Children’s Credit Tax under ARPA; IRS Purchasing Office Vacancies
Below is our summary of the Internal Revenue Service (IRS) key directions and relevant tax matters for the week of June 7, 2021 to June 11, 2021. Additionally, for ongoing updates on the tax impact COVID-19, please visit our resource page here.
June 7, 2021: The IRS issued a press release announcing that it had started sending letters to inform more than 36 million U.S. families of their potential eligibility to receive monthly child tax credit payments starting in July, according to to the extension of the child tax credit under the American Rescue Plan Act. of 2021 (ARPA).
June 8, 2021: The IRS issued a press release soliciting applications for 80 vacancies in its purchasing office, including vacancies for contract specialists who assist the IRS in contracting and administering contracts with third.
June 8, 2021: The IRS issued a press release reminding taxpayers who make estimated tax payments that the second estimated tax payment for 2021 is due on June 15, 2021.
June 9, 2021: The IRS issued a press release announcing the disbursement of over 2.3 million Economic Impact Payments valued at over $ 4.2 billion, bringing the total amount of ARPA disbursements to more than 169 million payments worth approximately $ 395 billion.
June 10, 2021: The IRS issued Notice 2021-36, announcing the effective date of certain regulations under Sections 59A and 6038A of the Code, which set out various reporting requirements regarding qualified derivative payments (PDQ) for the purposes of the Base erosion and anti-abuse (BEAT), is postponed to tax year 2023.
June 11, 2021: The IRS has issued final regulations regarding the new mandatory 60-day deferral of certain tax deadlines due to a federally declared disaster, promulgated as Section 7805A (d) of the Code by the Law of 2020. additional consolidated credits.
June 11, 2021: The IRS issued Tax Decision 2021-11, providing the semi-annual rates of the industry standard fare level (IFLS) and terminal dues used in calculating the value of non-commercial flights on employer-provided aircraft for the purposes of taxing social benefits under Article 61 of the Code. The revenue decision provides for both unadjusted SIFL rates and adjusted SIFL rates for relief given to the airline industry by COVID-related legislation.
June 11, 2021: The IRS issued a ruling action, announcing that it would not agree to TriNet Group, Inc. v. United States, 979 F.3d 1311 (11th Cir. 2020), which held that a professional employers ‘organization (PEO) had “control over the payment of wages” to its clients’ employees and that, therefore, the PEO – and not his clients – was the “employer” (under Section 3401 (d) of the Code) eligible to claim Federal Insurance Contributions Act (FICA) tax credits in respect of such wages.
June 11, 2021: The IRS has issued a press release and two sets of FAQs, providing assistance to families and small businesses claiming certain tax credits expanded by ARPA.
June 11, 2021: The IRS released its weekly list of written determinations (for example, private letter decisions, technical advice memoranda and advice from the chief counsel).
Special thanks to Le Chen in our Washington, DC office for this week’s roundup.