Introduced beneath is our abstract of great Inner Income Service (IRS) steering and related tax issues for the week of November 29, 2021 – December 3, 2021. Moreover, for persevering with updates on the tax influence of COVID-19, please go to our useful resource web page here.
November 29, 2021: The IRS published a information launch warning taxpayers and tax professionals to watch out for a harmful mixture of occasions that may enhance their publicity to tax scams and id theft. The IRS said that the vacation purchasing season, the upcoming tax season and the pandemic all create further alternatives for criminals to steal delicate private or finance data.
November 30, 2021: The IRS issued Income Process 2021-53, which gives non permanent steering relating to the remedy of sure inventory distributions by publicly provided actual property funding trusts and publicly provided regulated funding firms in recognition of the necessity for liquidity on account of COVID-19. The steering reduces the minimal required mixture amount of money that distributee shareholders could obtain to a minimum of 10% of the whole distribution to ensure that Part 301 (by purpose of Part 305(b)) to use to such distribution.
November 30, 2021: The IRS published a information launch warning taxpayers to be cautious of faux charities utilized by scammers to trick unsuspecting donors into offering cash and delicate monetary and private data.
November 30, 2021: The IRS posted a problem snapshot regarding subject indicators and audit suggestions for public and tax-exempt employer contributions to eligible deferred compensation plans (as outlined in Part 457(b)).
December 1, 2021: The US Competent Authority posted the association between Competent Authorities of the USA and Turkey, setting forth parameters on the change of county-by-country reporting agreements to fight switch pricing, base erosion and revenue shifting-related dangers.
December 1, 2021: The IRS published a information launch reminding taxpayers they’ll get further safety beginning in January by becoming a member of its Identification Safety Private Identification Quantity (IP PIN) program. Anybody who can confirm their id can shield themselves in opposition to tax-related id theft by opting into this system.
December 2, 2021: The IRS published a information launch warning tax professionals that they face further safety dangers from cybercriminals looking for to make use of the pandemic and phishing scams to steal delicate consumer data.
December 2, 2021: The IRS recommended nonacquiescence in Mayo Clinic v. United States, 997 F.3d 789 (eighth Cir. Could 13, 2021), rev’g 412 F. Supp. 3d 1038 (D. Minn. 2019), the place the appeals court docket invalidated Treasury Laws Part 1.170A-9(c)(1)’s requirement that the first perform of an academic group described in Part 170(b)(1)(A)(ii) be the presentation of formal instruction. For extra background, see our latest post.
December 2, 2021: The IRS published a information launch reminding tax professionals and taxpayers that they’ll use digital signatures on quite a lot of frequent IRS varieties and entry a safe on-line platform to view and make adjustments to their account. The IRS is balancing the e-signature choice with vital safety and safety wanted in opposition to id theft and fraud. The IRS additionally offered a list of acceptable digital signatures.
December 3, 2021: The IRS published a information launch urging companies to be alert to cyberattacks geared toward getting access to enterprise knowledge and buyer data and to know the steps they’ll take to assist them on tax-related points related to id theft.
December 3, 2021: The IRS launched its weekly checklist of (*29*) (e.g., Personal Letter Rulings, Technical Recommendation Memorandums and Chief Counsel Recommendation).
Particular due to Robbie Alipour in our Chicago workplace for this week’s roundup.