Issue Number: 2021-42
Inside This Issue
- It’s PTIN renewal time
- COVID-19 relief: IRS helps employers wanting to rehire retirees, retain employees after retirement age
- Reminder: e-file payroll tax returns timely
- Amended tax relief for Hurricane Ida victims in Pennsylvania
- IRS extends videoconferencing to large business taxpayers
- IRS, Security Summit partners remind families to make online safety a priority during National Cybersecurity Month
- IRS joins international organizations in fighting charity fraud
- News from the Justice Department’s Tax Division
- Technical Guidance
Tax pros: You must renew your preparer tax identification numbers (PTIN) now for 2022. All current PTINs will expire on Dec. 31, 2021. Anyone who prepares or assists in preparing a federal tax return for compensation must have a valid PTIN from the IRS before preparing returns. For more information about renewing your PTIN and participating in the Annual Filing Season Program, see the attached notices from the Return Preparer Office (to view, download the images to your device). This article is also available in Simplified Chinese.
To help address COVID-related labor shortages, inform your clients that they generally will not jeopardize the tax status of their pension plans if they rehire retirees or permit distributions of retirement benefits to current employees who have reached age 59 ½ or the plan’s normal retirement age. Visit IRS.gov for the new frequently asked questions about retirement plans and IRAs.
Remind your clients that the next quarterly payroll tax return is due Monday, Nov. 1, 2021. Visit IRS.gov for more information on filing returns electronically and related employer tax credits. This article is also available in Simplified Chinese.
Pennsylvania 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 Fulton, Huntingdon, Luzerne, Schuylkill and Dauphin counties.
The IRS’s large business division now will accept all taxpayer requests to meet with IRS employees using secure videoconferencing. This extends the practice used during the pandemic to accommodate taxpayers who prefer meeting over video rather than telephone.
The IRS reminds families, teens and senior citizens about the continued importance of protecting personal and financial information online. Visit IRS.gov for tips on how to stay safe online. This article is also available in Spanish and Simplified Chinese.
The IRS is joining international organizations and other regulators in highlighting Charity Fraud Awareness Week, Oct. 18-22. The goal of the campaign is to raise awareness of fraud and cybercrime affecting organizations and to create a safe space for charities and their supporters to talk about fraud and share good practice. This article is also available in Spanish and Simplified Chinese.
8. News from the Justice Department’s Tax Division
Nicholas Laws, of Durham, N.C., was sentenced to 33 months in prison for assisting in the preparation of a false tax return and for filing a false personal income tax return. In addition to the term of imprisonment, U.S. District Judge William L. Osteen ordered Laws to serve one year of supervised release and to pay approximately $184,072 in restitution to the United States.
Notice 2021-56 sets forth current standards that a limited liability company (LLC) must satisfy to receive a determination letter recognizing it as tax-exempt under section 501(a) of the Internal Revenue Code and described in section 501(c)(3).
Notice 2021-60 sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates for October 2021 used under section 417(e)(3)(D), the 24-month average segment rates applicable for October 2021, and the 30-year Treasury rates, as reflected by the application of section 430(h)(2)(C)(iv).
Rev. Ruling 2021-21 provides various prescribed rates for federal income tax purposes including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate and the adjusted federal long-term tax-exempt rate. These rates are determined as prescribed by section 1274.
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