Tax Law and IRS Advice This Week
Below is our summary of the Internal Revenue Service (IRS) key directions and relevant tax matters for the week of October 25, 2021 through October 29, 2021. Additionally, for ongoing updates on the tax impact COVID-19, please visit our resource page here.
25 October 2021: The IRS issued a memorandum implementing the Large Partnership Compliance Pilot Program (LPC), including the identification, selection, and delivery of large partnership tax returns, review procedures, and comments.
25 October 2021: The IRS issued a memorandum providing emergency advice on emails with personal accounts in urgent circumstances to IRS employees tasked with protecting sensitive but unclassified data, including tax information and information. personally identifiable.
October 26, 2021: The IRS and the US Department of the Treasury (Treasury) have issued a notice and request for comment regarding the foreign tax credit used by individuals, estates, or trusts. Comments are requested on Form 1116, Foreign Tax Credit (Individual, Estate or Trust), and Schedules B and C, which are used by individuals (including non-resident aliens), estates or trusts that paid foreign taxes on taxable income in the United States to calculate the foreign tax credit. Written comments are due by December 27, 2021.
October 26, 2021: The IRS has released a practice unit examining education expenses claimed by employees of non-resident aliens (NRAs). The unit focuses on reviewing education expenses claimed by NRAs doing business or business in the United States as employees and examines issues and audit steps that reviewers will need to consider. for these taxpayers.
October 27, 2021: The IRS issued a new statement announcing that victims of Hurricane Ida in parts of Mississippi now have more time – until January 3, 2022 – to file various personal and business income tax returns and make payments tax. The deadline remains November 1, 2021 for affected taxpayers in other parts of Mississippi.
October 28, 2021: The IRS and the Treasury have issued a notice and request for comment regarding Form 3468 (Investment Credit). The form is used to calculate the taxpayer’s credit against their income tax for certain expenses incurred in their trade or business. Written comments are due by December 27, 2021.
October 29, 2021: The IRS and the Treasury have issued a notice and request for comment regarding Form SS-4 (Request for Employer Identification Number). The form is used by taxpayers who are required to have an identification number to use on any return, return or other document to obtain that number. Written comments are due by December 28, 2021.
October 29, 2021: The IRS and the Treasury have issued a notice and request for comment regarding the rules for the manner and method of reporting and paying the 50% non-deductible excise tax imposed by Section 5881 in this regard. which concerns the reception of green mail. Written comments are due by December 28, 2021.
October 29, 2021: The IRS issued a memorandum providing guidance to employees in its Small Business / Self-Employed (SB / SE) and Large Business & International (LB&I) Campus Pass-Through Function (CPF) groups on how to handle the deduction for qualifying business income (section 199A) on the returns of controlled investors in their operations. Returns affected by the procedural change include any tax year that the CPF controls from 2018 or later with Form 1040 or Form 1041 adjusted by the CPF as a result of a key case review.
October 29, 2021: The IRS issued a new release announcing that on November 1, the IRS will launch a new feature that allows any family receiving monthly child tax credit payments to update their income using the Update Portal. Child Tax Credit Update, available exclusively on IRS.gov.
October 29, 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.