e-News for Tax ProfessionalsOctober 1, 2021
Seminars, Workshops, Conferences, and Other Practitioner Activities By State:
Inside This Issue
- FBAR extension deadline nears for foreign bank, financial account holders
- Amended tax relief for disaster victims in Michigan, New York and Pennsylvania
- IRS selects new members for the Electronic Tax Administration Advisory Committee
- Remind your clients about Opportunity Zones reporting requirements
- Starting Oct. 28, new user fee applies to estate tax closing letters
- A Closer Look: Providing resources to help cannabis business owners successfully navigate unique tax responsibilities
- News from the Justice Department’s Tax Division
- Technical Guidance
Remind your clients that the extension deadline to file their annual Report of Foreign Bank and Financial Accounts (FBAR) is Oct. 15, 2021. Filers missing the April 15 annual due date earlier this year received an automatic extension until Oct. 15, 2021, to file the FBAR. They did not need to request the extension. Filers affected by a natural disaster may have their FBAR due date further extended. It’s important filers review relevant FBAR Relief Notices for complete information.
Michigan victims of severe storms, flooding and tornadoes that began on June 25 now have until Nov. 1 to file various individual and business tax returns and make tax payments. This tax relief has been expanded to include Macomb and Oakland counties. Also, victims of remnants of Hurricane Ida now have until Jan. 3, 2022, to file various individual and business tax returns and make tax payments. This relief has been expanded to include Dutchess, Orange, Putnam, Rockland and Ulster counties in New York, as well as Bedford and Northampton counties in Pennsylvania.
The IRS has selected seven new members for the Electronic Tax Administration Advisory Committee (ETAAC), a public forum for the discussion of issues in electronic tax administration. Visit IRS.gov for information about the new members who have been appointed to serve three-year terms.
Those who held a qualifying investment in a Qualified Opportunity Fund (QOF) at any point during the tax year must file Form 8997 with their timely filed federal tax return (including extensions). Failure to file the form will result in a rebuttable presumption of an inclusion event that terminates the qualifying investment in a QOF. A corporation or partnership that elected or is electing to be a QOF must file completed Form 8996 annually with their timely filed federal tax return (including extensions) to report that the QOF meets the 90% investment standard of section 1400Z-2 or to figure the penalty if it fails to meet the investment standard. This is required even in years the corporation or partnership has no taxable income. For more information, see the Opportunity Zones section on IRS.gov.
Starting Oct. 28, a new $67 user fee will apply to any estate that requests a closing letter for its federal estate tax return. The IRS also continues to remind executors about the availability of the free transcript option. The new user fee was authorized under final regulations, TD 9957, now available in the Federal Register. Closing letter requests must be made using Pay.gov. The IRS will provide further procedural details before the user fee goes into effect.
In the most recent issue of A Closer Look, De Lon Harris, Commissioner, Small Business Self-Employed, Exam, discusses the tax implications for the rapidly growing cannabis/marijuana industry. “I see it as my responsibility to make sure my organization helps taxpayers navigate complex issues and provides the tools that we have available for them to be successful and compliant business owners,” said Harris. This feature is also available in Spanish.
A federal court in the Southern District of Florida has ordered Milagros Espinal, a Miami-area tax preparer, to pay a $403,969.70 contempt sanction for violating a permanent injunction that barred her from preparing, filing or assisting in the preparation or filing of federal tax returns for others.
Revenue Procedure 2021-32 adds one country, Chile, to the current published list of countries with which the United States has in force an information exchange agreement, such that interest paid to residents of such countries must be reported by payors to the extent required under Treas. Reg. sections 1.6049-4(b)(5) and 1.6049-8(a).
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