etrent17/irs-articles huggingface dataset:
IR-2021-102, May 5, 2021
WASHINGTON —The Internal Revenue Service's Office of the Chief Procurement Officer today announced the successful development of a web app called Projected Contract Award Date. The interactive forecast dashboard statistically predicts when contracts will be signed.
"This effort is a new trend in contract management that adjusts our business processes based on timing factors in the government contracting process, using cutting-edge data science technologies," said Shanna Webbers, IRS Chief Procurement Officer. "The web app will help us shorten the lead time in awards and save valuable time for our procurement staff as well as help contractors."
The IRS has $2.5 billion in contracts a year. 'When will a contract be signed?' is a key question for the IRS and generally for the federal government. This tool gives insight about when each request is likely to turn into a contract. The tool provides a technique other federal agencies can implement, potentially effecting $600 billion in government contracts.
The new web app provides information on requisitions for new contracts. Using historical data of contract awards, the intelligent web app forecasts the number of days to contract award for requisitions in the IRS's Integrated Financial System – Procurement for the Public Sector. Predictions can also be expressed as a projected contract award date.
The managerial implications of the new application are far-reaching. The web app with its predictive model will enable internal customers to accurately forecast needs and when they will be fulfilled, enable the IRS to adjust standards by redefining requirements – solicitation procedure, competition, dollar value and type of goods/services with commensurate realistic award lead time goals – and evenly distribute workload to contracting personnel and others.
This predictive web app is one of the results brought about by an IRS research partnership with Data and Analytic Solutions (DAS), a woman-owned, small business comprised of procurement practitioners as well as university professors and students with procurement and machine learning experience. Other research initiatives of the team include vendor risk analysis and natural language processing and clustering analysis.
IR-2021-142, June 30, 2021
WASHINGTON — The Internal Revenue Service today extended the tax relief provided in Notice 2020-46 for calendar year 2021 for employers whose employees forgo sick, vacation or personal leave because of the COVID-19 pandemic.
Notice 2021-42PDF provides that cash payments employers make to charitable organizations that provide relief to victims of the COVID-19 pandemic in exchange for sick, vacation or personal leave which their employees forgo will not be treated as compensation. Similarly, the employees will not be treated as receiving the value of the leave as income and cannot claim a deduction for the leave that they donated to their employer.
Employers, however, may deduct these cash payments as a business expense or as a charitable contribution deduction if the employer otherwise meets the respective requirements of either section.
Notice 2020-46PDF and Notice 2021-42PDF provide further details for employers with leave-based donation programs
Additional information about tax relief for those affected by the COVID-19 pandemic can be found at Coronavirus Tax Relief for Businesses and Tax-Exempt Entities.
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IR-2021-140, June 30, 2021
WASHINGTON — The Treasury and the IRS released today early draft instructions for the Schedules K-2 and K-3 for Forms 1065, 1120-S, and 8865 for tax year 2021 (filing season 2022). The early release drafts of the instructions provide a preview of the instructions before final versions are released. The new Schedules K-2 and K-3 were released on June 3 and 4, 2021.
The redesigned forms and instructions give useful guidance to partnerships, S corporations and U.S persons who are required to file Form 8865 with respect to controlled foreign partnerships on how to provide international tax information. The updated forms apply to any persons required to file Form 1065, 1120-S or 8865, but only if the entity for which the form is being filed has items of international tax relevance (generally foreign activities or foreign partners).
The changes do not affect partnerships and S corporations with no items of international tax relevance.
The Treasury Department and the IRS released prior drafts and instructions of Schedules K-2 and K-3 for the Form 1065 in July 2020 and engaged with stakeholders to solicit input on the changes. The final instructions respond to comments received with respect to the draft July 2020 instructions. For example, the final instructions:
Clarify when each part of the schedule is applicable;
Clarify that the preparer must only complete applicable parts of the Schedules K-2 and K-3; and
Provide instructions for requested new separate schedules regarding determination of the section 250 deduction and the allocation and apportionment of expenses
Recognizing the transitional challenges with the adoption of Schedules K-2 and K-3 by affected pass-through entities and their partners and shareholders, the Treasury Department and the IRS issued Notice 2021-39PDF on June 30, 2021. The Notice provides certain penalty relief for the 2021 tax year.
IR-2021-134, June 24, 2021
WASHINGTON — The Internal Revenue Service today issued the Data Book detailing the agency's activities during fiscal year 2020 (October 1, 2019 – September 30, 2020).
"This year's Data Book describes the important work that IRS employees accomplish on behalf of the public," said IRS Commissioner Chuck Rettig. "The IRS accounts for approximately 96% of the funding that supports the federal government's operations, while proudly serving and interacting with more Americans than any other public or private organization."
"The 2020 Data Book also details the extraordinary measures the IRS took to protect the health and safety of taxpayers and IRS employees during the COVID-19 pandemic while implementing critical economic relief legislation – the largest economic rescue packages in US history," Rettig added.
The Data Book details how during the COVID-19 pandemic the IRS developed new technologies and provided the equipment necessary to allow thousands of employees to work from home, which enabled the IRS to resume processing returns and providing phone assistance to taxpayers.
At the same time, the agency eased burdens on people facing tax issues by extending the deadline to file and pay federal income taxes from April 15, 2020 to July 15, 2020.
The agency also launched the People First Initiative, which eased payment guidelines, postponed compliance actions and suspended most collection enforcement activities, such as new notices of lien or levy, from April 15, 2020, to July 15, 2020.
Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the IRS issued 161.9 million Economic Impact Payments (EIPs) in the first round: 122.5 million by direct deposit, 35.8 million by check, and nearly 3.6 million by debit card. Under the COVID-Related Tax Relief (CRTR) Act of 2020 the IRS issued 146.5 million second-round EIPs, including 112.8 million by direct deposit, 25.7 million by check, and 8 million by debit card. Combined, the IRS provided $412.9 billion in relief under these programs during the calendar year.
The IRS continued its operations, processing more than 240 million tax returns, and collected nearly $3.5 trillion in federal taxes during the fiscal year – about 96% of federal revenue from all sources.
"You'll find many interesting statistics within the Data Book," said Rettig. "But there's more to the IRS story than charts and tables. IRS employees care, and our agency is made up of people who give back to their communities and help one another. Our employees provide significant support for those devastated by hurricanes, wildfires, and other natural disasters, and across the nation, they did amazing work in their communities to help those impacted by COVID-19."
The IRS Data Book for fiscal 2020 comprises 33 tables describing all IRS activities from returns processed and revenue collected to numbers and amounts from examinations of returns and collection methods, as well as budget and personnel information.
IR-2021-131, June 23, 2021
WASHINGTON — The Electronic Tax Administration Advisory Committee (ETAAC) today released its annual report to Congress, featuring 10 recommendations with a focus on the prevention of identity theft and refund fraud.
The report groups the recommendations into two sections: recommendations to Congress involving the IRS budget, information return filing and federal data-sharing; and recommendations to the IRS grouped around electronic filing and cybersecurity.
The ETAAC is a public forum whose 21 members work closely with the Security Summit, a joint effort of the IRS, state tax administrators and the nation's tax industry established in 2015 to fight tax-related identity theft and cybercrime.
ETAAC members represent various segments of the tax community, including individual and business taxpayers, tax professionals and preparers, tax software developers, payroll service providers, the financial industry and state and local governments.
The 2021 Report to CongressPDF is available on IRS.gov.
At today's annual meeting, IRS Commissioner Chuck Rettig and IRS leaders thanked six members of the committee whose terms are now ending:
Luanne Brown - Director of Payroll Services for Grand Valley State University. 
Jenine Hallings - Compliance Risk Manager for Paychex. 
Lynnette T. Riley - President of the Georgia Student Finance Commission and former Georgia Commissioner of Revenue.
Cynthia Rowley - Retired Assistant Commissioner with the Minnesota Department of Revenue. 
Geno Salo - Senior Director at Thompson Reuters. For the past year he served as ETAAC Chair.
Matthew Vickers - General Manager of Product for U.S.-based Xero Inc.
IR-2021-126, June 8, 2021
WASHINGTON — The Internal Revenue Service is looking to hire motivated acquisition professionals interested in providing America's taxpayers top quality service. The agency's Procurement office plans to fill 80 vacancies nationwide, many of which are contract specialists.
The IRS Procurement office provides acquisition services for IRS business units, Treasury departmental offices and Information Technology for the Bureau of Engraving and Printing. The office administers all aspects of the acquisition process from planning, contract award, management and closeout. IRS Procurement's goal is to create agile and innovative best value contract solutions to ensure the IRS meets its mission.
"It's an exciting time to work for IRS Procurement. Our culture shift of embracing innovation, agility and speed means our procurement professionals are empowered to think outside the box and take intelligent risks," said Shanna Webbers, IRS Chief Procurement Officer. "Integrity in the procurement process is of utmost importance and leveraging Federal Acquisition Regulation (FAR) flexibilities allows us to be bold in enabling the IRS mission. We're looking for the "best of the best" to join Team Procurement."
Contract specialists are responsible for a full range of planning, directing and administering complex acquisitions, which are often Servicewide in scope and for pre- and/or post-award. Contract specialists will also:
Assist customers in developing statements of work and procurement strategy.
Develop evaluation plans, pricing methodologies and administration plans.
Recommend streamlining initiatives and utilize the use of innovative principles to improve procurement operations and customer service.
Serve as an advisor on acquisitions for complex equipment, supplies and services, which have a significant impact on the effectiveness of the entire tax system nationwide.
Solicit contractual proposals, as well as negotiate, execute, administer and terminate public contracts for the Service.
Perform contract administration functions, such as verifying evidence of contractor's progress, negotiating modifications, issuing termination notices, reviewing contract claims, approving payments and conducting contract closeouts.
Ensure that all requirements of law, executive orders, regulations and other applicable procedures have been met and report all unlawful behavior.
Interested individuals can apply by creating a profile at usajobs.gov. To see all available IRS positions or share these job postings with friends, family or neighbors who may be interested and qualified for the positions visit  IRS Careers .
The IRS is an equal opportunity employer. All employees must be U.S. citizens, pass an FBI fingerprint check and tax compliance verification, and meet the mandatory education, training and experience qualification requirements.
IR-2021-123, June 4, 2021
WASHINGTON — The Internal Revenue Service is sending more than 2.8 million refunds this week to taxpayers who paid taxes on unemployment compensation that new legislation now excludes as income.
IRS efforts to correct unemployment compensation overpayments will help most affected taxpayers avoid filing an amended tax return. So far, the IRS has identified 13 million taxpayers that may be eligible for the adjustment. Some will receive refunds, which will be issued periodically, and some will have the overpayment applied to taxes due or other debts. For some there will be no change.
The American Rescue Plan Act of 2021 (ARPA) excluded up to $10,200 in unemployment compensation per taxpayer paid in 2020. The $10,200 is the maximum amount that can be excluded when calculating taxable income; it is not the amount of refunds.
Earlier this month, the IRS began its programming review of tax returns filed prior to the enactment of ARPA to identify the excludible unemployment compensation. The IRS also is making corrections for the Earned Income Tax Credit, Premium Tax Credit and Recovery Rebate Credit affected by the exclusion.
Taxpayers who have qualifying children and who become eligible for EITC after the exclusion is calculated may have to file an amended return to claim any new benefits. The IRS can adjust tax returns for those who are single with no children and who become eligible for EITC. The IRS also can adjust tax returns where EITC was claimed and qualifying children identified.
To date, the IRS has reviewed over 3.1 million returns, with more than 2.8 million receiving refunds.
The IRS plans to issue the next set of refunds in mid-June. The review of returns and processing corrections will continue during the summer as the IRS continues to review the simplest returns and then turns to more complex returns.
Taxpayers will receive letters from the IRS, generally within 30 days of the adjustment, informing them of what kind of adjustment was made (such as refund, payment of IRS debt payment or payment offset for other authorized debts) and the amount of the adjustment.
IR-2021-162, July 30, 2021
WASHINGTON — The Internal Revenue Service announced today that West Virginia University (WVU) College of Law has been selected for its 2021 Supplemental Application Low Income Taxpayer Clinic matching grant. The IRS's LITC supplemental application expands coverage to states without a clinic, giving priority to qualified organizations in underrepresented geographic areas.
WVU College of Law operates an important tax controversy litigation clinic and will now be available to assist low-income and English as a second language (ESL) taxpayers located within West Virginia, a state that has not had an LITC-funded clinic for two and a half years. WVU was awarded a grant for $100,000 with a period of performance of 18 months from July 1, 2021, to December 31, 2022. The LITC grant will allow the law school to expand the tax clinic and offer more tax assistance to students.
LITCs represent low-income taxpayers in federal tax disputes with the IRS and provide taxpayer education and outreach to both low income and ESL taxpayers. They must provide all services for no more than a nominal fee.
Through the LITC program, the IRS awards matching grants of up to $100,000 per year to qualifying organizations. The LITC program is a federal matching grant program administered by the Taxpayer Advocate Service, led by National Taxpayer Advocate Erin Collins. Although LITCs receive partial funding from the IRS, LITCs, their employees and volunteers operate independent of the IRS.
"The LITC program has been extremely successful and very beneficial to taxpayers," Collins said. "Through outreach and education activities, LITCs strive to ensure individuals understand their rights and responsibilities as U.S. taxpayers by recently conducting more than 1,800 educational activities that were attended by nearly 42,000 people. More than 1,500 volunteers contributed to the success of LITCs by volunteering over 52,500 hours of their time."
More information about LITCs, and the work they do to represent, educate, and advocate on behalf of low income and ESL taxpayers, is available in IRS Publication 5066, LITC Program ReportPDF. IRS Publication 4134, Low Income Taxpayer Clinic ListPDF, provides information about LITCs by geographic area, including contact information and details about the languages, in addition to English, in which each LITC offers services. Publication 5066 and Publication 4134 are available at IRS.gov.
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Five Things to Know about the Employer Identification Number
IR-2021-161, July 30, 2021
WASHINGTON — Calling it a key security issue, the Internal Revenue Service today urged those entities with Employer Identification Numbers (EINs) to update their applications if there has been a change in the responsible party or contact information.
IRS regulations require EIN holders to update responsible party information within 60 days of any change by filing Form 8822-B, Change of Address or Responsible Party - Business. It is critical that the IRS have accurate information in cases of identity theft or other fraud issues related to EINs or business accounts.
The data around the "responsible parties" for business-type entities is often outdated or incorrect, meaning that the IRS does not have accurate records of who to contact for identity theft issues. This means a time-consuming process to identify the point of contact so the IRS can inquire about a suspicious filing.
As a result, the IRS intends to step up its awareness efforts aimed at businesses, partnerships, trusts and estates, charities and other entities that are EIN holders. Starting in August, the IRS will begin sending letters to approximately 100,000 EIN holders where it appears the responsible party is outdated.
All EIN applications (mail, fax, electronic) must disclose the name and Taxpayer Identification Number (Social Security number, Individual Taxpayer Identification Number or EIN) of the true principal officer, general partner, grantor, owner or trustor.
The IRS defines the responsible party as the individual or entity who "controls, manages, or directs the applicant entity and the disposition of its funds and assets."
Unless the applicant is a government entity, the responsible party must be an individual, not an entity. If there is more than one responsible party, the entity may list whichever party the entity wants the IRS to recognize as the responsible party.
EINs are to be used strictly for tax administration purposes. Entities with EINs that are no longer in use should close their IRS tax accounts and follow steps outlined at Canceling an EIN - Closing Your Account.
IR-2021-160, July 29, 2021
WASHINGTON — The IRS today updated  frequently asked questions (FAQs)  on the paid sick and family leave tax credits under the American Rescue Plan Act of 2021 (ARP). The updates clarify that eligible employers can claim the credits for providing leave to employees to accompany a family or household member or certain other individuals to obtain immunization relating to COVID-19 or to care for a family or household member or certain other individuals recovering from the immunization.
The paid sick and family leave credits reimburse eligible employers for the cost of providing paid sick and family leave for reasons related to COVID-19. The revised FAQs make clear this includes leave taken by employees to care for certain individuals to obtain immunization relating to COVID-19 or to recover from immunization relating to COVID-19. This new reason for paid sick or family leave also applies for the comparable credits for self-employed individuals.
The paid sick and family leave tax credits under the ARP are similar to those put in place by the Families First Coronavirus Response Act (FFCRA), as amended and extended by the COVID-related Tax Relief Act of 2020 (Tax Relief Act), under which certain employers could receive tax credits for providing paid sick or family leave that met the requirements of the Emergency Paid Sick Leave Act and the Emergency Family and Medical Leave Expansion Act (as added by FFCRA). The tax credits under the FFCRA, as amended and extended by the Tax Relief Act, covered leave taken beginning April 1, 2020, through March 31, 2021. The ARP amends and extends these credits to leave taken beginning April 1, 2021, through September 30, 2021.
The FAQs include information on how eligible employers may claim the paid sick and family leave credits, including how to file for and compute the applicable credit amounts, and how to receive advance payments for and refunds of the credits. Under the ARP, eligible employers, including businesses and tax-exempt organizations with fewer than 500 employees and certain governmental employers, may claim tax credits for qualified leave wages and certain other wage-related expenses (such as health plan expenses and certain collectively bargained benefits).
Self-employed individuals may claim comparable credits on the Form 1040, U.S. Individual Income Tax Return.
IR-2021-153, July 15, 2021
WASHINGTON — The Internal Revenue Service and the Treasury Department announced today that millions of American families have started receiving monthly Child Tax Credit payments as direct deposits begin posting in bank accounts and checks arrive in mailboxes.
This first batch of advance monthly payments worth roughly $15 billion reached about 35 million families today across the country. About 86% were sent by direct deposit.
The payments will continue each month. The IRS urged people who normally aren't required to file a tax return to explore the tools available on IRS.gov. These tools can help determine eligibility for the advance Child Tax Credit or help people file a simplified tax return to sign up for these payments as well as Economic Impact Payments, and other credits you may be eligible to receive.
Under the American Rescue Plan, each payment is up to $300 per month for each child under age 6 and up to $250 per month for each child ages 6 through 17. Normally, anyone who receives a payment this month will also receive a payment each month for the rest of 2021 unless they unenroll. Besides the July 15 payment, payment dates are: Aug. 13, Sept. 15, Oct. 15, Nov. 15 and Dec. 15.
Here are further details on these payments:
Families will see the direct deposit payments in their accounts starting today, July 15. For those receiving payment by paper check, they should remember to take into consideration the time it takes to receive it by mail.
Payments went to eligible families who filed 2019 or 2020 income tax returns.
Tax returns processed by June 28 are reflected in these payments. This includes people who don't typically file a return, but during 2020 successfully registered for Economic Impact Payments using the IRS Non-Filers tool or in 2021 successfully used the Non-filer Sign-up Tool for Advance CTC, also on IRS.gov.
Payments are automatic. Aside from filing a tax return, including a simplified return from the Non-Filer Sign-Up tool, families don't have to do anything if they are eligible to receive monthly payments.
Additional information is available on a special Advance Child Tax Credit 2021 page, designed to provide the most up-to-date information about the credit and the advance payments.
July 13 is the last day to register to attend keynote address by IRS Commissioner Chuck Rettig
IRS YouTube Videos:
2021 IRS Nationwide Tax Forum (obsolete)
IR-2021-149, July 9, 2021
WASHINGTON — This Tuesday, July 13, is the last day for tax professionals to register to attend the 2021 IRS Virtual Nationwide Tax Forum and have access to all 30 webinars, including IRS Commissioner Chuck Rettig's keynote address on the first day of the forum.
The 2021 Tax Forum is being held over a five-week period from July 20 through August 19. Webinars will be live-streamed on Tuesday, Wednesday and Thursday each week. To guarantee access to a webinar, registration must be completed a minimum of seven days in advance. Participants who register after July 13 will not have access to the full lineup of webinars.
Webinars are scheduled for 11 a.m. and 2 p.m. EDT each Tuesday, Wednesday and Thursday. Participants are encouraged to view the Forum schedule and course descriptions to plan their experience.
Tax Forum Virtual Expo
Included with the registration, attendees may also visit the Forum's Virtual Expo with dozens of exhibitors representing tax and business services, IRS national association partners and several key IRS offices and initiatives in the "IRS Zone." Hours for the live Expo are noon - 2 p.m. and 3 p.m. - 5 p.m. EDT every Tuesday, Wednesday, and Thursday. However, registrants will have access to the Expo 24 hours per day from July 20 through August 20.
Focus groups
As a special feature of the 2021 Forum, the IRS invites attendees to participate in one or more virtual focus groups. Focus groups are arranged around the following topics:
Improving the Taxpayer Experience
Designing a Business Taxpayers Online Account & Envisioning a Form 1099 Filing Platform
Changes in Partnership Environment & Where's Form 944?
Improving the Offer in Compromise (OIC) Experience & Gig Economy Worker Tax Compliance
Passport Program & Virtual Currency Tax Compliance
Interest Abatement Feedback & Civil Penalties and Reasonable Cause Relief
Due Diligence Documentation Requirements for EITC, CTC, AOTC, and HOH
Correspondence and Form Improvement
Multilingual Resources
Continuing education
Attendance at any of the 2021 Nationwide Tax Forum webinars qualifies as continuing education (CE) for enrolled agents, certified public accountants, Annual Filing Season Program participants, California Tax Education Council (CTEC) participants and Certified Financial Planners (CFP).
Note: With two seminars this year presented in both English and Spanish, participants can earn up to 28 continuing education credits.
Visit the CE and CFP Certification page for more information.
Registration information
For more information and to register online, visit the IRS Nationwide Tax Forum website.
IR-2021-148, July 9, 2021
WASHINGTON — The Internal Revenue Service today provided guidance for multiemployer qualified retirement plans that receive special financial assistance from the Pension Benefit Guaranty Corporation (PBGC) and for participants and beneficiaries in those plans.
Notice 2021-38PDF provides guidance under provisions of the American Rescue Plan Act of 2021 regarding special financial assistance paid by the PBGC to eligible multiemployer defined benefit pension plans that are financially at risk.
The notice provides direction for multiemployer plans, and specifically addresses three important areas regarding:
The reinstatement of previously suspended pension benefits, along with make-up payments, as a condition that eligible multiemployer plans must meet if they receive special financial assistance.
The individual income tax treatment of these make-up payments.
How a plan that receives special financial assistance must treat the plan's special financial assistance account for purposes of the minimum funding requirements for multiemployer defined benefit plans
PBGC guidance on the application process for special financial assistance can be found at the  PBGC website.
IR-2021-145, July 6, 2021
WASHINGTON — The Internal Revenue Service today posted answers to questions that certain transportation companies may have regarding Treasury grants and related taxes.
The Coronavirus Economic Relief for Transportation Services (CERTS) Act of the Consolidated Appropriations Act of 2021 authorizes the Department of the Treasury to provide grants to transportation service providers--including eligible motorcoach companies, school bus companies, and passenger vessel companies-- that experienced annual revenue losses of 25% or more as a result of COVID-19.
These companies must generally prioritize the use of the grants for payroll costs, though grants may be used for certain operating expenses (including the acquisition of services and equipment needed to protect workers and customers from COVID-19) and the repayment of debt accrued to maintain payroll. Funds not used for eligible activities within one year of receipt of the grant must be returned to the Treasury Department.
The FAQs posted today answer two important questions:
Are the grants taxable? Yes, the receipt of a CERTS Act grant is not excluded from the recipient's gross income under the Code and therefore is taxable.
Are costs for which the grants are used deductible? Yes, the costs are deductible to the extent that they are otherwise deductible under the law. The tax law generally permits the payment of wages, salaries, and benefits to employees and other amounts paid to carry on a trade or business to be deducted as ordinary and necessary business expenses.
Additional information about tax relief for businesses affected by the COVID-19 can be found on IRS.gov.
IR-2021-173, August 25, 2021
WASHINGTON — The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning October 1, 2021. The rates will be:
3% for overpayments (2% in the case of a corporation);
	 
0.5 % for the portion of a corporate overpayment exceeding $10,000;
	 
3% percent for underpayments; and
	 
5% percent for large corporate underpayments.
Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.
Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.
The interest rates announced today are computed from the federal short-term rate determined during July 2021 to take effect August 1, 2021, based on daily compounding.
Revenue Ruling 2021-17PDF, announcing the rates of interest, will appear in Internal Revenue Bulletin 2021-37, dated September 13, 2021.
IR-2021-172, August 23, 2021
WASHINGTON — The Internal Revenue Service announced today the opening of the application period for the 2022 Compliance Assurance Process (CAP) program. The application period runs September 1 to November 1, 2021. The IRS will inform applicants if they're accepted into the program in February 2022.
Launched in 2005, CAP employs real-time issue resolution, through transparent and cooperative interaction between taxpayers and the IRS, to improve federal tax compliance by resolving issues prior to the filing of a tax return.
To be eligible to apply for CAP, new applicants must:
Have assets of $10 million or more,
Be a U.S. publicly traded corporation with a legal requirement to prepare and submit SEC Forms 10-K, 10-Q, and 8-K, and
Not be under investigation by, or in litigation with, any government agency that would limit the IRS's access to current tax records.
To be eligible to participate in CAP, taxpayers must adhere to CAP program limits on the number of open years. For 2022, the IRS is continuing the modification of the open-year criteria to allow- "two filed" open returns.
General program information and the 2022 application details are available on the CAP webpage.
IR-2021-171, August 20, 2021
WASHINGTON — The Internal Revenue Service has launched a new feature allowing any family receiving monthly Child Tax Credit payments to quickly and easily update their mailing address using the Child Tax Credit Update Portal, found exclusively on IRS.gov. This feature will help any family that chooses to receive their payment by paper check avoid mailing delays or even having a check returned as undeliverable.
Any family can easily have their September check and all future checks sent to their new address by using the portal to make an address change request. To have the change take effect in September, people need to complete the request before midnight Eastern Time on Monday, August 30. Families can still make changes after that date, but their request will not be effective until the next scheduled monthly payment.
If you change your mailing address using the Child Tax Credit Update Portal, the IRS will use this updated address for all future IRS correspondence so the address change feature can also be helpful to taxpayers that are receiving payments by direct deposit. For example, the IRS will mail a year-end summary statement (Letter 6419) to all taxpayers who have received advance Child Tax Credit payments during 2021 and having a current address on file with the IRS will ensure prompt delivery of this statement.
Families will need Letter 6419 to quickly and accurately fill out their 2021 federal income tax return next year. This is important because, for most families, the advance payments they are receiving during 2021 cover only half of the total credit. They will claim the remaining portion on their 2021 tax return.
The address change feature joins a growing set of services available through the Child Tax Credit Update Portal. Available only on IRS.gov, the portal already allows families to verify their eligibility for the payments and then, if they choose to:
Switch from receiving a paper check to direct deposit;
Change the account where their payment is direct deposited; or
Stop monthly payments for the rest of 2021.
Any of these changes made before midnight ET on August 30, will apply to the September 15 payment and all subsequent monthly payments, scheduled for October 15, November 15, and December 15.
Future enhancements are planned for the Child Tax Credit Portal
Later this year, families will also be able to use the Update Portal tool to:
Add or remove children in most situations;
Report a change in marital status; or
Report a significant change in income.
Latest information for the Child Tax Credit payments on IRS.gov
The IRS has created a special Advance Child Tax Credit 2021 page designed to provide the most up-to-date information about the credit and the advance payments. For more information, visit IRS.gov/childtaxcredit2021.
The web page now features an updated set of frequently asked questions and the new Publication 5549, IRS User Guide: Child Tax Credit Update PortalPDF. It also provides direct links to the portal, as well as two other online tools — the Non-Filer Sign Up Tool and the Child Tax Credit Eligibility Assistant — and other useful resources.
IR-2021-168, August 10, 2021
WASHINGTON — The Internal Revenue Service today announced it is providing transition relief to certain employers claiming the Work Opportunity Tax Credit (WOTC). The WOTC is a federal income tax credit available to employers that hire certified members of certain groups specified in the Internal Revenue Code who face significant barriers to employment, including Designated Community Residents or Qualified Summer Youth Employees.
The IRS today issued Notice 2021-43PDF, which extends the 28-day deadline for employers to submit a request to a designated local agency (DLA) to certify that an employee hired between January 1 and October 8 of this year is a Designated Community Resident or a Qualified Summer Youth Employee. To be certified as a Designated Community Resident or a Qualified Summer Youth Employee under the WOTC, an employee must have a principal place of residence within an Empowerment Zone where the employee continuously resides.
Empowerment Zone designations terminated on December 31, 2020, but the Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted as Division EE of the Consolidated Appropriations Act, 2021, permitted the designations to be extended through 2025. On May 26, 2021, all Empowerment Zone designations were extended from Dec. 31, 2020 to December 31, 2025. The transition relief under this notice allows employers to submit Form 8850 (Pre-Screening Notice and Certification Request for the Work Opportunity Credit) for these employees until November 8, 2021.
The notice also provides guidance to certain employers who submitted a Form 8850 to a DLA for these employees during the period of transition relief and received a denial due to the termination of Empowerment Zone designations on December 31, 2020, or who received a certification before Empowerment Zone designations were extended.
The WOTC has been subject to several legislative extensions and modifications since its enactment by the Small Business Job Protection Act of 1996. The amount of the tax credit under WOTC equals a percentage of qualified wages paid in a given tax year to an employee certified by the DLA as being a member of the one of the groups specified in the law.
IR-2021-167, August 10, 2021
WASHINGTON — The Department of the Treasury (Treasury) and the Internal Revenue Service (IRS) today issued a safe harbor allowing employers to exclude certain items from their gross receipts solely for determining eligibility for the Employee Retention Credit (ERC).
Revenue Procedure 2021-33PDF provides a safe harbor permitting employers to exclude certain amounts from gross receipts solely for determining eligibility for the ERC. These amounts are:
The amount of the forgiveness of a Paycheck Protection Program (PPP) Loan;
Shuttered Venue Operators Grants under the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act; and
Restaurant Revitalization Grants under the American Rescue Plan Act of 2021.
An employer elects to apply the safe harbor by excluding these amounts solely for determining whether it is an eligible employer for a calendar quarter for purposes of claiming the ERC on its employment tax return.
Revenue Procedure 2021-33 requires employers to apply the safe harbor consistently for determining eligibility for the ERC. The employer must exclude the amounts from their gross receipts for each calendar quarter in which gross receipts are relevant to determining eligibility to claim the ERC. The employer claiming the credit must also apply the safe harbor to all employers treated as a single employer under the aggregation rules.
An employer is not required to apply this safe harbor, and the safe harbor does not permit the exclusion of these amounts from gross receipts for any other federal tax purpose.
Employers claim the ERC on their employment tax return, generally Form 941, Employers Quarterly Federal Tax ReturnPDF, or adjusted employment tax return, generally Form 941-X, Adjusted Employer's Quarterly Federal Tax Return or Claim for RefundPDF.
Revenue Procedure 2021-33, updates and amplifies guidance provided in Notice 2021-20PDF, which addressed the ERC as it applies to qualified wages paid after March 12, 2020, and before January 1, 2021, Notice 2021-23PDF, which addressed the ERC as it applies to qualified wages paid after December 31, 2020 and before July 1, 2021, and Notice 2021-49PDF, which addressed the ERC as it applies to qualified wages paid after June 30, 2021 and before January 1, 2022.
Treasury and the IRS continue to closely monitor pending legislation related to the ERC and will provide additional information as needed.
IR-2021-165, August 4, 2021
WASHINGTON — The Treasury Department and the Internal Revenue Service today issued further guidance on the employee retention credit, including guidance for employers who pay qualified wages after June 30, 2021, and before January 1, 2022, and additional guidance on miscellaneous issues that apply to the employee retention credit in both 2020 and 2021. Notice 2021-49PDF amplifies prior guidance regarding the employee retention credit provided in Notice 2021-20PDF and Notice 2021-23PDF.
Notice 2021-49 addresses changes made by the American Rescue Plan Act of 2021 (ARP) to the employee retention credit that are applicable to the third and fourth quarters of 2021.
Those changes include, among other things:
making the credit available to eligible employers that pay qualified wages after June 30, 2021, and before January 1, 2022,
expanding the definition of eligible employer to include "recovery startup businesses,"
modifying the definition of qualified wages for "severely financially distressed employers," and
providing that the employee retention credit does not apply to qualified wages taken into account as payroll costs in connection with a shuttered venue grant under section 324 of the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act, or a restaurant revitalization grant under section 5003 of the ARP.
Notice 2021-49 also provides guidance on several miscellaneous issues with respect to the employee retention credit for both 2020 and 2021. This guidance responds to various questions that the Treasury Department and the IRS have been asked about the employee retention credit, including:
The definition of full-time employee and whether that definition includes full-time equivalents,
The treatment of tips as qualified wages and the interaction with the section 45B credit,
The timing of the qualified wages deduction disallowance and whether taxpayers that already filed an income tax return must amend that return after claiming the credit on an adjusted employment tax return, and
Whether wages paid to majority owners and their spouses may be treated as qualified wages.
Reporting
Eligible employers will report their total qualified wages and the related health insurance costs for each quarter on their employment tax returns (generally, Form 941) for the applicable period. If a reduction in the employer's employment tax deposits is not sufficient to cover the credit, certain employers may receive an advance payment from the IRS by submitting Form 7200, Advance Payment of Employer Credits Due to COVID-19.
Where can I find more information on the employee retention credit and other COVID-19 economic relief efforts?
Treasury and the IRS continue to closely monitor pending legislation related to the employee retention credit and will provide additional information as needed.
Updates on the implementation of this employee retention credit, Frequently Asked Questions on Tax Credits for Required Paid Leave and other information can be found on the Coronavirus page of IRS.gov.
IRS YouTube Video:
Truckers: Mark Your Calendars to File Form 2290
IR-2021-164, August 4, 2021
WASHINGTON — The Internal Revenue Service reminds those who have registered, or are required to register, large trucks and buses that it's time to file Tax Year 2021 Form 2290, Heavy Highway Vehicle Use Tax ReturnPDF. The deadline to file and pay is August 31, 2021, for vehicles used on the road during July 2021.
The highway use tax applies to highway motor vehicles with a taxable gross weight of 55,000 pounds or more. Taxpayers unsure if they must file can use the IRS online tool, "Do I Need to Pay the Heavy Highway Vehicle Use Tax?" The question-and-answer format helps owners determine if they are required to pay the highway use tax. The "Understanding Form 2290 – Heavy Highway Vehicle Use Tax" recorded webinar is also available.
Ready to file?
Gather information
Employer Identification Number (EIN) – not a Social Security number. For those who do not have one, it can take about four weeks to establish a new EIN. See How to Apply for an EIN.
Vehicle Identification Number and taxable gross weight of each vehicle.
How to file
E-file is required when reporting 25 or more vehicles on Form 2290 and is the preferred filing method. The IRS provides a watermarked Schedule 1 within minutes after accepting the electronically filed return. 
Visit IRS.gov for a list of IRS-approved e-file providers.
On paper. Complete and mail Form 2290. Expect to receive the stamped Schedule 1 within 6 weeks after the IRS receives the form. See Tax Year 2021 Instructions for Form 2290PDF for the correct mailing address.
How to Pay
Pay by credit card or debit card.
Electronic funds withdrawal can be authorized as part of the e-file process.
Electronic Federal Tax Payment System; requires advanced enrollment.
Check or money order using Form 2290-V, Payment VoucherPDF, mailed to:
	Internal Revenue Service
	P.O. Box 932500
	Louisville, KY 40293-2500
Vehicle registration date
The filing deadline is not tied to the vehicle registration date. Regardless of the vehicle's registration renewal date, taxpayers must file Form 2290 by the last day of the month following the month in which the taxpayer first used the vehicle on a public highway during the taxable period.
For more information, visit the Trucking Tax Center at IRS.gov/trucker (also available in Spanish). Need more help? Call the Form 2290 Call Site, weekdays between 8 a.m. and 6 p.m. Eastern time. From the U.S., 866-699-4096 (toll-free), from Canada or Mexico, 859-320-3581 (not toll-free).
For more information, see Frequently Asked Questions for Truckers who e-file (also available in Spanish) and Frequently Asked Questions for Indian Tribal Governments Regarding Highway Use Tax.
IR-2021-194, September 27, 2021
WASHINGTON — The Internal Revenue Service announced today that starting Oct. 28, a new $67 user fee will apply to any estate that requests a closing letter for its federal estate tax return.
The new user fee was authorized under final regulations, TD 9957PDF, available today in the Federal Register. Closing letter requests must be made using Pay.gov. The IRS will provide further procedural details before the user fee goes into effect.
By law, federal agencies are required to charge a user fee to cover the cost of providing certain services to the public that confer a special benefit to the recipient. Moreover, agencies must review these fees every two years to determine whether they are recovering the cost of these services.
Under the final regulations, the IRS has determined that issuing closing letters is a service that confers a special benefit warranting a user fee. That's because, though obtaining a closing letter from the IRS can be helpful to an executor of an estate, it is not required by law. Moreover, the estate has the option of obtaining from the IRS, free of charge, an account transcript, showing certain information from the estate tax return, comparable to that found in a closing letter. As noted in the final regulations, account transcripts can be used to confirm that an estate tax return examination has been completed and the IRS file has been closed, which is the reason most often cited for requesting a closing letter.