Treasury is reviewing draft revisions to Circular 230 that are said to provide changes for unenforceable provisions and clarify sections that were deemed outdated or confusing. [Tax Notes Today, 11/16/2021, article by Mary Katherine Browne]
The IRS has issued guidance (Notice 2021-63) on the temporary 100 percent deduction for expenses that are paid or incurred after December 31, 2020, and before January 1, 2023, for restaurant food or beverages, providing a special rule for applying the deduction to the meal portion of a per diem rate or allowance. ( Notice 2021-63; 2021-49 IRB 1, 11/16/2021)
The IRS has increased (IR-2021-226) the limit on the number of Transcript Delivery System transcripts that tax professionals may order through the Practitioner Priority Service line, permitting requests for 30 transcripts per client rather than 10 and applying the newly expanded limit to five transcript types. [ IR-2021-226, 11/16/2021]
The Tax Court, in a summary opinion, held that a married couple was entitled to a deduction for moving expenses in 2015 but the amount was estimated by the court because the couple failed to fully substantiate those expenses. [Forrest Crawley et al.; No. 8246-17S; T.C. Summ. Op. 2021-37, 11/16/2021]
The IRS has announced (IR-2021-231) the release of a fact sheet (FS-2021-16) that details some of the tax consequences for individual recipients of coronavirus state and local fiscal recovery funds and the related reporting requirements for state and local governments and employers. [IR-2021-231, 11/17/2021]
The IRS has released a fact sheet (FS-2021-16) on federal coronavirus pandemic relief funds for eligible state and local governments, noting that some uses of the funds may trigger tax consequences. [FS-2021-16, 11/17/2021]
The IRS has released (IR-2021-229) a how-to video series for taxpayers considering and applying for offers in compromise, warning them of “OIC mills” that charge excessive fees and often mislead people by overstating their ability to help with the program. [ IR-2021-229, 11/17/2021]
Three related revenue procedures explain when taxpayers should account for tax-exempt income from forgiven Paycheck Protection Program loans, how related businesses should allocate the related tax items, and how partnerships can amend returns.
The Tax Court held that an individual received taxable distributions from her self-directed IRA when she took possession of American Eagle coins purchased by a single-member limited liability company owned by the IRA and that she and her husband are liable for accuracy-related penalties [Andrew McNulty et al.; No. 1377-19; 157 T.C. No. 10, 11/18/2021]
I have relied on Tax Analysts® to provide reliable and timely analysis of Federal tax developments for over 30 years. The “headnotes” you see here are from “Tax Notes Today” In my opinion, the preeminent source of accurate information and thoughtful analysis of important developments and trends in Federal taxation.
(*** identifies item with useful analysis of current issue but not covered in Lynn’s recorded commentary due to complexity and time required for fair comment.)
By Whitney|2021-12-20T10:46:16-05:00December 10th, 2021|Educate, Regulatory, Tax|Comments Off on IRS Clarifies Accounting and Reporting of Forgiven PPP Loans and 7 more topics! Nichols’ Tax Update, Issue 21-47