Weekly IRS Roundup September 27 – October 1, 2021 | McDermott Will & Emery

Below is our summary of key Internal Revenue Service (IRS) guidance and relevant tax matters for the week of September 27, 2021 through October 1, 2021.

09/28/2021: The IRS has published a revenue process that has added Chile to the list of jurisdictions with which the United States has a relevant information exchange agreement for the reporting of deposit interest. The IRS has also added two countries – the Dominican Republic and Singapore – to the list of jurisdictions with which the US Treasury Department and the IRS have determined an automatic exchange relationship is appropriate.

29.09.2021: The IRS released draft Instructions for Additional Income and Losses (Appendix E of Form 1040) regarding reporting income or loss from rental property, royalties, partnerships, sub-companies, estates, trusts, and residual interests in real estate mortgage investment channels (REMICs).

October 1, 2021: The Treasury and the IRS published corrections to the final regulations (Treasury Resolution 9922) that were published in the Federal Register on November 12, 2020, service income, foreign tax reassessments, availability of foreign tax credits under the transitional tax, application of the restriction of foreign tax credits to consolidated groups, adjustments to be considered the hybrid withholding accounts relating to certain income from a US shareholder, conduit financing agreements with hybrid instruments, and the treatment of certain payments under the global provision for low-taxed intangible income.

October 1, 2021: The Treasury Department and the IRS have issued a Notice and Request for Comment on all forms used by tax exempt organizations to determine that those organizations are operating within the limits of their tax exemption. The IRS provided a list of the relevant forms. Written comments are due by November 30, 2021.

October 1, 2021: The Treasury Department and the IRS issued a Notice and Invitation to Comment on the US Income Tax Return Form burden for individual taxpayers. The application includes Form 1040 and associated return forms that are used by individuals to report their taxable income and calculate their correct tax liability. Written comments are due by December 3, 2021.

October 1, 2021: The IRS issued a press release reminding U.S. citizens, resident aliens, and all domestic legal entities that the extended deadline for filing their Annual Foreign Bank and Financial Accounts (FBAR) report is October 15, 2021.

October 1, 2021: The IRS published 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 roundup.

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