IRS Weekly Summary September 27 – October 1, 2021 | McDermott Will & Emery
Below is our summary of the Internal Revenue Service (IRS) key directions and relevant tax matters for the week of September 27, 2021 to October 1, 2021.
September 28, 2021: The IRS issued a recipe procedure, adding Chile to the list of jurisdictions with which the United States has a relevant information exchange agreement to report interest payments on deposits. The IRS also added two countries, the Dominican Republic and Singapore, to the list of jurisdictions with which the US Department of the Treasury (Treasury) and the IRS have determined it is appropriate to have an automatic exchange relationship. .
September 29, 2021: IRS released draft instructions for additional income and losses (Schedule E of Form 1040) regarding the reporting of income or losses from rental real estate, royalties, partnerships, S corporations, estates, trusts and residual interest in the real estate mortgage investment conduits (REMIC).
October 1, 2021: The Treasury and IRS have published corrections to the final regulations (Treasury Decision 9922) which were published in the Federal Register on November 12, 2020. Treasury Decision 9922 provided guidance regarding the allocation and allocation of deductions and creditable foreign taxes, the definition of income financial services, foreign tax reviews, the availability of foreign tax credits under the transitional tax, the application of the limitation of foreign tax credits to consolidated groups, adjustments to deduction accounts hybrids to consider regarding certain inclusions in the income of a US shareholder, conduit financing arrangements involving hybrid instruments and the processing of certain payments under the global low tax intangible income provisions.
October 1, 2021: The Treasury and IRS have issued a opinion and request for comments concerning all the forms used by tax-exempt bodies to determine that these bodies meet the conditions for operation within the limits of their tax exemption. The IRS has provided a list of the relevant forms. Written comments are due by November 30, 2021.
October 1, 2021: The Treasury and IRS have issued a opinion and request for comments regarding the burden associated with U.S. tax return forms on individual taxpayers. The application covers Form 1040 and affiliated reporting forms used by individuals to report their taxable income and calculate their tax payable. Written comments are due by December 3, 2021.
October 1, 2021: The IRS issued a Press release Reminding U.S. citizens, resident aliens, and any domestic legal entities that the extension deadline to file their Annual Report on Foreign Bank and Financial Accounts (FBAR) is October 15, 2021.
October 1, 2021: The IRS released its weekly list of written determinations (for example, private letter decisions, technical advice memorandums and advice from the chief counsel).
Special thanks to Robbie Alipour in our Chicago office for this week’s roundup.