Issue Number: 2021-48
Inside This Issue
- National Tax Security Awareness Week: Beware of scams as the holidays, tax season approach
- A Closer Look: Tips to help taxpayers during National Tax Security Awareness Week
- IRS provides instructions on how to submit Schedules K-2, K-3 with an electronic return during the interim period
- Technical Guidance
1. National Tax Security Awareness Week: Beware of scams as the holidays, tax season approach
During National Tax Security Awareness Week, the IRS and its Security Summit partners highlight important tips for tax professionals and taxpayers:
- Take extra care while shopping online or viewing emails and texts. The holiday shopping season, the upcoming tax season and the pandemic create more opportunities for criminals to steal sensitive personal or finance information. This article is also available in Spanish and Simplified Chinese.
- Be wary of fake charities used by scammers to get money as well as sensitive financial and personal information from victims. This article is also available in Spanish and Simplified Chinese.
- Remind your clients that they can get extra protection starting in January by joining the IRS’s Identity Protection Personal Identification Number (IP PIN) program, enabling them to proactively protect themselves against identity theft. This article is also available in Spanish and Simplified Chinese.
- Tax pros face additional security risks from cybercriminals seeking to use the pandemic and phishing scams to steal sensitive client information. You should remain focused on security issues and follow important steps to safeguard information, including using multifactor authentication and using a virtual private network to guard against data loss. Visit IRS.gov for security tips and resources. This article is also available in Spanish and Simplified Chinese.
- You and your clients can use digital signatures on a variety of common IRS forms and access a secure online platform to view and make changes to your account. This article is also available in Spanish and Simplified Chinese.
- Be alert to cyberattacks aimed at gaining access to business data and customer information and be aware of steps to help them on tax-related issues related to identity theft. More than 70 percent of cyberattacks are aimed at businesses with 100 or fewer employees. The article is also available in Spanish and Simplified Chinese.
In the latest issue of “A Closer Look,” Michael Beebe, Director, Return Integrity & Compliance Services, provides tips to help protect taxpayers during National Tax Security Awareness Week and the holiday season. “Keeping personal and financial information safe is a shared responsibility. People can take simple steps to protect their sensitive tax and financial information,” Beebe said. This feature is also available in Spanish.
Schedules K-2 and K-3 are new for the 2021 tax year. If you have items of international tax relevance, you are required to report them on Schedules K-2 and K-3, if you file:
- Form 1065, U.S. Return of Partnership Income
- Form 1120-S, U.S. Income Tax Return for an S Corporation or
- Form 8865, Return of U.S. Persons with Respect to Certain Foreign Partnerships
Modernized e-File (MeF)/Extensible Markup Language (XML) electronic filing capability for the Schedules K-2 and K-3 for tax year 2021 will not be available as of the beginning of the 2022 filing season (January 2022). Schedules K-2 and K-3 will be available for MeF/XML filing in the following timeframes:
- Form 1065 available March 20, 2022
- Form 1120-S available mid-June 2022
- Form 8865 available January 2023
If you electronically file your return before the timeframes (Interim Period), submit the schedules as separate PDF files attached to the return. Find the schedules in Forms and Publications.
Notice 2021-64 contains the 2021 Required Amendments List, which establishes the end of the remedial amendment period and the plan amendment deadline for changes in qualification requirements and section 403(b) requirements set forth on the list for qualified individually designed plans and section 403(b) individually designed plans, respectively.
Revenue Procedure 21-43 provides safe harbors for when an obligation described in section 42(h)(4)(A) of the Internal Revenue Code or an allocation of a low-income housing credit dollar amount is more than de minimis for purposes of the associated revenue ruling providing guidance on whether the 4 percent applicable percentage under section 42(b)(3) applies to certain low-income buildings.
Revenue Procedure 2021-53 provides temporary guidance regarding the treatment of certain stock distributions by publicly offered Real Estate Investment Trusts (REITs) and Regulated Investment Companies (RICs).
Revenue Ruling 2021-20 provides guidance regarding whether the 4 percent applicable percentage (4 percent floor) under section 42(b)(3) of the Internal Revenue Code applies to the low-income buildings described in the revenue ruling.
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