Issue Number: 2021-46
Inside This Issue
- Tax professionals can now order more transcripts from the IRS
- IRS unveils new online identity verification process for accessing self-help tools
- Security Summit focuses special week on protection against identity theft
- Amended tax relief for disaster victims in California, Mississippi
- New online tool helps U.S. withholding agents validate their 1042-S data before filing
- New how-to videos help taxpayers apply for Offers in Compromise
- Advisory Council issues 2021 annual report
- IRS Criminal Investigation releases annual report
- A Closer Look: Detecting fraud, protecting taxpayers
- Updated FAQs for Coronavirus State and Local Fiscal Recovery Funds
- News from the Justice Department’s Tax Division
- Technical Guidance
Tax pros: You can now order up to 30 Transcript Delivery System (TDS) transcripts per client through the Practitioner Priority Service line. This is an increase from the previous 10 transcripts per client limit. Visit IRS.gov for a list of transcripts that are available under this newly expanded limit.
2. IRS unveils new online identity verification process for accessing self-help tools
The IRS launched an improved identity verification and sign-in process that enables more people to securely access and use IRS online tools and applications. The new process is one more step the IRS is taking to ensure that taxpayer information is provided only to the person who legally has a right to the data. This article is also available in Spanish and Simplified Chinese.
3. Security Summit focuses special week on protection against identity theft
With the 2022 tax season and the holidays rapidly approaching, the IRS, state tax agencies and the nation’s tax industry – working together as the Security Summit – plan a special week focusing attention on taxpayers protecting sensitive financial information against identity thieves. The 6th Annual National Tax Security Awareness Week will take place from Nov. 29–Dec. 3, and will feature a weeklong series of educational materials to help protect individuals, businesses and tax pros from identity theft.
Wildfire victims in parts of California now have until Jan. 3, 2022, to file various individual and business tax returns and make tax payments. Individuals and households affected by the California wildfires that reside or have a business in Lassen, Nevada, Placer, Plumas, Tehama and Trinity counties qualify for this relief. Also, victims of Hurricane Ida throughout Mississippi have until Jan. 3, 2022, to file various individual and business tax returns and make tax payments.
The IRS launched a new online tool designed to help U.S. withholding agents comply with their reporting and withholding responsibilities with respect to IRS Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding. The tool performs a quality review of data before submission to the IRS.
6. New how-to videos help taxpayers apply for Offers in Compromise
Inform your clients about a new how-to video series that explains the Offer in Compromise process and walks them through the paperwork for submitting a valid offer to settle their tax debts. Understanding how offers work helps taxpayers avoid scams and paying excessive fees to companies advertising outlandish claims.
The Internal Revenue Service Advisory Council (IRSAC) issued its annual report for 2021, including recommendations to the IRS on new and continuing issues in tax administration. The full 2021 IRSAC Public Report is available on IRS.gov.
The IRS Criminal Investigation division released its fiscal year 2021 annual report, detailing statistics, important partnerships and significant criminal enforcement actions. More than 2,500 criminal investigations, the identification of more than $10 billion from tax fraud and financial crimes and a nearly 90 percent conviction rate are just a few highlights. This article is also available in Simplified Chinese.
In a recent issue of A Closer Look, James Lee, IRS Criminal Investigation Chief, and Damon Rowe, Executive Director, IRS Office of Fraud Enforcement, provide a glimpse of how the IRS investigates and helps prosecute fraud. This feature is also available in Spanish.
The IRS provided answers about the Coronavirus State and Local Fiscal Recovery Funds (SLFR Funds). These funds give eligible state and local governments a substantial infusion of resources to meet pandemic response needs.
The United States filed a complaint in the U.S. District Court for the Northern District of Illinois seeking to bar Melissa Gasca, a Chicago-area tax return preparer, from preparing federal income tax returns for others.
Leonel Rivero, a South Florida tax preparer, was sentenced to two years in prison for perpetrating a scheme to fraudulently obtain more than 100 COVID-19 relief loans under the Paycheck Protection Program.
Notice 2021-62 sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates for November 2021 used under section 417(e)(3)(D), the 24-month average segment rates applicable for November 2021, and the 30-year Treasury rates, as reflected by the application of section 430(h)(2)(C)(iv).
Notice 2021-63 provides guidance regarding the temporary 100% deduction for expenses that are paid or incurred after Dec. 31, 2020, and before Jan. 1, 2023, for food or beverages provided by a restaurant for purposes of section 274(n)(2)(D) of the Internal Revenue Code.
Revenue Procedure 2021-48 provides that taxpayers may treat amounts that are excluded from gross income (tax-exempt income) in connection with the forgiveness of Paycheck Protection Program (PPP) Loans as received or accrued: (1) as eligible expenses are paid or incurred, (2) when an application for PPP Loan forgiveness is filed or (3) when PPP Loan forgiveness is granted
Revenue Procedure 2021-49 provides guidance for partnerships and consolidated groups regarding amounts excluded from gross income and deductions relating to the Paycheck Protection Program and certain other COVID-19 relief programs.
Revenue Procedure 2021-50 allows eligible BBA partnerships to file amended Forms 1065 and furnish amended Schedules K-1 on or before Dec. 31, 2021, to adopt the guidance set forth in Rev. Procs. 2021-48 and 2021-49 if certain requirements are met.
Revenue Ruling 2021-23 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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