IRS publishes practice unit on tax law and audit steps
Below is our summary of important Internal Revenue Service (IRS) guidance and relevant tax matters for the week of October 4, 2021 to October 8, 2021. Additionally, for ongoing updates on the tax impact COVID-19, please visit our resource page here.
October 4, 2021: The IRS has released a Practice Unit, providing tax law and auditing steps to examine a reseller’s uniform capitalization cost calculations under Section 263A. The practice unit focuses on the simplified filing method and does not cover Final Section 263A of the Treasury Regulations which came into effect on November 20, 2018.
October 4, 2021: The IRS issued a press release announcing 18 self-study seminars available online through the IRS National Tax Forums. The seminars cover topics such as concert economics and virtual currency.
October 4, 2021: The IRS has issued instructions for Form W-8BEN (Certificate of Foreign Status of Beneficial Owner for United States Taxholding and Reporting (Individuals)) regarding:
Guidance under section 1446 (f) (withholding on dispositions of interests in a partnership)
New lines 6a and 6b (concerning questions relating to the foreign tax identification number (FTIN))
Claims for benefits under a tax treaty (requiring representations)
Declaration under section 6050Y (covering life insurance contracts and reportable death benefits)
Electronic signatures (updated to reflect new guidelines)
October 5, 2021: The IRS issued a press release announcing that Free File remains available until October 15 for taxpayers who have yet to file their 2020 tax returns. Free File is the IRS’s public-private partnership with leaders of the tax preparation software industry to provide their branded products for free.
October 5, 2021: The IRS has issued a memorandum expanding the criteria for collecting due process cases that qualify for a rapid response appeal process under IRM 184.108.40.206 and related subsections.
October 5, 2021: The IRS issued a memorandum regarding provisional guidelines for the steps and procedures of the IRS’s independent appeals office for its national pilot program: the Electronic Records Initiative for Software Review Cases. report generation (RGS) for large companies and international (LB&I). These guidelines apply only to cases of international individual compliance of LB&I RGS and exclude other important cases such as tax fairness and fiscal responsibility cases of 1982, bipartite budget law cases of 2015 and easement cases. unionized retention.
October 5, 2021: The IRS has issued an update procedures memorandum when an organization requests a change to a subsection of Section 501 during the application process by submitting an application form to replace another form. request. The procedures come into effect 30 days after the issuance of the memorandum and replace those in TEGE-07-0421-0010 (April 29, 2021).
October 7, 2021: The IRS has issued a program letter indicating that in fiscal 2022, the Tax Exemption Commissioners (TEs) / Government Entities (GE) plan to invest in new resources to expand the reach of the sector. exempt as well as to increase their operational staff.
October 8, 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.