Holiday Shopping Tax Scam Warning

Below is our summary of key Internal Revenue Service (IRS) guidance and relevant tax matters for the week of November 29, 2021 to December 3, 2021. For more information on the tax implications of COVID-19, please visit our resource page here.

November 29, 2021: The IRS issued a press release warning taxpayers and tax professionals to beware of a dangerous combination of events that can increase their vulnerability to tax fraud and identity theft. The IRS stated that the Christmas shopping season, the upcoming tax season, and the pandemic all create additional opportunities for criminals to steal sensitive personal or financial information.

November 30, 2021: The IRS released Revenue Procedure 2021-53, which provides temporary guidance on the treatment of certain share distributions by publicly offered real estate funds and publicly offered regulated investment companies in recognition of liquidity needs due to COVID. contains -19. The guidelines reduce the minimum required total amount of cash that distributing shareholders may receive to no less than 10% of the total distribution for Section 301 (based on Section 305 (b)) to apply to such distribution.

November 30, 2021: The IRS issued a press release warning taxpayers to beware of fake charities used by scammers to trick unsuspecting donors into providing money and sensitive financial and personal information.

November 30, 2021: The IRS released a snapshot of the problem on problem indicators and audit tips for public and tax-exempt employer contributions to qualifying compensation plans (as defined in Section 457 (b)).

December 1, 2021: The US competent authority published the agreement between the competent authorities of the United States and Turkey, which sets parameters for the exchange of country-specific reporting agreements to combat transfer pricing, profit curtailment and profit shifting risks.

December 1, 2021: The IRS issued a press release reminding taxpayers that starting January they can get additional protection by joining its Identity Protection Personal Identification Number (IP-PIN) program. Anyone who can verify their identity can protect themselves against tax-related identity theft by participating in the program.

December 2, 2021: The IRS issued a press release warning tax professionals that they are facing additional security risks from cyber criminals attempting to use the pandemic and phishing scams to steal sensitive customer information.

December 2, 2021: The IRS recommended non-consent at Mayo Clinic v. United States, 997 F.3d 789 (8th Cir. May 13, 2021), Rev. 412 F. Supp. 3d 1038 (D. Minn. 2019), where the Court of Appeals invalidated the requirement of Section 1.170A-9 (c) (1) of the Treasury Regulations that the items set out in Section 170 (b) (1) (A) ( ii) be the presentation of a formal instruction. You can find more background information in our last post.

December 2, 2021: The IRS issued a press release reminding tax professionals and taxpayers to use digital signatures on a variety of popular IRS forms and access a secure online platform to view and make changes to their account. The IRS balances the e-signature option with critical security and protection against identity theft and fraud. The IRS has also provided a list of acceptable electronic signatures.

December 3, 2021: The IRS issued a press release urging companies to be aware of cyberattacks aimed at gaining access to business data and customer information and what steps they can take to help them with tax-related issues in the Related to identity theft.

December 3, 2021: The IRS publishes its weekly list of written determinations (e.g. Private Letter Rulings, Technical Advice Memorandums, and Chief Counsel Advice).

Special thanks to Robbie Alipour at our Chicago office for this week’s round-up.

https://www.natlawreview.com/article/weekly-irs-roundup-november-29-december-3-2021