Below is a summary of the Internal Revenue Service (IRS) key guidance and relevant tax issues for the week of May 10, 2021 through May 14, 2021.
May 10, 2021: The IRS issued Revenue Procedure 2021-25 and announced various inflation-adjusted amounts relevant to Health Savings Accounts (HSAs) for the 2022 calendar year.
May 10, 2021: The IRS issued Notice 2021-26 and an accompanying press release clarifying that unused amounts from dependent care assistance programs for 2020 that are carried over to 2021 or 2022 under coronavirus-related laws, are still excluded from gross income for these later years.
May 11, 2021: The IRS issued Revenue Procedure 2021-26, which provides procedures under Section 446 (e) of the Code for certain overseas companies to obtain automatic IRS approval to move to the alternate accounting system of depreciation under Section 168 ( g) to obtain the code from.
May 11, 2021: The IRS issued a press release outlining certain key tax provisions in the American Rescue Plan Act of 2021 (ARPA), including retrospective provisions for the 2020 tax year.
May 12, 2021: The IRS issued a press release announcing a ninth round of economic impact payments consisting of nearly one million payments valued at more than $ 1.8 billion. This brings the total amount of disbursements under the ARPA to around 165 million payments worth around 388 billion US dollars.
May 13, 2021: The IRS issued a press release announcing that, in response to recent disruptions in the fuel supply chain, it is waiving penalties for failing to make bi-monthly excise tax payments on the sale of colored diesel fuel for highways use. The relief is retroactive to May 7, 2021 and is in effect until May 21, 2021, and the IRS stated it will be closely monitoring the situation and provide additional relief if necessary.
May 13, 2021: The IRS issued a press release setting the deadline for applying for membership in the Taxpayer Advocacy Panel, a federal advisory committee formed to identify taxpayer concerns and make recommendations on how to improve the IRS service. was extended until June 1, 2021.
May 14, 2021: The IRS issued the 2021-10 announcement clarifying that the boundaries of qualified opportunity zones created under the Tax Reduction and Jobs Act will not be affected by the results of the 2020 ten-year census.
May 14, 2021: The IRS issued a press release announcing that victims of storms and tornadoes that occurred in Tennessee in late March and early April had until August 2, 2021 to file tax returns for individuals and businesses and Make tax payments.
May 14, 2021: The IRS issued a press release announcing that it has begun refunding tax refunds to taxpayers who paid taxes on 2020 unemployment benefits. ARPA later excluded this compensation from taxable income in 2020.
May 14, 2021: The IRS issued a press release reminding taxpayers to file tax returns by May 17, 2021 and summarizing certain procedures and relief options available to taxpayers who owe additional taxes on their tax returns .
May 14, 2021: The IRS publishes its weekly list of written determinations (e.g., decisions about private letters, memoranda of technical advice, and advice from the Chief Counsel).