This document sets forth proposed regulations to clarify the application of the employer shared responsibility provisions under Internal Revenue Code (Code) section 4980H and the nondiscrimination rules under Code section 105(h) to health reimbursement arrangements (HRAs) and other account-based group health plans integrated with individual health insurance coverage or Medicare (individual coverage HRAs) and to provide certain safe harbors with respect to the application of those provisions to individual coverage HRAs. The proposed regulations are intended to facilitate the adoption of individual coverage HRAs by employers, and taxpayers generally are permitted to rely on the proposed regulations.

This revenue procedure sets forth a system of recurring remedial amendment periods for correcting form defects in a § 403(b) plan (both for § 403(b) individually designed plans and § 403(b) pre-approved plans) first occurring after March 31, 2020 (the ending date for the initial remedial amendment period under Rev. Proc. 2013-22, 2013-18 I.R.B. 985). It also provides a limited extension of the initial remedial amendment period for certain form defects. Further, as contemplated by section 16.01 of Rev. Proc. 2013-22, this revenue procedure establishes a system of § 403(b) pre-approved plan cycles under which a § 403(b) pre-approved plan sponsor may submit a proposed § 403(b) pre-approved plan for review and approval by the IRS, which, once approved, may be made available for adoption by eligible employers. This revenue procedure also provides deadlines for the adoption of plan amendments for § 403(b) individually designed plans and § 403(b) pre-approved plans.

Nonacquiescence to the holding that the transfer of a non-capital asset is treated as the sale or exchange of a capital asset under I.R.C. § 1253(a) if the transferor does not retain any significant power, right, or continuing interest in the asset.

This notice explains the circumstances under which the four-year replacement period under section 1033(e)(2) is extended for livestock sold on account of drought. The Appendix to this notice contains a list of counties that experienced exceptional, extreme, or severe drought conditions during the 12-month period ending August 31, 2019. Taxpayers may use this list to determine if any extension is available.

Optional special per diem rates. This notice provides the 2019-2020 special per diem rates for taxpayers to use in substantiating the amount of ordinary and necessary business expenses incurred while traveling away from home. The notice includes (1) the special transportation industry rate, (2) the rate for the incidental expenses only deduction, and (3) the rates and list of high-cost localities for the high-low substantiation method.

This revenue procedure provides for a safe harbor under which a rental real estate enterprise will be treated as a trade or business solely for purposes of section 199A of the Internal Revenue Code (Code). To qualify for treatment as a trade or business under this safe harbor, the rental real estate enterprise must satisfy the requirements of the revenue procedure. If an enterprise fails to satisfy these requirements, the rental real estate enterprise may still be treated as a trade or business for purposes of section 199A if the enterprise otherwise meets the definition of trade or business in § 1.199A-1(b)(14).