IRS issues FAQs for 2021 Recovery Rebate Credit

Issue Number:​ 2022-02

Inside This Issue

  1. Tax filing season begins Jan. 24
  2. National Taxpayer Advocate’s 2021 Annual Report to Congress now available
  3. Get ready for taxes: Bookmark IRS.gov resources, online tools to use before, during and after filing
  4. IRS updates FAQs for 2021 Child Tax Credit, Advance Child Tax Credit payments
  5. IRS issues FAQs for 2021 Recovery Rebate Credit
  6. Reminder: Report virtual currency transactions on Form 1040
  7. IRS selects new IRSAC members for 2022
  8. IRS webinar: Keys to Mastering Due Diligence Requirements and What to Expect During a Due Diligence Audit
  9. Correction: Hurricane Ida tax relief guidance
  10. News from the Justice Department’s Tax Division
  11. Technical Guidance

1.​ ​ Tax filing season begins Jan. 24


The nation’s annual tax season begins Monday, Jan. 24 when the IRS begins accepting and processing 2021 tax year returns. Encourage your clients to have all the information they need in hand to ensure the filing of a complete and accurate return. The IRS anticipates most taxpayers will receive their refund within 21 days of when they file electronically, if they choose direct deposit and there are no issues with their tax return. The filing deadline to submit a 2021 tax return or an extension to file and pay tax owed is April 18 for most taxpayers. This article is also available in Spanish and Simplified Chinese.

In addition, the IRS announced today that Free File is now available.

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2.​ ​ National Taxpayer Advocate’s 2021 Annual Report to Congress now available


National Taxpayer Advocate Erin M. Collins released her 2021 Annual Report to Congress, calling calendar year 2021 “the most challenging year taxpayers and tax professionals have ever experienced.” As part of this report, the 2022 Purple Book also proposes 68 legislative recommendations for consideration by Congress. To read the full report or see prior year reports, visit the Reports to Congress webpage.

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3.​ ​ Get ready for taxes: Bookmark IRS.gov resources, online tools to use before, during and after filing


Use IRS online tools and resources to find the information you need to file your clients’ 2021 federal tax returns, including important special steps related to Economic Impact Payments and advance Child Tax Credit payments. This article is also available in Spanish​ and Simplified Chinese.

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4.​ ​ IRS updates FAQs for 2021 Child Tax Credit, Advance Child Tax Credit payments


The IRS this week updated frequently asked questions (FAQs) for the 2021 Child Tax Credit and Advance Child Tax Credit to help eligible families claim the credit on their 2021 tax return. This extensive FAQ update includes multiple streamlined questions for tax professionals and taxpayers.

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5.​ ​ IRS issues FAQs for 2021 Recovery Rebate Credit


The IRS issued frequently asked questions (FAQs) for the 2021 Recovery Rebate Credit. Individuals who did not qualify for, or did not receive, the full amount of the third Economic Impact Payment may be eligible to claim the 2021 Recovery Rebate Credit based on their 2021 tax year information.

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6.​ ​ Reminder: Report virtual currency transactions on Form 1040


If your client received, sold, exchanged or otherwise disposed of any financial interest in virtual currency during 2021, remember to check “yes” in the appropriate box on Form 1040, U.S. Individual Income Tax Return.

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7.​ ​ IRS selects new IRSAC members for 2022


Nine new members have been appointed to the Internal Revenue Service Advisory Council, an organized public forum for IRS officials and representatives of the public to discuss a broad range of issues in tax administration. Each new member will serve a three-year appointment.

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8.​ ​ IRS webinar: Keys to Mastering Due Diligence Requirements and What to Expect During a Due Diligence Audit


The webinar, Key to Mastering Due Diligence Requirements and What to Expect During a Due Diligence Audits, takes place Jan. 27 at 2 p.m. EST. Visit the registration page to sign up and to see the topics that will be covered during this webinar, which is eligible for one continuing education (CE) credit. Also check out IRS.gov for other upcoming webinars for tax practitioners.

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9.​ ​ Correction: Hurricane Ida tax relief guidance


The news release about the extension of Hurricane Ida tax relief to part or all of six qualifying states, originally issued on Dec. 22, 2021, incorrectly described the estimated tax deadline that applies to victims of Hurricane Ida. The revised version of this news release correctly states that for affected taxpayers, the deadline for making estimated tax payments for the third and fourth quarters of 2021 is Feb. 15, 2022.

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10. News from the Justice Department’s Tax Division


Fessum Ogbazion of Cincinnati has been sentenced to one year and one day in prison for conspiring with others to commit fraud in connection with the operation of a national tax return preparation company he owned and managed, as well as tax crimes. Ogbazion will also serve three years of supervised release and to pay approximately $933,708 in restitution to the United States.

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11.​ ​ Technical Guidance


Notice 2022-05 will appear in IRB 2022-5 dated Jan. 14, 2022. Because of the Coronavirus Disease 2019 (COVID-19) pandemic, the Department of the Treasury and the IRS issued Notice 2021-12, 2021-6 I.R.B. 828, as clarified by Notice 2021-17, 2021-14 I.R.B. 984, to provide temporary relief from certain requirements under section 42 of the Internal Revenue Code (Code) for qualified low-income housing projects and under sections 142(d) and 147(d) of the Code for qualified residential rental projects. In response to the continuing presence of the pandemic and precautions necessitated by new disease variants, this notice provides certain new relief and extends that temporary relief for certain requirements addressed in Notice 2021-12.

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