Issue Number: 2021-49
Inside This Issue
- IRS extends temporary policy on e-signatures for certain forms until Oct. 31, 2023
- Get ready for taxes: What’s new and what to consider when filing in 2022
- A Closer Look: How IRS Collection is helping taxpayers during the pandemic
- IRS provides answers for 2021 Short-Tax Year Pass-Through Entity Returns and Schedules K-2 and K-3
- IRS seeking qualified applicants for the Electronic Tax Administration Advisory Committee
- IRS makes available new version of Form 8918, Material Advisor Disclosure Statement, includes 2D barcodes
- Technical Guidance
1. IRS extends temporary policy on e-signatures for certain forms until Oct. 31, 2023
To help reduce burden for the tax community, the IRS allows taxpayers to use electronic or digital signatures on certain paper forms they cannot file electronically. This policy has been extended through Oct. 31, 2023. The IRS is balancing the e-signature option with critical security and protection needed against identity theft and fraud. Understanding the importance of electronic signatures to the tax community, the IRS offers an overview as well as a list of forms.
Individuals are encouraged to take important actions this month to help them file their federal tax returns in 2022, including special steps related to Economic Impact Payments and advance Child Tax Credit payments. A special page, updated and available on IRS.gov, outlines steps your clients can take now to make tax filing easier in 2022.
The latest executive column “A Closer Look,” features Fred Schindler, Director, Collection, Small Business/Self-Employed, discussing how the IRS’s Collection organization has taken a number of actions to help taxpayers since the onset of COVID-19. These actions include some policy changes that will continue beyond the pandemic. “The IRS’s Collection organization has played an important role in efforts to implement economic relief measures passed by Congress,” said Schindler. “We will continue to carry out our mission of collecting delinquent taxes and securing delinquent tax returns through the fair and equitable application of the tax laws while respecting taxpayer rights.”
Read the Spanish version here.
In the summer, the Treasury Department and the IRS finalized Schedules K-2 and K-3 for Forms 1065, 1120-S, and 8865 for tax year 2021. The schedules are designed to provide greater clarity for partners and shareholders on how to compute their U.S. income tax liability with respect to items of international tax relevance, including claiming deductions and credits. The Treasury Department and the IRS also finalized instructions associated with the Schedules K-2 and K-3. However, the tax year 2021 Forms, to which Schedules K-2 and K-3 must be attached, have not yet been finalized. Questions have arisen whether the Schedules K-2 and K-3 must be attached to tax year 2020 Forms for partnerships or S corporations with 2021 short tax years; or, in the case of Form 8865, filers of Form 8865 with 2021 short tax years. New FAQs address questions concerning Schedules K-2 and K-3 with respect to 2021 short tax years for pass-through entities and filers of Form 8865.
The IRS is seeking qualified applicants for nomination to the Electronic Tax Administration Advisory Committee (ETAAC). The ETAAC is an organized public forum for discussion of issues in electronic tax administration, such as prevention of identity theft and refund fraud. More information regarding the application process can be found at: Apply for Membership on the Electronic Tax Administration Advisory Committee (ETAAC).
The IRS has enhanced Form 8918, Material Advisor Disclosure Statement, to include 2D barcodes. The new version of the form is now available on IRS.gov. After June 1, 2022, the IRS will accept only the latest version of Form 8918 (Rev. November 2021). The IRS will accept prior versions of Form 8918 through June 1, 2022. After that date, the IRS will reject prior versions of the form.
The IRS accepts completed Form 8918 and related attachments by fax to 844-253-5607. The IRS encourages taxpayers to fax Form 8918 for faster processing. Alternatively, Form 8918 may be mailed to:
Internal Revenue Service
OTSA Mail Stop 4915
1973 Rulon White Blvd.
Ogden, UT 84201
The IRS can generally give taxpayers a reportable transaction number sooner when they file by fax. For more information about Form 8918, refer to Taxpayers can now fax Form 8918, Material Advisor Disclosure Statement.
Notice 2021-65 provides guidance to employers that paid wages after Sept. 30, 2021 and received an advance payment of the Employee Retention Credit for those wages or reduced employment tax deposits in anticipation of the credit for the fourth quarter of 2021 but are now ineligible for the credit due to the change in the law. The notice also provides guidance regarding how the rules apply to recovery startup businesses during the fourth quarter of 2021.
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