Holiday Shopping Tax Scam Warning
Below is our summary of the Internal Revenue Service (IRS) key directions and relevant tax matters for the week of November 29, 2021 to December 3, 2021. Additionally, for ongoing updates on the tax impact COVID-19, please visit our resource page here.
November 29, 2021: The IRS issued a press release warning taxpayers and tax practitioners to be wary of a dangerous combination of events that can increase their exposure to tax scams and identity theft. The IRS has said the holiday shopping season, upcoming tax season and the pandemic all create additional opportunities for criminals to steal sensitive personal or financial information.
November 30, 2021: The IRS issued Tax Procedure 2021-53, which provides temporary guidance regarding the treatment of certain distributions of shares by real estate investment trusts and regulated investment companies offered to the public in recognition of the need for liquidity due to of COVID-19. The guidelines reduce the required minimum total amount of cash that beneficiary shareholders may receive to at least 10% of the total distribution so that Section 301 (due to Section 305 (b)) applies to such distribution. .
November 30, 2021: The IRS issued a press release warning taxpayers to beware of bogus charities used by crooks to trick unsuspecting donors into providing money and sensitive financial and personal information.
November 30, 2021: The IRS has published an overview of the issue regarding problem indicators and audit advice for public and tax-exempt employer contributions to qualifying deferred compensation plans (as defined in Section 457 (b)) .
December 1, 2021: The competent authority of the United States has published the agreement between the competent authorities of the United States and Turkey, establishing parameters on the exchange of country-by-country reporting agreements to combat the price risks of transfer, base erosion and profit shifting.
December 1, 2021: The IRS issued a press release reminding taxpayers that they can get additional protection starting in January by joining its Identity Protection Personal Identification Number (IP PIN) program. Anyone who can verify their identity can protect themselves against tax identity theft by enrolling in the program.
December 2, 2021: IRS issued press release warning tax professionals they face additional security risks from cybercriminals seeking to use pandemic and phishing scams to steal sensitive customer information .
December 2, 2021: The IRS recommended non-acquiescence in Mayo Clinic v. United States, 997 F.3d 789 (8th Cir. 13 May 2021), rev’g 412 F. Supp. 3d 1038 (D. Minn. 2019), where the court of appeal invalidated the requirement of Article 1.170A-9 (c) (1) of the Treasury Regulations that the main function of an educational organization described in Article 170 (b) (1) (A) (ii) be the presentation of formal education. For more information, see our recent article.
December 2, 2021: The IRS issued a press release reminding tax practitioners and taxpayers that they can use digital signatures on a variety of common IRS forms and access a secure online platform to view and make changes to their account. The IRS balances the electronic signature option with the essential security and protection needed against identity theft and fraud. The IRS also provided a list of acceptable electronic signatures.
December 3, 2021: The IRS has issued a press release urging businesses to be vigilant in the face of cyber attacks aimed at accessing business data and customer information, and to know the steps they can take to help them with tax issues related to theft of business. ‘identity.
December 3, 2021: The IRS released its weekly list of written determinations (for example, private letter rulings, technical advice memoranda and advice from the chief counsel).
Special thanks to Robbie Alipour in our Chicago office for this week’s roundup.