DC Tax Flash: IRS Issues Guidance on Private Activity Bonds and Insurance Losses
The Internal Revenue Service (IRS) today issued Revenue Procedure 2020-49, which extends until September 30, 2021 the period during which meetings by phone can be convened in compliance with Internal Revenue Code section 147 for private activity bonds (PABs).
The IRS explains that in light of the coronavirus pandemic, "this revenue procedure provides that hearings held by teleconference...will be treated as held in a location that, based on the facts and circumstances, is convenient for residents of the approving governmental unit for the purpose of § 1.147-1(d)(2) of the Income Tax Regulations."
The four-page text of Revenue Procedure 2020-49 is posted here.
The IRS today also issued Revenue Procedure 2020-48, which sets the discount factors for the 2020 accident year for use by insurance companies in computing discounted unpaid losses under Internal Revenue Code section 846 and discounted estimated salvage recoverable under section 832.
The guidance also "provides, for convenience, discount factors for losses incurred in the 2019 accident year and earlier accident years for use in taxable years beginning in 2020."
The nine-page text of Revenue Procedure 2020-48 is posted here.
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