Nichols’ Tax Update: Issue 21-28

Christian Group That Battled IRS Receives Exemption After All, and much more!

  1. Temporary Regs Implement Requirements Regarding Surprise Billing

Federal agencies, including Treasury, have issued temporary regulations  that implement provisions of the No Surprises Act that protect participants, beneficiaries, and enrollees in group health plans and group and individual health insurance coverage from surprise medical bills when they receive specified services in some circumstances. . . . . . . . 295 pages ! ! ! !

[T.D. 9951; 7/6/2021]

IRS Proposing Regs to Protect Consumers From Surprise Billing

The IRS has issued proposed regulations to protect consumers from surprise medical bills for emergency services, air ambulance services furnished by nonparticipating providers, and non-emergency services furnished by nonparticipating providers at participating facilities, in some circumstances.

[REG-107706-21;  7/6/2021]

  1. IRS Releases FAQ on Grants to Transportation Companies

The IRS has released (IR-2021-145) a list of frequently asked questions on the treatment of grants Treasury provides to some transportation companies, advising that the grants are taxable and that the expenses for which the grants are used are deductible to the extent that they are otherwise deductible under the tax law.

[ IR-2021-145; 7/6/2021]

  1. First Easement Indictment Built on Conventional Tax Fraud Blocks

The heavy emphasis on conventional backdating and individual income omission in the first criminal indictment involving conservation easements struck practitioners as a clear sign of the government’s strategy for asserting tax fraud in the area.

[Tax Notes Today; 7/8/2021, article by Nathan Richman]

  1. Christian Group That Battled IRS Receives Exemption After All

The IRS has reversed course and granted tax exemption to a civic-minded Christian organization that it had proposed denying exemption to for engaging in partisan politics.

[Tax Notes Today, 7/8/2021, article by Fred Stokeld]

  1. IRS Addresses Reporting of Qualified Charitable Distributions

The IRS provided information on whether the trustee of an individual retirement arrangement must report a qualified charitable distribution on Form 1099-R, “Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.”

[INFO 2021-0007; 7/8/2021]

  1. Practice Unit Provides Guidance on Revised Research Credit Directive

The IRS has issued a practice unit that provides guidance on a revised directive from the IRS Large Business & International Division on the allowance of the research tax credit for taxpayers that expense research and development costs on their Adjusted Accounting Standards Codification 730 Financial Statement R&D.

[COR-P-032; 7/8/2021]   55 pages  

IRS Issues Practice Unit on FDII Deduction

The IRS has issued a practice unit on the foreign-derived intangible income deduction under section 250, addressing how to determine deduction eligible income, deemed intangible income, foreign-derived deduction eligible income, and the FDII deduction.

[ INT-C-238; 7/9/2021]


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” the preeminent source of accurate information and 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.)


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You can contact Lynn Nichols at or 714.321.3387 and connect on LinkedIn.

A federal tax specialist for 50 years, Lynn Nichols provides tax consulting services to CPA firms on complex federal income tax issues, professional standards in tax practice and effective tax practice management.

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