IRS Weekly Summary October 4 – October 8, 2021 | McDermott Will & Emery


Below is our summary of important Internal Revenue Service (IRS) guidelines and relevant tax matters for the week of October 4, 2021 to October 8, 2021.

October 4, 2021: The IRS issued a practice unit, providing tax legislation and audit steps to review 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: IRS released instructions for form W-8BEN (Certificate of Foreign Status of Beneficial Owner for United States Taxholding and Reporting (Individuals)) concerning:

  • 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 arising from 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 still have to file their 2020 tax returns. Free File is the IRS’s public-private partnership with industry leaders in tax preparation software. taxes to provide their branded products for free.

October 5, 2021: The IRS issued a memorandum, expanding the criteria for collecting due process cases that qualify for a prompt response appeal process under IRM and related subsections.

October 5, 2021: The IRS issued a memorandum regarding interim guidelines for IRS Independent Office of Appeals Steps and Procedures for its National Pilot Program: The Electronic Appeals Records Initiative for Reporting Software (RGS) Review Cases for large companies and international (LB&I). These guidelines apply only to cases of individual LB&I RGS International compliance and exclude other important cases such as tax fairness and fiscal liability cases of 1982, bipartite budget law cases of 2015 and easement cases of syndicated retention.

October 5, 2021: The IRS issued a memorandum Update procedures when an organization requests a change to a subsection of section 501 during the application process by submitting a request form to replace a different request form. 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 issued a program letter indicating that in fiscal year 2022, the Tax Exempt Entity (TE) / Government Entity (GE) Commissioners plan to invest in new resources to expand the reach of the exempt sector as well as to increase their staff in ‘execution.

8 October 2021: The IRS released its weekly list of written determinations (for example, private letter decisions, technical advice memorandums and advice from the chief counsel).

Special thanks to Robbie Alipour in our Chicago office for this week’s roundup.

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