose of pro-
viding expert evaluation and assistance
to the IRS, and continue to propose lim-
itations on the types of non-governmen-
tal attorneys to whom, under the authori-
ty of section 6103(n), any books, papers,
records, or other data obtained pursuant
to section 7602 may be provided. The
new proposed regulations also propose
to prohibit any IRS contractors from
asking a summoned person’s representa-
tive to clarify an objection or assertion
of privilege. The regulations affect these
persons.
DATES: Written or electronic comments
and requests for a public hearing must be
received by October 6, 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 strongly
encouraged to submit public comments
electronically. Submit electronic submis-
sions via the Federal eRulemaking Portal
at www.regulations.gov (indicate IRS and
REG-132434-17) by following the online
instructions for submitting comments.
Once submitted to the Federal eRulemak-
ing Portal, comments cannot be edited
or withdrawn. The IRS expects to have
limited personnel available to process
public comments that are submitted on
paper through mail. Until further notice,
any comments submitted on paper will
be considered to the extent practicable.
The Department of the Treasury (Trea-
sury Department) and the IRS will pub-
lish for public availability any comment
submitted electronically, and to the extent
practicable on paper, to its public docket.
Send paper submissions to: CC:PA:LP-
D:PR (REG-132434-17), room 5203,
Internal Revenue Service, PO Box 7604,
Ben Franklin Station, Washington, D.C.
20044.
FOR FURTHER INFORMATION CON-
TACT: Concerning the proposed regula-
tions, William V. Spatz at (202) 317-5461;
concerning submission of comments, Re-
gina Johnson, (202) 317-5177; (not toll-
free numbers).
SUPPLEMENTARY INFORMATION:
Background
Overview
These proposed regulations amend the
Procedure and Administration Regulations
(26 CFR part 301) under section 7602(a)
of the Code relating to participation by
persons described in section 6103(n) and
26 CFR §301.6103(n)-1(a) in receiving
and reviewing summoned books, papers,
records, or other data and in interviewing
a summoned witness under oath.
The U.S. tax system relies upon tax-
payers’ self-assessment and reporting of
their tax liability. The expansive infor-
mation-gathering authority that Congress
granted to the IRS under the Code in-
cludes the IRS’s broad examination and
summons authority, which allows the IRS
to determine the accuracy of that self-as-
sessment. See United States v. Arthur
Young & Co., 65 U.S. 805, 816 (1984).
Section 7602(a), in relevant part, provides
that, for the purpose of ascertaining the
correctness of any return, making a return
where none has been made, or determin-
ing the liability of any person for any in-
ternal revenue tax, the IRS is authorized
to examine books and records, issue sum-
monses seeking documents and testimony,
and take testimony from witnesses under
oath. These provisions have been part of
the revenue laws since 1864.
Use of outside specialists is appropri-
ate to assist the IRS in determining the
correctness of the taxpayer’s self-assessed
tax liability. The assistance of persons
from outside the IRS, such as economists,
engineers, appraisers, individuals with
specialized knowledge who are also attor-
neys, industry specialists, and actuaries,
promotes fair and efficient administra-
tion and enforcement of the laws admin-
istered by the IRS by providing special-
ized knowledge, skills, or abilities that
the IRS officers or employees assigned to
the examination may not possess. Section
6103(n) and 26 CFR §301.6103(n)-1(a)
authorize the IRS to disclose returns and
return information to such persons in their
capacity as contractors.
On June 18, 2014, temporary regula-
tions (TD 9669) regarding participation
in a summons interview of a person de-
scribed in section 6103(n) were published
in the Federal Register (79 FR 34625).
A notice of proposed rulemaking (REG-
121542-14) cross-referencing the tem-
porary regulations was published in the
Federal Register (79 FR 34668) the same
day. No public hearing was requested or
held. The IRS received two comments on
the proposed regulations and, after consid-
eration of these comments, the proposed
regulations were adopted in final regula-
tions (TD 9778) published in the Federal
Register (81 FR 45409) on July 14, 2016
(2016 Summons Interview Regulations).
The 2016 Summons Interview Reg-
ulations under §301.7602-1(b)(3)
were issued, in part, to clarify that per-

Bulletin No. 2020–35 509 August 24, 2020
sons described in section 6103(n) and
§301.6103(n)-1(a) may receive and re-
view books, papers, records, or other data
summoned by the IRS. The regulations
under §301.7602-1(b)(3) were also issued
to clarify that, in the presence and under
the guidance of an IRS officer or employ-
ee, these non-government persons could
participate fully in the interview of a per-
son whom the IRS had summoned as a
witness to provide testimony under oath,
allowing a contractor to ask a summoned
witness substantive questions. See 81 FR
45409, at 45410.
New section 7602(f), enacted by sec-
tion 1208 of the Taxpayer First Act of
2019, Pub. L. No. 116-25, and effective
on July 1, 2019, now bars non-govern-
ment persons who are hired by the IRS
from questioning a witness under oath
whose testimony was obtained pursuant
to a summons issued under section 7602.
Executive Order 13789, Notice 2017-38,
and the Reports to the President
Before new section 7602(f) was enact-
ed on July 1, 2019, the President issued
Executive Order 13789 on April 21, 2017
(E.O. 13789, 82 FR 19317), instructing
the Secretary of the Treasury (Secretary)
to review all significant tax regulations is-
sued on or after January 1, 2016, and to
identify regulations that (i) impose an un-
due burden on U.S. taxpayers; (ii) add un-
due complexity to the Federal tax laws; or
(iii) exceed the statutory authority of the
IRS, and take appropriate action to allevi-
ate the burdens of these regulations. E.O.
13789 further instructed the Secretary to
submit to the President within 60 days a
report (First Report) that identified regu-
lations that meet the criteria and should
be modified. Notice 2017-38 (2017-30
I.R.B. 147 (July 24, 2017)) included the
2016 Summons Interview Regulations in
a list of regulations identified by the Sec-
retary in the First Report as meeting the
President’s criteria. E.O. 13789 instructed
the Secretary to submit to the President a
second report (Second Report) that rec-
ommended specific actions to mitigate the
burden imposed by regulations identified
in the First Report.
In response to Notice 2017-38, the
Treasury Department and the IRS re-
ceived seven comments from professional
and business associations addressing the
2016 Summons Interview Regulations.
All but one of these comments recom-
mended removal of the regulations based
primarily on the commenters’ perception
that the 2016 Summons Interview Reg-
ulations create longer and less efficient
examinations by improperly delegating
authority to outside law firms to conduct
examinations. The one commenter that
did not recommend removal of the regula-
tions in their entirety requested removal of
the provisions permitting a contractor to
question directly a witness during a sum-
mons interview.
On October 16, 2017, the Secretary
published the Second Report in the Fed-
eral Register (82 FR 48013) stating that
the Treasury Department and the IRS
were considering proposing an amend-
ment to the 2016 Summons Interview
Regulations to narrow their scope to pro-
hibit certain non-government attorneys
from questioning witnesses on behalf of
the IRS and playing a behind-the-scenes
role in an examination, such as by review-
ing summoned records or consulting on
IRS legal strategy.
2018 Notice of Proposed Rulemaking
On March 28, 2018, the Treasury De-
partment and the IRS published proposed
regulations (REG-132434-17) in the Fed-
eral Register (83 FR 13206), which split
the 2016 Summons Interview Regulations
in §301.7602-1(b)(3) into two new sub-
paragraphs set forth as §301.7602-1(b)
(3)(i) and (ii). The first new subparagraph
– §301.7602-1(b)(3)(i) – described the
general rule for IRS contractor partici-
pation in an examination of books, re-
cords, and witnesses under section 7602
in the same terms as the 2016 Summons
Interview Regulations, except it did not
include the last clause which addressed
IRS contractors asking a summoned per-
son’s representative to clarify an objection
or assertion of privilege. The second new
subparagraph -- §301.7602-1(b)(3)(ii) --
provided that non-governmental attorneys
were not eligible to be hired by the IRS
to participate in an examination, unless
the non-governmental attorney fit into
one of three exceptions: (1) a specialist in
foreign, state, or local law, including tax
law; (2) a specialist in non-tax substan-
tive law that is relevant to an issue in the
examination, such as patent law, property
law, or environmental law; or (3) a person
who happens to be an attorney, but is hired
by the IRS for knowledge, skills, or abil-
ities other than providing legal services
as an attorney. These exceptions were
designed to ensure that the IRS remained
able to continue to hire and receive criti-
cal support from outside experts and an-
cillary contractors with the special skills,
knowledge, and abilities the IRS needs to
be successful in its most high profile cas-
es, while prohibiting the IRS from hiring
non-governmental attorneys as specialists
in federal tax law or in U.S. civil litigation
to participate in an examination under sec-
tion 7602.
A public hearing on the 2018 proposed
regulations was held on July 31, 2018.
There were six speakers at the hearing,
four of whom had previously provided the
IRS with written public comments in re-
sponse to the notice of proposed rulemak-
ing. Those comments are available at
www.regulations.gov.
Three speakers at the public hearing
generally supported the direction of the
2018 proposed amendments to the 2016
Summons Interview Regulations. They
supported both paring back the types of
non-government attorney contractors
whom the IRS may hire to assist it in the
activities described in section 7602(a) and
removing prior approval for any contrac-
tor to ask a summoned person’s represen-
tative to clarify an objection or assertion
of privilege. Two of these speakers stated
in their public comments a new argument
that allowing any non-government attor-
ney to ask questions of a witness under
oath was “the most intrusive of govern-
mental actions, because it carries imme-
diate perjury implications.” Overall, how-
ever, these three speakers urged that the
2016 Summons Interview Regulations be
eliminated entirely, contending that allow-
ing any contractor to participate fully in
a summons interview may cause the IRS
officer or employee in charge of the inter-
view to lose control of the interview, that
permitting any IRS contractors to receive
and review information and documents
obtained pursuant to section 7602 was an
unlawful delegation of inherently govern-
mental functions to private contractors,
and that allowing any IRS contractors ac-

August 24, 2020 510 Bulletin No. 2020–35
cess to such information and documents
posed an unacceptably high risk of unlaw-
ful disclosure of private tax information
by these contractors. The Treasury Depart-
ment and the IRS previously addressed
and declined to adopt these arguments in
the preamble to the 2016 Summons Inter-
view Regulations (TD 9778) published in
the Federal Register (81 FR 45409) on
July 14, 2016.
A fourth speaker, who also submitted a
public comment to the notice of proposed
rulemaking, spoke for himself and six
federal tax law professors. This speaker
commented that under the 2018 proposed
regulations the IRS was disarming itself in
examinations of multinational companies
in complex cases. This speaker opposed
the 2018 proposed regulations, saying
the IRS would be foreclosing its access
to external expert litigation skills, while
large U.S. taxpayers can hire all the legal
talent they want. A fifth speaker observed
that transfer pricing issues are complex,
and the IRS needs non-tax law expertise
to understand the technological, logistical,
economic, and financial interactions that
are at stake in transfer pricing cases.
A sixth speaker argued that the legis-
lative history to section 6103(n) provided
that the “other services” allowed there-
under through a 1990 amendment to the
statute were limited to those provided to
the IRS by “expert witnesses.” This was
another argument that was previously
discussed and addressed in the preamble
to the 2016 Summons Interview Regula-
tions. This speaker further contended that
it would be improper for the IRS to use as
an expert witness any specialist in domes-
tic, non-tax laws. This second argument,
in combination with the speaker’s first ar-
gument, argue for rejection of the portion
of the 2018 proposed regulations (and of
the present proposed regulations) that al-
lows the IRS to use in an examination any
attorney hired as a specialist “in non-tax
substantive law that is relevant to an is-
sue in the examination, such as patent law,
property law, or environmental law.”
Most of the speakers and written com-
ments recommended that the Treasury
Department and the IRS postpone action
on the 2018 proposed regulations, because
the House of Representatives and Senate
Finance Committee had each previously
approved proposed legislation that would
alter the 2016 Summons Interview Reg-
ulations. Congress enacted new section
7602(f) on July 1, 2019, before the 2018
proposed regulations were finalized.
Legislative History of Section 7602(f)
Prior to 2018, bills were introduced in
the House and Senate that included pro-
posed legislative provisions to alter the
IRS contractor conduct allowed pursuant
to the 2016 Summons Interview Regula-
tions. On April 18, 2018, H.R. 5444 passed
the House with a section 11308 that would
have added new section 7602(f) to the In-
ternal Revenue Code. Section 11308 of
H.R. 5444 was explained in H. Rep. 115-
637, Part 1, at 34-36 (April 13, 2018). This
bill was not passed by the Senate in 2018,
but S. 3728 was introduced in the Senate
on July 26, 2018 with a corresponding
proposal in section 704 of the bill to add
new section 7602(f) to the Internal Reve-
nue Code.
In 2019, different versions of the Tax-
payer First Act were introduced in the
House and Senate, and these bills again
contained provisions for adding new sec-
tion 7602(f) to the Internal Revenue Code.
H.R. 1957 was introduced in the House on
March 28, 2019 and passed the House on
April 9, 2019, but did not pass the Senate.
Section 1208 of H.R. 1957 contained pro-
posed statutory language for new Internal
Revenue Code section 7602(f) that was
identical to the statutory language that
was enacted a short time later on July 1,
2019 in section 1208 of H.R. 3151. Due
to the procedural way in which H.R. 3151
became a vehicle for enacting the Taxpay-
er First Act, there are no separate House,
Senate, or Conference Reports regarding
H.R. 3151. Therefore, it is appropriate for
the Treasury Department and the IRS to
look to the House Ways and Means Com-
mittee and Joint Committee Reports for
H.R. 1957, the immediate predecessor
to H.R. 3151, to identify what Congress
meant by the words “expert evaluation and
assistance” used in new section 7602(f).
The House Ways and Means Commit-
tee and Joint Committee Reports for H.R.
1957 clarify the meaning of “expert eval-
uation and assistance.” The House Ways
and Means Committee Report explained
that pursuant to new section 7602(f),
the IRS could not under the authority of
section 6103(n) “provide to a tax admin-
istration contractor any books, papers, re-
cords or other data obtained by summons,
except when such person requires such
information for the sole purpose of pro-
viding expert evaluation and assistance to
the IRS (including, for example, access to
such information by translators) . . . [and,
that new section 7602(f)] is not intended
to restrict the Office of Chief Counsel’s
ability to use court reporters, transla-
tors or interpreters, photocopy services,
and other similar ancillary contractors.”
H.R. Rep. No. 116-39, at 50 (2019) (em-
phasis added). The Joint Committee staff
report for the House Committee markup
of H.R. 1957 used the same explanatory
language as the House Committee Report
to describe the types of IRS contractor
participation that new section 7602(f) was
intended to allow under the terms “expert
evaluation and assistance.” JCX-15-19,
at 22 (2019). These reports confirm that
Congress intended these terms to have a
broad interpretation in the examination
context of section 7602.
The restrictions in the second sentence
of new section 7602(f) on an IRS contrac-
tor questioning a witness are expressly
limited to witnesses whose testimony was
obtained pursuant to section 7602 and to a
witness questioned “under oath.” The IRS
will continue to interview summoned wit-
nesses “under oath,” even though doing so
limits the opportunity of an IRS contractor
to ask a summoned witness any questions
directly. Contractors may continue to ask
questions informally (not under oath) of a
taxpayer, a taxpayer’s employee, or third
parties in appropriate circumstances.
Explanation of Provisions
Overview
This document withdraws, effective
as of August 7, 2020, the previously pro-
posed 2018 regulations because Pub. L.
No. 116-25 (enacted on July 1, 2019) bars
persons other than officers or employees
of the Internal Revenue Service or the Of-
fice of Chief Counsel from substantively
questioning summoned persons who are
providing testimony to the IRS under
oath, effective as of July 1, 2019.
These new proposed regulations con-
tinue to narrow the scope of the 2016

Bulletin No. 2020–35 511 August 24, 2020
Summons Interview Regulations by pro-
viding that non-government attorneys
may not be hired by the IRS to assist in an
examination under section 7602 unless the
attorney is hired by the IRS as a special-
ist in foreign, state, or local law (includ-
ing foreign, state, or local tax law), or in
non-tax substantive law that is relevant to
an issue in the examination, or is hired for
knowledge, skills, or abilities other than
providing legal services as an attorney.
These proposed regulations also prohibit
any IRS contractors from asking a sum-
moned person’s representative to clarify
an objection or assertion of privilege.
These proposed regulations include
some aspects of the 2018 proposed regu-
lations and provide new rules. Consistent
with the 2018 proposed regulations, these
proposed regulations prohibit the hiring of
certain non-government attorneys to assist
in section 7602 examinations even though
this prohibition on hiring is not required
by section 7602(f). The 2018 proposed
regulations described the extent of a con-
tractor’s participation in IRS examinations
and summons interviews in broad terms.
In contrast, these proposed regulations
interpret and implement the statutory re-
strictions under section 7602(f) on sharing
information obtained in an examination
with contractors and questioning a wit-
ness under oath in a summons interview.
These proposed regulations also prohibit
IRS contractors from asking a summoned
person’s representative to clarify an objec-
tion or assertion of privilege in a summons
interview even though this prohibition is
not required by section 7602(f).
Contractor Access to Books and Records
Proposed §301.7602-1(b)(3)(i)(A)
tracks the first sentence of new section
7602(f). Proposed §301.7602-1(b)(3)(i)
(B) then describes three non-exclusive
types of potential IRS contractors who
may appropriately provide the IRS with
“expert evaluation and assistance,” so as
to receive from and review for the IRS any
books, papers, records, or other data the
IRS obtained pursuant to section 7602 in
an examination. The first of these non-ex-
clusive types described in the proposed
regulations is a person with specialized
expertise in certain substantive areas, in-
cluding but not limited to an economist,
an engineer, an attorney specializing in
an area relevant to an issue in the exam-
ination (such as patent law, property law,
environmental law, or foreign, state, or
local law (including foreign, state, or lo-
cal tax law)), an industry expert, or other
subject-matter expert. The second type of
specialists who are described in the pro-
posed regulations as persons with whom
the IRS may appropriately provide books,
papers, records, or other data the IRS ob-
tained pursuant to section 7602 in an ex-
amination for their assistance are persons
providing support to an IRS examination
as ancillary service providers, including
but not limited to court reporters, trans-
lators or interpreters, photocopy services,
providers of data processing programs or
equipment, litigation support services, or
other similar contractors. The third type of
eligible potential contractors under section
7602(f) are whistleblower-related contrac-
tors, who are described in §301.6103(n)-
2 and who may possess special factual
knowledge that may assist the IRS in a
section 7602 examination. Neither section
7602(f) nor its legislative history suggest
that Congress intended to curtail the IRS’s
ability to work with whistleblower-related
contractors.
Proposed §301.7602-1(b)(3)(i)(C) de-
scribes the circumstances in which the
IRS may hire certain attorneys as con-
tractors to assist the IRS in a section 7602
examination. The IRS will not hire an
attorney as a contractor for this purpose
unless the attorney is hired as a specialist
in foreign, state, or local law (including
foreign, state, or local tax law), or in non-
tax substantive law that is relevant to an
issue in the examination, such as patent
law, property law, or environmental law,
or is hired for knowledge, skills, or abil-
ities other than providing legal services
as an attorney. Proposed §301.7602-1(b)
(3)(i)(C) largely repeats the restriction
on non-government attorney hiring in
the 2018 proposed regulations and is in-
tended to exclude two types of potential
IRS contractors – Federal tax lawyers and
U.S. civil litigators – from being hired for
their expertise in Federal tax law or civil
litigation to assist in an examination under
section 7602. Though not required by new
section 7602(f), the Treasury Department
and the IRS choose to impose this hiring
restriction in the interests of sound tax
administration. The IRS workforce (in-
cluding the Office of Chief Counsel), al-
ready possesses the knowledge, skills, and
abilities the IRS needs with respect to the
interpretation and application of Federal
tax law and the practice of U.S. civil liti-
gation involving Federal taxes in the U.S.
Tax Court.
IRS Contractor Participation in an IRS
Summons Interview
The first sentence of proposed
§301.7602-1(b)(3)(ii)(A) tracks the sec-
ond sentence of new section 7602(f). The
2016 Summons Interview Regulations and
the 2018 proposed regulations both clari-
fied that eligible IRS contractors could
attend a summons interview and provide
assistance to the IRS or Office of Chief
Counsel employees in attendance. New
section 7602(f) does not prevent these el-
igible IRS contractors from attending and
providing assistance to the IRS at a sum-
mons interview under oath. New section
7602(f) only prohibits IRS contractors
from asking substantive questions of the
summoned witness under oath. The sec-
ond sentence of proposed §301.7602-1(b)
(3)(ii)(A) makes this distinction between
allowable contractor attendance and as-
sistance to the IRS, on the one hand, and
unallowable direct questioning of a sum-
moned witness under oath, on the other
hand. In this second sentence, the Trea-
sury Department and the IRS also make
explicit the treatment of a potential issue
that section 7602(f) did not address –
whether the same IRS contractors who are
now barred from questioning a summoned
witness under oath could nevertheless ask
a summoned person’s representative to
clarify an objection or assertion of priv-
ilege. The Treasury Department and the
IRS propose in the interests of sound tax
administration, and in light of the purpos-
es behind new section 7602(f), to forego
explicitly any potential opportunity for an
IRS contractor attending an IRS summons
interview to ask the summoned person’s
representative to clarify an objection or
assertion of a privilege. However, a De-
partment of Justice attorney in the Tax Di-
vision or U.S. Attorney office may attend
a summons interview conducted under
oath. The Department of Justice attorney
may ask the summoned person’s represen-

August 24, 2020 512 Bulletin No. 2020–35
tative to clarify an objection or assertion
of privilege.
Proposed §301.7602-1(b)(3)(ii)(B)
provides, in part, that IRS contractors who
are court reporters are not barred from
asking a summoned witness the types of
typical housekeeping questions which are
an essential part of their jobs. Some ex-
amples of typical housekeeping questions
asked by court reporters of a summoned
witness include: does the witness swear to
tell the truth, will the witness speak up or
speak (rather than gesture) an answer, and
will the witness spell a name or address
provided in an answer. The IRS has for
some time hired contractor court reporters
to make a record of IRS summons inter-
views in both large- and medium-size civ-
il tax cases, where creating an exact and
undisputed record of the matters discussed
is considered important by the IRS to the
case. The House Ways and Means Com-
mittee Report and the Joint Committee
Report both specifically state that Con-
gress did not intend section 7602(f) to pro-
hibit the IRS from continuing to use court
reporters in section 7602 circumstances.
Congress could not have intended that the
IRS continue to hire court reporters to pre-
pare transcripts of summoned witnesses
under oath, but yet prevent these court re-
porters from asking the witness the types
of ordinary housekeeping questions that
go along with the job of acting as a court
reporter.
Proposed §301.7602-1(b)(3)(ii)(B) also
provides, in part, that IRS contractors who
are translators or interpreters are permit-
ted to translate questions asked by an IRS
or Office of Chief Counsel employee to a
summoned witness. In these circumstanc-
es, the Treasury Department and the IRS
interpret new section 7602(f)’s restriction
on a contractor asking questions as apply-
ing only to the originator of a question,
and not to contractors who translate the
original question from an IRS or Office of
Chief Counsel employee for the witness.
Translators or interpreters in these circum-
stances may also need to ask questions to
clarify the translation. The IRS has again
for some time hired contractor translators
and interpreters in summons cases of all
sizes where the IRS was alerted in advance
of a summons interview of the need. The
House Ways and Means Committee Re-
port and the Joint Committee report both
again specifically state that Congress did
not intend by section 7602(f) to prohibit
the IRS from continuing to hire translators
and interpreters in section 7602 circum-
stances. Congress could not have intended
for the IRS to continue hiring translators
and interpreters to assist the IRS with con-
ducting summons interviews under oath,
yet prevent these translators or interpret-
ers from translating an IRS or Office of
Chief Counsel employee’s questions.
These regulations are proposed to be
effective for examinations begun and
summonses served by the IRS on or after
the date that these proposed regulations
are published in the Federal Register. This
applicability date is appropriate because
these proposed regulations would, as of
August 7, 2020, prohibit the IRS from
engaging in certain activities in the con-
text of an examination under section 7602
that the Treasury Department and the IRS
have determined are not in the interests of
sound tax administration.
Special Analyses
Certain IRS regulations, including
these, are exempt from the requirements
of Executive Order 12866, as supple-
mented and affirmed by Executive Order
13563. Therefore, a regulatory assessment
is not required. Because the proposed reg-
ulations mainly affect the IRS and would
not impose requirements on small enti-
ties, it is certified, under the Regulatory
Flexibility Act (5 U.S.C. chapter 6) that
the proposed regulations do not impose a
significant economic impact on a substan-
tial number of small entities. Pursuant to
section 7805(f) of the Code, the IRS will
submit the proposed regulations to the
Chief Counsel for Advocacy of the Small
Business Administration for comments
about the regulations’ impact on small
businesses.
Comments and Request for a Public
Hearing
Before these proposed regulations are
adopted as final, consideration will be giv-
en 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 Register.
Announcement 2020-4, I.R.B. 2020-17,
provides that until further notice, public
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 William V. Spatz of the Office of
Associate Chief Counsel (Procedure and
Administration).
List of Subjects in 26 CFR Part 301
Employment taxes, Estate taxes, Ex-
cise taxes, Gift taxes, Income taxes, Pen-
alties, Reporting and recordkeeping re-
quirements.
Withdrawal of a Notice of Proposed
Rulemaking
Accordingly, under the authority of
26 U.S.C. 7805, the notice of proposed
rulemaking (REG-132434-17) that was
published in the Federal Register on
March 28, 2018 (83 FR 13206) is with-
drawn.
Proposed Amendments to the
Regulations
Accordingly, 26 CFR part 301 is pro-
posed to be amended as follows:
PART 301—PROCEDURE AND
ADMINISTRATION
Paragraph 1. The authority citation for
part 301 continues to read in part as fol-
lows:
Authority: 26 U.S.C. 7805 * * *

Bulletin No. 2020–35 513 August 24, 2020
Par. 2. Section 301.7602-1 is amended
by:
1. In paragraph (b)(2), adding “(Secre-
tary)” at the end of the first sentence.
2. Revising paragraphs (b)(3) and (d).
The revisions read as follows:
§ 301.7602-1 Examination of books and
witnesses.
* * * * *
(b)* * *
(3) Participation of a person described
in section 6103(n)--(i) IRS contractor ac-
cess to books and records obtained by the
IRS administratively--(A) In general. The
Secretary may not, under the authority of
section 6103(n), provide any books, pa-
pers, records, or other data obtained pur-
suant to section 7602 to any person autho-
rized under section 6103(n), except when
such person requires such information for
the sole purpose of providing expert eval-
uation and assistance to the IRS.
(B) Persons providing expert evalua-
tion and assistance. For the purposes of
paragraph (b)(3)(i)(A) of this section, per-
sons providing expert evaluation and as-
sistance may include, but are not limited
to, the following:
(1) Persons with specialized expertise
in certain substantive areas, including, but
not limited to, economists, engineers, at-
torneys specializing in an area relevant to
an issue in the examination (such as patent
law, property law, environmental law, or
foreign, state, or local law (including for-
eign, state, or local tax law)), industry ex-
perts, or other subject-matter experts;
(2) Persons providing support as ancil-
lary service contractors including, but not
limited to, court reporters, translators or
interpreters, photocopy services, provid-
ers of data processing programs or equip-
ment, litigation support services, or other
similar contractors; and
(3) Whistleblower-related contractors
described in §301.6103(n)-2.
(C) Hiring of certain non-government
attorneys. The IRS may not hire an at-
torney as a contractor to assist in an ex-
amination under section 7602 unless the
attorney is hired by the IRS as a specialist
in foreign, state, or local law (including
foreign, state, or local tax law), or in non-
tax substantive law that is relevant to an
issue in the examination, such as patent
law, property law, or environmental law,
or is hired for knowledge, skills, or abili-
ties other than providing legal services as
an attorney.
(ii) IRS contractor participation in an
IRS summons interview--(A) In general.
No person other than an officer or employ-
ee of the IRS or its Office of Chief Coun-
sel may, on behalf of the Secretary, ques-
tion a witness under oath whose testimony
was obtained pursuant to section 7602.
Persons authorized by section 6103(n)
and with whom the Secretary may provide
books, papers, records, or other data ob-
tained pursuant to section 7602 may also
attend a summons interview and provide
assistance to the IRS or Office of Chief
Counsel employees in attendance, but
may not question the summoned witness
under oath or ask a summoned person’s
representative to clarify an objection or
assertion of privilege.
(B) Court reporters, translators, and
interpreters are not barred from asking
questions. Court reporters who are hired
as contractors by the IRS to make a record
of an IRS summons interview are permit-
ted to ask typical housekeeping questions
of a summoned witness. Examples of such
questions include, but are not limited to,
asking whether the witness swears to tell
the truth, asking the witness to spell a word
or phrase, and asking whether the witness
can speak up or speak rather than gesture
an answer. Translators and interpreters who
are hired as contractors by the IRS to assist
in the interview of a summoned witness are
permitted to translate any of the questions
that are asked of the witness by an IRS or
Office of Chief Counsel officer or employ-
ee and to ask questions which may be nec-
essary to clarify the translation.
* * * * *
(d) Applicability date. This section is
applicable after September 3, 1982, ex-
cept for paragraphs (b)(1) and (2) of this
section which are applicable on and after
April 1, 2005 and paragraph (b)(3) of this
section which applies to examinations be-
gun or administrative summonses served
by the IRS on or after August 6, 2020.
For rules under paragraphs (b)(1) and (2)
of this section that are applicable to sum-
monses issued on or after September 10,
2002 or under paragraph (b)(3) of this sec-
tion that are applicable to summons inter-
views conducted on or after June 18, 2014
and before July 14, 2016, see 26 CFR
301.7602-1T (revised as of April 1, 2016).
For rules under paragraph (b)(3) of this
section that are applicable to administra-
tive summonses served by the IRS before
August 6, 2020, see 26 CFR 301.7602-1
(revised as of April 1, 2020).
Sunita Lough,
Deputy Commissioner for Services
and Enforcement.
(Filed by the Office of the Federal Register on Au-
gust 6, 2020, 8:45 a.m., and published in the issue
of the Federal Register for August 7, 2020, 85 F.R.
47931)

Bulletin No. 2020–35 i August 24, 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.

August 24, 2020 ii Bulletin No. 2020–35
Numerical Finding List
1
Bulletin 2020–35
Announcements:
2020-8, 2020-32 I.R.B. 244
2020-9, 2020-32 I.R.B. 244
2020-10, 2020-33 I.R.B. 385
2020-11, 2020-33 I.R.B. 385
2020-13, 2020-35 I.R.B. 492
Notices:
2020-43, 2020-27 I.R.B. 1
2020-45, 2020-27 I.R.B. 3
2020-46, 2020-27 I.R.B. 7
2020-47, 2020-27 I.R.B. 7
2020-49, 2020-27 I.R.B. 8
2020-50, 2020-28 I.R.B. 35
2020-48, 2020-29 I.R.B. 72
2020-51, 2020-29 I.R.B. 73
2020-52, 2020-29 I.R.B. 79
2020-53, 2020-30 I.R.B. 151
2020-54, 2020-31 I.R.B. 226
2020-56, 2020-32 I.R.B. 239
2020-57, 2020-32 I.R.B. 240
2020-58, 2020-34 I.R.B. 419
2020-55, 2020-35 I.R.B. 467
2020-61, 2020-35 I.R.B. 468
2020-62, 2020-35 I.R.B. 476
2020-63, 2020-35 I.R.B. 491
Proposed Regulations:
REG-119307-19, 2020-28 I.R.B. 44
REG-112339-19, 2020-30 I.R.B. 155
REG-117589-18, 2020-30 I.R.B. 184
REG-125716-18, 2020-30 I.R.B. 197
REG-123027-19, 2020-31 I.R.B. 229
REG-130081-19, 2020-32 I.R.B. 246
REG-127732-19, 2020-33 I.R.B. 385
REG-111879-20, 2020-34 I.R.B. 421
REG-112042-19, 2020-34 I.R.B. 422
REG-132766-18, 2020-34 I.R.B. 436
REG-132434-17, 2020-35 I.R.B. 508
Revenue Procedures:
2020-16, 2020-27 I.R.B. 10
2020-31, 2020-27 I.R.B. 12
2020-35, 2020-29 I.R.B. 82
2020-36, 2020-32 I.R.B. 243
2020-37, 2020-33 I.R.B. 381
Revenue Rulings:
2020-14, 2020-28 I.R.B. 33
2020-15, 2020-32 I.R.B. 233
Treasury Decisions:
9899, 2020-29 I.R.B. 62
9900, 2020-30 I.R.B. 143
9903, 2020-32 I.R.B. 235
9901, 2020-33 I.R.B. 266
9902, 2020-33 I.R.B. 349
9904, 2020-34 I.R.B. 413
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2019–27 through 2019–52 is in Internal Revenue Bulletin
2019–52, dated December 27, 2019.

Bulletin No. 2020–35 iii August 24, 2020
Finding List of Current Actions on
Previously Published Items
1
Bulletin 2020–35
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2019–27 through 2019–52 is in Internal Revenue Bulletin
2019–52, dated December 27, 2019.

Internal Revenue Service
Washington, DC 20224
Official Business
Penalty for Private Use, $300
INTERNAL REVENUE BULLETIN
The Introduction at the beginning of this issue describes the purpose and content of this publication. The weekly Internal Revenue
Bulletins are available at www.irs.gov/irb/.
We Welcome Comments About the Internal Revenue Bulletin
If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it,
we would be pleased to hear from you. You can email us your suggestions or comments through the IRS Internet Home Page
www.irs.gov) or write to the Internal Revenue Service, Publishing Division, IRB Publishing Program Desk, 1111 Constitution Ave.
NW, IR-6230 Washington, DC 20224.