Introduced beneath is our abstract of great Inner Income Service (IRS) steering and related tax issues for the week of October 4, 2021 – October 8, 2021. Moreover, for persevering with updates on the tax influence of COVID-19, please go to our useful resource web page here.
October 4, 2021: The IRS launched a practice unit, offering tax legislation and audit steps for reviewing a reseller’s uniform capitalization price computations underneath part 263A. The follow unit focuses on the simplified manufacturing methodology and doesn’t cowl the ultimate part 263A Treasury Rules that have been efficient November 20, 2018.
October 4, 2021: The IRS revealed a news release, saying 18 self-study seminars accessible on-line by the IRS Nationwide Tax Boards. The seminars cowl matters such because the gig financial system and digital forex.
October 4, 2021: The IRS revealed instructions for Kind W-8BEN (Certificates of International Standing of Helpful Proprietor for United States Tax Withholding and Reporting (People)) regarding:
Steering underneath part 1446(f) (withholding on partnership curiosity tendencies)
New strains 6a and 6b (addressing overseas tax ID quantity (FTIN) issues)
Tax treaty advantages claims (requiring representations)
Part 6050Y reporting (protecting life insurance coverage contracts and reportable loss of life advantages)
Digital signatures (up to date to mirror new steering)
October 5, 2021: The IRS revealed a news release, saying that Free File stays accessible by October 15 for taxpayers who nonetheless must file their 2020 tax returns. Free File is the IRS’s public-private partnership with tax preparation software program business leaders to supply their model title merchandise without spending a dime.
October 5, 2021: The IRS launched a memorandum, increasing the standards for assortment due course of instances that qualify for a fast response appeals course of underneath IRM 184.108.40.206 and associated subsections.
October 5, 2021: The IRS launched a memorandum regarding interim steering relating to the IRS Unbiased Workplace of Appeals’ steps and procedures for its nationwide pilot program: The Appeals Digital Case Recordsdata Initiative for Massive Enterprise & Worldwide (LB&I) report era software program (RGS) examination instances. This steering is relevant to LB&I RGS Worldwide Particular person Compliance instances solely and excludes different massive instances similar to Tax Fairness and Fiscal Duty Act of 1982 instances, Bipartisan Finances Act of 2015 instances and Syndicated Conservation Easement instances.
October 5, 2021: The IRS launched a memorandum updating procedures the place a corporation requests a change in a piece 501 subsection in the course of the utility course of by submitting one utility type to exchange a unique utility type. The procedures are efficient 30 days after issuance of the memorandum and supersedes these in TEGE-07-0421-0010 (April 29, 2021).
October 7, 2021: The IRS revealed a program letter indicating that, in Fiscal 12 months 2022, Tax Exempt (TE)/Authorities Entities (GE) commissioners anticipate to put money into new sources to broaden outreach to the exempt sector in addition to enhance their enforcement employees.
October 8, 2021: The IRS launched its weekly checklist of written determinations (e.g., Non-public Letter Rulings, Technical Recommendation Memorandums and Chief Counsel Recommendation).
Particular because of Robbie Alipour in our Chicago workplace for this week’s roundup.