Internal Revenue Bulletin 2020-29 (PDF rendition): IRS Revenue Procedures

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. 2020–29
July 13, 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
Rev. Proc. 2020-35, page 82.
This procedure provides specifications for the private print-
ing of red-ink substitutes for the 2020 revisions of certain
information returns. This procedure will be reproduced as
the next revision of Publication 1179. Rev. Proc. 2019-24 is
superseded.
ADMINISTRATIVE, EXCISE TAX
Notice 2020-48, page 72.
Notice 2020-48 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 second quarter of 2020.
EMPLOYEE PLANS
Notice 2020-51, page 73.
This notice provides guidance relating to the waiver in 2020
of required minimum distributions (RMDs) from certain retire-
ment plans and IRAs due to the amendment of § 401(a)(9)
of the Internal Revenue Code by section 2203 of the Coro-
navirus Aid, Relief, and Economic Security (CARES) Act, P.L.
116-136. In particular, this notice provides rollover relief (in-
cluding an extension of the 60-day rollover period to August
31, 2020) with respect to waived RMDs and certain related
payments, permits certain repayments to inherited IRAs, as
described in § 402(c)(11), and sets out Q&A’s to answer an-
ticipated questions regarding the waiver of 2020 RMDs. The
Appendix to this notice provides a sample amendment that
plans may adopt to provide recipients of distributions that
would otherwise be RMDs a choice whether to receive the
waived RMDs and certain related payments.
Notice 2020-52, page 79.
This notice clarifies the requirements that apply to a mid-year
amendment to a safe harbor § 401(k) or § 401(m) plan that
reduces only contributions made on behalf of highly com-
pensated employees. This notice also provides temporary
relief in connection with the ongoing Coronavirus Disease
2019 (COVID-19) pandemic from certain requirements that
would otherwise apply to a mid-year amendment to a safe
harbor § 401(k) or § 401(m) plan adopted between March
13, 2020, and August 31, 2020, that reduces or suspends
safe harbor contributions.
INCOME TAX
T.D. 9899, page 62.
Section 199A provides that, for taxable years beginning af-
ter December 31, 2017 and before January 1, 2026, tax-
payers other than C corporations may deduct 20 percent of
the qualified business income from the taxpayer’s qualified
trades or businesses, which can be operated through a part-
nership, S corporation, trust, estate, or sole proprietorship.
The deduction is subject to multiple limitations and special
rules apply to specified agricultural or horticultural cooper-
atives. These final regulations provided additional guidance
on the treatment of previously suspended losses included
in qualified business income and on the determination of the
section 199A deduction for taxpayers that hold interests in
regulated investment companies, split-interest trusts, and
charitable remainder trusts.
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.
July 13, 2020 Bulletin No. 2020–29

Part I
26 CFR 1.199A-3; 26 CFR 1.199A-6
T.D. 9899
DEPARTMENT OF THE
TREASURY
Internal Revenue Service
26 CFR Part 1
Qualified Business Income
Deduction
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Final regulations.
SUMMARY: This document contains fi-
nal regulations concerning the deduction
for qualified business income (QBI) un-
der section 199A of the Internal Revenue
Code (Code). The regulations will affect
certain individuals, partnerships, S cor-
porations, trusts, and estates. The regula-
tions provide guidance on the treatment
of previously suspended losses included
in qualified business income. The regula-
tions also provide guidance on the deter-
mination of the section 199A deduction
for taxpayers that hold interests in regu-
lated investment companies, split-interest
trusts, and charitable remainder trusts.
DATES: Effective Date: These regula-
tions are effective on August 24, 2020.
Applicability Dates: These regulations ap-
ply to taxable years beginning after August
24, 2020. Pursuant to section 7805(b)(7),
taxpayers may choose to apply the amend-
ments to §§1.199A-3 and 1.199A-6 set
forth in this Treasury decision to taxable
years beginning on or before August 24,
2020. Alternatively, taxpayers who chose
to rely on the February 2019 Proposed
Regulations for taxable years beginning
on or before August 24, 2020, may contin-
ue to do so for such years. However, tax-
payers who choose to apply any section
of these regulations or continue to rely on
any section of the February 2019 Proposed
Regulations for taxable years beginning
on or before August 24, 2020, must follow
the rules of the applicable section in a con-
sistent manner for each such year.
FOR FURTHER INFORMATION
CONTACT: Concerning §1.199A-3(d),
Michael Y. Chin or Steven Harri-
son at (202) 317-6842; concerning
§§1.199A-3(b) and 1.199A-6, Vishal R.
Amin or Sonia Kothari at (202) 317-6850
or Robert D. Alinsky or Margaret Burow
at (202) 317-5279.
SUPPLEMENTARY INFORMATION:
Background
This document contains amendments
to the Income Tax Regulations (26 CFR
part 1) under section 199A of the Code.
Section 199A was enacted on Decem-
ber 22, 2017, by section 11011 of Public
Law 115-97, 131 Stat. 2054, commonly
referred to as the Tax Cuts and Jobs Act
(TCJA), and was amended on March 23,
2018, retroactively to January 1, 2018,
by section 101 of Division T of the
Consolidated Appropriations Act, 2018,
Pub. L. 115-141, 132 Stat. 348 (2018
Act). Section 199A applies to taxable
years beginning after 2017 and before
2026.
Section 199A provides a deduction of
up to 20 percent of QBI from a U.S. trade
or business operated as a sole proprietor-
ship or through a partnership, S corpo-
ration, trust, or estate (section 199A de-
duction). The section 199A deduction
may be taken by individuals and by some
trusts and estates. A section 199A deduc-
tion is not available for wage income or
for income earned by a C corporation (as
defined in section 1361(a)(2)). If the tax-
payer’s taxable income exceeds the statu-
torily defined amount in section 199A(e)
(2) (threshold amount), the taxpayer’s sec-
tion 199A deduction may be limited based
on (i) the type of trade or business con-
ducted, (ii) the amount of W-2 wages paid
with respect to the trade or business (W-2
wages), and/or (iii) the unadjusted basis
immediately after acquisition (UBIA) of
qualified property held for use in the trade
or business (UBIA of qualified property).
These statutory limitations are subject to
phase-in rules in section 199A(b)(3)(B)
based upon taxable income above the
threshold amount (phase-in rules).
Section 199A also provides individuals
and some trusts and estates, but not cor-
porations, a deduction of up to 20 percent
of their combined qualified real estate in-
vestment trust (REIT) dividends and qual-
ified publicly traded partnership (PTP) in-
come, including qualified REIT dividends
and qualified PTP income earned through
passthrough entities. This component of
the section 199A deduction is not limited
by W-2 wages or UBIA of qualified prop-
erty.
Overall, the section 199A deduction
is the lesser of (1) the sum of the com-
bined QBI and qualified REIT and PTP
components described in the prior two
paragraphs or (2) an amount equal to 20
percent of the excess (if any) of the tax-
payer’s taxable income for the taxable
year over the taxpayer’s net capital gain
for the taxable year.
Additionally, section 199A(g) provides
that specified agricultural or horticultur-
al cooperatives may claim a special en-
tity-level deduction that is substantially
similar to the domestic production activ-
ities deduction under former section 199.
The statute expressly grants the Secre-
tary of the Treasury or his delegate (Sec-
retary) authority to prescribe such regu-
lations as are necessary to carry out the
purposes of section 199A (section 199A(f)
(4)), and provides specific grants of au-
thority with respect to certain issues in-
cluding: the treatment of acquisitions, dis-
positions, and short taxable years (section
199A(b)(5)); certain payments to partners
for services rendered in a non-partner ca-
pacity (section 199A(c)(4)(C)); the alloca-
tion of W-2 wages and UBIA of qualified
property (section 199A(f)(1)(A)(iii)); re-
stricting the allocation of items and wag-
es under section 199A and such reporting
requirements as the Secretary determines
appropriate (section 199A(f)(4)(A)); the
application of section 199A in the case
of tiered entities (section 199A(f)(4)(B));
preventing the manipulation of the depre-
ciable period of qualified property using
transactions between related parties (sec-
tion 199A(h)(1)); and determining the
UBIA of qualified property acquired in
July 13, 2020 62 Bulletin No. 2020–29

like-kind exchanges or involuntary con-
versions (section 199A(h)(2)).
The Department of the Treasury (Trea-
sury Department) and the IRS published
final regulations (TD 9847) interpreting
section 199A on February 8, 2019 (Feb-
ruary 2019 Final Regulations) in the Fed-
eral Register (84 FR 2952). Along with
the publication of the February 2019 Final
Regulations, the Treasury Department and
the IRS published a notice of proposed
rulemaking (REG 134652-18) in the Fed-
eral Register (84 FR 3015) providing
additional guidance under section 199A
relating to the treatment of previously sus-
pended losses included in qualified busi-
ness income and determining the section
199A deduction for taxpayers that hold
interests in regulated investment compa-
nies, split-interest trusts, and charitable
remainder trusts (February 2019 Proposed
Regulations). No public hearing on the
February 2019 Proposed Regulations was
requested or held. After full consideration
of the comments received on the February
2019 Proposed Regulations, this Treasury
decision adopts the proposed regulations
with clarifying changes and additional
modifications in response to comments as
described in the Summary of Comments
and Explanation of Revisions. Comments
on issues related to the February 2019
Proposed Regulations that are beyond the
scope of these final regulations are not
discussed in this preamble, but may be ad-
dressed in future guidance.
The Treasury Department and the IRS
also received comments on the February
2019 Final Regulations. The Treasury De-
partment and the IRS continue to study the
issues raised in those comments and may
address them in future guidance.
Summary of Comments and
Explanation of Revisions
These final regulations contain amend-
ments to two substantive sections of
the February 2019 Final Regulations,
§§1.199A-3 and 1.199A-6, each of which
provides rules relevant to the calcula-
tion of the section 199A deduction. The
amendments to §1.199A-3(b)(1)(iv) pro-
vide additional rules and clarification on
the treatment of suspended losses. Section
1.199A-3(d) provides guidance that al-
lows a shareholder in a regulated invest-
ment company (RIC) within the meaning
of section 851(a) to take a section 199A
deduction with respect to certain income
of, or distributions from, the RIC. The
amendments to §1.199A-6(d) include ad-
ditional rules related to trusts and estates
under section 663 of the Code. This Sum-
mary of Comments and Explanation of
Revisions describes each of the final rules
contained in this document in turn.
I. Treatment of Previously Suspended
Losses Included in QBI
Section 1.199A-3(b)(1)(iv) of the Feb-
ruary 2019 Final Regulations provides
that previously disallowed losses or de-
ductions (including under sections 465,
469, 704(d), and 1366(d)) allowed in the
taxable year are generally taken into ac-
count for purposes of computing QBI,
except to the extent the losses or deduc-
tions were disallowed, suspended, limited,
or carried over from taxable years ending
before January 1, 2018. These losses are
used, for purposes of section 199A, in or-
der from the oldest to the most recent on a
first-in, first-out (FIFO) basis. The Febru-
ary 2019 Proposed Regulations expanded
this rule to provide that previously disal-
lowed losses or deductions are treated as
losses from a separate trade or business in
the year they are taken into account in de-
termining taxable income. Further, the at-
tributes of the previously disallowed loss-
es or deductions, including whether they
are attributable to a trade or business and
whether they would otherwise be included
in QBI, are determined in the year the loss
or deduction is incurred.
The Treasury Department and the IRS
are aware that taxpayers and practitioners
have questioned whether the exclusion of
section 461(l) from the list of loss disal-
lowance and suspension provisions in
§1.199A-3(b)(1)(iv) means that losses
disallowed under section 461(l) are not
considered QBI in the year the losses are
taken into account in determining tax-
able income. Generally, for taxable years
beginning after December 31, 2020, and
before January 1, 2026, section 461(l) dis-
allows an excess business loss for taxpay-
ers other than C corporations. See section
2304(a) of the Coronavirus Aid, Relief,
and Economic Security Act (CARES Act),
Pub. L. 116-136, 134 Stat. 281 (2020).
Any disallowed excess business loss is
treated as a net operating loss carryover
for the taxable year for purposes of deter-
mining any net operating loss carryover
under section 172(b) in subsequent tax-
able years. See section 172(b) as amended
by section 2304(b) of the CARES Act.
The list of loss disallowance and sus-
pension provisions in §1.199A-3(b)(1)
(iv) is not exhaustive. If a loss or deduc-
tion that would otherwise be included in
QBI under the rules of §1.199A-3 is dis-
allowed or suspended under any provi-
sion of the Code, such loss or deduction is
generally taken into account for purposes
of computing QBI in the year it is taken
into account in determining taxable in-
come. These final regulations clarify this
point by amending §1.199A-3(b)(1)(iv)
(A) to specifically reference excess busi-
ness losses disallowed by section 461(l)
and treated as a net operating loss carry-
over for the taxable year for purposes of
determining any net operating loss carry-
over under section 172(b) in subsequent
taxable years.
The Treasury Department and the IRS
are also aware that taxpayers and practi-
tioners have questioned how the phase-in
rules apply when a taxpayer has a sus-
pended or disallowed loss or deduction
from a Specified Service Trade or Busi-
ness (SSTB). Whether an individual has
taxable income at or below the threshold
amount, within the phase-in range, or in
excess of the phase-in range, the determi-
nation of whether a suspended or disal-
lowed loss or deduction attributable to an
SSTB is from a qualified trade or business
is made in the year the loss or deduction
is incurred. If the individual’s taxable in-
come is at or below the threshold amount
in the year the loss or deduction is in-
curred, and such loss would otherwise be
QBI, the entire disallowed loss or deduc-
tion is treated as QBI from a separate trade
or business in the subsequent taxable year
in which the loss is allowed. If the individ-
ual’s taxable income is within the phase-in
range, then only the applicable percentage
of the disallowed loss or deduction is tak-
en into account in the subsequent taxable
year. If the individual’s taxable income
exceeds the phase-in range, none of the
disallowed loss or deduction will be tak-
en into account in the subsequent taxable
year. These final regulations clarify this
Bulletin No. 2020–29 63 July 13, 2020

July 13, 2020 64 Bulletin No. 2020–29
treatment and provide an example of a tax-
payer with taxable income in the phase-in
range and a suspended loss from an SSTB.
The Treasury Department and the IRS
received one comment requesting further
clarification of the FIFO ordering rule.
The commenter questioned whether the
FIFO ordering rule should continue to
apply for losses incurred in taxable years
beginning on or after January 1, 2018.
The commenter also asked for clarifica-
tion regarding whether the rule applied
on an annual basis such that each year is
tracked separately and FIFO is applied
for losses that are incurred each year or
whether FIFO applies such that there is a
single bucket of losses no matter the year
incurred. The commenter recommended
additional supporting worksheets or other
forms to assist in the calculation, partic-
ularly if every year must be tracked indi-
vidually.
The Treasury Department and the IRS
have determined that in order to properly
calculate the deduction, it is necessary for
the FIFO rule to apply for losses incurred
in taxable years beginning on or after Jan-
uary 1, 2018, and that the rule must be
applied on an annual basis by category
(i.e., sections 465, 469, etc.). Accordingly,
these final regulations retain the FIFO rule
as proposed. The Treasury Department
and the IRS continue to consider whether
new worksheets or forms are necessary to
assist in the calculation.
The February 2019 Proposed Regula-
tions also provide that if a loss or deduc-
tion is partially disallowed, QBI in the
year of disallowance must be reduced pro-
portionately. These final regulations retain
this rule, but with slight modifications,
and provide examples.
II. RICs with Interests in REITs and PTPs
If a RIC has certain items of income
or gain, subchapter M of chapter 1 of the
Code provides rules under which a RIC
may pay dividends that a shareholder in
the RIC may treat in the same manner
(or a similar manner) as the sharehold-
er would treat the underlying item of in-
come or gain if the shareholder realized
it directly. Like the preamble to the Feb-
ruary 2019 Proposed Regulations, this
preamble refers to this treatment as “con-
duit treatment.” The February 2019 Pro-
posed Regulations include rules provid-
ing conduit treatment for qualified REIT
dividends earned by a RIC. The Treasury
Department and the IRS received one
comment requesting that the proposed
rules providing this treatment be final-
ized. These final regulations adopt those
proposed rules.
The February 2019 Proposed Regu-
lations do not provide conduit treatment
for qualified PTP income earned by a
RIC. Instead, the preamble to the Febru-
ary 2019 Proposed Regulations requested
comments on issues relating to whether
and how to provide conduit treatment for
qualified PTP income, including the treat-
ment of items attributable to an SSTB of a
PTP allocated to a RIC and the treatment
of losses of a PTP allocated to a RIC.
The Treasury Department and the IRS re-
ceived several comments addressing con-
duit treatment for qualified PTP income
earned by a RIC. Two commenters rec-
ommended that conduit treatment be ex-
tended to qualified PTP income earned by
RICs, excluding any items attributable to
SSTBs. Both commenters suggested that
any losses allocated to RICs from PTPs
could be carried forward by the RIC for
purposes of section 199A. Another com-
menter suggested methods by which RICs
could track, and pay dividends attribut-
able to, an SSTB of a PTP.
Another commenter suggested that
RICs, particularly business development
companies that conduct lending activi-
ties, be allowed to pay “QBI dividends” to
their shareholders in cases where the RIC
had income from an activity that would
generate QBI if conducted by a partner-
ship or an S corporation.
The Treasury Department and the IRS
continue to consider those comments and
evaluate whether it is appropriate and
practicable to provide conduit treatment
for qualified PTP income or other income
of a RIC to further the purposes of section
199A(b)(1)(B).
III. Special Rules for Trusts and Estates
Section 1.199A-6 provides guidance
that certain specified entities (including
trusts and estates) might need to compute
the section 199A deduction of the entity
and/or passthrough information to each
of its owners or beneficiaries, so they
may compute their section 199A deduc-
tion. Section 1.199A-6(d) contains special
rules for applying section 199A to trusts
and decedents’ estates.
Under §1.199A-6(d)(3)(ii), the QBI,
W–2 wages, UBIA of qualified property,
qualified REIT dividends, and qualified
PTP income of a trust or estate are allo-
cated to each beneficiary and to the trust
or estate based on the relative proportion
of the trust’s or estate’s distributable net
income (DNI) for the taxable year that is
distributed or required to be distributed to
the beneficiary or is retained by the trust
or estate. Proposed §1.199A-6(d)(3)(iii)
further provides that a trust described in
section 663(c) with substantially separate
and independent shares for multiple ben-
eficiaries will be treated as a single trust
for purposes of determining whether the
taxable income of the trust exceeds the
threshold amount.
The Treasury Department and the
IRS received comments requesting guid-
ance on the interaction between section
199A and the separate share rule in sec-
tion 663(c). In particular, the comment-
ers requested guidance on the allocation
of QBI, W-2 wages, UBIA of qualified
property, qualified REIT dividends, and
qualified PTP income of a trust or estate to
beneficiaries and the trust or estate based
on DNI. The commenters noted differ-
ences in the allocation of overall DNI to
beneficiaries of a trust or estate under sec-
tions 643(a) and 663(c) and asked about
the allocation of these items in circum-
stances involving tax-exempt income and
charitable deductions, as well as situations
in which no DNI is allocated to a benefi-
ciary. The commenters asserted that under
§1.663(c)-2(b)(5), deductions, including
the section 199A deduction, attributable
solely to one share are not available to any
other separate share of the trust or estate.
The commenters recommended that the
allocation of QBI, W-2 wages, UBIA of
qualified property, qualified REIT divi-
dends, and qualified PTP income of a trust
or estate should be based on the portion
of such items that are attributable to the
income of each separate share. In addi-
tion, the commenters recommended that
§1.663(c)-2(b) be amended to clarify how
gross income not included in account-
ing income is allocated among separate
shares.

Bulletin No. 2020–29 65 July 13, 2020
After considering the comments and
studying the separate share rule in more
depth, the Treasury Department and the
IRS have clarified the separate share rule
in these final regulations to provide that,
in the case of a trust or estate described in
section 663(c) with substantially separate
and independent shares for multiple bene-
ficiaries, the trust or estate will be treated
as a single trust or estate not only for pur-
poses of determining whether the taxable
income of the trust or estate exceeds the
threshold amount but also in determining
taxable income, net capital gain, net QBI,
W-2 wages, UBIA of qualified property,
qualified REIT dividends, and qualified
PTP income for each trade or business of
the trust or estate, and computing the W-2
wage and UBIA of qualified property lim-
itations. Further clarification of the sepa-
rate share rule under section 663 is beyond
the scope of these final regulations, but the
Treasury Department and the IRS intend
to continue to study the issues raised by
the commenters. Accordingly, these final
regulations provide that the allocation
of these items to the separate shares of a
trust or estate described in section 663(c)
will be governed by the rules under sec-
tion 663(e) and such guidance as may be
published in the Internal Revenue Bulletin
(see §601.601(d)(2)(ii)(b)).
Section 1.199A-6(d)(3)(v) of the Feb-
ruary 2019 Proposed Regulations provides
rules under which the taxable recipient of
a unitrust or annuity amount from a char-
itable remainder trust described in section
664 can take into account QBI, qualified
REIT dividends, or qualified PTP income
for purpose of determining the recipient’s
section 199A deduction. The Treasury
Department and the IRS received no com-
ments on these rules and these final regu-
lations adopt these rules as proposed.
Special Analyses
I. Regulatory Planning and Review –
Economic Analysis
Executive Orders 13771, 13563, and
12866 direct agencies to assess costs and
benefits of available regulatory alterna-
tives and, if regulation is necessary, to se-
lect regulatory approaches that maximize
net benefits (including potential econom-
ic, environmental, public health and safety
effects, distributive impacts, and equity).
Executive Order 13563 emphasizes the
importance of quantifying both costs and
benefits of reducing costs, of harmonizing
rules, and of promoting flexibility.
These final regulations have been des-
ignated by the Office of Management
and Budget’s (OMB) Office of Informa-
tion and Regulatory Affairs (OIRA) as
subject to review under Executive Order
12866 pursuant to the Memorandum of
Agreement (April 11, 2018) between the
Treasury Department and OMB regard-
ing review of tax regulations. OIRA has
designated these final regulations as eco-
nomically significant under section 1(c) of
the Memorandum of Agreement. Accord-
ingly, OIRA has reviewed these final reg-
ulations. For purposes of Executive Order
13771 this rule is regulatory.
A. Background and Need for Final
Regulations
Section 199A of the TCJA provides
taxpayers other than corporations a de-
duction of up to 20 percent of QBI from
domestic businesses plus up to 20 percent
of their combined qualified REIT divi-
dends and qualified publicly traded part-
nership income. Because the section 199A
deduction had not previously been avail-
able, regulations are necessary to provide
taxpayers with computational and defini-
tional guidance regarding the application
of section 199A.
The Treasury Department and the IRS
previously issued the February 2019 Fi-
nal Regulations regarding various items
related to the calculation of the section
199A deduction. However, the February
2019 Final Regulations did not address
treatment of REIT dividends received by
RICs. Because RICs are taxed as C corpo-
rations, dividends paid by RICs are gener-
ally ineligible for the section 199A deduc-
tion under the statute, which excludes C
corporation income from the definition of
QBI. However, the statute also directs the
Secretary to prescribe such regulations as
are necessary to carry out the purposes of
section 199A, including regulations for its
application in the case of tiered entities.
These final regulations establish rules un-
der which RIC dividends associated with
qualified REIT dividends may be eligible
for a section 199A deduction.
In addition, these final regulations es-
tablish rules for the treatment of previous-
ly suspended losses in calculation of QBI
and rules for applying section 199A to
trusts and decedents’ estates.
B. Economic Analysis
1. Baseline
The analysis in this section compares
these final regulations (these regulations)
to a no-action baseline reflecting antici-
pated Federal income tax-related behavior
in the absence of these regulations.
2. Summary of Economic Effects
To assess the economic effects of these
regulations, the Treasury Department and
the IRS considered the economic effects
of (i) rules for the treatment of previously
suspended losses in calculation of QBI;
(ii) rules providing conduit treatment for
qualified REIT dividends earned by a
RIC; and (iii) rules for applying section
199A to trusts and decedents’ estates.
Regarding items (i) and (iii): These
regulations provide certainty and clarity
to taxpayers regarding terms and calcula-
tions necessary for taxpayers to determine
their section 199A deduction. In the ab-
sence of this clarity, the likelihood would
be exacerbated that different taxpayers
would hold different interpretations of
the tax treatment of previously suspended
losses or the application of section 199A
to trusts and decedents’ estates. These reg-
ulations help taxpayers to hold more sim-
ilar interpretations of the tax treatment of
these items. In general, overall economic
performance is enhanced when individuals
and businesses face more uniform signals
about tax treatment. Certainty and clarity
over tax treatment also reduce compliance
costs for taxpayers.
The Treasury Department and the IRS
do not project meaningful changes in eco-
nomic activity as a result of these provi-
sions, relative to the no-action baseline.
Regarding item (ii): These regulations
provide that an individual who is a share-
holder of a RIC that has an ownership
interest in a REIT may, for section 199A
purposes, treat certain dividends received
from a RIC in the same way the sharehold-
er would treat dividends received directly

July 13, 2020 66 Bulletin No. 2020–29
from the REIT. Specifically, under these
regulations RIC shareholders are general-
ly eligible for the section 199A deduction
on their section 199A dividends. In the
absence of these regulations, dividends
received from a RIC that has an owner-
ship interest in a REIT would not qualify
for the section 199A deduction while div-
idends received directly from that REIT
would generally qualify for the deduction.
Thus, in the absence of these regulations,
direct ownership of REITs is tax-advan-
taged relative to indirect ownership of
REITs through RICs even though the un-
derlying economic activity is similar.
As a general principle, overall econom-
ic performance is improved to the extent
that the tax consequences of investment
through a financial intermediary (such as a
RIC) are equivalent to the tax consequenc-
es of direct investment. In the absence of
these regulations, a tax incentive would
arise for individuals to invest directly in
REITs rather than through RIC intermedi-
aries. This would distort investment allo-
cation relative to a tax-neutral treatment
of financial intermediaries, leading inves-
tors to make decisions based on differen-
tial tax treatment rather than purely based
on the value of investments. In particular,
it would likely cause investors to hold
less diversified portfolios.
1
The Treasury
Department and the IRS therefore project
that, under these regulations, individual
investors seeking to invest in real estate
would in general hold more diversified
portfolios relative to the no-action base-
line.
Another economic loss that would
likely arise in the absence of these regu-
lations is due to the costs of acquiring in-
formation. RICs, including mutual funds
and exchange-traded funds, simplify
decision-making for investors by find-
ing, indexing, and vetting REITs. This is
an efficient market organization due to
economies of scale in gathering relevant
information. In the absence of these regu-
lations, individual investors face substan-
tial incentives to invest directly in REITs
due to asymmetric tax treatment, and
face larger time costs to evaluate REIT
investment options than RICs. The same
level of investment can be achieved with
substantially less resource use if research
costs are incurred by RICs rather than in-
dividual investors, and therefore this rule
will lead to more efficient resource use in
making aggregate investment decisions.
On the basis of these effects, the Trea-
sury Department and the IRS also project
that these regulations will lead investors,
on average, to hold more real estate in
their portfolios (relative to the no-action
baseline) and thus hold a smaller share of
investment in other industries.
The Treasury Department and the IRS
project that the economic effects of these
regulations will exceed $100 million per
year relative to the no-action baseline.
The compliance costs alone are estimat-
ed to be approximately $149 million (ex-
cluding any compliance cost savings), as
described in the Paperwork Reduction Act
section of these analyses. These compli-
ance costs arise because the regulations
require a RIC to compute and report sec-
tion 199A dividends to its shareholders in
order for them to benefit from the section
199A deduction on qualified REIT divi-
dends earned by the RIC. In some sense,
these costs are optional since RICs that do
not pay section 199A dividends, either be-
cause they do not receive qualified REIT
dividends or because they choose not to
take on the additional record-keeping,
avoid these compliance costs entirely.
Nonetheless, we expect that many RICs
will choose to incur the compliance costs
to facilitate their shareholders’ section
199A deductions.
Though many RICs keep detailed re-
cords of their investment portfolios, these
regulations nonetheless create non-trivi-
al administrative costs for any RICs that
wish to provide section 199A dividends to
their shareholders. However, this increase
in compliance costs may be accompanied
by a decrease in compliance costs for RE-
ITs who would otherwise see an influx of
individual investors holding direct interest
in REITs. The Treasury Department and
the IRS have not estimated this compli-
ance cost savings.
Beyond any potential compliance
cost reduction, several other economic
benefits result from these regulations,
including those flowing from enhanced
financial diversification and reduced in-
formation-gathering costs. While we
have not attempted to quantify the eco-
nomic benefits of these effects, we proj-
ect that they are likely to be substantial as
well. We estimate that up to $6.0 billion
in REIT dividends accrued to individual
taxpayers through RICs in taxable year
2018. Of this, $5.6 billion went to tax-
payers with positive taxable income, who
thus could potentially use section 199A
deductions. This corresponds to aggre-
gate potential deductions of up to $1.1
billion (20 percent of $5.6 billion). Under
an assumption that the effective tax rate
for these investors was 30 percent, then
under the no-action baseline taxpayers
would theoretically be willing to incur
up to $336 million in economic costs in
order to receive the section 199A deduc-
tion on their income derived from REITs
that currently flows through RICs. Thus,
relative to the no-action baseline, these
regulations provide up to $336 million in
annual benefits by allowing investors to
avoid these costs.
Another way of gauging the potential
economic benefits from these regulations
is to consider them relative to the invest-
ment returns currently flowing to REIT
investors through RICs. If RIC interme-
diaries provide economic benefits (rela-
tive to direct ownership of REITs) equal
to five percent of investment returns, then
the benefits of these regulations relative
to the no-action baseline would be up to
$280 million (five percent of $5.6 billion),
assuming the same levels of economic ac-
tivity as in taxable year 2018.
The Treasury Department and the IRS
project that more taxpayers will claim
the section 199A deduction under these
regulations, reducing government reve-
nue relative to the no-action baseline. On
its own, this reduction in revenue itself
would affect the United States economy.
Either the deficit would increase or other
taxes would need to be raised. This effect
should be weighed against the enhanced
efficiency arising from the regulations.
We have not attempted to quantify these
effects. Similarly, we have not attempted
to quantify the efficiency effects of the
shift in investment away from other in-
dustries and toward real estate that may
result from these regulations, relative to
the no-action baseline.
1
RICs include mutual funds, which facilitate the diversification of an individual investor’s financial portfolio.

Bulletin No. 2020–29 67 July 13, 2020
3. Number of affected taxpayers.
The Treasury Department and the IRS
estimate that the rules regarding RICs as
financial intermediaries for REIT inves-
tors will affect up to 2,500 RICs and up
to 4.8 million individual tax units. These
estimates are derived from the universe
of taxable year 2018 administrative tax
records. For taxable year 2018, taxpayers
were able to rely on the February 2019
Proposed Regulations, which meant that
RICs could provide conduit treatment for
REIT dividends for section 199A purpos-
es (as in these regulations). Accordingly,
2,500 entities that did not file Form 1120-
REIT issued at least one Form 1099-DIV
with section 199A dividends. For compar-
ison, approximately 1,400 REITs issued
at least one Form 1099-DIV with section
199A dividends. Approximately 5.2 mil-
lion tax units received at least one Form
1099-DIV with section 199A dividends
from the 2,500 non-REIT entities. Among
these tax units, roughly 4.8 million had
positive taxable income and therefore
could have potentially benefited from the
section 199A deduction.
2
II. Paperwork Reduction Act (PRA)
The collection of information contained
in these regulations will be reviewed by
the Office of Management and Budget in
accordance with the Paperwork Reduction
Act of 1995 (44 U.S.C. 3507(d)) under
control number 1545–0110. The collec-
tion of information required by this reg-
ulation is in §1.199A-3. The collection of
information in §1.199A-3 is required for
RICs that choose to report information re-
garding qualified REIT dividends to their
shareholders. It is necessary to report the
information to the IRS and relevant tax-
payers to ensure that taxpayers proper-
ly report in accordance with the rules of
these regulations the correct amount of
deduction under section 199A. The col-
lection of information in §1.199A-3 is sat-
isfied by providing information about sec-
tion 199A dividends as Form 1099-DIV
(OMB control number 1545-0110) and its
instructions may prescribe.
For purposes of the PRA, the report-
ing burden associated with §1.199A-3
will be reflected in the next revision to
Form 1099-DIV. The burden associated
with the information collection in the
regulation represents 1.567 million hours
and $149 million (2018 dollars) annually
to comply with the information collec-
tion requirement in the regulation. These
estimates capture both changes made by
the TCJA and those that arise out of these
regulations. The burden hours estimate
was derived from IRS’s legacy burden
model and is discussed in further detail
on Form 1099-DIV. The hourly rate is de-
rived from the IRS’s office of Research,
Applied Analytics, and Statistics Busi-
ness Taxpayer Burden model that relates
time and out-of-pocket costs of business
tax preparation, derived from survey
data, to assets and receipts of affected
taxpayers along with other relevant vari-
ables, and converted by the Treasury De-
partment to $2017. The Treasury Depart-
ment and the IRS request comment on all
aspects of information collection burdens
related to these regulations. Proposed re-
visions (if any) to these forms that reflect
the information collections contained
in these regulations will be made avail-
able for public comment at www.irs.gov/
draftforms and will not be finalized until
after the forms have been approved by
OMB under the PRA.
An agency may not conduct or sponsor,
and a person is not required to respond to,
a collection of information unless it dis-
plays a valid OMB control number.
III. Regulatory Flexibility Act
In accordance with the Regulatory
Flexibility Act (5 U.S.C. chapter 6), it is
hereby certified that this final rule will not
have a significant economic impact on a
substantial number of small entities.
The final rule is not likely to affect a
substantial number of small entities. Sec-
tion 1.199A-3 applies to RICs that pay
section 199A dividends. Congress created
RICs to give small investors access to the
professional management and asset diver-
sification that are available only with very
large investment portfolios. To insure ap-
propriate non-tax regulation of these sub-
stantial investment portfolios, subchapter
M of chapter 1 of the Code requires that
such RICs must be eligible for registra-
tion, and must actually be registered with
the Securities and Exchange Commission
under the Investment Company Act of
1940. There are some small businesses
that are publicly traded, but most public-
ly traded businesses are not small entities
as defined by the Regulatory Flexibility
Act. Thus, the Treasury Department and
IRS expect that most RICs are not small
entities for purposes of the Regulatory
Flexibility Act. Accordingly, the Treasury
Department and the IRS have determined
that this Treasury decision will not af-
fect a substantial number of small enti-
ties. Finally, no comments regarding the
economic impact of these regulations on
small entities were received.
Pursuant to section 7805(f) of the
Code, the notice of proposed rulemaking
preceding these regulations was submitted
to the Chief Counsel for Advocacy of the
Small Business Administration for com-
ment on its impact on small business and
no comments were received.
Drafting Information
The principal authors of these regu-
lations are Michael Y. Chin and Steven
Harrison, Office of the Associate Chief
Counsel (Financial Institutions and Prod-
ucts) and Robert Alinsky, Vishal Amin,
Margaret Burow, and Sonia Kothari,
Office of the Associate Chief Counsel
(Passthroughs and Special Industries).
However, other personnel from the Trea-
sury Department and the IRS participated
in their development.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and record-
keeping requirements.
Amendments to the Regulations
Accordingly, 26 CFR part 1 is amend-
ed as follows:
2
For this analysis, entities are proxied by Employer Identification Numbers (EINs). EINs are tax identification numbers that do not perfectly align with the relevant entity concept. In particu-
lar, it is possible that one REIT may operate using multiple EINs, one to file its Form 1120-REIT and one to issue its Form 1099-DIVs. In this case, we will misclassify the 1099-issuing EIN
as a non-REIT. Therefore the estimates for the number of RICs, and the individuals receiving section 199A dividends from RICs, are upper bounds.

July 13, 2020 68 Bulletin No. 2020–29
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 continues to read in part as fol-
lows:
Authority: 26 U.S.C. 7805 * * *
Section 1.199A-3 also issued under 26
U.S.C. 199A(c)(4)(C) and (f)(4).
* * * * *
Section 1.199A-6 also issued under 26
U.S.C. 199A(f)(1)(B) and (f)(4).
* * * * *
Par. 2. Section 1.199A-0 is amended
by:
1. Adding entries for §1.199A-3(b)
(1)(iv)(A) through (C), (b)(1)(iv)(C)(1)
and (2), (b)(1)(iv)(D), (d), (d)(1) and
(2), (d)(2)(i) through (iii), (d)(2)(iii)(A)
and (B), (d)(3), (d)(3)(i) through (v), (d)
(4), (d)(4)(i) and (ii), (d)(5), and (e)(2)
(iii) and (iv).
2. Adding entries for §1.199A-6(d)(3)
(iii) and (v) and (e)(2)(iii) and (iv).
The additions read as follows:
§1.199A-0 Table of contents.
* * * * *
§1.199A-3 Qualified business in-
come, qualified REIT dividends, and
qualified PTP income.
* * * * *
(b) * * *
(1) * * *
(iv) * * *
(A) In general.
(B) Partial allowance.
(C) Attributes of disallowed loss deter-
mined in year loss is incurred.
(1) In general.
(2) Specified service trades or busi-
nesses.
(D) Examples.
* * * * *
(d) Section 199A dividends paid by a
regulated investment company.
(1) In general.
(2) Definition of section 199A divi-
dend.
(i) In general.
(ii) Reduction in the case of excess re-
ported amounts.
(iii) Allocation of excess reported
amount.
(A) In general.
(B) Special rule for noncalendar-year
RICs.
(3) Definitions.
(i) Reported section 199A dividend
amount.
(ii) Excess reported amount.
(iii) Aggregate reported amount.
(iv) Post-December reported amount.
(v) Qualified REIT dividend income.
(4) Treatment of section 199A divi-
dends by shareholders.
(i) In general.
(ii) Holding period.
(5) Example.
(e) * * *
(2) * * *
(iii) Previously disallowed losses.
(iv) Section 199A dividends.
* * * * *
§1.199A-6 Relevant passthrough en-
tities (RPEs), publicly traded partner-
ships (PTPs), trusts, and estates.
* * * * *
(d) * * *
(3) * * *
(iii) Separate shares.
* * * * *
(v) Charitable remainder trusts.
* * * * *
(e) * * *
(2) * * *
(iii) Separate shares.
(iv) Charitable remainder trusts.
Par. 3. Section 1.199A-3 is amended
by revising paragraph (b)(1)(iv) and add-
ing paragraphs (d) and (e)(2)(iii) and (iv)
to read as follows:
§1.199A-3 Qualified business in-
come, qualified REIT dividends, and
qualified PTP income.
* * * * *
(b) * * *
(1) * * *
(iv) Previously disallowed losses—(A)
In general. Previously disallowed loss-
es or deductions allowed in the taxable
year generally are taken into account for
purposes of computing QBI to the extent
the disallowed loss or deduction is oth-
erwise allowed by section 199A. These
previously disallowed losses include, but
are not limited to losses disallowed un-
der sections 461(l), 465, 469, 704(d), and
1366(d). These losses are used for pur-
poses of section 199A and this section in
order from the oldest to the most recent
on a first-in, first-out (FIFO) basis and are
treated as losses from a separate trade or
business. To the extent such losses relate
to a PTP, they must be treated as a loss
from a separate PTP in the taxable year the
losses are taken into account. However,
losses or deductions that were disallowed,
suspended, limited, or carried over from
taxable years ending before January 1,
2018 (including under sections 465, 469,
704(d), and 1366(d)), are not taken into
account in a subsequent taxable year for
purposes of computing QBI.
(B) Partial allowance. If a loss or de-
duction attributable to a trade or business
is only partially allowed during the tax-
able year in which incurred, only the por-
tion of the allowed loss or deduction that
is attributable to QBI will be considered
in determining QBI from the trade or busi-
ness in the year the loss or deduction is
incurred. The portion of the allowed loss
or deduction attributable to QBI is deter-
mined by multiplying the total amount of
the allowed loss by a fraction, the numer-
ator of which is the portion of the total
loss incurred during the taxable year that
is attributable to QBI and the denominator
of which is the amount of the total loss in-
curred during the taxable year.
(C) Attributes of disallowed loss or
deduction determined in year loss is in-
curred--(1) In general. Whether a disal-
lowed loss or deduction is attributable to a
trade or business, and otherwise meets the
requirements of this section, is determined
in the year the loss is incurred.
(2) Specified service trades or busi-
nesses. If a disallowed loss or deduction
is attributable to a specified service trade
or business (SSTB), whether an individual
has taxable income at or below the thresh-
old amount as defined in §1.199A-1(b)
(12), within the phase-in range as defined
in §1.199A-1(b)(4), or in excess of the
phase-in range is determined in the year
the loss or deduction is incurred. If the in-
dividual’s taxable income is at or below
the threshold amount in the year the loss
or deduction is incurred, the entire dis-
allowed loss or deduction must be taken
into account when applying paragraph (b)
(1)(iv)(A) of this section. If the individu-
al’s taxable income is within the phase-in
range, then only the applicable percent-
age, as defined in §1.199A-1(b)(2), of
the disallowed loss or deduction is taken
into account when applying paragraph (b)
(1)(iv)(A) of this section. If the individ-
ual’s taxable income exceeds the phase-
in range, none of the disallowed loss or

Bulletin No. 2020–29 69 July 13, 2020
deduction will be taken into account in
applying paragraph (b)(1)(iv)(A) of this
section.
(D) Examples. The following examples
illustrate the provisions of this paragraph
(b)(1)(iv).
(1) Example 1. A is an unmarried individual and
a 50% owner of LLC, an entity classified as a part-
nership for Federal income tax purposes. In 2018,
A’s allocable share of loss from LLC is $100,000
of which $80,000 is negative QBI. Under section
465, $60,000 of the allocable loss is allowed in de-
termining A’s taxable income. A has no other pre-
viously disallowed losses under section 465 or any
other provision of the Code for 2018 or prior years.
Because 80% of A’s allocable loss is attributable to
QBI ($80,000/$100,000), A will reduce the amount
A takes into account in determining QBI proportion-
ately. Thus, A will include $48,000 of the allowed
loss in negative QBI (80% of $60,000) in determin-
ing A’s section 199A deduction in 2018. The remain-
ing $32,000 of negative QBI is treated as negative
QBI from a separate trade or business for purposes
of computing the section 199A deduction in the year
the loss is taken into account in determining taxable
income as described in §1.199A-1(d)(2)(iii).
(2) Example 2. B is an unmarried individual
and a 50% owner of LLC, an entity classified as a
partnership for Federal income tax purposes. After
allowable deductions other than the section 199A
deduction, B’s taxable income for 2018 is $177,500.
In 2018, LLC has a single trade or business that is
an SSTB. B’s allocable share of loss is $100,000, all
of which is suspended under section 465. B’s alloca-
ble share of negative QBI is also $100,000. B has no
other previously disallowed losses under section 465
or any other provision of the Code for 2018 or pri-
or years. Because the entire loss is suspended, none
of the negative QBI is taken into account in deter-
mining B’s section 199A deduction for 2018. Fur-
ther, because the negative QBI is from an SSTB and
B’s taxable income before the section 199A deduc-
tion is within the phase-in range, B must determine
the applicable percentage of the negative QBI that
must be taken into account in the year that the loss
is taken into account in determining taxable income.
B’s applicable percentage is 100% reduced by 40%
(the percentage equal to the amount that B’s taxable
income for the taxable year exceeds B’s thresh-
old amount ($20,000=$177,500-$157,500) over
$50,000). Thus, B’s applicable percentage is 60%.
Therefore, B will have $60,000 (60% of $100,000)
of negative QBI from a separate trade or business
to be applied proportionately to QBI in the year(s)
the loss is taken into account in determining taxable
income, regardless of the amount of taxable income
and how rules under §1.199A-5 apply in the year the
loss is taken into account in determining taxable in-
come.
* * * * *
(d) Section 199A dividends paid by a
regulated investment company—(1) In
general. If section 852(b) applies to a
regulated investment company (RIC) for
a taxable year, the RIC may pay section
199A dividends, as defined in this para-
graph (d).
(2) Definition of section 199A divi-
dend—(i) In general. Except as provided
in paragraph (d)(2)(ii) of this section, a
section 199A dividend is any dividend or
part of such a dividend that a RIC pays
to its shareholders and reports as a section
199A dividend in written statements fur-
nished to its shareholders.
(ii) Reduction in the case of excess re-
ported amounts. If the aggregate reported
amount with respect to the RIC for any
taxable year exceeds the RIC’s qualified
REIT dividend income for the taxable
year, then a section 199A dividend is
equal to—
(A) The reported section 199A divi-
dend amount; reduced by
(B) The excess reported amount that
is allocable to that reported section 199A
dividend amount.
(iii) Allocation of excess reported
amount—(A) In general. Except as pro-
vided in paragraph (d)(2)(iii)(B) of this
section, the excess reported amount (if
any) that is allocable to the reported sec-
tion 199A dividend amount is that por-
tion of the excess reported amount that
bears the same ratio to the excess reported
amount as the reported section 199A div-
idend amount bears to the aggregate re-
ported amount.
(B) Special rule for noncalendar-year
RICs. In the case of any taxable year that
does not begin and end in the same cal-
endar year, if the post-December report-
ed amount equals or exceeds the excess
reported amount for that taxable year,
paragraph (d)(2)(iii)(A) of this section is
applied by substituting “post-December
reported amount” for “aggregate reported
amount,” and no excess reported amount
is allocated to any dividend paid on or be-
fore December 31 of that taxable year.
(3) Definitions. For purposes of para-
graph (d) of this section—
(i) Reported section 199A dividend
amount. The term reported section 199A
dividend amount means the amount of a
dividend distribution reported to the RIC’s
shareholders under paragraph (d)(2)(i) of
this section as a section 199A dividend.
(ii) Excess reported amount. The term
excess reported amount means the excess
of the aggregate reported amount over the
RIC’s qualified REIT dividend income for
the taxable year.
(iii) Aggregate reported amount. The
term aggregate reported amount means
the aggregate amount of dividends report-
ed by the RIC under paragraph (d)(2)(i) of
this section as section 199A dividends for
the taxable year (including section 199A
dividends paid after the close of the tax-
able year and described in section 855).
(iv) Post-December reported amount.
The term post-December reported amount
means the aggregate reported amount
determined by taking into account only
dividends paid after December 31 of the
taxable year.
(v) Qualified REIT dividend income.
The term qualified REIT dividend income
means, with respect to a taxable year of
a RIC, the excess of the amount of qual-
ified REIT dividends, as defined in para-
graph (c)(2) of this section, includible in
the RIC’s taxable income for the taxable
year over the amount of the RIC’s deduc-
tions that are properly allocable to such
income.
(4) Treatment of section 199A dividends
by shareholders—(i) In general. For pur-
poses of section 199A, and §§1.199A-1
through 1.199A-6, a section 199A divi-
dend is treated by a taxpayer that receives
the section 199A dividend as a qualified
REIT dividend.
(ii) Holding period. Paragraph (d)(4)
(i) of this section does not apply to any
dividend received with respect to a share
of RIC stock—
(A) That is held by the shareholder for
45 days or less (taking into account the
principles of section 246(c)(3) and (4))
during the 91-day period beginning on
the date which is 45 days before the date
on which the share becomes ex-dividend
with respect to such dividend; or
(B) To the extent that the shareholder is
under an obligation (whether pursuant to
a short sale or otherwise) to make related
payments with respect to positions in sub-
stantially similar or related property.
(5) Example. The following example
illustrates the provisions of this paragraph
(d).
(i) X is a corporation that has elected to be a RIC.
For its taxable year ending March 31, 2021, X has
$25,000x of net long-term capital gain, $60,000x
of qualified dividend income, $25,000x of taxable
interest income, $15,000x of net short-term capital
gain, and $25,000x of qualified REIT dividends.

July 13, 2020 70 Bulletin No. 2020–29
X has $15,000x of deductible expenses, of which
$3,000x is allocable to the qualified REIT dividends.
On December 31, 2020, X pays a single dividend of
$100,000x, and reports $20,000x of the dividend as
a section 199A dividend in written statements to its
shareholders. On March 31, 2021, X pays a dividend
of $35,000x, and reports $5,000x of the dividend as
a section 199A dividend in written statements to its
shareholders.
(ii) X’s qualified REIT dividend income under
paragraph (d)(3)(v) of this section is $22,000x,
which is the excess of X’s $25,000x of qualified
REIT dividends over $3,000x in allocable expens-
es. The reported section 199A dividend amounts for
the December 31, 2020, and March 31, 2021, dis-
tributions are $20,000x and $5,000x, respectively.
For the taxable year ending March 31, 2021, the ag-
gregate reported amount of section 199A dividends
is $25,000x, and the excess reported amount under
paragraph (d)(3)(ii) of this section is $3,000x. Be-
cause X is a noncalendar-year RIC and the post-De-
cember reported amount of $5,000x exceeds the ex-
cess reported amount of $3,000x, the entire excess
reported amount is allocated under paragraphs (d)
(2)(iii)(A) and (B) of this section to the reported
section 199A dividend amount for the March 31,
2021, distribution. No portion of the excess report-
ed amount is allocated to the reported section 199A
dividend amount for the December 31, 2020, distri-
bution. Thus, the section 199A dividend on March
31, 2021, is $2,000x, which is the reported section
199A dividend amount of $5,000x reduced by the
$3,000x of allocable excess reported amount. The
section 199A dividend on December 31, 2020, is
the $20,000x that X reports as a section 199A div-
idend.
(iii) Shareholder A, a United States person, re-
ceives a dividend from X of $100x on December 31,
2020, of which $20x is reported as a section 199A
dividend. If A meets the holding period requirements
in paragraph (d)(4)(ii) of this section with respect to
the stock of X, A treats $20x of the dividend from X
as a qualified REIT dividend for purposes of section
199A for A’s 2020 taxable year.
(iv) A receives a dividend from X of $35x on
March 31, 2021, of which $5x is reported as a sec-
tion 199A dividend. Only $2x of the dividend is a
section 199A dividend. If A meets the holding period
requirements in paragraph (d)(4)(ii) of this section
with respect to the stock of X, A may treat the $2x
section 199A dividend as a qualified REIT dividend
for A’s 2021 taxable year.
(e) * * *
(2) * * *
(iii) Previously disallowed losses. The
provisions of paragraph (b)(1)(iv) of this
section apply to taxable years beginning
after August 24, 2020. Taxpayers may
choose to apply the rules in paragraph (b)
(1)(iv) of this section for taxable years
beginning on or before August 24, 2020,
so long as the taxpayers consistently ap-
ply the rules in paragraph (b)(1)(iv) of this
section for each such year.
(iv) Section 199A dividends. The provi-
sions of paragraph (d) of this section apply
to taxable years beginning after August
24, 2020. Taxpayers may choose to apply
the rules in paragraph (d) of this section
for taxable years beginning on or before
August 24, 2020, so long as the taxpayers
consistently apply the rules in paragraph
(d) of this section for each such year.
Par. 4. Section 1.199A-6 is amended
by adding paragraphs (d)(3)(iii) and (v)
and (e)(2)(iii) and (iv) to read as follows:
§1.199A-6 Relevant passthrough en-
tities (RPEs), publicly traded partner-
ships (PTPs), trusts, and estates.
* * * * *
(d) * * *
(3) * * *
(iii) Separate shares. In the case of a
trust or estate described in section 663(c)
with substantially separate and indepen-
dent shares for multiple beneficiaries,
such trust or estate will be treated as a
single trust or estate for purposes of de-
termining whether the taxable income of
the trust or estate exceeds the threshold
amount; determining taxable income, net
capital gain, net QBI, W-2 wages, UBIA
of qualified property, qualified REIT divi-
dends, and qualified PTP income for each
trade or business of the trust and estate;
and computing the W-2 wage and UBIA
of qualified property limitations. The al-
location of these items to the separate
shares of a trust or estate will be governed
by the rules under §§1.663(c)-1 through
1.663(c)-5, as they may be adjusted or
clarified by publication in the Internal
Revenue Bulletin (see §601.601(d)(2)(ii)
(b) of this chapter).
* * * * *
(v) Charitable remainder trusts. A
charitable remainder trust described in
section 664 is not entitled to and does
not calculate a section 199A deduction,
and the threshold amount described in
section 199A(e)(2) does not apply to the
trust. However, any taxable recipient of a
unitrust or annuity amount from the trust
must determine and apply the recipient’s
own threshold amount for purposes of
section 199A taking into account any
annuity or unitrust amounts received
from the trust. A recipient of a unitrust
or annuity amount from a trust may
take into account QBI, qualified REIT
dividends, or qualified PTP income for
purposes of determining the recipient’s
section 199A deduction for the taxable
year to the extent that the unitrust or an-
nuity amount distributed to such recipi-
ent consists of such section 199A items
under §1.664-1(d). For example, if a
charitable remainder trust has invest-
ment income of $500, qualified dividend
income of $200, and qualified REIT div-
idends of $1,000, and distributes $1,000
to the recipient, the trust would be treat-
ed as having income in two classes with-
in the category of income, described in
§1.664-1(d)(1)(i)(a)(1), for purposes of
§1.664-1(d)(1)(ii)(b). Because the annu-
ity amount first carries out income in the
class subject to the highest income tax
rate, the entire annuity payment comes
from the class with the investment in-
come and qualified REIT dividends.
Thus, the charitable remainder trust
would be treated as distributing a pro-
portionate amount of the investment in-
come ($500/(1,000+500)*1,000 = $333)
and qualified REIT dividends ($1000/
(1,000+500)*1000 = $667) because the
investment income and qualified REIT
dividends are taxed at the same rate and
within the same class, which is higher
than the rate of tax for the qualified div-
idend income in a separate class. The
charitable remainder trust in this exam-
ple would not be treated as distributing
any of the qualified dividend income
until it distributed all the investment
income and qualified REIT dividends
(more than $1,500 in total) to the recip-
ient. To the extent that a trust is treated
as distributing QBI, qualified REIT div-
idends, or qualified PTP income to more
than one unitrust or annuity recipient in
the taxable year, the distribution of such
income will be treated as made to the re-
cipients proportionately, based on their
respective shares of total QBI, qualified
REIT dividends, or qualified PTP in-
come distributed for that year. The trust
allocates and reports any W-2 wages or
UBIA of qualified property to the tax-
able recipient of the annuity or unitrust
interest based on each recipient’s share
of the trust’s total QBI (whether or not
distributed) for that taxable year. Ac-
cordingly, if 10 percent of the QBI of
a charitable remainder trust is distribut-

Bulletin No. 2020–29 71 July 13, 2020
ed to the recipient and 90 percent of the
QBI is retained by the trust, 10 percent
of the W-2 wages and UBIA of quali-
fied property is allocated and reported to
the recipient and 90 percent of the W-2
wages and UBIA of qualified property is
treated as retained by the trust. Howev-
er, any W-2 wages retained by the trust
cannot be used to compute W-2 wages
in a subsequent taxable year for sec-
tion 199A purposes. Any QBI, qualified
REIT dividends, or qualified PTP in-
come of the trust that is unrelated busi-
ness taxable income is subject to excise
tax and that tax must be allocated to the
corpus of the trust under §1.664-1(c).
* * * * *
(e) * * *
(2) * * *
(iii) Separate shares. The provisions
of paragraph (d)(3)(iii) of this section ap-
ply to taxable years beginning after Au-
gust 24, 2020. Taxpayers may choose to
apply the rules in paragraph (d)(3)(iii) of
this section for taxable years beginning
on or before August 24, 2020, so long as
the taxpayers consistently apply the rules
in paragraph (d)(3)(iii) of this section for
each such year.
(iv) Charitable remainder trusts. The
provisions of paragraph (d)(3)(v) of this
section apply to taxable years beginning
after August 24, 2020. Taxpayers may
choose to apply the rules in paragraph (d)
of this section for taxable years beginning
on or before August 24, 2020, so long as
the taxpayers consistently apply the rules
in paragraph (d)(3)(v) of this section for
each such year.
Sunita Lough,
Deputy Commissioner for Services
and Enforcement.
Approved: May 12, 2020.
David J. Kautter,
Assistant Secretary of the Treasury
(Tax Policy).
(Filed by the Office of the Federal Register on June
24, 2020, 8:45 a.m., and published in the issue of the
Federal Register for June 25, 2020, 85 F.R. 38060)

July 13, 2020 72 Bulletin No. 2020–29
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 2020-48
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.
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 taxpayer determined by the Secretary
to be affected by a federally declared di-
saster as defined in section 165(i)(5)(A).
Pursuant to section 7508A(a), a period
of up to one year may be disregarded in
determining whether the performance of
certain 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 section 4161(a)
on sport fishing equipment and by sec-
tion 4161(b) on bows and arrows. These
taxes are reported on Form 720, Part II,
IRS Numbers: 41 (sport fishing equip-
ment (other than fishing rods and fish-
ing poles)), 110 (fishing rods and fishing
poles), 42 (electric outboard motors), 114
(fishing tackle boxes), 44 (bows, quivers,
broadheads, and points), and 106 (arrow
shafts) (hereafter the “sport fishing and
archery equipment numbers”). Under
section 40.6011(a)-1(a), an entry for each
IRS Number on Form 720 constitutes a
separate return. The Form 720 due on
July 31, 2020, covers the second calen-
dar quarter (April, May, June) of the year
2020.
SECTION 3. GRANT OF RELIEF
Any person (as defined in section
7701(a)(1) of the Code) with a federal
sporting goods excise tax payment due
and the requirement to file a return under
the sport fishing and archery equipment
numbers on Part II of Form 720, on July
31, 2020, is determined to be affected by
the COVID-19 emergency for purposes of
the relief described in this section 3 (Af-
fected Taxpayer).
For an Affected Taxpayer, the July 31,
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 relief is automatic. Affect-
ed Taxpayers do not have to call the IRS,
file any extension forms, or send letters
or other documents to receive this relief.
An Affected Taxpayer may file a Form
720 for excise taxes and pay the corre-
sponding excise taxes on sport fishing
and archery equipment by the normal
due date (July 31, 2020) if the Affected
Taxpayer so chooses. An Affected Tax-
payer who takes advantage of this post-
ponement should file only one Form 720
for the sport fishing and archery equip-
ment numbers by the postponed deadline
of October 31, 2020, on an IRS Number
line if the taxpayer has excise tax liability
for the tax corresponding to that Number
and this Notice postpones the payment of
that tax (in other words, avoid duplicate
filings).
Any Affected Taxpayer that, pursu-
ant to this Notice, files its second quarter
Form 720 for the sport fishing and archery
equipment numbers after July 31, 2020,
must adhere to the following instructions:
• Any Affected Taxpayer 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 equipment after July 31,
2020. In addition, an Affected Tax-
payer must write “Notice 2020-48”
on the top-center of the Form 720 on
which its excise taxes on sport fishing
and archery equipment are reported
after July 31, 2020.
• An Affected Taxpayer may also choose
to file a Form 720 for excise taxes on
sport fishing and archery equipment by
the normal due date (July 31, 2020).
For taxpayers who do not want to take
advantage of this filing deadline post-
ponement, a return filed by July 31,
2020, may be filed electronically.
• If any Affected Taxpayer that wants to
take advantage of this postponement is
required to file a Form 720 for excise
taxes other than for sport fishing and
archery equipment on July 31, 2020,
the Affected Taxpayer must file the
Form 720 by the normal due date for
those taxes (July 31, 2020) with the
sport fishing and archery lines blank.
The Affected Taxpayer then must file
a paper Form 720 by October 31,
2020, that reports the sport fishing
and archery excise taxes subject to

Bulletin No. 2020–29 73 July 13, 2020
the relief provided by this Notice. In
such a situation, the first Form 720
(reporting excise taxes other than on
sport fishing and archery equipment)
may be filed electronically; however,
the second Form 720 (reporting ex-
cise taxes on sport fishing and archery
equipment) must be filed on paper and
must be labeled “Notice 2020-48” in
the top-center of the Form 720.
• Any Affected Taxpayer that wants to
take advantage of the postponement
must not combine second quarter (the
calendar quarter containing April,
May, and June 2020) and third quarter
(the calendar quarter containing July,
August, and September 2020) excise
taxes onto one Form 720. Such Affect-
ed Taxpayers must file separate Forms
720 for the second and third quarters
by October 31, 2020. Moreover, sec-
ond 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 payment is made.
As a result of the postponement of the
July 31, 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 August 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.
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).
Guidance on Waiver of
2020 Required Minimum
Distributions
Notice 2020–51
I. PURPOSE
This notice provides guidance relating
to the waiver of 2020 required minimum
distributions, described in § 401(a)(9) of
the Internal Revenue Code (Code), from
certain retirement plans under section
2203 of the Coronavirus Aid, Relief, and
Economic Security (CARES) Act, Pub.L.
116-136, 134 Stat. 281 (2020). In particu-
lar, the notice:
• permits rollovers of waived required
minimum distributions (RMDs) and
certain related payments, including
an extension of the 60-day rollover
period for certain distributions to Au-
gust 31, 2020;
• answers questions relating to the
waiver of 2020 RMDs; and
• provides a sample plan amendment
that, if adopted, would provide par-
ticipants a choice whether to receive
waived RMDs and certain related
payments.
The notice also provides transition re-
lief for plan administrators and payors in
connection with the change in required
beginning date for RMDs under § 401(a)
(9) of the Code pursuant to section 114
of the Setting Every Community Up for
Retirement Enhancement Act of 2019
(SECURE Act), enacted on December
20, 2019, as Division O of the Further
Consolidated Appropriations Act of
2019, Pub. L. 116-94, 133 Stat. 2534
(2019).
II. BACKGROUND
Section 401(a)(9) of the Code requires
a stock bonus, pension, or profit-shar-
ing plan described in § 401(a) (or an an-
nuity contract described in § 403(a)) to
make minimum distributions starting by
the required beginning date (as well as
minimum distributions to beneficiaries
if the employee dies before the required
beginning date). Individual Retirement
Accounts and Individual Retirement An-
nuities (IRAs) described in § 408(a) and
§ 408(b), § 403(b) plans, and eligible de-
ferred compensation plans under § 457(b),
are also subject to the rules of § 401(a)
(9) pursuant to §§ 408(a)(6) and (b)(3),
403(b)(10), and 457(d)(2), respectively,
and the regulations under those sections.
For a defined contribution plan, under §
1.401(a)(9)-5, Q&A-1, the RMD general-
ly is determined by dividing the employ-
ee’s account balance by a factor that is
based on life expectancy.
In general, § 72(t) imposes a 10-percent
additional tax on distributions made from
a plan described in § 401(a), § 403(a), or
§ 403(b) to an employee before the em-
ployee attains age 59 ½, or from an IRA
to the IRA owner before the owner attains
age 59½. However, pursuant to § 72(t)(2)
(A)(iv), certain individuals receiving dis-
tributions that are part of a series of sub-
stantially equal periodic payments from
a plan or an IRA are exempted from this
10-percent additional tax. Notice 89–25,
Q&A–12, 1989–1 C.B. 662, as modified
by Rev. Rul. 2002–62, 2002–2 C.B. 710,
provides three calculation methods for
determining whether a distribution is part
of a series of substantially equal period-
ic payments under § 72(t)(2)(A)(iv). One
of these calculation methods, the RMD
method, uses rules similar to those under
§ 401(a)(9) to determine the amount of the
periodic payments.
Section 402(c) generally provides that
the payment of any portion of an employ-
ee’s interest in a qualified trust to the em-
ployee or the employee’s surviving spouse
in an eligible rollover distribution is not
includible in gross income if the distribu-
tion is rolled over to an eligible retirement
plan described in § 402(c)(8) no later than
the 60th day following the day of receipt.
An eligible rollover distribution is defined
in § 402(c)(4) as a distribution to an em-
ployee of all or any portion of the balance
to the credit of the employee in a quali-
fied trust other than a distribution that is:
(A) one of a series of substantially equal
periodic payments made over a specified
period
1
; (B) a distribution required under
1
Under § 1.402(c)-2, Q&A-5, whether a series of payments is a series of substantially equal periodic payments for purposes of § 402(c)(4)(A) is determined at the time payments begin and by
following the principles of § 72(t)(2)(A)(iv). As a result, a series of distributions, each of which is equal to an employee’s RMD, is treated as a series of substantially equal periodic payments
for purposes of § 402(c)(4)(A).

July 13, 2020 74 Bulletin No. 2020–29
§ 401(a)(9)
2
; or (C) a distribution made on
account of the employee’s hardship. Sec-
tion 402(c)(3)(B) provides that the Secre-
tary may waive the 60-day rollover dead-
line under certain circumstances. Section
402(c)(11) provides for the direct rollover
of a deceased employee’s interest in a
qualified trust to an inherited IRA estab-
lished for the deceased employee’s non-
spouse designated beneficiary. Rules sim-
ilar to those described in this paragraph
apply to § 403(a) annuity plans, § 403(b)
plans, and § 457 eligible governmental
plans. (See §§ 403(a)(4)(B), 403(b)(8)(B),
and 457(e)(16)(B).)
Section 408(d)(3) generally provides
that an amount distributed from an IRA to
the IRA owner, or to the surviving spouse
of the IRA owner, is not included in gross
income if the distribution is rolled over to
an eligible retirement plan no later than
the 60th day following the day of receipt.
A distribution of an after-tax amount may
only be rolled over to another IRA. Sec-
tion 408(d)(3)(B) provides that an IRA
owner may roll over only one IRA distri-
bution in a 12-month period, and § 408(d)
(3)(E) provides that an RMD may not be
rolled over. Section 408(d)(3)(I) provides
that the Secretary may waive the 60-day
rollover deadline under certain circum-
stances.
Section 114 of the SECURE Act
amended § 401(a)(9) of the Code to
change the required beginning date appli-
cable to § 401(a) plans and other eligible
retirement plans, including IRAs. The new
required beginning date for an employ-
ee or IRA owner is generally 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) and the new
required beginning date applies to distri-
butions required to be made after Decem-
ber 31, 2019, with respect to individuals
who attain age 70½ after that date.
Section 2203(a) of the CARES Act
added § 401(a)(9)(I) to the Code. Section
401(a)(9)(I)(i) provides for a waiver of
RMDs for defined contribution plans and
IRAs for 2020. Section 401(a)(9)(I)(ii)
provides that this waiver also applies to
the 2019 RMD for an individual who has
a required beginning date of April 1, 2020,
that was not paid in 2019 (and therefore
would have been due to be paid between
January 1, 2020 and April 1, 2020). Sec-
tion 401(a)(9)(I)(iii)(II) provides that if
the rule described in § 401(a)(9)(B)(ii) ap-
plies to a beneficiary (under which the en-
tire amount of the plan must be distributed
within 5 years of the participant’s death),
then the 5-year period is determined with-
out regard to 2020. Section 401(a)(9)(I)
(iii)(I) provides that an individual’s re-
quired beginning date is determined with-
out regard to § 401(a)(9)(I) for purposes
of applying § 401(a)(9) for calendar years
after 2020.
Section 2203(b) of the CARES Act
amended § 402(c)(4) of the Code to pro-
vide that any amount distributed during
2020 that is an eligible rollover distribu-
tion, but would not have been an eligi-
ble rollover distribution had § 401(a)(9)
applied during 2020, is not treated as an
eligible rollover distribution for purpos-
es of § 401(a)(31) (relating to direct and
automatic rollovers of eligible rollover
distributions), § 402(f) (relating to notices
to recipients of eligible rollover distribu-
tions), and § 3405(c) (relating to manda-
tory 20-percent withholding on eligible
rollover distributions).
Section 2203(c) of the CARES Act
provides that a plan or contract may op-
erate in accordance with an expected plan
or contract amendment relating to the
changes made by section 2203, provided
the plan or contract amendment is adopted
no later than the last day of the first plan
year beginning in 2022 (or, in the case
of a governmental plan, 2024). Section
2203(c) of the CARES Act also provides
that a plan or contract will not fail to sat-
isfy § 411(d)(6) of the Code by reason of
such an amendment, except as provided
by the Secretary of the Treasury.
The RMD waiver provided by sec-
tion 2203 of the CARES Act is similar
to the 2009 RMD waiver provided by
section 201 of the Worker, Retiree, and
Employer Recovery Act of 2008 (WRE-
RA), Pub. L. 110-458, 122 Stat. 5092
(2008). Notice 2009-82, 2009-41 I.R.B.
491, provided transition relief and guid-
ance related to section 201 of WRERA.
This notice provides transition relief and
guidance that is similar to that provided
in Notice 2009-82, but takes into con-
sideration the different circumstances
for the waiver in 2020 compared to the
waiver in 2009.
III. TRANSITION GUIDANCE
A. Payor and plan administrator guid-
ance related to SECURE Act change to
required beginning date. A distribution
from a plan made during 2020 to a par-
ticipant who will attain age 70½ in 2020
that would have been an RMD but for the
change in the required beginning date un-
der section 114 of the SECURE Act is not
required to be treated as an eligible roll-
over distribution for purposes of §§ 401(a)
(31), 402(f), and 3405(c). Thus, for exam-
ple, if a participant who attains age 70½
in 2020 received a distribution in January
2020, and part of the distribution was not
treated as an eligible rollover distribution
because it was improperly characterized
as an RMD, then, pursuant to the relief in
this paragraph III.A, the payor and plan
administrator will not be considered as
having failed to satisfy the requirements
of §§ 401(a)(31), 402(f) and 3405(c)
merely because of that treatment.
B. Rollover guidance for plan partici-
pants. Consistent with the legislative in-
tent with respect to section 2203 of the
CARES Act to permit taxpayers to avoid
taking RMDs in 2020, the Department of
the Treasury (Treasury Department) and
the IRS are providing relief to allow tax-
payers who receive certain distributions to
roll them into an eligible retirement plan
(even if the distribution normally would
be treated as part of a series of substantial-
ly equal periodic payments). Specifically,
the following distributions from a plan
(other than a defined benefit plan) may
be rolled over, provided the other rules of
§ 402(c) are satisfied (and regardless of
whether the distributions would otherwise
be made as part of a series of substantially
equal periodic payments):
2
Under § 1.402(c)-2, Q&A-7, in determining which amounts are treated as eligible rollover distributions, if a minimum distribution is required for a calendar year, the amounts distributed
during that calendar year are treated as RMDs, to the extent that the total required minimum distribution under § 401(a)(9) for the calendar year has not been satisfied.

Bulletin No. 2020–29 75 July 13, 2020
1. distributions to a plan participant
paid in 2020 (or paid in 2021 for
the 2020 calendar year in the case
of an employee who has a required
beginning date of April 1, 2021) if
the payments equal the amounts that
would have been RMDs in 2020 (or
for 2020), but for section 2203 of the
CARES Act (2020 RMDs), or are one
or more payments (that include the
2020 RMDs) in a series of substan-
tially equal periodic payments made
at least annually and expected to last
for the life (or life expectancy) of the
participant, the joint lives (or joint
life expectancies) of the participant
and the participant’s designated ben-
eficiary, or for a period of at least 10
years; and
2. for a plan participant with a required
beginning date of April 1, 2021, dis-
tributions that are paid in 2021 that
would have been an RMD for 2021
but for section 2203 of the CARES
Act (as described in Q&A-5 of sec-
tion V of this notice).
C. Extension of 60-day deadline for
rollover of certain distributions. To as-
sist plan participants who have already
received distributions in 2020, the Trea-
sury Department and the IRS, pursuant
to § 402(c)(3)(B), are extending the 60-
day rollover period for any payments de-
scribed in section III.A and section III.B
of this notice so that the deadline for roll-
ing over such a payment will not be before
August 31, 2020. For example, if a partic-
ipant received a single-sum distribution in
January 2020, part of which was treated as
ineligible for rollover because it was con-
sidered an RMD, that participant will have
until August 31, 2020, to roll over that part
of the distribution. In addition, the Trea-
sury Department and the IRS, pursuant to
§ 408(d)(3)(I), are extending the 60-day
rollover period for IRA distributions in
2020 that would have been an RMD in
2020 but for section 2203 of the CARES
Act or section 114 of the SECURE Act,
so that the deadline for rolling over such
distributions will not be before August 31,
2020.
D. Permitted repayments of RMDs
previously distributed from an IRA. In the
case of an IRA owner or beneficiary who
has already received a distribution of an
amount that would have been an RMD in
2020 but for section 2203 of the CARES
Act or section 114 of the SECURE Act,
the recipient may repay the distribution
to the distributing IRA, even if the repay-
ment is made more than 60 days after the
distribution, provided the repayment is
made no later than August 31, 2020. The
repayment will be treated as a rollover for
purposes of § 408(d)(3) of the Code, but
will not be treated as a rollover for pur-
poses of the one rollover per 12-month
period limitation in § 408(d)(3)(B) and
the restriction on rollovers for nonspousal
beneficiaries in § 408(d)(3)(C).
IV. PLAN AMENDMENTS
The Appendix to this notice provides a
sample plan amendment for defined con-
tribution plans that plan sponsors may
adopt to implement § 401(a)(9)(I). The
sample amendment provides participants
and beneficiaries the choice between re-
ceiving and not receiving distributions
described in section III.B of this notice.
The sample plan amendment has no im-
pact on other distribution provisions. For
example, a 75-year-old retiree’s request to
have her remaining plan account balance
distributed in 2020 in a lump sum, or in
five approximately equal annual install-
ments over a period that includes 2020,
would not be affected by the amendment.
The format of the sample plan amend-
ment generally follows the design of
pre-approved plans that employ a “basic
plan document” and an “adoption agree-
ment.” Thus, the sample plan amendment
includes language designed for inclusion
in a basic plan document and language
designed for inclusion in an adoption
agreement to allow the employer to select
among options related to the application of
the basic plan document provision. Spon-
sors of plans that do not use an adoption
agreement (including employers using in-
dividually designed plans) should modify
the format of the amendment to incorpo-
rate the desired options in the terms of the
amendment.
The first option provides that the de-
fault that applies in the absence of a par-
ticipant’s or beneficiary’s election is to
pay out distributions that include 2020
RMDs, and the second option provides
that the default that applies in the absence
of a participant’s or beneficiary’s election
is to suspend distributions that include
2020 RMDs. An employer may choose
either option, regardless of current plan
language. However, an employer must se-
lect one of these options and must include
in the adoption agreement the date as of
which the plan begins operating in accor-
dance with these terms.
The sample plan amendment also pro-
vides an employer three options with re-
spect to the availability of direct rollover
choices for distributions in 2020, with the
default being that the plan offers a direct
rollover option only for pre-CARES Act
eligible rollover distributions (that is, a di-
rect rollover option is not offered for 2020
RMDs or for amounts that may be rolled
over solely due to the rollover guidance
provided in section III.B of this notice).
The first option provides for the availabili-
ty of a direct rollover of only 2020 RMDs.
The second option provides for the avail-
ability of a direct rollover of 2020 RMDs
and of other amounts that may be rolled
over pursuant to the rollover guidance
provided in section III.B of this notice (the
latter amounts referred to as “Extended
2020 RMDs” in the sample amendment).
The third option provides for the availabil-
ity of a direct rollover of the entire amount
of a distribution but only if the distribu-
tion consists of part or all of a 2020 RMD
amount and an additional amount that is
an eligible rollover distribution without
regard to § 401(a)(9)(I).
The adoption of the sample plan
amendment (as modified, if necessary, to
conform to the plan’s terms and adminis-
trative procedures) will not result in the
loss of reliance on a favorable opinion,
advisory, or determination letter. Also,
an employer’s adoption of one of the op-
tions under the sample plan amendment
(as modified, if necessary, to conform to
the plan’s terms and administrative proce-
dures) will not cause the plan to fail to be
a pre-approved plan.
Under section 2203(c) of the CARES
Act, any plan amendment pursuant to sec-
tion 2203 must be adopted no later than the
last day of the first plan year beginning on
or after January 1, 2022 (January 1, 2024,
for governmental plans), and must reflect
the operation of the plan beginning with
the effective date of the plan amendment.
The timely adoption of the amendment
must be evidenced by a written document

July 13, 2020 76 Bulletin No. 2020–29
that is signed and dated by the employ-
er (including an adopting employer of a
pre-approved plan).
Employers may adopt other amend-
ments pursuant to section 2203 of the
CARES Act. However, the Treasury De-
partment and the IRS are exercising their
authority under section 2203(c) of the
CARES Act to deny § 411(d)(6) relief for
a plan amendment that eliminates an op-
tional form of benefit. Thus, for example,
if plan language provides for a distribu-
tion of amounts equal to the 2020 RMD to
a participant or beneficiary without regard
to § 401(a)(9)(I), then an amendment to
eliminate the right to take that distribution
would violate § 411(d)(6)(B). Similarly,
if plan language automatically suspends a
distribution of amounts equal to the 2020
RMD to a participant or beneficiary pursu-
ant to § 401(a)(9)(I), then an amendment
to eliminate the right to defer that distribu-
tion would also violate § 411(d)(6)(B). By
contrast, an employer will not have elimi-
nated an optional form of benefit in viola-
tion of § 411(d)(6)(B) merely because the
plan’s default for whether a distribution
occurs in the absence of a participant’s or
beneficiary’s election is different than the
default for whether a distribution occurs
in the absence of a plan amendment.
V. OTHER ISSUES
Q–1. Do IRAs have to be amended for
the waiver of required minimum distribu-
tions for 2020 pursuant to § 401(a)(9)(I)?
A–1. No, while the waiver of 2020
RMDs pursuant to § 401(a)(9)(I) applies
to IRAs, an IRA does not have to be
amended to reflect the waiver.
Q–2. For a plan that permits an em-
ployee or beneficiary to elect whether
RMDs are determined using the 5-year
rule in § 401(a)(9)(B)(ii) or the life expec-
tancy rule in § 401(a)(9)(B)(iii) and (iv),
does § 401(a)(9)(I) extend the time for
making the election?
A–2. Yes, if a plan permits an employee
or beneficiary to elect whether the 5-year
rule or the life expectancy rule applies
in determining RMDs, then the deadline
for making that election typically would
be the end of calendar year following the
calendar year of the employee’s death. For
example, if a 50-year-old employee in a
plan providing the election described in
§ 1.401(a)(9)–3, Q&A–4(c) died in 2019
with his sister as his designated benefi-
ciary, the plan provision would require
the election by the end of 2020. Howev-
er, pursuant to § 401(a)(9)(I), that type of
plan may be amended to permit the exten-
sion of the election deadline to the end of
2021.
Q–3. Does § 401(a)(9)(I) extend the
time for making a direct rollover for a
nonspouse designated beneficiary pursu-
ant to § 402(c)(11)?
A–3. Yes, § 401(a)(9)(I) extends the
time for making a direct rollover for a
nonspouse designated beneficiary if the
participant died in 2019. The “special
rule” at Q&A–17(c)(2) in Notice 2007–
7, 2007–1 C.B. 395, provides that if the
5-year rule applies to a benefit under a
plan, the nonspouse designated beneficia-
ry may determine the amount that is not
eligible for rollover because it is an RMD
using the life expectancy rule in the case
of a distribution made prior to the end of
the year following the year of death. This
special rule in Notice 2007–7 is hereby
modified so that if the employee’s death
occurred in 2019, the nonspouse designat-
ed beneficiary has until the end of 2021 to
make the direct rollover and use the life
expectancy rule.
Q-4. Does § 401(a)(9)(I) affect an indi-
vidual’s required beginning date?
A-4. No, the waiver of 2020 RMDs
under § 401(a)(9)(I) does not change an
individual’s required beginning date.
Thus, for example, if an individual has a
required beginning date of April 1, 2020,
and dies after April 1, 2020, then that in-
dividual will be treated as having died
after his or her required beginning date
regardless of whether that individual had
commenced receiving distributions or had
delayed commencing distributions until
2021 pursuant to § 401(a)(9)(I).
Q-5. How does § 401(a)(9)(I) impact
an employee who has a required begin-
ning date of April 1, 2021?
A-5. Section 401(a)(9)(I) waives the
RMD for 2020 regardless of whether
the employee’s required beginning date
is April 1, 2021. Thus, for example, if
an employee who is not a 5% owner at-
tained age 70½ before January 1, 2020,
and retires in the 2020 calendar year,
that employee’s required beginning date
is April 1, 2021. Pursuant to § 401(a)(9)
(I), the employee is not required to re-
ceive an RMD for 2020 before April 1,
2021, but must still receive the RMD for
the 2021 calendar year by December 31,
2021. If the employee receives a distri-
bution during 2021, then under the rules
of § 1.402(c)-2, Q&A-7, that distribution
is an RMD for the 2021 calendar year to
the extent the total RMD for 2021 has
not been satisfied even if the distribution
is made on or before April 1, 2021, and
accordingly, is not an eligible rollover
distribution pursuant to § 402(c)(4)(B).
However, to the extent the RMD for 2021
has been satisfied, subsequent amounts
distributed in 2021 that would otherwise
not be eligible rollover distributions pur-
suant to § 402(c)(4)(A) and § 1.402(c)-2,
Q&A-5, may be rolled over consistent
with the rollover guidance provided in
section III.B.2 of this notice.
Q–6. Besides the extensions provided
in Q&A–2 and Q&A–3 of this notice and
the rollover guidance provided in section
III of this notice, are any other deadlines
extended or rollover requirements modi-
fied in light of section 2203 of the CARES
Act?
A–6. No, section 2203 of the CARES
Act and section III of this notice address
only certain deadlines and rollover re-
quirements. Thus, for example, there is no
extension of the deadline of September 30
following the year of death in § 1.401(a)
(9)–4, Q&A–4 (relating to the determi-
nation of designated beneficiaries); the
October 31 deadline in § 1.401(a)(9)–4,
Q&A–6(b) (relating to the date by which
the trustee of a trust that is a plan’s des-
ignated beneficiary must provide the plan
administrator certain information); or the
last-day-of-the-year deadline in § 1.401(a)
(9)–8, Q&A–2(a)(2) (relating to the date
by which separate accounts must be estab-
lished). Similarly, if a participant or bene-
ficiary dies in 2020, there is no extension
of the 5-year period described in § 401(a)
(9)(B)(ii) or the 10-year period described
in § 401(a)(9)(H)(i) or § 401(a)(9)(H)(iii),
as applicable.
Q–7. For a plan subject to §§ 401(a)
(11) and 417, is spousal consent required
to suspend distributions that include 2020
RMDs and restart distributions in 2021?
A–7. A plan subject to §§ 401(a)(11)
and 417 may provide for either option
described in Q&A–8 of Notice 97–75,

Bulletin No. 2020–29 77 July 13, 2020
1997–2 C.B. 337, choosing whether or not
to have a new annuity starting date when
distributions restart. If the plan does not
provide for a new annuity starting date,
spousal consent is not required under most
circumstances. If the plan provides that
there is a new annuity starting date, spou-
sal consent may be required for the sus-
pension of distributions that include 2020
RMDs and the restart of distributions in
2021, depending on the form of distribu-
tion in each case.
Q–8. May distributions made from
a plan be rolled over back into the same
plan?
A–8. Yes, distributions from a plan
may be rolled over back into the same
plan, provided the plan permits rollovers
and the rollover satisfies the requirements
of § 402(c), taking into account the relief
provided in section III.B and C of this no-
tice.
Q–9. Does a payor have the option of
treating a 2020 RMD paid from a plan in
2020 as subject to the mandatory 20-per-
cent withholding rate for eligible rollover
distributions under § 3405(c)?
A–9. No. Under the last sentence of §
402(c)(4), a 2020 RMD that is paid from
a plan in 2020 is not treated as an eligi-
ble rollover distribution for purposes of
the withholding rules under § 3405. For
example, if a plan makes a distribution in
2020 to a retiree of his entire account bal-
ance under the plan and part of the distri-
bution is a 2020 RMD, the portion of the
distribution that is not a 2020 RMD is an
eligible rollover distribution and is subject
to the 20-percent mandatory withholding
rules under § 3405(c), and the portion of
the distribution that is a 2020 RMD is not
an eligible rollover distribution for pur-
poses of § 3405(c) and is subject to the
10-percent optional withholding rules un-
der § 3405(b). On the other hand, if the re-
tiree was receiving monthly distributions
from the plan that exceeded his RMDs and
that are expected to last for a period of at
least 10 years, then the entire amount of
each distribution is subject to the period-
ic-payment optional withholding rules un-
der § 3405(a).
Q–10. Does § 401(a)(9)(I) apply to
payments that are part of a series of sub-
stantially equal periodic payments under
the “RMD method” (a series of payments
described in Notice 89–25 and Rev. Rul.
2002–62 that are designed to satisfy the
§ 72(t)(2)(A)(iv) exception to the 10-per-
cent additional tax under § 72(t)) so that
the cessation of the payments for 2020
would not be considered a modification
under § 72(t)(4)?
A–10. No. Section 401(a)(9)(I) does
not apply to these payments; accordingly,
if they are stopped in 2020 (other than be-
cause of death or disability) prior to age
59½ (or prior to 5 years from the date of
the first payment), the cessation of the
payments is a modification under § 72(t)
(4) so that all the payments made under
the series are subject to a recapture tax un-
der § 72(t)(4).
Q-11. Is an IRA trustee, issuer, or cus-
todian required to notify IRA owners that
no RMD is due for 2020?
A-11. Yes, an IRA trustee, issuer, or
custodian must notify an IRA owner that
no RMD is due for 2020. This requirement
is satisfied if a copy of the Form 5498 that
is filed with the IRS is furnished to the
IRA owner.
Q-12. Does the waiver of 2020 RMDs
apply in the case of a distribution from
a defined benefit plan that uses the rule
in § 1.401(a)(9)-6 Q&A-1(d)(1) (under
which the plan determines the portion of
a single sum distribution that is an RMD
as if the plan were an individual account
plan)?
A-12. No, the waiver of 2020 RMDs
under § 401(a)(9)(I) does not apply to a
defined benefit plan. This is the case even
if the defined benefit plan is using the rule
in § 1.401(a)(9)-6 Q&A-1(d)(1) to deter-
mine the portion of a single sum distribu-
tion that is an RMD.
VI. EFFECT ON OTHER
DOCUMENTS
Notice 2007–7 is modified by Q&A–3
of this notice.
DRAFTING INFORMATION
The principal author of this notice is
Brandon Ford of the Office of the Asso-
ciate Chief Counsel (Employee Benefits,
Exempt Organizations, and Employment
Taxes). For further information regarding
this notice, contact Brandon Ford at (202)
317-4148 (not a toll-free number).

July 13, 2020 78 Bulletin No. 2020–29
Appendix
Defined Contribution Plan Sample Amendment for Section 401(a)(9)(I)
Notwithstanding section ________ of the plan, whether a participant or beneficiary who would have been required to receive re-
quired minimum distributions in 2020 (or paid in 2021 for the 2020 calendar year for a participant with a required beginning date of
April 1, 2021) but for the enactment of section 401(a)(9)(I) of the Code (2020 RMDs), and who would have satisfied that requirement
by receiving distributions that are either (1) equal to the 2020 RMDs, or (2) one or more payments (that include the 2020 RMDs) in
a series of substantially equal periodic payments made at least annually and expected to last for the life (or life expectancy) of the
participant, the joint lives (or joint life expectancies) of the participant and the participant’s designated beneficiary, or for a period of
at least 10 years (Extended 2020 RMDs), will receive those distributions is determined in accordance with the option chosen by the
employer in the adoption agreement. Notwithstanding the option chosen by the employer in the adoption agreement, a participant or
beneficiary will be given an opportunity to make an election as to whether or not to receive those distributions.
In addition, notwithstanding section ________ of the plan, and solely for purposes of applying the direct rollover provisions of
the plan, certain additional distributions in 2020, as chosen by the employer in the adoption agreement, will be treated as eligible
rollover distributions.
If no election is made by the employer in the adoption agreement, a direct rollover will be offered only for distributions that would
be eligible rollover distributions in the absence of section 401(a)(9)(I).
(Adoption agreement provisions)
Effective date of amendment providing choice for 2020 RMDs
Section ______ of the plan providing for a choice of whether a participant or beneficiary will receive 2020 RMDs is effective
_____________________.
Treatment of 2020 RMDs in the absence of a participant or beneficiary election
________ A participant or beneficiary who would have been required to receive a 2020 RMD will receive this distribution unless the
participant or beneficiary chooses not to receive the distribution.
________ A participant or beneficiary who would have been required to receive a 2020 RMD will not receive this distribution unless
the participant or beneficiary chooses to receive the distribution.
Direct Rollovers
For purposes of the direct rollover provisions of the plan, the following will also be treated as eligible rollover distributions in 2020:
(Check one or none.)
________ 2020 RMDs (as defined in the plan).
________ 2020 RMDs and Extended 2020 RMDs (both as defined in the plan).
________ 2020 RMDs (as defined in the plan) but only if paid with an additional amount that is an eligible rollover distribution
without regard to section 401(a)(9)(I).

Bulletin No. 2020–29 79 July 13, 2020
COVID-19 Relief and Other
Guidance on Mid-Year
Reductions or Suspensions
of Contributions to Safe
Harbor § 401(k) and
§ 401(m) Plans
Notice 2020-52
I. PURPOSE
This notice clarifies the requirements
that apply to a mid-year amendment to
a safe harbor § 401(k) or § 401(m) plan
that reduces only contributions made on
behalf of highly compensated employees
(HCEs), as defined in § 414(q) of the In-
ternal Revenue Code (Code). This notice
also provides temporary relief in connec-
tion with the ongoing Coronavirus Dis-
ease 2019 (COVID-19) pandemic from
certain requirements that would otherwise
apply to a mid-year amendment to a safe
harbor § 401(k) or § 401(m) plan adopted
between March 13, 2020, and August 31,
2020, that reduces or suspends safe harbor
contributions.
II. BACKGROUND
A. Exemptions from Actual Deferral
Percentage (ADP) and Actual
Contribution Percentage (ACP) Testing
for Safe Harbor Plans
Under § 401(a)(4) and § 1.401(a)(4)-
1(b)(2), contributions or benefits pro-
vided under a qualified retirement plan
must not be discriminatory in amount in
favor of HCEs. Under § 401(k)(3) and
§ 1.401(k)-1(a)(4)(iv)(A) and (b)(1)(ii)
(A), a § 401(k) plan satisfies this require-
ment if elective contributions made on be-
half of eligible employees for a year satis-
fy the ADP test described in § 1.401(k)-2.
Under § 401(m)(2) and § 1.401(m)-1(a)
(1)(i) and (b)(1)(i), a similar test, the ACP
test, applies to matching contributions and
employee contributions.
As an alternative to satisfying the an-
nual ADP test, a plan may satisfy the ADP
safe harbor provisions of § 401(k)(12) (a
traditional safe harbor § 401(k) plan) or
§ 401(k)(13) (a qualified automatic contri-
bution arrangement (QACA) safe harbor
§ 401(k) plan). Similarly, as an alterna-
tive to satisfying the annual ACP test with
respect to matching contributions, a plan
may satisfy the ACP safe harbor provi-
sions of § 401(m)(11) (a traditional safe
harbor § 401(m) plan) or § 401(m)(12) (a
QACA safe harbor § 401(m) plan).
B. Safe Harbor Contributions
Under § 1.401(k)-3(a)(1), a tradition-
al safe harbor § 401(k) plan is required
to satisfy the safe harbor contribution
requirements of either § 1.401(k)-3(b)
(safe harbor nonelective contributions)
or § 1.401(k)-3(c) (safe harbor matching
contributions) for the plan year. Under
§ 1.401(k)-3(b) and (c), contributions
must be made on behalf of each eligible
employee who is not an HCE (NHCE).
Similarly, under § 1.401(m)-3(a)(1), a
traditional safe harbor § 401(m) plan is
required to satisfy the safe harbor contri-
bution requirements of either § 1.401(m)-
3(b), which cross-references the safe har-
bor nonelective contribution requirements
of § 1.401(k)-3(b), or § 1.401(m)-3(c),
which cross-references the safe harbor
matching contribution requirements of
§ 1.401(k)-3(c), for the plan year.
Under § 1.401(k)-3(a)(2), a QACA
safe harbor § 401(k) plan is required to
satisfy the safe harbor contribution re-
quirements of § 1.401(k)-3(k) for the plan
year. Under § 1.401(k)-3(k)(1), a QACA
safe harbor § 401(k) plan must satisfy ei-
ther the safe harbor nonelective contribu-
tion requirements of § 1.401(k)-3(b) or the
safe harbor matching contribution require-
ments of § 1.401(k)-3(c), as modified by
§ 1.401(k)-3(k)(2) and (3). Similarly, un-
der § 1.401(m)-3(a)(2), a QACA safe har-
bor § 401(m) plan is required to satisfy the
safe harbor requirements of § 1.401(k)-3,
including the safe harbor contribution re-
quirements of § 1.401(k)-3(k).
Subject to certain requirements, a plan
that includes safe harbor contributions
also may include contributions that are not
safe harbor contributions.

For example, a
traditional safe harbor § 401(k) plan that
includes safe harbor nonelective contri-
butions may also provide either (1) a dis-
cretionary matching contribution of 4% of
safe harbor compensation that would not
need to satisfy the ACP test because the
contribution satisfies the requirements of
§ 1.401(m)-3(d) (including the limits on
matching rate increases, matching contri-
butions, and matching rates on behalf of
HCEs as compared to matching rates on
behalf of NHCEs), or (2) a discretionary
matching contribution in excess of 4% of
safe harbor compensation that would need
to satisfy the ACP test because the con-
tribution does not satisfy the limit on dis-
cretionary matching contributions under
§ 1.401(m)-3(d)(3)(ii). Under § 1.401(k)-
3(a)(3), neither of these types of addition-
al matching contributions are referred to
as safe harbor contributions.
C. Mid-Year Changes to Safe Harbor
Plans and Notices
Section 1.401(k)-3(e)(1) provides that,
in general, a plan will fail to satisfy the
requirements of § 401(k)(12) and (13)
and § 1.401(k)-3 unless plan provisions
that satisfy the safe harbor plan rules of
§ 1.401(k)-3 are adopted before the first
day of the plan year and remain in effect
for an entire 12-month plan year. In ad-
dition, § 1.401(k)-3(e)(1) provides that,
except as provided in § 1.401(k)-3(g) or
in guidance of general applicability pub-
lished in the Internal Revenue Bulletin, a
plan that includes provisions that satisfy
the safe harbor plan rules of § 1.401(k)-3
will not satisfy the nondiscrimination re-
quirements for § 401(k) plans for a plan
year if the plan is amended to change
those provisions during the plan year. Sec-
tion 1.401(m)-3(f) includes similar provi-
sions for safe harbor § 401(m) plans.
Section 1.401(k)-3(g) provides that
a plan that includes safe harbor contri-
butions for a plan year may be amended
during the plan year to reduce or suspend
future safe harbor matching contributions
or safe harbor nonelective contributions if
the plan is also amended to provide that
the ADP test will be satisfied for the entire
plan year in which the reduction or suspen-
sion occurs (using the current year testing
method) and if certain other requirements
are satisfied. Section 1.401(k)-3(g)(1)(i)
sets forth the requirements for a mid-year
reduction or suspension of safe harbor
matching contributions, and § 1.401(k)-
3(g)(1)(ii) sets forth the requirements for
a mid-year reduction or suspension of safe
harbor nonelective contributions.

July 13, 2020 80 Bulletin No. 2020–29
Under § 1.401(k)-3(g)(1)(i)(A) and (ii)
(A), the employer must either (1) be op-
erating at an economic loss (as described
in § 412(c)(2)(A)) for the plan year, or
(2) have included in the plan’s safe harbor
notice (as described in § 1.401(k)-3(d))
for the plan year a statement that the plan
may be amended during the plan year to
reduce or suspend safe harbor contribu-
tions and that the reduction or suspension
will not apply earlier than 30 days after
all eligible employees are provided no-
tice of the reduction or suspension. Under
§ 1.401(k)-3(g)(1)(i)(C) and (ii)(C), the
reduction or suspension of safe harbor
contributions may be effective no earlier
than the later of the date the amendment is
adopted or 30 days after eligible employ-
ees are provided the supplemental notice
described in § 1.401(k)-3(g)(2). Under
§ 1.401(k)-3(g)(1)(i)(D) and (ii)(D), eligi-
ble employees must be given a reasonable
opportunity (including a reasonable period
after receipt of the supplemental notice)
prior to the reduction or suspension of safe
harbor contributions to change their cash
or deferred elections and, if applicable,
their employee contribution elections.
Section 1.401(m)-3(h) provides rules
similar to those of § 1.401(k)-3(g) for a
reduction or suspension of future safe har-
bor matching contributions or safe harbor
nonelective contributions in a safe harbor
§ 401(m) plan.
Notice 2016-16, 2016-7 I.R.B. 318,
provides guidance on mid-year chang-
es to safe harbor plans to the extent that
conditions for those mid-year changes are
not addressed in the Code or regulations
(including conditions for reducing or sus-
pending safe harbor contributions under
§§ 1.401(k)-3(g) and 1.401(m)-3(h)). Sec-
tion III.B of Notice 2016-16 provides that
a change made to a safe harbor plan or to a
plan’s required safe harbor notice content
does not fail to satisfy the requirements
of §§ 1.401(k)-3 and 1.401(m)-3 merely
because the change is a mid-year change,
provided that (1) if it is a mid-year change
to a plan’s required safe harbor notice
content, the notice and election opportu-
nity conditions in section III.C of Notice
2016-16 are satisfied; and (2) the mid-year
change is not described in a list of prohib-
ited mid-year changes in section III.D of
Notice 2016-16. Section III.A of Notice
2016-16 defines required safe harbor no-
tice content as the information that is re-
quired by the safe harbor plan regulations
to be provided in a plan’s safe harbor no-
tice. For example, a plan’s safe harbor no-
tice must describe any other contributions
under the plan or matching contributions
to another plan on account of elective
contributions or employee contributions
under the plan (including the potential for
discretionary matching contributions) and
the conditions under which such contribu-
tions are made. See § 1.401(k)-3(d)(2)(ii)
(B).
D. COVID-19 Pandemic
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 COVID-19
pandemic. In connection with the
COVID-19 pandemic, the Department of
the Treasury (Treasury Department) and
the Internal Revenue Service (IRS) have
issued guidance postponing certain dead-
lines. See, for example, Notice 2020-51
(extending the 60-day rollover period for
certain distributions to August 31, 2020),
which was released on June 23, 2020.
During the ongoing COVID-19 pan-
demic, many employers are facing unex-
pected financial challenges. The Treasury
Department and the IRS have received
comments that, as a result of these un-
expected financial challenges, employers
may need to reduce or suspend contribu-
tions under their safe harbor plans in order
to satisfy payroll and other operating costs.
One option that an employer maintaining
a safe harbor plan may be considering is
to reduce plan contributions made on be-
half of HCEs. However, an employer may
be uncertain as to whether an amendment
that reduces only contributions made on
behalf of HCEs is subject to the conditions
for reducing or suspending safe harbor
contributions set forth in §§ 1.401(k)-3(g)
and 1.401(m)-3(h). An employer may also
be considering reducing or suspending a
plan’s safe harbor matching contributions
or safe harbor nonelective contributions.
However, an employer may be uncertain
as to whether it is operating at an econom-
ic loss for the plan year and, due to the
unexpected nature of the COVID-19 pan-
demic, the employer may not have fore-
seen the need to have included a statement
in the plan’s safe harbor notice that safe
harbor contributions may be reduced mid-
year. Further, in light of the COVID-19
pandemic, an employer may have difficul-
ty satisfying the timing requirements for
providing notice of reductions or suspen-
sions of safe harbor contributions.
III. CLARIFICATION OF
REQUIREMENTS FOR REDUCING
CONTRIBUTIONS MADE ON
BEHALF OF HCEs
As described in section II.B of this
notice, contributions made on behalf of
HCEs are not included in the definition of
safe harbor contributions. Accordingly, a
mid-year change that reduces only con-
tributions made on behalf of HCEs is not
a reduction or suspension of safe harbor
contributions described in §§ 1.401(k)-
3(g) and 1.401(m)-3(h). However, a mid-
year change that reduces only contribu-
tions made on behalf of HCEs would be a
mid-year change to a plan’s required safe
harbor notice content for purposes of sec-
tion III.B of Notice 2016-16. Therefore,
in order to satisfy the notice and election
opportunity conditions of section III.C of
Notice 2016-16, which apply generally
to changes that affect required safe har-
bor notice content and are not reductions
or suspensions of safe harbor contribu-
tions, an updated safe harbor notice and
an election opportunity must be provided
to HCEs to whom the mid-year change
applies, determined as of the date of issu-
ance of the updated safe harbor notice.
1
1
The guidance in this section III does not address the impact on Notice 2016-16 of section 103 of Division O of the Further Consolidated Appropriations Act, 2020, P.L. 116-94, known as the
Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act). Among other changes, SECURE Act section 103 eliminated the safe harbor notice requirements of
§ 401(k)(12)(D) and (13)(E) for plans that satisfy the safe harbor nonelective contribution requirements of either § 401(k)(12)(C) or 401(k)(13)(D)(i)(II).

Bulletin No. 2020–29 81 July 13, 2020
IV. TEMPORARY COVID-19 RELIEF
REGARDING REDUCTIONS OR
SUSPENSIONS OF SAFE HARBOR
CONTRIBUTIONS
Due to the unprecedented nature of
the COVID-19 pandemic, the Treasury
Department and the IRS are providing
the following temporary relief with re-
spect to a reduction or suspension of safe
harbor contributions in order to provide
employers with more flexibility during
the COVID-19 pandemic, while retain-
ing certain existing participant protec-
tions:
A. Temporary Relief Related to Mid-
Year Reductions or Suspensions of
Safe Harbor Matching or Safe Harbor
Nonelective Contributions
If a plan amendment that reduces or
suspends safe harbor matching contri-
butions or safe harbor nonelective con-
tributions during a plan year is adopted
between March 13, 2020, and August
31, 2020, then the plan will not be treat-
ed as failing to satisfy the requirement in
§§ 1.401(k)-3(g)(1)(i)(A) and (ii)(A) and
1.401(m)-3(h)(1)(i)(A) and (ii)(A) that
the employer either (1) is operating at an
economic loss (as described in § 412(c)
(2)(A)) for the plan year, or (2) has in-
cluded in the plan’s safe harbor notice (as
described in § 1.401(k)-3(d)) for the plan
year a statement that (a) the plan may be
amended during the plan year to reduce or
suspend the safe harbor contributions and
(b) the reduction or suspension will not
apply until at least 30 days after all eligi-
ble employees are provided notice of the
reduction or suspension.
B. Temporary Relief Related to the
Supplemental Notice Requirement for
Mid-Year Reductions or Suspensions of
Safe Harbor Nonelective Contributions
If a plan amendment that reduces or
suspends safe harbor nonelective con-
tributions during a plan year is adopted
between March 13, 2020, and August 31,
2020, then the plan will not be treated
as failing to satisfy the requirements of
§ 1.401(k)-3(g)(1)(ii) or § 1.401(m)-3(h)
(1)(ii) merely because a supplemental
notice is not provided to eligible employ-
ees at least 30 days before the reduction
or suspension of safe harbor nonelective
contributions is effective, provided that
(1) the supplemental notice is provided to
eligible employees no later than August
31, 2020, and (2) the plan amendment that
reduces or suspends safe harbor nonelec-
tive contributions is adopted no later than
the effective date of the reduction or sus-
pension of safe harbor nonelective contri-
butions.
This notice does not provide relief with
respect to the timing of supplemental no-
tices for a mid-year reduction or suspen-
sion of safe harbor matching contributions
under § 1.401(k)-3(g)(1)(i) or 1.401(m)-
3(h)(1)(i) because matching contribution
levels communicated to employees direct-
ly affect employee decisions regarding
elective contributions (and, if applicable,
employee contributions).
V. SECTION 403(b) PLANS
Sections III and IV of this notice apply
on similar terms to § 403(b) plans that ap-
ply the § 401(m) safe harbor rules pursu-
ant to § 403(b)(12).
VI. EFFECT ON OTHER
DOCUMENTS
Notice 2016-16 is clarified by section
III of this notice.
VII. DRAFTING INFORMATION
The principal author of this notice
is Kara M. Soderstrom of the Office of
the Associate Chief Counsel (Employ-
ee Benefits, Exempt Organizations, and
Employment Taxes). However, other
personnel from the Treasury Department
and the IRS participated in the develop-
ment of this guidance. For further infor-
mation regarding this notice, contact Ms.
Soderstrom at (202) 317-6799 (not a toll-
free number).

July 13, 2020 82 Bulletin No. 2020–29
NOTE. This revenue procedure will be reproduced as the next revision of IRS Publication 1179, General Rules and Specifications for Substitute Forms 1096, 1098,
1099, 5498, and Certain Other Information Returns.
Forms and instructions. (Also, Part 1, Sections 101, 162(f), 170, 199A, 220, 223, 401(a), 403(a), 403(b), 408, 408A, 457(b), 529, 529A, 530, 853A, 1400Z-1, 1400Z–2,
1441, 6041, 6041A, 6042, 6043, 6044, 6045, 6047, 6049, 6050A, 6050B, 6050D, 6050E, 6050H, 6050J, 6050N, 6050P, 6050Q, 6050R, 6050S, 6050U, 6050W,
6050X, 6050Y, 6071, 1.402A-2, 1.408-5, 1.408-7, 1.408-8, 1.408A-7, 1.1441-1 through 1.1441-5, 1.1471-4, 1.6041-1, 1.6042-2, 1.6042-4, 1.6043-4, 1.6044-2,
1.6044-5, 1.6045-1, 1.6045-2, 1.6045-4, 1.6047-1, 1.6047-2, 1.6049-4, 1.6049-6, 1.6049-7, 1.6050A-1, 1.6050B-1, 1.6050D-1, 1.6050E-1, 1.6050H-1, 1.6050H-2,
1.6050J-1T, 1.6050N-1, 1.6050P-1, 1. 6050S-1, 1.6050S-3, 1.6050W-1, 1.6050W-2, 1.6050Y-1, 1.6050Y-2, 1.6050Y-3.)
Rev. Proc. 2020-35
TABLE OF CONTENTS
Part 1 – GENERAL INFORMATION
Section 1.1 – Overview of Revenue Procedure 2020-35/What’s New ............................................83
Section 1.2 – Definitions ...............................................................................86
Section 1.3 – General Requirements for Acceptable Substitute Forms 1096, 1097-
BTC, 1098, 1099, 3921, 3922, 5498, W-2G, and 1042-S ...........................................86
Part 2 – SPECIFICATIONS FOR SUBSTITUTE FORMS 1096 AND COPIES A OF
FORMS 1098, 1099, 3921, 3922, AND 5498 (ALL FILED WITH THE IRS)
Section 2.1 – Specifications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .89
Section 2.2 – Instructions for Preparing Paper Forms That Will Be Filed With the IRS ..............................94
Part 3 – SPECIFICATIONS FOR SUBSTITUTE FORM W-2G (FILED WITH THE IRS)
Section 3.1 – General .................................................................................96
Section 3.2 – Specifications for Copy A of Form W-2G .......................................................96
Part 4 – SUBSTITUTE STATEMENTS TO FORM RECIPIENTS AND FORM RECIPIENT COPIES
Section 4.1 – Specifications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .97
Section 4.2 – Composite Statements .....................................................................101
Section 4.3 – Additional Information for Substitute and Composite Forms 1099-B ................................103
Section 4.4 – Required Legends ........................................................................103
Section 4.5 – Miscellaneous Instructions for Copies B, C, D, E, 1, and 2 ........................................105
Section 4.6 – Electronic Delivery of Recipient Statements ...................................................107
Part 5 – ADDITIONAL INSTRUCTIONS FOR SUBSTITUTE FORMS 1097- BTC, 1098, 1099, 5498,
W-2G, AND 1042-S
Section 5.1 – Paper Substitutes for Form 1042-S ...........................................................108
Section 5.2 – OMB Requirements for All Forms in This Revenue Procedure .....................................110
Section 5.3 – Ordering Forms and Instructions .............................................................111
Section 5.4 – Effect on Other Revenue Procedures .........................................................112
Part 6 – EXHIBITS
Section 6.1 – Exhibits of Forms in this Revenue Procedure ...................................................112

Bulletin No. 2020–29 83 July 13, 2020
Part 1
General Information
Section 1.1 – Overview of Revenue Procedure 2020-35/What’s New
1.1.1
Purpose
The purpose of this revenue procedure is to set forth the 2020 requirements for:
• Using official Internal Revenue Service (IRS) forms to file information returns with the IRS,
•
Preparing acceptable substitutes of the official IRS forms to file information returns with the
IRS, and
• Using official or acceptable substitute forms to furnish information to recipients.
1.1.2
Which Forms
Are Covered?
This revenue procedure contains specifications for these information returns:
FormTitle
1096Annual Summary and Transmittal of U.S. Information Returns
1097-BTCBond Tax Credit
1098Mortgage Interest Statement
1098-CContributions of Motor Vehicles, Boats, and Airplanes
1098-EStudent Loan Interest Statement
1098-FFines, Penalties, and Other Amounts
1098-MAMortgage Assistance Payments
1098-QQualifying Longevity Annuity Contract Information
1098-TTuition Statement
1099-AAcquisition or Abandonment of Secured Property
1099-BProceeds From Broker and Barter Exchange Transactions
1099-CCancellation of Debt
1099-CAPChanges in Corporate Control and Capital Structure
1099-DIVDividends and Distributions
1099-GCertain Government Payments
1099-INTInterest Income
1099-KPayment Card and Third Party Network Transactions
1099-LSReportable Life Insurance Sale
1099-LTCLong-Term Care and Accelerated Death Benefits
1099-MISCMiscellaneous Income
1099-NECNonemployee Compensation
1099-OIDOriginal Issue Discount
1099-PATRTaxable Distributions Received From Cooperatives
1099-QPayments From Qualified Education Programs (Under Sections 529 and 530)
1099-QADistributions From ABLE Accounts

July 13, 2020 84 Bulletin No. 2020–29
FormTitle
1099-RDistributions From Pensions, Annuities, Retirement or Profit-Sharing Plans,
IRAs, Insurance Contracts, etc.
1099-SProceeds From Real Estate Transactions
1099-SADistributions From an HSA, Archer MSA, or Medicare Advantage MSA
1099-SBSeller's Investment in Life Insurance Contract
3921Exercise of an Incentive Stock Option Under Section 422(b)
3922Transfer of Stock Acquired Through An Employee Stock Purchase Plan Under
Section 423(c)
5498IRA Contribution Information
5498-ESACoverdell ESA Contribution Information
5498-QAABLE Account Contribution Information
5498-SAHSA, Archer MSA, or Medicare Advantage MSA Information
W-2GCertain Gambling Winnings
1042-SForeign Person’s U.S. Source Income Subject to Withholding
1.1.3
Scope
For purposes of this revenue procedure, a substitute form or statement is one that is not published
by the IRS. For a substitute form or statement to be acceptable to the IRS, it must conform to the
official form or the specifications outlined in this revenue procedure. Do not submit any substitute
forms or statements listed above to the IRS for approval. Privately published forms may not state,
“This is an IRS approved form.”
Filers making payments to certain recipients during a calendar year are required by the Internal
Revenue Code (the Code) to file information returns with the IRS for these payments. These filers
must also provide this information to their recipients. In some cases, this also applies to payments
received. See Part 4 for specifications that apply to recipient statements (generally Copy B).
In general, section 6011 of the Code contains requirements for filers of information returns. A filer
must file information returns electronically or on paper. A filer who is required to file 250 or more
information returns of any one type during a calendar year must file those returns electronically.
Caution. Financial institutions that are required to report payments made under chapter 3 or 4
must file Forms 1042-S electronically, regardless of the number of forms to file.
Note. If you file electronically, do not file the same returns on paper.
Although not required, small volume filers (fewer than 250 returns during a calendar year) may
file the forms electronically. See the requirements for filing information returns (and providing a
copy to a payee) in the 2020 General Instructions for Certain Information Returns and the 2020
Instructions for Form 1042-S. In addition, see the current revision of Publication 1220, Specifica-
tions for Electronic Filing of Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G, for electronic
filing through the IRS FIRE system.
1.1.4

For More
Information
The IRS prints and provides the forms on which various payments must be reported. See Sec-
tion 5.3, later, for ordering forms and instructions. Alternately, filers may prepare substitute copies
of these IRS forms and use such forms to report payments to the IRS.

Bulletin No. 2020–29 85 July 13, 2020
• The Internal Revenue Service/Information Returns Branch (IRS/IRB) maintains a central-
ized customer service call site to answer questions related to information returns (Forms
W-2, W-3, W-2c, W-3c, 1099 series, 1096, etc.). You can reach the call site at 866-455-7438
(toll-free) or outside the U.S. 304-263-8700 (not a toll-free number). Persons with a hearing
or speech disability with access to TTY/TDD equipment can call 304-579-4827 (not a toll-
free number). You may also send questions to the call site via the Internet at mccirp@irs.
gov. Note. IRS/IRB does not process information returns which are filed on paper forms. See
Publication 1220 for information on waivers and extensions of time.
•
For other tax information related to business returns or accounts, call 800-829-4933. Persons
with hearing or speech disabilities with access to TTY/TDD equipment can call 800-829-
4059 to ask tax account questions or to order forms and publications.
Note. Further information impacting Publication 1179, such as issues arising after its final release,
will be posted on IRS.gov at IRS.gov/pub1179.
1.1.5
What’
s New
The following changes have been made to this year’s revenue procedure. For further information
about each form listed below, see the separate reporting instructions.
Redesigned Form 1099-MISC. Due to the creation of Form 1099-NEC, we have revised Form
1099-MISC and rearranged box numbers for reporting certain income. For the latest filing infor-
mation, see IRS.gov/Form1099-MISC.
New Form 1099-NEC. Beginning with tax year 2020, use Form 1099-NEC to report nonemploy-
ee compensation. See part C in the 2020 General Instructions for Certain Information Returns at
IRS.gov/forms-pubs/about-form-1099, and Form 8809 at IRS.gov/forms-pubs/about-form-8809
for information on extensions of time to file. See part M in the 2020 General Instructions for
Certain Information Returns for information on extensions of time to furnish recipient statements.
To ease statement furnishing requirements, Copies B, C, 1, and 2 have been made fillable online in
a PDF format available at IRS.gov/Form1099MISC and IRS.gov/Form1099NEC. You can com-
plete these copies online for furnishing statements to recipients and for retaining in your own files.
Form 1099-PATR. Numbered reporting box changes. New boxes were added and existing
boxes were renumbered, retitled, and/or repurposed to allow for reporting information to patrons
needed for section 199A. See the revised instructions for boxes 2, 5, 6, 7, 8, and 9.
Box 13 title and content change. Box 13 has been renamed and the instructions have been updat-
ed accordingly. Box 13. Specified Cooperatives. For more information, see IRS.gov/Form1099-
PATR .
Continuous use. Form 1097-BTC, Form 1098-C, Form 1098-F, Form 1098-MA, Form 1098-Q,
Form 1099-CAP, Form 1099-LS, Form 1099-LTC, Form 1099-OID, Form 1099-Q, Form 1099-
SA, and Form 1099-SB and their instructions have been converted from annual updates to contin-
uous use. These forms and their instructions will be updated as required. For more information,
see the Guide to Information Returns, in the 2020 General Instructions for Certain Information
Returns at IRS.gov/forms-pubs/about-form-1099.
Exhibits. All of the exhibits in this publication were updated to include all of the 2020 revisions
of those forms that have been revised.
Editorial changes. We made editorial changes throughout, including updated references. Redun-
dancies were eliminated as much as possible.

July 13, 2020 86 Bulletin No. 2020–29
Section 1.2 – Definitions
1.2.1
Form Recipient
Form recipient means the person to whom you are required by law to furnish a copy of the offi-
cial form or information statement. The form recipient may be referred to by different names on
various Forms 1099 and related forms (“beneficiary,” “borrower,” “debtor,” “donor,” “employee,”
“filer,” “homeowner,” “insured,” “participant,” “payee,” “payer,” “payer/borrower,” “payment re-
cipient,” “policyholder,” “seller,” “shareholder,” “student,” “transferor,” or, in the case of Form
W-2G, the “winner”). See Section 1.3.4.
1.2.2
Filer
Filer means the person or organization required by law to file with the IRS a form listed in Sec-
tion 1.1.2 with the IRS. A filer may be a payer, creditor, payment settlement entity, recipient of
mortgage or student loan interest payments, educational institution, broker, barter exchange, per-
son reporting real estate transactions; a trustee or issuer of any educational or ABLE Act savings
account, individual retirement arrangement, or medical savings account; a lender who acquires an
interest in secured property or who has reason to know that the property has been abandoned; a
corporation reporting a change in control and capital structure or transfer of stock to an employee;
certain donees of motor vehicles, boats, and airplanes; or an acquirer or issuer of a life insurance
contract.
1.2.3

Substitute Form
Substitute form means a paper substitute of Copy A of an official form listed in Section 1.1.2 that
completely conforms to the provisions in this revenue procedure.
1.2.4
Substitute Form Recipient
Statement (recipient
statement)
Substitute form recipient statement means a paper or electronic statement of the information re-
ported on a form listed in Section 1.1.2. For the remainder of this revenue procedure, we will refer
to this as a recipient statement. This statement must be furnished to a person (form recipient), as
defined under the applicable provisions of the Code and the applicable regulations.
1.2.5
Composite Substitute
Statement
Composite substitute statement means one in which two or more required statements (for exam-
ple, Forms 1099-INT and 1099-DIV) are furnished to the recipient on one document. However,
each statement must be designated separately and must contain all the requisite Form 1099 infor-
mation except as provided under Section 4.2. A composite statement may not be filed with the IRS.
Section 1.3 – General Requirements for Acceptable Substitute Forms 1096, 1097-BTC, 1098, 1099, 3921, 3922, 5498, W-2G,
and 1042-S

Bulletin No. 2020–29 87 July 13, 2020
1.3.1
Introduction
Paper substitutes for Form 1096 and Copy A of Forms 1097-BTC, 1098, 1099, 3921, 3922, 5498,
W-2G, and 1042-S that completely conform to the specifications listed in this revenue procedure
may be privately printed and filed as returns with the IRS. The reference to the Department of the
Treasury– Internal Revenue Service should be included on all such forms.
If you are uncertain of any specification and want it clarified, you may submit a letter citing the
specification, stating your understanding and interpretation of the specification, and enclosing an
example of the form (if appropriate) to:
Internal Revenue Service
Attn: Substitute Forms Program
SE:W:CAR:MP:P:TP
1111 Constitution Ave. NW
Room 6554
Washington, DC 20224
Note. Allow at least 30 days for the IRS to respond.
You may also contact the Substitute Forms Program via e-mail at substituteforms@irs.gov. Please
enter “Substitute Forms” on the Subject Line.
Forms 1096, 1097-BTC, 1098, 1099, 3921, 3922, 5498, W-2G, and 1042-S are subject to annual
review and possible change. Therefore, filers are cautioned against overstocking supplies of pri-
vately printed substitutes.
1.3.2
Logos, Slogans, and
Advertisements
Some Forms 1097-BTC, 1098, 1099, 3921, 3922, 5498, W-2G, and 1042-S that include logos,
slogans, and advertisements may not be recognized as important tax documents. A payee may not
recognize the importance of the payee copy for tax reporting purposes due to the use of logos,
slogans, and advertisements.
Accordingly, the IRS has determined that logos, slogans, and advertising are not allowed on the
payee copies of the above forms, on Copy A filed with the IRS, or on Form 1096, with the follow-
ing exceptions:
• The exact name of the payer, broker, or agent, primary trade name, trademark, service mark,
or symbol of the payer, broker, or agent, an embossment or watermark on the information
return and payee copies that is a representation of the name, a primary trade name, trademark,
service mark, or symbol of the payer, broker, or agent, that is;
•
Presented in any typeface, font, stylized fashion, or print color normally used by the payer,
broker, or agent, and used in a non intrusive manner; and
•
As long as these items do not materially interfere with the ability of the recipient to recognize,
understand, and use the tax information on the payee copies.
The IRS e-file logo on the IRS official payee copies may be included, but it is not required, on any
of the substitute form copies.
The information return and payee copies must clearly identify the payer’s name associated with
its employer identification number.
Logos and slogans may be used on permissible enclosures, such as a check or account statement,
other than information returns and payee copies.

July 13, 2020 88 Bulletin No. 2020–29
If you have comments about the restrictions on including logos, slogans, and advertising on infor-
mation returns and payee copies, send your comments to:
Internal Revenue Service
Attn: Substitute Forms Program
SE:W:CAR:MP:P:TP
1111 Constitution Ave. NW
Room 6554
Washington, DC 20224
or email them to substituteforms@irs.gov.
1.3.3
Copy
A Specifications
Proposed substitutes of Copy A must be exact replicas of the official IRS form with respect to
layout and content. Proposed substitutes for Copy A that do not conform to the specifications in
this revenue procedure are not acceptable.
Further, if you file such forms with the IRS, you may be subject to a penalty for failure to file a
correct information return under section 6721 of the Code. The amount of the penalty is based on
when you file the correct information return.
Penalties. The amounts of the penalty for returns required to be filed in 2020 is shown in Penalties
in the 2020 General Instructions for Certain Information Returns. You can access the penalties
section at IRS.gov/instructions/ i1099gi#idm140065029227536.
1.3.4
Copy B and Copy C
Specifications
Copy B and Copy C of the following forms must contain the information in Part 4 to be consid-
ered a “statement” or “official form” under the applicable provisions of the Code. The format of
this information is at the discretion of the filer with the exception of the location of the tax year,
form number, form name, and the information for composite Form 1099 statements as outlined
under Section 4.2.
Copy B, of the forms below, is for the following recipients.
FormRecipient
1098For Payer/Borrower
1098-CFor Donor
1098-E; 1099-AFor Borrower
1098-FFor Payer
1098-MAFor Homeowner
1098-QFor Participant
1098-TFor Student
1099-CFor Debtor
1099-CAPFor Shareholder
1099-KFor Payee
1099-LSFor Payment Recipient
1099-LTCFor Policyholder
1099-R; W-2GIndicates that these forms may require Copy B to be at-
tached to the federal income tax return.

Bulletin No. 2020–29 89 July 13, 2020
FormRecipient
1099-SFor Transferor
1099-SBFor Seller
All remaining Forms 1099;
1097-BTC;1042-S
For Recipient
3921; 3922For Employee
5498; 5498-SAFor Participant
5498-QA; 5498-ESAFor Beneficiary

Copy C of the following forms is for the following recipients.
FormRecipient
1097-BTCFor Payer
1098For Recipient/Lender
1098-CFor Donor’s Records
1042-S; 1098-EFor Recipient
1098-F; 1098-MA; 1098-T; 1099-KFor Filer
1098-QFor Issuer
1099-CAP; 3921; 3922For Corporation
1099-LTCFor Insured
1099-QAFor Payer
1099-RFor Recipient’s Records
All other Forms 1099
See Section 4.5.2
5498For Trustee or Issuer
5498-ESA; 5498-SAFor Trustee
5498-QAFor Issuer
W-2GFor Winner’s Records
Note. On Copy C, Form 1099-LTC, you may reverse the locations of the policyholder’s and the
insured’s name, street address, city, state, and ZIP code for easier mailing.
Part 2
Specifications for Substitute Forms 1096 and Copies A of Forms 1098, 1099, 3921, 3922, and 5498 (All Filed With the IRS)
Section 2.1 – Specifications
2.1.1
Online Fillable Forms
Due to the very low volume of paper Forms 1097-BTC, 1098-C, 1098–F, 1098-MA, 1099-A,
1099-CAP, 1099-LTC, 1099-NEC, 1099-Q, 1099-QA, 1099-SA, 3922, 5498-ESA, 5498-QA, and
5498-SA received and processed by the IRS each year, these forms have been converted to fillable
online PDFs.
Note. The instructions for substitute Forms 1042-S, also a fillable online format, are found sepa-
rately in Part 5.

July 13, 2020 90 Bulletin No. 2020–29
These forms in their fillable format can be found at IRS.gov/formspubs.
All the instructions regarding the substitute forms found in Part 1, and Sections 2.1.2, 2.1.7, 2.1.9,
and 2.1.10, and the remainder of this publication, unless specified differently immediately below,
remain in effect if you are going to produce the online fillable forms as paper or online substitute
forms.
• Copy A of privately printed substitutes of the forms listed above must be exact replicas of
the official forms with respect to layout and content. Use the official form, found on IRS.gov,
printed actual size on an 8½ inches by 11 inches sheet of paper. The forms will print one to a
page.
•
All printing must be in high quality nongloss black ink.
•
Paper for Copy A must be white chemical wood bond, or equivalent, 20 pound (basis 17 x 22-
500), plus or minus 5% (0.05); or offset book paper, 50 pound (basis 25 x 38-500). No optical
brighteners may be added to the pulp or paper during manufacture. The paper must consist of
principally bleached chemical wood pulp or recycled printed paper. It must also be suitably
sized to accept ink without feathering.
Note. If you want to print the forms as they formerly appeared to save paper, with the exception of
Forms 1097-BTC (printed 2-to-a-page) and 1098-C (single form page), they are all printed 3-to-a-
page. Follow the 3-to-a-page measurements in Section 6. Form 1098-C can be found at IRS.gov/
Form1098C. Print the form to actual size, no scaling.
2.1.2
General Requir
ements
Form identifying numbers (for example, 9191 for Form 1099-DIV) must be printed in nonreflec-
tive black carbon-based ink in print positions 15 through 19 using an optical character recognition
(OCR) A font. The checkboxes to the right of the form identifying numbers must be 10-point box-
es. The “VOID” checkbox is in print position 25 (1.9 inches from left vertical line of the form).
The “CORRECTED” checkbox is in print position 33 (2.7 inches from left vertical line of the
form). Measurements are generally from the left edge of the paper, not including the perforated
strip.
The substitute form Copy A must be an exact replica of the official IRS form with respect to layout
and content. To determine the correct form measurements, see Exhibits A through CC at the end
of this publication.
Hot wax and cold carbon spots are not permitted on any of the internal form plies. These spots are
permitted on the back of a mailer top envelope ply.
Use of chemical transfer paper for Copy A is acceptable.
The Government Printing Office (GPO) symbol must be deleted.
2.1.3
Color and Paper Quality
Color and paper quality for Copy A (cut sheets and continuous pinfeed forms) as specified by JCP
Code 0-25, dated November 29, 1978, must be white 100% bleached chemical wood, OCR bond
produced in accordance with the following specifications.
Note. Reclaimed fiber in any percentage is permitted provided the requirements of this standard
are met.

Bulletin No. 2020–29 91 July 13, 2020
Acidity: Ph value, average, not less than4.5
Basis Weight: 17 x 22-500 cut sheets18-20
Metric equivalent–g/m
2
75
A tolerance of ±5 pct. is allowed.
Stiffness: Average, each direction, not less than-milligrams50
Tearing strength: Average, each direction, not less than-grams40
Opacity: Average, not less than-percent82
Thickness: Average-inch0.0038
Metric equivalent-mm0.097
A tolerance of +0.0005 inch (0.0127 mm) is allowed. Paper cannot
vary more than 0.0004 inch (0.0102 mm) from one edge to the other.
Porosity: Average, not less than-seconds10
Finish (smoothness): Average, each side-seconds20-55
For information only, the Sheffield equivalent-units170-100
Dirt: Average, each side, not to exceed-parts per million8
2.1.4
Chemical T
ransfer Paper
Chemical transfer paper is permitted for Copy A only if the following standards are met.
• Only chemically backed paper is acceptable for Copy A. Front and back chemically treated
paper cannot be processed properly by machine.
•
Carbon-coated forms are not permitted.
•
Chemically transferred images must be black.
All copies must be clearly legible. Fading must be minimized to assure legibility.
2.1.5

Printing
All print on Copy A of Forms 1097-BTC, 1098, 1098-C, 1098-E, 1098-MA, 1098-Q, 1098-T, 1099-A,
1099-B, 1099-C, 1099-DIV, 1099-G, 1099-INT, 1099-K, 1099–LS, 1099-MISC, 1099-NEC, 1099-
OID, 1099-PATR, 1099-Q, 1099-R, 1099-S, 1099–SB, 3921, 3922, 5498, and the print on Form 1096
above the statement, “Return this entire page to the Internal Revenue Service. Photocopies are not
acceptable.” must be in Flint J-6983 red OCR dropout ink or an exact match. However, the four-digit
form identifying number must be in nonreflective carbon-based black ink in OCR A font.
The shaded areas of any substitute form should generally correspond to the format of the official form.
The printing for the Form 1096 jurat statement and the text that follows may be in any shade or
tone of black ink. Black ink should only appear on the lower part of the reverse side of Form 1096,
where it will not bleed through and interfere with scanning.
Note. The instructions on the front and back of Form 1096, which include filing addresses, must
be printed.
Separation between fields must be 0.1 inch.
Other printing requirements are discussed in Sections 2.1.5 through 2.1.9.

July 13, 2020 92 Bulletin No. 2020–29
2.1.6
OCR
Specifications
You must initiate, or have, a quality control program to assure OCR ink density. Readings will be
made when printed on approved 20 lb. white OCR bond with a reflectance of not less than 80%
(0.80). Black ink must not have a reflectance greater than 15% (0.15). These readings are based
on requirements of the “BancTec IntelliScan XDS” Optical Scanner using Flint J-6983 red OCR
dropout ink or an exact match.
The following testers and ranges are acceptable:
Important information: The forms produced under these specifications must be guaranteed to
function properly when processed through High Speed Scan-Optics 9000 mm scanners. Forms
require precision spacing, printing, and trimming.
Density readings on the solid J-6983 (red) must be between the ranges of 0.95 to 0.90. The optimal
scanning range is 0.93. Density readings on the solid black must be between the ranges of 112 to
108. The optimal scanning range is 110.
Note. The readings are taken using an Ex-Rite 500 series densitometer, in Status T with Absolute
or – paper setting under an Illuminate 5000 Kelvin Watt Light. You must maintain print contrast
specification of ink and densitometer reflectivity reading throughout the entire production run.
• MacBeth PCM-II. The tested Print Contrast Signal (PCS) values when using the MacBeth
PCM-II tester on the “C” scale must range from .01 minimum to .06 maximum.
•
Kidder 082A. The tested PCS values when using the Kidder 082A tester on the Infra Red (IR)
scale must range from .12 minimum to .21 maximum. White calibration disc must be 100%.
Sensitivity must be set at one (1).
•
Alternative testers must be approved by the IRS to establish tested PCS values. You may
obtain approval by writing to the following address:
Commissioner of Internal Revenue
Attn: SE:W:CAR:MP:P:TP
Business Publishing – Tax Products
1111 Constitution Ave. NW
Room 6554
Washington, DC 20224
2.1.7

Typography
Type must be substantially identical in size and shape to the official form. All rules are either
1/2-point or 3/4-point. Rules must be identical to those on the official IRS form.
Note. The form identifying number must be nonreflective carbon-based black ink in OCR A font.
2.1.8
Dimensions
Generally, three Copies A of Forms 1098, 1099, 3921, and 3922 are contained on a single page
(3-to-a-page), 8 inches wide (without any snap-stubs and/or pinfeed holes) by 11 inches deep.
Exceptions. Forms 1097-BTC, 1098, 1098-Q, 1099-B, 1099-DIV, 1099-INT, 1099-K, 1099-
MISC, 1099-NEC, 1099-OID, 1099-R, and 5498 contain two copies on a single page (2-to-a-
page). Forms 1098-C and 1042-S are single-page documents.
There is a 0.33 inch top margin from the top of the corrected box, and a 0.2 to 0.25 inch right
margin, with a +/- 1/20 (0.05) inch tolerance for the right margin. If the right and top margins are

Bulletin No. 2020–29 93 July 13, 2020
properly aligned, the left margin for all forms will be correct. All margins must be free of print.
See Exhibits A through CC in Part 6 for correct form measurements.
These measurements are constant for certain Forms 1098, 1099, and 5498. These measurements
are shown only once in this publication, on Form 1097-BTC (Exhibit B) 2-to-a-page and on Form
1098-E (Exhibit E) 3-to-a-page. Exceptions to these measurements, and form-specific measure-
ments are shown on the rest of the exhibits.
The depth of the individual trim size of each 3-to-a-page form must be 3 2/3 inches, the same
depth as the official form, unless otherwise indicated.
The depth of the individual trim size of each 2-to-a-page form is 5 1/2 inches.
2.1.9
Perforation
Copy A (3-to-a-page and 2-to-a-page) of privately printed continuous substitute forms must
be perforated at each 11 inches page depth. No perforations are allowed between forms on the
Copy A page.
Exception. Copy A of Form W-2G may be perforated.
The words “Do Not Cut or Separate Forms on This Page” must be printed in red dropout ink (as
required by form specifications) between the 3-to-a-page or 2-to-a-page. This statement should
not be included after the last form on the page.
Separations are required between all the other individual copies (Copies B and C, and Copies 1
and 2 of Forms 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-K, 1099-MISC, 1099-NEC, 1099-
OID, 1099-R, and Copy D for Forms 1099–LS, 1099-LTC, 1099-R, and 1042-S) in the set. Any
recipient copies printed on a single sheet of paper must be easily separated. The best method of
separation is to provide perforations between the individual copies. Each copy should be easily
distinguished, whatever method of separation is used.
Note. Perforation does not apply to printouts of copies that are furnished electronically to recipi-
ents (as described in Regulations section 31.6051-1(j)). However, these recipients should be cau-
tioned to carefully separate any copies. See Section 4.6.1, later, for information on electronically
furnishing statements to recipients.
2.1.10

Required Inclusions/
Exclusions
You must include the OMB Number on Copies A and Form 1096 in the same location as on the
official form.
The following Privacy Act and Paperwork Reduction Act Notice phrases must be printed on Copy
A of the forms as follows. It must also be printed on the Copy C, D, or E of the form retained by
the filer.
•
“For Privacy Act and Paperwork Reduction Act Notice, see the current version of the General
Instructions for Certain Information Returns” on Forms 3921 and 3922.
• “For more information and the Privacy Act and Paperwork Reduction Act Notice, see
the 2020 General Instructions for Certain Information Returns” on Form 1096.
• “For Privacy Act and Paperwork Reduction Act Notice, see instructions” on Form 1042-S.
• “For Privacy Act and Paperwork Reduction Act Notice, see the 2020 General Instructions
for Certain Information Returns” must be printed on all other forms listed in Section 1.1.2.

July 13, 2020 94 Bulletin No. 2020–29
A postal indicia may be used if it meets the following criteria.
• It is printed in the OCR ink color prescribed for the form.
• No part of the indicia is within one print position of the scannable area.
The printer’s symbol (GPO) must not be printed on substitute Copy A. Instead, the employer
identification number (EIN) or the vendor code of the form’s printer must be entered in place of
the Catalog Number (Cat. No.). The 4-digit vendor code, preceded by four zeros and a slash, for
example, 0000/9876, must appear in 12-point Arial font, or a close approximation, on Copy A only
of Forms 1096, 1098-BTC, 1098, 1099, 3921, 3922, 5498, and W-2G. The vendor code is used to
identify the forms producer. Vendor codes can be obtained free of charge from the National Asso-
ciation of Computerized Tax Processors (NACTP) via email at president@nactp.org. The use of a
vendor code is recommended.
Note. Vendor codes from the NACTP are required by those companies producing the 1099 family
of forms (Forms 1096, 1097-BTC, 1098, 1099, 3921, 3922, 5498, and W-2G) as part of a product
for resale to be used by multiple issuers. Issuers developing 1099 family forms to be used only for
their individual company do not require a vendor code.
The Cat. No. shown on the forms is used for IRS distribution purposes and should not be printed
on any substitute forms.
The form must not contain the statement “IRS approved” or any similar statement.
Section 2.2 – Instructions for Preparing Paper Forms That Will Be Filed With the IRS
The form recipient’s name, street address, city, state, ZIP code, and telephone number (if required)
should be typed or machine printed in black ink in the same format as shown on the official IRS
form. The city, state, and ZIP code must be on the same line.
The following rules apply to the form recipient’s name(s).
• The name of the appropriate form recipient must be shown on the first or second name line in
the area provided for the form recipient’s name.
• No descriptive information or other name may precede the form recipient’s name.
• Only one form recipient’s name may appear on the first name line of the form.
• If multiple recipients’ names are required on the form, enter on the first name line the recipi-
ent name that corresponds to the recipient taxpayer identification number (TIN) shown on the
form. Place the other form recipients’ names on the second name line (only 2 name lines are
allowable).
Because certain states require that trust accounts be provided in a different format, filers should
generally provide information returns reflecting payments to trust accounts with the:
• Trust’s employer identification number (EIN) in the recipient’s TIN area,
• Trust’s name on the recipient’s first name line, and
2.2.1
Recipient Information

Bulletin No. 2020–29 95 July 13, 2020
• Name of the trustee on the recipient’s second name line.
Although handwritten forms will be accepted, the IRS prefers that filers type or machine print
data entries. Also, filers should insert data as directed by shading, or in the middle of blocks, well
separated from other printing and guidelines, and take measures to guarantee clear, dark black,
sharp images. Photocopies are not acceptable.
Truncating payee identification number on payee statements. Where permitted, filers may
truncate a payee’s identification number (social security number (SSN), individual taxpayer iden-
tification number (ITIN), adoption taxpayer identification number (ATIN), or employer identi-
fication number (EIN)) on the payee statement (including substitute and composite substitute
statements) furnished to the payee in paper form or electronically. Generally, the payee statement
is that copy of an information return designated “Copy B” on the form. To truncate where allowed,
replace the first 5 digits of the 9-digit number with asterisks (*) or Xs (for example, an SSN xxx-
xx-xxxx would appear on the paper payee statement as ***-**-xxxx or XXX-XX-xxxx). See
Treasury Decision 9675, 2014-31 I.R.B. 242, available at IRS.gov/irb/2014-31_IRB#TD-9675.
Caution. Recipient TINs must not be truncated on Copy A filed with the IRS.
2.2.2
Account Number
Box
Use the account number box on all Forms 1098, 1099, 3921, 3922, 5498, and W-2G for an account
number designation when required by the official IRS form. The account number is required if you
have multiple accounts for a recipient for whom you are filing more than one information return
of the same type. Additionally, the IRS encourages you to include the recipients’ account numbers
on paper forms if your system of records uses the account number rather than the name or TIN
for identification purposes. Also, the IRS will include the account number in future notices to you
about backup withholding. If you are using window envelopes to mail statements to recipients and
using reduced rate mail, be sure the account number does not appear in the window. The Postal
Service may not accept these for reduced rate mail.
Exception. Form 1098-T can have third-party provider information.
2.2.3
Specifications and
Restrictions
• Machine-printed forms should be printed using a 6 lines/inch option, and should be printed
in 10 pitch pica (10 print positions per inch) or 12 pitch elite (12 print positions per inch).
Proportional spaced fonts are unacceptable.
• Substitute forms prepared in continuous or strip form must be burst and stripped to conform to
the size specified for a single sheet before they are filed with the IRS. The size specified does
not include pin feed holes. Pin feed holes must not be present on forms filed with the IRS.
• Do not use a felt tip marker. The machine used to “read” paper forms generally cannot read
this ink type.
• Do not use dollar signs ($), ampersands (&), asterisks (*), commas (,), or other special char-
acters in the numbered money boxes.
Exception. Use decimal points to indicate dollars and cents (for example, 2000.00 is acceptable).
• Do not use apostrophes (’), asterisks (*), or other special characters on the payee name line.
• Do not fold Forms 1097-BTC, 1098, 1099, 3921, 3922, or 5498 mailed to the IRS. Mail these
forms flat in an appropriately sized envelope or box. Folded documents cannot be readily
moved through the machine used in IRS processing.

July 13, 2020 96 Bulletin No. 2020–29
• Do not staple Forms 1096 to the transmitted returns. Any staple holes near the return code
number may impair the IRS’s ability to machine scan the type of documents.
• Do not type other information on Copy A.
• Do not cut or separate the individual forms on the sheet of forms of Copy A (except Forms
W-2G).
2.2.4
Wher
e To File
Mail completed paper forms to the IRS service center shown in the Instructions for Form 1096
and in the 2020 General Instructions for Certain Information Returns. Specific information needed
to complete the forms mentioned in this revenue procedure are given in the specific form instruc-
tions. A chart showing which form must be filed to report a particular payment is included in the
2020 General Instructions for Certain Information Returns.
Part 3
Specifications for Substitute Form W-2G (Filed With the IRS)
Section 3.1 – General
3.1.1

Purpose
The following specifications give the format requirements for substitute Form W-2G (Copy A
only), which is filed with the IRS.
A filer may use a substitute Form W-2G to file with the IRS (referred to as “substitute Copy A”).
The substitute form must be an exact replica of the official form with respect to layout and content.
Section 3.2 – Specifications for Copy A of Form W-2G
3.2.1
Substitute Form W-2G
(Copy A)
You must follow these specifications when printing substitute Copy A of the Form W-2G.
Caution. The payee’s TIN (SSN, ITIN, ATIN, or EIN) must not be truncated on Copy A of Form
W2-G.
ItemSubstitute Form W-2G (Copy A)
Paper Color and
Quality
Paper for Copy A must be white chemical wood bond, or equivalent,
20 pound (basis 17 x 22-500), plus or minus 5% (0.05). The paper must
consist substantially of bleached chemical wood pulp. It must be free
from unbleached or ground wood pulp or post-consumer recycled paper.
It must also be suitably sized to accept ink without feathering.
Ink Color and
Quality
All printing must be in a high quality nongloss black ink.

Bulletin No. 2020–29 97 July 13, 2020
ItemSubstitute Form W-2G (Copy A)
TypographyThe type must be substantially identical in size and shape to the official
form. All rules on the document are either 1/2 point (0.007 inch), 1
point (0.015 inch), or 3 point (0.045). Vertical rules must be parallel to
the left edge of the document; horizontal rules to the top edge.
DimensionsThe official form is 8 inches wide x 51/2 inches deep, exclusive of a
snap stub. Any substitute Copy A can be between 8 inches and 81/2
inches wide by 5 inches deep. The snap feature is not required on
substitutes. All margins must be free of print. There is a 0.33 inch top
margin from the top of the corrected box, and a 1/2 inch left margin. If
the top and left margins are properly aligned, the right margin for all
forms will be correct. If the substitute forms are in continuous or strip
form, they must be burst and stripped to conform to the size specified
for a single form.
Hot Wax and Cold
Carbon Spots
Hot wax and cold carbon spots are not permitted on any of the internal
form plies. These spots are permitted on the back of a mailer top enve-
lope ply.
Printer’s SymbolThe Government Printing Office (GPO) symbol must not be printed on
substitute Forms W-2G. Instead, the employer identification number
(EIN) of the form’s printer must be printed in the bottom margin on the
face of each individual Copy A on a sheet. The form must not contain
the statement “IRS approved” or any similar statement.
Catalog NumberThe Catalog Number (Cat. No.) shown on Form W-2G is used for IRS
distribution purposes and should not be printed on any substitute forms.
Part 4
Substitute Statements to Form Recipients and Form Recipient Copies
Section 4.1 – Specifications
4.1.1
Introduction
If you do not use the official IRS form to furnish statements to recipients, you must furnish an
acceptable substitute statement. Information presented in substitute statements should be in a
point size large enough to be easily read by recipients. To be acceptable, your substitute statement
must comply with the rules in this Part. If you are furnishing a substitute form, see Regulations
sections 1.6042-4, 1.6044-5, 1.6049-6, and 1.6050N-1 to determine how the following statements
must be provided to recipients for most Forms 1099-DIV and 1099-INT, all Forms 1099-OID and
1099-PATR, and Form 1099-MISC, or 1099-S for royalties. Generally, information returns may
be furnished electronically with the consent of the recipient. See Section 4.6.1.
Note. A trustee of a grantor-type trust may choose to file Forms 1099 and furnish a statement to
the grantor under Regulations sections 1.671-4(b)(2)(iii) and (b)(3)(ii). The statement required by
those regulations is not subject to the requirements outlined in this section.
4.1.2
Substitute Statements to
Recipients for Certain
Forms 1099-B, 1099- DIV,
1099-INT, 1099-OID, and
1099-PATR
The rules in this section apply to Form 1099-B, 1099-DIV (except for section 404(k) dividends),
1099-INT (except for interest reportable under section 6041), 1099-OID, and 1099-PATR only.
You may furnish form recipients with Copy B of the official Form 1099 or a substitute Form 1099

July 13, 2020 98 Bulletin No. 2020–29
(recipient statement) if it contains the same information as the official IRS form (such as aggregate
amounts paid to the form recipient, any backup withholding, the name, address, and TIN of the
person making the return, and any other information required by the official form). Information
not required by the official form should not be included on the substitute form except for state in-
come tax withholding information. But see section 4.3 regarding additional information that may
be included on substitute and composite Forms 1099-B, such as basis for noncovered securities.
Note. Many of the information returns now include boxes for providing state withholding infor-
mation as part of the official form, with additional copies for convenience. Payers may, however,
provide the state withholding information separately (such as on a separate page or section) in
order to assist the payee with completing a state income tax return that requires the attachment of
any information return that includes state withholding amounts and payer numbers.
Exception for supplementary information. The substitute form may include supplementary in-
formation that will assist the payee with completing his or her tax return. Such information could
include expense and cost basis factors related to the reporting for widely held fixed investment
trusts (WHFITs), as required under Regulations section 1.671-5. The substitute statement should
disclose to the payee that such supplementary information is not furnished to the IRS. See Section
4.3 for additional requirements when providing supplemental information with the Form 1099-B
that is not furnished to the IRS.
Form 1099-B. For transactions reportable on Form 8949, brokers that use substitute statements
should segregate dispositions of noncovered securities from covered securities, and further segre-
gate long-term and short-term dispositions of covered securities. They may also segregate long-
term from short-term dispositions of noncovered securities, to the extent that date acquired is
known. For 2020 dispositions, the substitute Forms 1099-B may have up to five separate sections,
each with a heading identifying which securities are included in the list, and each separately
totaled. Each section, after totaling or within the heading for the section, should indicate how to
report the transactions on Form 8949, as indicated.
1. Short-term transactions for which basis is reported to the IRS—Report on Form 8949, Part I,
with Box A checked.
2. Short-term transactions for which basis is not reported to the IRS—Report on Form 8949,
Part I, with Box B checked.
3. Long-term transactions for which basis is reported to the IRS—Report on Form 8949, Part II,
with Box D checked.
4. Long-term transactions for which basis is not reported to the IRS—Report on Form 8949,
Part II, with Box E checked.
5. Transactions for which basis is not reported to the IRS and for which short-term or long-term
determination is unknown (to Broker). You must determine short-term or long-term based
on your records and report on Form 8949, Part I, with Box B checked, or on Form 8949,
Part II, with Box E checked, as appropriate.
For each section, each transaction may include information not reported to the IRS, such as basis,
date acquired, and gain or loss. Therefore, for short-term dispositions where basis was not report-
ed to the IRS, basis and date acquired may be shown just as it would be shown for short-term
dispositions where basis was reported to the IRS.
For 2020 dispositions, each of the applicable sections must have Sales Price and Cost or Other
Basis (if known) separately totaled. Net gain or loss, if included for any of the sections, may also
be totaled.

Bulletin No. 2020–29 99 July 13, 2020
Brokers may also use substitute Form 1099-B for transactions that are not directly reported on
Form 8949. Examples include transactions involving regulated futures contracts, foreign curren-
cy contracts, and section 1256 option contracts. Any additional sections created for this purpose
should be segregated from those transactions directly reportable on Form 8949.
The substitute form requirements in the following paragraphs also apply to Form 1099-B.
Forms 1099-INT, DIV, OID, and PATR. A substitute recipient statement for Form 1099-INT,
1099-DIV, 1099-OID, or 1099-PATR must comply with the following requirements.
• Box captions and numbers that are applicable must be clearly identified, using the same word-
ing and numbering as on the official form.
• The recipient statement (Copy B) must contain all applicable recipient instructions as pro-
vided on the front and back of the official IRS form. You may provide those instructions on a
separate sheet of paper.
• The box caption “Federal income tax withheld” must be in boldface type or otherwise high-
lighted on the recipient statement.
• The recipient statement must contain the Office of Management and Budget (OMB) number
as shown on the official IRS form. See Section 5.2.
• The recipient statement must contain the tax year (for example, 2020), form number (for
example, Form 1099-INT), and form name (for example, Interest Income) of the official
IRS Form 1099. This information must be displayed prominently together in one area of the
statement. For example, the tax year, form number, and form name could be shown in the
upper right part of the statement. Each copy must be appropriately labeled (such as Copy B,
For Recipient). See Section 4.5.2 for applicable labels and arrangement of assembly of forms.
Note. Do not include the words “Substitute for” or “In lieu of” on the recipient statement.
• Layout and format of the statement is at the discretion of the filer. However, the IRS encour-
ages the use of boxes so that the statement has the appearance of a form and can be easily
distinguished from other nontax statements.
• Each recipient statement of Forms 1099-B, 1099-DIV, 1099-INT, 1099-OID, and 1099-PATR
must include the direct access telephone number of an individual who can answer questions about
the statement. Include that telephone number conspicuously anywhere on the recipient statement.
A mutual fund family may furnish one statement (for example, one piece of paper) on which it
reports the dividend income earned by a recipient from multiple funds within the family of mu-
tual funds, as required by Form 1099-DIV. However, each fund and its earnings must be stated
separately. The statement must contain an instruction to the recipient that each fund’s dividends
and name, not the name of the mutual fund family, must be reported on the recipient’s tax return.
The statement cannot contain an aggregate total of all funds. In addition, a mutual fund family
may furnish a single statement (as a single filer) for Forms 1099-INT, 1099-DIV, and 1099-OID
information (see Section 4.2.1, later). Each fund and its earnings must be stated separately. The
statement must contain an instruction to the recipient that each fund’s earnings and name, not
the name of the mutual fund family, must be reported on the recipient’s tax return. The statement
cannot contain an aggregate total of all funds.
You may enter a total of the individual accounts listed on the statement only if they have been
paid by the same payer. For example, if you are listing interest paid on several accounts by one
financial institution on Form 1099-INT, you may also enter the total interest amount. You may also
enter a date next to the corrected box if that box is checked.

July 13, 2020 100 Bulletin No. 2020–29
4.1.3
Substitute Statements to
Recipients for Certain
Forms 1098, 1099, 5498,
and W-2G
Statements to form recipients for Forms 1097-BTC, 1098, 1098-C, 1098-E, 1098-F, 1098-MA,
1098-Q, 1098-T, 1099-A, 1099-C, 1099-CAP, 1099-G, 1099-K, 1099-LS, 1099-LTC, 1099-
MISC, 1099-NEC, 1099-Q, 1099-QA, 1099-R, 1099-S, 1099-SA, 1099-SB, 3921, 3922, 5498,
5498-ESA, 5498-QA, 5498-SA, W-2G, 1099-DIV (only for section 404(k) dividends reportable
under section 6047), and 1099-INT (only for interest of $600 or more made in the course of a trade
or business reportable under section 6041) can be copies of the official forms or an acceptable
substitute.
Caution. The IRS does not require a donee to use Form 1098-C as the written acknowledgment
for contributions of motor vehicles, boats, and airplanes. However, if you choose to use copies of
Form 1098-C or an acceptable substitute as the written acknowledgment, then you must follow
the requirements of this section.
To be acceptable, a substitute recipient statement must meet the following requirements.
• The tax year, form number, and form name must be the same as the official form and must
be displayed prominently together in one area on the statement. For example, they may be
shown in the upper right part of the statement.
• The statement must contain the same information as the official IRS form, such as aggregate
amounts paid to the form recipient, any backup withholding, the name, address, and TIN of
the filer and of the recipient, and any other information required by the official form.
• Each substitute recipient statement for Forms W-2G, 1097-BTC, 1098, 1098-C, 1098-E,
1098-F, 1098-T, 1099-A, 1099-C, 1099-CAP, 1099-DIV, 1099-G (excluding state and local
income tax refunds), 1099-K, 1099-INT, 1099-LS, 1099-LTC, 1099-MISC (excluding fishing
boat proceeds), 1099-NEC, 1099-Q, 1099-R (for qualified long-term care insurance contracts
under combined arrangements only), 1099-S, 1099-SA, 1099-SB, and 5498-SA must include
the direct access telephone number of an individual who can answer questions about the
statement.
• Include the telephone number conspicuously anywhere on the recipient statement. Although
not required, payers reporting on Forms 1099-QA, 1099-R (payments other than qualified
long-term care insurance contracts under combined arrangements), 3921, 3922, 5498, 5498-
ESA, and 5498-QA are encouraged to furnish telephone numbers at which recipients of the
form(s) can reach a person familiar with the information reported.
• All applicable money amounts and information, including box numbers required to be report-
ed to the form recipient, must be titled on the recipient statement in substantially the same
manner as those on the official IRS form. The box caption “Federal income tax withheld”
must be in boldface type on the recipient statement.
Exception. If you are reporting a payment as “Other income” in box 3 of Form 1099-MISC, you
may substitute appropriate language for the box title. For example, for payments of accrued wages
and leave to a beneficiary of a deceased employee, you might change the title of box 3 to “Bene-
ficiary payments” or something similar.
Note. You cannot make this change on Copy A.
• If federal income tax is withheld and shown on Form 1099-R or W-2G, Copy B and Copy
C must be furnished to the recipient. If federal income tax is not withheld, only Copy C of
Forms 1099-R and W-2G must be furnished. However, for Form 1099-R, instructions similar
to those on the back of the official Copy B and Copy C of Form 1099-R must be furnished
to the recipient. For convenience, you may choose to provide both Copies B and C of Form
1099-R to the recipient.

Bulletin No. 2020–29 101 July 13, 2020
• You must provide appropriate instructions to the form recipient similar to those on the offi-
cial IRS form, to aid in the proper reporting on the form recipient’s income tax return. For
payments reported on Forms 1099-B and 1099-CAP, the requirement to include instructions
substantially similar to those on the official IRS form, may be satisfied by providing form
recipients with a single set of instructions for all Forms 1099-B and 1099-CAP statements
required to be furnished in a calendar year.
• If you use carbonless sets to produce recipient statements, the quality of each copy in the set
must meet the following standards.
1. All copies must be clearly legible.
2. All copies must be able to be photocopied.
3. Fading must not diminish legibility and the ability to photocopy.
• In general, black chemical transfer inks are preferred, but other colors are permitted if the
above standards are met. Hot wax and cold carbon spots are not permitted on any of the inter-
nal form plies. The back of a mailer top envelope ply may contain these spots.
• You may use a Settlement Statement (under the Real Estate Settlement Procedures Act of
1974 (RESPA)) for Form 1099-S. The Settlement Statement is acceptable as the written state-
ment to the transferrer if you include the legend for Form 1099-S found in Section 4.4.2 and
indicate which information on the Settlement Statement is being reported to the IRS on Form
1099-S.
• For reporting state income tax withholding and state payments, you may add an additional
box(es) to recipient copies, as appropriate. In addition, the state withholding information may
be provided separately and apart from the other information in the event the recipient must
attach a copy to the recipient’s tax return. Note. You cannot make this change on Copy A.
• On Copy C of Form 1099-LTC, you may reverse the location of the policyholder’s and the
insured’s name, street address, city, state, and ZIP code for easier mailing.
• If an institution insurer uses a third-party service provider to file Form 1098-T, then in addi-
tion to the institution or insurer’s name, address, and telephone number, the same information
may be included for the third-party service provider in the space provided on the form.
• Forms 1099-A and 1099-C transactions, if related, may be combined on Form 1099-C.
4.1.4
Online Fillable Copies B, C,
D, 1, and 2
Copies B, C, D, 1, and 2, as applicable, to be furnished to recipients and kept in the filers’ records,
have been made online fillable at IRS.gov/forms-instructions for many forms referenced in these
instructions. See the separate instructions for Forms 1098, 1098-E & T, 1098-F, 1098-Q, 1099-A
& C, 1099-B, 1099-DIV, 1099-G, 1099-INT & OID, 1099-K, 1099-LS, 1099-MISC, 1099-NEC,
1099-PATR, 1099-R & 5498, 1099-S, 1099-SB, and 3921.
Section 4.2 – Composite Statements

July 13, 2020 102 Bulletin No. 2020–29
4.2.1
Composite Substitute
Statements for Certain
Forms 1099-B, 1099- DIV,
1099-INT, 1099-MISC,
1099-OID, 1099-PATR, and
1099- S
A composite recipient statement is permitted for reportable payments consisting of the proceeds
of brokerage and barter transactions, dividends, interest, original issue discount, patronage divi-
dends, and royalties. The following forms may be included on a composite substitute statement,
when one payer is reporting more than one of these payments during a calendar year to the same
form recipient.
• Form 1099-B.
• Form 1099-DIV (except for section 404(k) dividends).
• Form 1099-INT (except for interest reportable under section 6041).
• Form 1099-MISC (only for royalties or substitute payments in lieu of dividends and interest).
• Form 1099-OID.
• Form 1099-PATR.
• Form 1099-S (only for royalties).
Generally, do not include any other Form 1099 information (for example, 1099-A or 1099-C) on a
composite statement with the information required on the forms listed in the preceding sentence.
Although the composite recipient statement may be on one sheet, the format of the composite
recipient statement must satisfy the following requirements in addition to the requirements listed
earlier in Sections 4.1.2, 4.3, and 4.4, as applicable.
• All information pertaining to a particular type of payment must be located and blocked to-
gether on the form and separate from any information covering other types of payments
included on the form. For example, if you are reporting interest and dividends, the Form
1099-INT information must be presented separately from the Form 1099-DIV information.
• The composite recipient statement must prominently display the form number and form name
of the official IRS form together in one area at the beginning of each appropriate block of
information. The tax year must only be placed on each block of information if it is not prom-
inently displayed elsewhere on the page on which the information appears.
• Any information required by the official IRS forms that would otherwise be repeated in each
information block is required to be listed only once in the first information block on the com-
posite form. For example, there is no requirement to report the name of the filer in each infor-
mation block. This rule does not apply to any money amounts (for example, federal income
tax withheld) or to any other information that applies to money amounts.
• A composite statement is an acceptable substitute only if the type of payment, and the recip-
ient’s tax obligation with respect to the payment, are as clear as if each required statement
were furnished separately on an official form.
4.2.2

Composite Substitute
Statements to Recipients for
Forms Specified in Sections
4.1.2 and 4.1.3
A composite recipient statement for the forms specified in Section 4.1.2 or 4.1.3 is permitted when
one filer is reporting more than one type of payment during a calendar year to the same form re-
cipient. A composite statement is not allowed for a combination of forms listed in Sections 4.1.2
and 4.1.3.

Bulletin No. 2020–29 103 July 13, 2020
Exceptions:
• Substitute payments in lieu of dividends or interest reported in box 8 of Form 1099-MISC
may be reported on a composite substitute statement with Form 1099-DIV.
• Form 1099-B information may be reported on a composite form with the forms specified in
Section 4.1.2 as described in Section 4.2.1.
• Royalties reported on Form 1099-MISC or 1099-S may be reported on a composite form only
with the forms specified in Section 4.1.2.
Although the composite recipient statement may be on one sheet, the format of the composite re-
cipient statement must satisfy the requirements listed in Section 4.2.1 as well as the requirements
in Section 4.1.3. A composite statement of Forms 1098 and 1099-INT (for interest reportable
under section 6049) is not allowed.
Section 4.3 – Additional Information for Substitute and Composite Forms 1099-B
4.3.1
General Requir
ements for
Presenting Additional Form
1099-B
Information
A filer may include Form 1099-B information on a composite form with the forms listed in Sec-
tion 4.1.2. Therefore, supporting, explanatory, or comparable relevant information for covered
and noncovered lots on the 1099-B portion of the composite statement can be included. This in-
formation includes display on the payee statement of data elements such as basis for noncovered
lots, explanatory remarks on permissible basis adjustments for covered lots, descriptions of the
type of transaction (merger, buy to close, redemption, etc.), identification of contingent payment
debt obligations, and lot relief methods.
If you wish to provide additional information to the investor on the same substitute recipient Form
1099-B, the form must follow the rules set forth in this Section 4.3 and should clearly delineate
how the information is presented. Any information presented should make reference to its corre-
sponding number on the official form, as appropriate. You should clearly categorize each type of
information you are reporting.
4.3.2

Added Legend for
Providing Additional
1099-B Information
An additional separate legend is required that explains exactly which pieces of information are
and which are not reported to the IRS, to the extent, if any, the information is not already identi-
fied as not being reported to the IRS, as described in Section 4.1.2. It should clearly explain how
the information is presented. You may present this legend in a way that is consistent with your
design as long as it clearly indicates which information is being provided to the IRS. Additionally,
a reminder to taxpayers that they are ultimately responsible for the accuracy of their tax returns
is also required.
Section 4.4 – Required Legends

July 13, 2020 104 Bulletin No. 2020–29
4.4.1
Required Legends for
Forms 1098
Form 1098 recipient statements (Copy B) must contain the following legends:
• Form 1098
1. “The information in boxes 1 through 10 is important tax information and is being fur-
nished to the IRS. If you are required to file a return, a negligence penalty or other sanc-
tion may be imposed on you if the IRS determines that an underpayment of tax results
because you overstated a deduction for the mortgage interest or for these points, reported
in boxes 1 and 6; or because you did not report the refund of interest (box 4); or because
you claimed a nondeductible item.”
2. Caution. “The amount shown may not be fully deductible by you. Limits based on the
loan amount and the cost and value of the secured property may apply. Also, you may
only deduct interest to the extent it was incurred by you, actually paid by you, and not
reimbursed by another person.”
• Form 1098-C: Copy B - “In order to take a deduction of more than $500 for this contribution,
you must attach this copy to your federal tax return. Unless box 5a or 5b is checked, your
deduction cannot exceed the amount in box 4c.” Copy C - “This information is being fur-
nished to the IRS unless box 7 is checked.”
• Form 1098-E: “This is important tax information and is being furnished to the IRS. If you are
required to file a return, a negligence penalty or other sanction may be imposed on you if the
IRS determines that an underpayment of tax results because you overstated a deduction for
student loan interest.”
• Forms 1098-F and 1098-MA: “This is important tax information and is being furnished to the
IRS.”
• Form 1098-Q: “This information is being furnished to the IRS.”
• Form 1098-T: “This is important tax information and is being furnished to the IRS. This form
must be used to complete Form 8863 to claim education credits. Give it to the tax preparer or
use it to prepare the tax return.”
4.4.2

Required Legends for
Forms 1099 and W-2G
• Forms 1099-A, 1099-C, 1099-CAP, and 1099-K: Copy B - “This is important tax information
and is being furnished to the IRS. If you are required to file a return, a negligence penalty or
other sanction may be imposed on you if taxable income results from this transaction and the
IRS determines that it has not been reported.”
• Forms 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-NEC, 1099-OID, 1099-
PATR, 1099-Q, and 1099-QA: Copy B - “This is important tax information and is being
furnished to the IRS. If you are required to file a return, a negligence penalty or other sanction
may be imposed on you if this income is taxable and the IRS determines that it has not been
reported.”
• Form 1099-LS: Copy B - “This is important tax information and is being furnished to the IRS.
If you are required to file a return, a negligence penalty or other sanction may be imposed on
you if this item is required to be reported and the IRS determines that it has not been report-
ed.” Copy C - “Copy C is provided to you for information only. Only the payment recipient
is required to report this information on a tax return.”
• Form 1099-LTC: Copy B - “This is important tax information and is being furnished to the
IRS. If you are required to file a return, a negligence penalty or other sanction may be im-

Bulletin No. 2020–29 105 July 13, 2020
posed on you if this item is required to be reported and the IRS determines that it has not been
reported.” Copy C - “Copy C is provided to you for information only. Only the policyholder
is required to report this information on a tax return.”
• Form 1099-R: Copy B - “Report this income on your federal tax return. If this form
shows federal income tax withheld in box 4, attach this copy to your return.” Copy C -
“This information is being furnished to the IRS.”
• Forms 1099-S and 1099-SB: Copy B - “This is important tax information and is being fur-
nished to the IRS. If you are required to file a return, a negligence penalty or other sanction
may be imposed on you if this item is required to be reported and the IRS determines that it
has not been reported.”
• Form 1099-SA: Copy B - “This information is being furnished to the IRS.”
• Form W-2G: Copy B - “This information is being furnished to the IRS. Report this income
on your federal tax return. If this form shows federal income tax withheld in box 4, attach
this copy to your return.” Copy C - “This is important tax information and is being furnished
to the IRS. If you are required to file a return, a negligence penalty or other sanction may be
imposed on you if this income is taxable and the IRS determines that it has not been reported.”
4.4.3
Requir
ed Legends for
Forms 1097-BTC, 3921,
3922, and 5498
• Form 1097-BTC: Copy B - “This is important tax information and is being furnished to the
IRS. If you are required to file a return, a negligence penalty or other sanction may be im-
posed on you if an amount of tax credit exceeding the amount reported on this form is claimed
on your income tax return.”
• Form 3921: Copy B - “This is important tax information and is being furnished to the IRS.
If you are required to file a return, a negligence penalty or other sanction may be imposed
on you if this item is required to be reported and the IRS determines that it has not been
reported.” Copy C - “This copy should be retained by the corporation whose stock has been
transferred under Section 422(b).”
• Form 3922: Copy B - “This is important tax information and is being furnished to the IRS.”
Copy C - “This copy should be retained by the corporation.”
• Form 5498: Copy B - “This information is being furnished to the IRS.” Note. If you do not
provide another statement to the participant because no contributions were made for the year,
the statement of the fair market value, and any required minimum distribution of the account,
must contain this legend and a designation of which information is being provided to the IRS.
• Forms 5498-ESA, 5498-QA, and 5498-SA: Copy B - “This information is being furnished to
the IRS.”
Section 4.5 – Miscellaneous Instructions for Copies B, C, D, E, 1, and 2
4.5.1

Copies
Copies B, C, and in some cases D, E, 1, and 2 are included in the official assembly for the conve-
nience of the filer. You are not legally required to include all these copies with the privately printed
substitute forms. Furnishing Copy B, and in some cases Copy C, will satisfy the legal requirement
to provide statements of information to form recipients.

July 13, 2020 106 Bulletin No. 2020–29
Note. If an amount of federal income tax withheld is shown on Form 1099-R or W-2G, Copy B
(to be attached to the tax return) and Copy C must be furnished to the recipient. Copy D (Forms
1099-R and W-2G) may be used for payer records. Only Copy A should be filed with the IRS.
4.5.2
Arrangement
of Assembly
Copy A (“For Internal Revenue Service Center”) of all forms must be on top. The rest of the as-
sembly must be arranged, from top to bottom, as follows.
FormTitle
1098Copy B “For Payer/Borrower”; Copy C “For Recipient/Lender.”
1098-CCopy B “For Donor”; Copy C “For Donor’s Records”; Copy D “For
Donee.”
1098-ECopy B “For Borrower”; Copy C “For Recipient.”
1098-FCopy B “For Payer”; Copy C “For Filer.”
1098-MACopy B “For Homeowner”; Copy C “For Filer.”
1098-QCopy B “For Participant”; Copy C “For Issuer.”
1098-TCopy B “For Student”; Copy C “For Filer.”
1099-ACopy B “For Borrower”; Copy C “For Lender.”
1097-BTC, 1099-
PATR, 1099-Q,
and 1099-QA
Copy B “For Recipient”; Copy C “For Payer.”
1099-CCopy B “For Debtor”; Copy C “For Creditor.”
1099-CAPCopy B “For Shareholder”; Copy C “For Corporation.”
1099-B, 1099-DIV,
1099-G,1099-INT,
1099-MISC, 1099-
NEC, and 1099-
OID
Copy 1 “For State Tax Department”; Copy B “For Recipient”; Copy 2
“To be filed with recipient's state income tax return, when required”; and
Copy C “For Payer.”
1099-KCopy 1 “For State Tax Department”; Copy B “For Payee”; Copy 2 “To be
filed with the recipient's state income tax return, when required”; Copy C
“For Filer.”
1099-LSCopy B “For Payment Recipient”; Copy C “For Issuer”; Copy D “For
Acquirer.”
1099-LTCCopy B “For Policyholder”; Copy C “For Insured”; and Copy D “For
Payer.”
1099-RCopy 1 “For State, City, or Local Tax Department”; Copy B “Report this
income on your federal tax return. If this form shows federal income tax
withheld in box 4, attach this copy to your return”; Copy C “For Recip-
ient’s Records”; Copy 2 “File this copy with your state, city, or local in-
come tax return, when required”; Copy D “For Payer.”
1099-SCopy B “For Transferor”; Copy C “For Filer.”
1099-SACopy B “For Recipient”; Copy C “For Trustee/Payer.”
1099-SBCopy B “For Seller”; Copy C “For Issuer.”
3921Copy B “For Employee”; Copy C “For Corporation”; Copy D “For Trans-
feror.”
3922Copy B “For Employee”; Copy C “For Corporation.”
5498Copy B “For Participant”; Copy C “For Trustee or Issuer.”
5498-ESACopy B “For Beneficiary”; Copy C “For Trustee.”

Bulletin No. 2020–29 107 July 13, 2020
FormTitle
5498-QACopy B “For Beneficiary”; Copy C “For Issuer.”
5498-SACopy B “For Participant”; Copy C “For Trustee.”
W-2GCopy 1 “For State, City, or Local Tax Department”; Copy B “Report this
income on your federal tax return. If this form shows federal income tax
withheld in box 2, attach this copy to your return”; Copy C “For Winner’s
Records”; Copy 2 “Attach this copy to your state, city, or local income tax
return, if required”; Copy D “For Payer.”
1042-SCopy B “For Recipient”; Copy C “For Recipient” and “Attach to any fed-
eral tax return you file”; Copy D “For Recipient” and “Attach to any state
tax return you file”; Copy E “For Withholding Agent.”
4.5.3
Perforations
Instructions for perforation of forms can be found in Section 2.1.8, earlier.
Section 4.6 – Electronic Delivery of Recipient Statements
4.6.1

Electronic Recipient
Statements
If you are required to furnish a written statement (Copy B or an acceptable substitute) to a recipi-
ent, then you may furnish the statement electronically instead of on paper. This includes furnishing
the statement to recipients of Forms 1098, 1098-E, 1098-F, 1098-MA, 1098-Q, 1098-T, 1099-A,
1099-B, 1099-C, 1099-CAP, 1099-DIV, 1099-G, 1099-INT, 1099-K, 1099-LS, 1099-LTC, 1099-
MISC, 1099-NEC, 1099-OID, 1099-PATR, 1099-Q, 1099-QA, 1099-R, 1099-S, 1099-SA, 1099-
SB, 1042-S, 3921, 3922, 5498, 5498-ESA, 5498-QA, and 5498-SA. It also includes Form W-2G
(except for horse and dog racing, jai alai, sweepstakes, wagering pools, and lotteries).
Note. Until further guidance is issued, you cannot furnish Form 1098-C electronically. Perforation
(see Section 2.1.9, earlier) does not apply to printouts of copies of forms that are furnished elec-
tronically to recipients. However, recipients should be cautioned to carefully separate the copies.
If you meet the requirements listed in Sections 4.6.2 and 4.6.3, you are treated as furnishing the
statement timely.
4.6.2
Consent
The recipient must consent in the affirmative to receiving the statement electronically and not
have withdrawn the consent before the statement is furnished. The consent by the recipient must
be made electronically in a way that shows that he or she can access the statement in the electronic
format in which it will be furnished. You must notify the recipient of any hardware or software
changes prior to furnishing the statement. A new consent to receive the statement electronically is
required after the new hardware or software is put into service. Prior to furnishing the statements
electronically, you must provide the recipient a statement with the following statements promi-
nently displayed.
• If the recipient does not consent to receive the statement electronically, a paper copy will be
provided.
• The scope and duration of the consent. For example, whether the consent applies to every
year the statement is furnished or only for the February 1, 2021 (February 16 for Forms 1099-

July 13, 2020 108 Bulletin No. 2020–29
B, 1099-S, and 1099-MISC with payments reported in box 8 or 10) immediately following
the date of the consent.
• How to obtain a paper copy after giving consent.
• How to withdraw the consent. The consent may be withdrawn at any time by furnishing the
withdrawal in writing (electronically or on paper) to the person whose name appears on the
statement. Confirmation of the withdrawal will also be in writing (electronically or on paper).
• Notice of termination. The notice must state under what conditions the statements will no
longer be furnished to the recipient.
• Procedures to update the recipient’s information.
• A description of the hardware and software required to access, print, and retain a statement,
and a date the statement will no longer be available on the website.
4.6.3
Format, Posting, and
Notification
Additionally, you must:
• Ensure the electronic format contains all the required information and complies with the
guidelines in this document;
• Post, on or before the February 1, 2021 (February 16 for Forms 1099-B, 1099-S, and 1099-
MISC with payments reported in box 8 or 10) due date, the applicable statement on a website
accessible to the recipient through October 15 of that year; and
• Inform the recipient, electronically or by mail, of the posting and how to access and print the
statement.
For more information, see Regulations section 31.6051-1(j).
For electronic furnishing of:
• Forms 1098-E and 1098-T, see Regulations sections 1.6050S-2 and 1.6050S-4;
• Form 1099-K, see Regulations section 1.6050W-2;
• Forms 1099-QA and 5498-QA;
• Forms 1099-R, 1099-SA, 1099-Q, 5498, 5498-ESA, and 5498-SA, see Notice 2004-10,
2004-1 C.B. 433; and
• Form 1042-S, see Regulations section 1.1461-1(c)(1)(i).
Part 5
Additional Instructions for Substitute Forms 1097- BTC, 1098, 1099, 5498, W-2G, and 1042-S
Section 5.1 – Paper Substitutes for Form 1042-S

Bulletin No. 2020–29 109 July 13, 2020
5.1.1
Paper Substitutes
Paper substitutes of Copies A, B, C, and D must be identical to the Form 1042-S, Foreign Person’s
U.S. Source Income Subject to Withholding, and may be privately printed without prior approval
from the Internal Revenue Service.
Caution. On the bottom of Copy B, left align the following text: (keep for your records) and
right align the following text: Form 1042-S (2020).
Note. Copies A, B, C, and D of Form 1042-S may not contain multiple income types for the same
recipient, that is, multiple rows of the top boxes 1–11 of the form. Only Copy E, retained by the
withholding agent, can contain multiple income types.
5.1.2
Revisions
Form 1042-S is subject to annual review and possible change. Withholding agents and form sup-
pliers are cautioned against overstocking supplies of the privately printed substitutes.
5.1.3
Obtaining Copies
Copies of the official form for the reporting year may be obtained from most IRS offices. The
IRS provides only cut sheets of these forms. Continuous fan-fold/pin-fed forms are not provided.
5.1.4
Instructions For
Withholding Agents
• Only original forms may be filed with the IRS. Photocopies are not acceptable.
• The term “Recipient’s U.S. TIN” for an individual means the SSN, ITIN, or ATIN, consisting
of nine digits separated by hyphens as follows: 000-00-0000. For all other recipients, the EIN
or qualified intermediary employer identification number (QI-EIN). The QI-EIN designation in-
cludes a withholding foreign partnership employer identification number (WP-EIN), and a with-
holding foreign trust employer identification number (WT-EIN). The EIN and QI-EIN consist
of nine digits separated by a hyphen as follows: 00-0000000. The TIN must be in one of these
formats. Note. Digits must be separated by hyphens on paper statements in the formats listed.
• The term “Recipient’s GIIN” means the global intermediary identification number assigned
to a recipient that is a participating foreign financial institution (FFI) (including a reporting
Model 2 FFI), registered deemed-compliant FFI (including a reporting Model 1 FFI), or oth-
er entity for chapter 4 purposes. Note. A GIIN consists of nineteen characters as follows:
XXXXXX.XXXXX.XX.XXX (6 characters followed by a period, 5 characters followed by a
period, 2 characters followed by a period, and 3 final characters).
• Withholding agents are requested to type or machine print whenever possible, provide quality
data entries on the forms (that is, use black ink and insert data in the middle of blocks well
separated from other printing and guidelines), and take other measures to guarantee a clear,
sharp image. Withholding agents are not required, however, to acquire special equipment
solely for the purpose of preparing these forms.
• The “UNIQUE FORM IDENTIFIER,” “AMENDED,” and “AMENDMENT NO.” boxes
must be printed at the top center of the form under the title.
• Substitute forms prepared in continuous or strip form must be burst and stripped to conform
to the size specified for a single form before they are filed with the IRS. The dimensions are
found in Section 5.1.5 next. Computer cards are acceptable provided they meet all require-
ments regarding layout, content, and size.
• The OMB number must be printed in the format “OMB No. 1545-0056.”

July 13, 2020 110 Bulletin No. 2020–29
5.1.5
Substitute Form 1042-S
Format Requirements
PropertySubstitute Form 1042-S Format Requirements
PrintingPrivately printed substitute Forms 1042-S must be exact replicas of the of-
ficial forms with respect to layout and content. The Government Printing
Office (GPO) symbol must be deleted. The exact dimensions are found
below. The Cat. No. must be removed and replaced with the form printer’s
EIN or the vendor code (preferred). See Section 2.1.10.
Box EntriesOnly one type of income may be represented on Copies A, B, C, and D
submitted to the IRS or furnished to recipients. Multiple income types
may be shown on Copy E retained by withholding agents. All boxes on
Copy A filed with the IRS, and Copies B, C, and D furnished to recipients
on the substitute form must conform to the official IRS form.
Color and Quality
of Ink
All printing must be in high quality nongloss black ink.
TypographyType must be substantially identical in size and shape to corresponding
type on the official form. All rules on the document are either 1 point
(0.015 inches) or 3 point (0.045 inches). Vertical rules must be parallel
to the left edge of the document; horizontal rules must be parallel to the
top edge.
AssemblyIf all five parts are present, the parts of the assembly shall be arranged
from top to bottom as follows: Copy A (Original) “for Internal Revenue
Service,” Copies B, C, and D “for Recipient,” and Copy E “for Withhold-
ing Agent.”
Color Quality of
Paper
Paper for Copy A must be white chemical wood bond, or equivalent, 20
pound (basis 17 x 22–500), plus or minus 5% (0.05); or offset book paper,
50 pound (basis 25 x 38–500). No optical brighteners may be added to the
pulp or paper during manufacture. The paper must consist of principally
bleached chemical wood pulp or recycled printed paper. It must also be
suitably sized to accept ink without feathering.
Dimensions• The dimensions for substitute Copies A, B, C, and D must match the
IRS Form 1042-S in size and format.
• The official form is 8 inches wide x 11 inches deep, exclusive of a
1
/
2
inch snap stub on the left side of the form. The snap feature is not
required on substitutes.
• Copies A, B, C, and D must conform to the official IRS form. No size
variations are permitted.
Other CopiesCopies B, C, and D must be furnished for the convenience of payees who
must send a copy of the form with other federal and state returns they file.
Copy E may be used as a withholding agent’s record/copy.
Section 5.2 – OMB Requirements for All Forms in This Revenue Procedure
5.2.1

OMB Requirements
The Paperwork Reduction Act (the Act) of 1995 (P. L. 104-13) requires that:
• OMB approves all IRS tax forms that are subject to the Act. Each IRS form contains (in or
near the upper right corner) the OMB approval number, if any. (The official OMB numbers
may be found on the official IRS printed forms and are also shown on the forms in the exhibits
in Part 6.);

Bulletin No. 2020–29 111 July 13, 2020
• Each IRS form (or its instructions) states:
1. Why the IRS needs the information,
2. How it will be used, and
3. Whether or not the information is required to be furnished to the IRS.
This information must be provided to any users of official or substitute IRS forms or instructions.
5.2.2
Substitute Form
Requir
ements
The OMB requirements for substitute IRS forms are:
• Any substitute form or substitute statement to a recipient must show the OMB number as it
appears on the official IRS form,
• For Copy A, the OMB number must appear exactly as shown on the official IRS form.
For any copy other than Copy A, the OMB number must use one of the following formats.
1. OMB No. 1545-xxxx (preferred), or
2. OMB # 1545-xxxx (acceptable).
Caution. These requirements do not apply to substitute Forms 1042-S. See Section 5.1.4, earlier.
5.2.3

Required Explanation to
Users
All substitute forms must state the Privacy Act and Paperwork Reduction Act Notice as listed in
Section 2.1.10, earlier.
If no instructions are provided to users of your forms, you must furnish them with the exact text
of the Privacy Act and Paperwork Reduction Act Notice.
Section 5.3 – Ordering Forms and Instructions
You can order official IRS Forms (Forms 1096, 1098, 1099, W-2G, 1042-S, and most other forms
mentioned in this publication), instructions, and information copies of federal tax material by
going to IRS.gov/OrderForms.
Note. Some forms on the Internet are intended as information only and may not be submitted as
an official IRS form (for example, most Forms 1099, W-2, and W-3). Unless otherwise instructed,
Form 1096 and Copy A of 1098 series, 1099 series, 5498 series, and Forms 3921 and 3922 cannot
be used for filing with the IRS when printed from a conventional printer. These forms contain
drop-out ink requirements as described in Part 2 of this publication.
Exception. Forms 1097-BTC, 1098-C, 1098-MA, 1099-CAP, 1099-LTC, 1099-Q, 1099-QA,
1099-SA, 3922, 5498-ESA, 5498-QA, 5498-SA, and 1042-S can be printed in black ink as speci-
fied in Sections 2.1.1 and 5.1.5, earlier.

July 13, 2020 112 Bulletin No. 2020–29
Section 5.4 – Effect on Other Revenue Procedures
5.4.1
Other
Revenue Procedures
Revenue Procedure 2019-24, 2019-29, I.R.B. 353, dated July 15, 2019, is superseded by this
revenue procedure.
Part 6
Exhibits
Section 6.1 – Exhibits of Forms in this Revenue Procedure
6.1.1
Purpose
Exhibits A through CC illustrate some of the specifications that were discussed earlier in this reve-
nue procedure. The dimensions apply to the actual size forms, but the exhibits have been reduced
in size.
Generally, the illustrated dimensions apply to all like forms. For example, Exhibit E shows 11.00
inches from the top edge to the bottom edge of Form 1098-E and .85 inches between the bottom
rule of the top form and the top rule of the second form on the page. These dimensions apply to
all forms that are printed 3-to-a-page.
Exhibit B contains the general measurements for forms printed 2-to-a-page. All 2-to-a-page forms,
except Form 1099-B, are 4.5 inches in height within the border lines. Form 1099-B is 4.67 inches
in height within the border lines.
Exhibit E contains the general measurements for forms printed 3-to-a-page. All 3-to-a-page forms
are 2.83 inches in height within the border lines.
The printed area of all forms is 7.3 inches wide.
All of the exhibits in this publication were updated to include all of the 2020 revisions for those
forms that have been revised.
6.1.2
Guidelines
Keep in mind the following guidelines when printing substitute forms.
• Closely follow the specifications to avoid delays in processing the forms.
• Always use the specifications as outlined in this revenue procedure and illustrated in the ex-
hibits.
• Do not add the text line “Do Not Cut or Separate Forms on This Page” to the bottom form.
This will be inconsistent with the specifications.

Bulletin No. 2020–29 113 July 13, 2020
6.2
Exhibits
The following exhibits provide specifications for the forms listed in Section 1.1.2. Exhibits A, B,
and E contain the general measurements for all of the forms. The remaining exhibits represent the
images and may contain unique measurements as required by the form.

July 13, 2020 114 Bulletin No. 2020–29
35

Bulletin No. 2020–29 115 July 13, 2020
36

July 13, 2020 116 Bulletin No. 2020–29
37

Bulletin No. 2020–29 117 July 13, 2020
38

July 13, 2020 118 Bulletin No. 2020–29
39

Bulletin No. 2020–29 119 July 13, 2020
40

July 13, 2020 120 Bulletin No. 2020–29
41

Bulletin No. 2020–29 121 July 13, 2020
42

July 13, 2020 122 Bulletin No. 2020–29
43

Bulletin No. 2020–29 123 July 13, 2020
44

July 13, 2020 124 Bulletin No. 2020–29
45

Bulletin No. 2020–29 125 July 13, 2020
46

July 13, 2020 126 Bulletin No. 2020–29
47

Bulletin No. 2020–29 127 July 13, 2020
48

July 13, 2020 128 Bulletin No. 2020–29
49

Bulletin No. 2020–29 129 July 13, 2020
50

July 13, 2020 130 Bulletin No. 2020–29
51

Bulletin No. 2020–29 131 July 13, 2020
53

July 13, 2020 132 Bulletin No. 2020–29
54

Bulletin No. 2020–29 133 July 13, 2020
55

July 13, 2020 134 Bulletin No. 2020–29
56

Bulletin No. 2020–29 135 July 13, 2020
57

July 13, 2020 136 Bulletin No. 2020–29
58

Bulletin No. 2020–29 137 July 13, 2020
59

July 13, 2020 138 Bulletin No. 2020–29
60

Bulletin No. 2020–29 139 July 13, 2020

Form 3921
(Rev. October 2017)
Cat. No. 41179O
Exercise of an
Incentive Stock
Option Under
Section 422(b)
Copy A
For
Internal Revenue
Service Center
Department of the Treasury - Internal Revenue Service
File with Form 1096.
OMB No. 1545-2129
For Privacy Act and
Paperwork
Reduction Act
Notice, see the
current version of
the General
Instructions for
Certain Information
Returns.
2525
VOIDCORRECTED
TRANSFEROR’S name, street address, city or town, state or province,
country, and ZIP or foreign postal code
TRANSFEROR’S TINEMPLOYEE’S TIN
EMPLOYEE’S name
Street address (including apt. no.)
City or town, state or province, country, and ZIP or foreign postal code
Account number (see instructions)
1 Date option granted
2 Date option exercised
3 Exercise price per share
$
4 Fair market value per share
on exercise date
$
5 No. of shares transferred
6 If other than TRANSFEROR, name, address, and TIN of
corporation whose stock is being transferred
Form
3921 (Rev. October 2017)
www.irs.gov/Form3921
Do Not Cut or Separate Forms on This Page — Do Not Cut or Separate Forms on This Page

Form 3921
(Rev. October 2017)
Cat. No. 41179O
Exercise of an
Incentive Stock
Option Under
Section 422(b)
Copy A
For
Internal Revenue
Service Center
Department of the Treasury - Internal Revenue Service
File with Form 1096.
OMB No. 1545-2129
For Privacy Act and
Paperwork
Reduction Act
Notice, see the
current version of
the General
Instructions for
Certain Information
Returns.
2525
VOIDCORRECTED
TRANSFEROR’S name, street address, city or town, state or province,
country, and ZIP or foreign postal code
TRANSFEROR’S TINEMPLOYEE’S TIN
EMPLOYEE’S name
Street address (including apt. no.)
City or town, state or province, country, and ZIP or foreign postal code
Account number (see instructions)
1 Date option granted
2 Date option exercised
3 Exercise price per share
$
4 Fair market value per share
on exercise date
$
5 No. of shares transferred
6 If other than TRANSFEROR, name, address, and TIN of
corporation whose stock is being transferred
Form
3921 (Rev. October 2017)
www.irs.gov/Form3921
Do Not Cut or Separate Forms on This Page — Do Not Cut or Separate Forms on This Page
Form 3921
(Rev. October 2017)
Exercise of an
Incentive Stock
Option Under
Section 422(b)
Copy A
For
Internal Revenue
Service Center
File with Form 1096.
OMB No. 1545-2129
For Privacy Act and
Paperwork
Reduction Act
Notice, see the
current version of
the General
Instructions for
Certain Information
Returns.
2525
VOIDCORRECTED
TRANSFEROR’S name, street address, city or town, state or province,
country, and ZIP or foreign postal code
TRANSFEROR’S TINEMPLOYEE’S TIN
EMPLOYEE’S name
Street address (including apt. no.)
City or town, state or province, country, and ZIP or foreign postal code
Account number (see instructions)
1 Date option granted
2 Date option exercised
3 Exercise price per share
$
4 Fair market value per share
on exercise date
$
5 No. of shares transferred
6 If other than TRANSFEROR, name, address, and EIN of
corporation whose stock is being transferred
Form
3921 (Rev. October 2017)
Cat. No. 41179O www.irs.gov/Form3921 Department of the Treasury - Internal Revenue Service
Exhibit Z
Form 3921

July 13, 2020 140 Bulletin No. 2020–29
62

Bulletin No. 2020–29 141 July 13, 2020
63

July 13, 2020 142 Bulletin No. 2020–29
64

Bulletin No. 2020–29 i July 13, 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.

July 13, 2020 ii Bulletin No. 2020–29
Numerical Finding List
1
Bulletin 2020–29
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
Proposed Regulations:
REG-119307-19, 2020-28 I.R.B. 44
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
Revenue Rulings:
2020-14, 2020-28 I.R.B. 33
Treasury Decisions:
9899, 2020-29 I.R.B. 62
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2018–27 through 2018–52 is in Internal Revenue Bulletin
2018–52, dated December 27, 2018.

Bulletin No. 2020–29 iii July 13, 2020
Finding List of Current Actions on
Previously Published Items
1
Bulletin 2020–29
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2018–27 through 2018–52 is in Internal Revenue Bulletin
2018–52, dated December 27, 2018.

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.