IRS Updates for the Week of November 15 – November 19, 2021

Wednesday November 24th 2021

Below is our summary of key Internal Revenue Service (IRS) guidance and relevant tax matters for the week of November 15, 2021 through November 19, 2021. For more information on the tax implications of COVID-19, please visit our resource page here.

November 15, 2021: The IRS issues a press release announcing the launch of a new online tool to help U.S. withholding agencies meet their reporting and withholding obligations on IRS Form 1042-S, U.S. Withholding Income subject to withholding tax. The tool performs a quality check on the data before it is submitted to the IRS. Use of the tool does not change a withholding agent’s obligations to file Form 1042-S with the IRS and provide a copy to the payee.

November 15, 2021: The IRS released a press release announcing that forest fire victims, which began on July 14, 2021, now have until January 3, 2022 to file various individual and corporate tax returns and make tax payments .

November 16, 2021: The IRS issued a press release announcing that starting November 15, 2021, tax professionals will be able to order up to 30 Transcript Delivery System transcripts per client through the Practitioner Priority Service Line. This is an increase compared to the previous limit of 10 transcripts per customer.

November 16, 2021: The IRS issued a press release on Notice 2021-63 detailing how the 100% restaurant food or beverage temporary business deduction will apply to taxpayers who properly apply the rules of Revenue Procedure 2019-48 if they use daily rates.

November 17, 2021: The IRS released a press release announcing that Hurricane Ida victims across Mississippi now have additional time through January 3, 2022 to file various individual and corporate tax returns and make tax payments.

November 17, 2021: The Internal Revenue Service Advisory Council (IRSAC) issued a press release announcing its annual report for 2021 containing recommendations to the IRS on new and ongoing tax administration issues. The 2021 report contains recommendations on 24 topics covering a wide range of topics. The IRSAC is a federal advisory committee that provides an organized public forum for the discussion of relevant tax administration issues between IRS officials and representatives of the public. IRSAC members provide constructive observations on current or proposed IRS policies, programs, and practices.

November 17, 2021: The IRS issued a press release announcing that it would unveil a new series of video guides that will enable taxpayers to avoid potential scams by considering and requesting a compromise offer themselves and avoiding Paying excessive fees to companies promoting outlandish claims.

November 17, 2021: The IRS issued a press release announcing the introduction of an improved identity verification and login process that will allow more people to securely access IRS online tools and applications.

November 17, 2021: The IRS’s National Taxpayer Advocate posted a blog post advising that Congress should address minimum skill standards for returnees. The National Taxpayer Advocate stated that Congress must give the IRS legal authority to set minimum standards of competence for preparing federal tax returns.

November 17, 2021: The IRS posted frequently asked questions to states and local governments regarding taxation and reporting payments from the Coronavirus State and Local Fiscal Recovery Funds. These funds give eligible state and local governments a significant infusion of resources to meet pandemic response needs. The answers in the FAQs describe the tax consequences for individual recipients and the reporting requirements for states, municipalities and employers, if applicable.

November 17, 2021: The IRS released Revenue Procedure 2021-49, which provides guidance for partnerships and consolidated groups on amounts excluded from gross income (tax-exempt income) and deductions related to the Paycheck Protection Program (PPP) and other specific COVID- 19 utilities.

November 17, 2021: The IRS Criminal Investigation Dividend (IRS-CI), the criminal investigation division of the IRS, publishes an annual report on enforcement actions. The report provides details of statistics, key partnerships, and significant law enforcement actions by the IRS-CI for the past fiscal year, which began October 1, 2020 and ended September 30, 2021.

November 17, 2021: The IRS published Revenue Procedure 2021-48, which provides that taxpayers can treat amounts excluded from gross income (tax-exempt income) in connection with the issuance of PPP loans as received or accrued: (1 ) paid or incurred as eligible expenses, (2) when an application is made for a PPP loan waiver, or (3) when a PPP loan waiver is granted.

November 17, 2021: The IRS has published Revenue Procedure 2021-50, which allows eligible partnerships to file amended partnership returns for tax years ending after March 27, 2020 to reflect those in Revenue Procedures 2021-48 and 2021-49 to adopt established guidelines if certain requirements are met.

November 18, 2021: The IRS issued a statement informing taxpayers and their advisors of the disposition of refund claims filed by or on behalf of a taxpayer pending the California v Texas decision. As a result of the forthcoming ruling by the United States Supreme Court in this case, the IRS will not allow the claims to be held pending or take any further action in relation to those claims. Taxpayers who have submitted these protection claims will not receive a notification from the IRS denying their reimbursement claims. In addition, the IRS will not accept future claims for reimbursement based on the legal theories put forward by plaintiffs in this litigation.

November 19, 2021: The IRS issued a press release kicking off National Tax Security Awareness Week. Working together as a security summit, the coalition of the IRS, the states and the country’s tax community are planning the 6th annual National Tax Security Awareness Week, which will take place from November 29th to December 3rd.

November 19, 2021: The IRS publishes its weekly list of written determinations (e.g. Private Letter Rulings, Technical Advice Memorandums, and Chief Counsel Advice).

https://www.natlawreview.com/article/weekly-irs-roundup-november-15-november-19-2021