Coronavirus Outbreak

IRS Issues Trust Arrangement Relief As Pandemic Continues (1)

June 4, 2020, 6:35 PMUpdated: June 4, 2020, 7:15 PM

The IRS said Thursday it was extending coronavirus pandemic tax relief to business arrangements treated as trusts that hold real estate, after providing similar guidance for tax-advantaged investment vehicles.

In Revenue Procedure 2020-34, the agency said that after it provided relief to real estate mortgage conduits in an April revenue procedure, commenters flagged financial hardships that entities organized as trusts were facing due to the Covid-19 emergency. So officials accommodated those entities as well.

The new guidance limits the tax consequences of changes to mortgages under the third Covid-19 response law (Public Law 116-136), which offered...

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