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 – English

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 Aug. 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.

For more information and to register, visit www.irstaxforum.com.

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- 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 Aug. 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:

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 www.irstaxforum.com.

Notice 2021-38 provides guidance under § 432(k) of the Code to sponsors of multiemployer defined benefit pension plans that are required to reinstate certain previously suspended benefits as a condition of receiving special financial assistance from the Pension Benefit Guaranty Corporation under § 9704 of the American Rescue Plan Act of 2021. The notice also provides guidance on whether make-up payments with respect to previously suspended benefits are eligible to be rolled over to another eligible retirement plan under § 402(c), and the extent to which any special financial assistance received by the plan is not taken into account in determining contributions required under § 431. 

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 2021-38 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 www.PBGC.gov/arp-sfa

WASHINGTON — The IRS web site provides millions of visitors with the answers they need to fit their busy summer schedules. On IRS.gov, waiting for service is not a problem and no appointment is needed to use the online tools.

Many taxpayers who requested an extension to Oct. 15 or missed the May 17 deadline can still prepare and e-file tax returns for free with IRS Free File. Here are some great reasons for taxpayers to add IRS.gov to their ‘internet favorites’ list this summer.

Tax information when it’s needed

IRS.gov is always there. Taxpayers can view, download or print tax products right away. They can also do the following:

Find answers in more languages than ever

Many pages on IRS.gov are now available in Spanish, Vietnamese, Russian, Korean, Haitian Creole and Chinese − Simplified and Traditional. Earlier this year, the agency posted a Spanish language version of Form 1040 PDF and the related instructions PDF to IRS.gov.

Help for people who use assistive technology

At the online Alternative Media Center (AMC), taxpayers will find a variety of accessible products like screen reading software, refreshable Braille displays and screen magnifying software. These products include tax forms, instructions and publications that can be downloaded or viewed online as Section 508 compliant PDF, HTML, eBraille, text and large print. Please note that every product is not available in all formats. For example, tax forms are not available as HTML. To request paper copies of tax forms, instructions or publications in Braille or large print, call the tax form telephone number at 800-829-3676. Or if a taxpayer prefers to receive correspondence such as letters or notices from the IRS in an alternative format they can call 800-829-1040.

Keep current with IRS Tax Tips

Summer activities like homebuying or working a part-time job often affect taxes. Additionally, while many summertime and part-time workers may not earn enough to owe federal income tax, they should remember to file a return to get a refund for taxes withheld early next year. Subscribe to IRS Tax Tips to get easy-to-read articles by e-mail from the IRS that not only cover summer topics but also those topics which are good to know throughout the entire year. Tax Tips are brief, to the point and cover a wide range of subjects like common errors to avoid when you prepare your tax return and the latest guidance on current tax deductions and credits.

Partner and promotional materials for Coronavirus Tax Relief

Discover ready-to-use articles, e-posters, videos and much more on IRS.gov about Economic Impact Payments, the Recovery Rebate Credit, and the Advance Child Tax Credit. The IRS has placed a special emphasis on partnering with organizations that work with groups focusing on veterans, homeless and low-income taxpayers as well as non-English speaking audiences to share information. In all, the IRS has worked with thousands of partners across the country reaching organizations representing hundreds of millions of taxpayers. The IRS asks community groups, non-profits, associations, education organizations and anyone else with connections to people with children to share the critical information about the advance child tax credit as well as other important benefits.

Adjust withholding now to avoid tax surprises next year

Summer is a great time for taxpayers to check their withholding and avoid a tax surprise next filing season. Life events like marriage, divorce, having a child, or a change in income can all affect taxes. The IRS Tax Withholding Estimator on IRS.gov helps employees assess their income tax, credits, adjustments and deductions and determine whether they need to change their withholding by submitting a new Form W-4, Employee's Withholding Allowance Certificate. Taxpayers should remember that, if needed, they should submit their new W-4 to their employer, not the IRS.

Today, the IRS published the latest executive column “A Closer Look,” which features Karen Michaels, Director, Accounts Management, Wage & Investment, discussing how the IRS continuously strives to provide the assistance taxpayers need to properly file and pay their taxes while also enforcing the tax laws to maintain fairness for all. “We understand that complex tax issues and the pandemic have many taxpayers confused and looking for help.  We are committed to providing the service they need to help them – on the phone or through whatever channel they prefer – and we will utilize all allocated funding to improve taxpayer communications with our agency,” said Michaels. Read more here. Read the Spanish version here.

“A Closer Look” is a column from IRS executives that covers a variety of timely issues of interest to taxpayers and the tax community. It also provides a detailed look at key issues affecting everything from IRS operations and employees to issues involving taxpayers and tax professionals.

Check here for prior posts and new updates.

WASHINGTON — The Internal Revenue Service and partners in non-profit organizations, churches, community groups and others will host events in 12 cities this weekend to help people who don’t normally file a federal tax return to register for the monthly Advance Child Tax Credit (AdvCTC) payments.

The special events by IRS and partner groups to help people quickly file income tax returns and register for the advance payments will take place July 9-10, 2021. Events will be held in Atlanta, New York, Detroit, Houston, Los Angeles, Las Vegas, Miami, Milwaukee, Philadelphia, Phoenix, St. Louis and Washington, DC/Maryland. 

“This is part of a wider effort by the IRS to reach as many people as possible who don’t file a tax return but may be eligible for the Child Tax Credit and Economic Impact Payments,” said Ken Corbin, IRS Wage and Investment Commissioner and the agency’s Chief Taxpayer Experience Officer. “We encourage people to share this information widely and encourage those who need help to visit these locations.” 

With the help of a new Non-filer Sign-up Tool on the IRS website, volunteers and IRS employees will assist eligible individuals and families get these important tax credits and benefits. This tool, an update of last year’s IRS Non-Filers tool, is also designed to help individuals register for the $1,400 third round of Economic Impact Payments (also known as stimulus checks) and claim the Recovery Rebate Credit for any amount of the first two rounds of Economic Impact Payments they may have missed. Individuals do not need to have children to attend these events and sign up for Economic Impact Payments. 

People can check their eligibility for the AdvCTC payments by using the new Advance Child Tax Credit Eligibility Assistant. 

For this weekend’s events, to make the sign-up process go quickly and smoothly, people are encouraged to have the following information when they come to one of these events: (1) Social Security numbers for their children, (2) Social Security numbers or Tax Identification Numbers for themselves and their spouse, (3) a reliable mailing address, (4) an e-mail address, and (5) their bank account information if they want to receive their payment by direct deposit. 

The IRS is also planning to do additional events in the future as well as work with partners inside and outside the tax community to share information as widely as possible to people who may be eligible for Child Tax Credits and the Economic Impact Payments. This is part of a wider effort to raise awareness of the expanded Child Tax Credit, the IRS also encourages its partners to use available online tools and toolkits to help non-filers, low-income families and other underserved groups sign up to receive the AdvCTC.

Some tax credits, such as the Child Tax Credit (CTC), are "refundable," meaning that even if taxpayers don’t owe income tax, the IRS will issue them a refund if they’re eligible; but they must file a tax return or register with the new Non-filer Sign-up Tool to receive it. Some people who haven’t filed a 2020 tax return yet are also eligible for the $1,400 per person Economic Impact Payments and the Recovery Rebate Credit. 

The first monthly payments of the expanded and newly-advanceable CTC from the American Rescue Plan will be made starting July 15. Most families will begin receiving monthly payments without any additional action. Eligible families will receive a payment of up to $300 per month for each child under age 6, and up to $250 per month for each child ages 6 to 17. 

People who need to file a 2020 federal income tax return, but are unable to attend one of these events, may be able to prepare and file their own federal income tax online using IRS Free File if their income is $72,000 or less. 

People who don’t need to file a 2020 federal tax return can also use the Non-filer Sign-up Tool to register to receive the advance CTC payments, the Third Round Economic Impact Payment, and the Recovery Rebate Credit.

The IRS encourages people to request payments via direct deposit, which is faster and more secure than other payment methods. People who don't have a bank account should visit the Federal Deposit Insurance Corporation website for details on opening an account online. They can also use the FDIC's BankFind tool to locate an FDIC-insured bank. 

Finally, BankOn, American Bankers Association, Independent Community Bankers of America and National Credit Union Administration have lists of banks and credit unions that can open an account online. Veterans can see the Veterans Benefits Banking Program for financial services at participating banks. 

About the advance Child Tax Credit

The expanded and newly-advanceable Child Tax Credit was authorized by the American Rescue Plan Act, enacted in March. Normally, the IRS will calculate the payment based on a family’s 2020 tax return, including those who use the Non-filer Sign-up Tool. If that return is not available because it has not yet been filed or is still being processed, the IRS will instead determine the initial payment amounts using the 2019 return or the information entered using the Non-filers tool that was available in 2020.

The payment will be up to $300 per month for each child under age 6 and up to $250 per month for each child age 6 through 17.

To make sure families have easy access to their money, the IRS will issue these payments by direct deposit, as long as correct banking information has previously been provided to the IRS. Otherwise, people should watch their mail around July 15 for their mailed payment. The dates for the Advance Child Tax Credit payments are July 15, Aug. 13, Sept. 15, Oct. 15, Nov. 15, and Dec. 15. 

To learn more about advance CTC payments, visit IRS.gov/childtaxcredit2021 or see FAQs on the 2021 Child Tax Credit and Advance Child Tax Credit Payments.

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 percent 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:

Additional information about tax relief for businesses affected by the COVID-19 can be found on IRS.gov.

Today, the IRS published the latest executive column “A Closer Look,” which features Small Business/Self Employed Collection Commissioner Darren Guillot, discussing how the redesigned IRS notices with quick response, or QR code technology, provides easy access to self-help options for taxpayers. “By emphasizing the availability of self-service channels, we're helping to empower taxpayers to resolve their outstanding tax issues through their preferred channel. Our pilot tests have shown that the redesigned notices increased the use of online service channels by more than 70 percent,” said Guillot. Read more here. Read the Spanish version here.

“A Closer Look” is a column from IRS executives that covers a variety of timely issues of interest to taxpayers and the tax community. It also provides a detailed look at key issues affecting everything from IRS operations and employees to issues involving taxpayers and tax professionals.

WASHINGTON – The Internal Revenue Service today concludes the “Dirty Dozen” list of tax scams with a warning to taxpayers to watch out for schemes peddled by tax promoters, including syndicated conservation easements, abusive micro-captive insurance arrangements and other abusive arrangements.

The IRS warns people to be on the lookout for promoters who peddle false hopes of large tax deductions from abusive arrangements. These “deals” are generally marketed by unscrupulous promoters who make false claims about their legitimacy and charge high fees to boot. These promoters frequently devise new ways to cheat the system and market them aggressively. Some taxpayers play the audit lottery hoping they don't get noticed.

To fight the evolving variety of these abusive arrangements, the IRS recently created the Office of Promoter Investigations (OPI) to focus on participants and the promoters of abusive tax avoidance transactions. OPI coordinates service-wide enforcement activities. The best defense for a taxpayer approached by a promoter is to show caution: if it sounds too good to be true, it probably is.

These aggressively marketed abusive arrangements wrap up the IRS’s annual “Dirty Dozen” list and include the following:

Syndicated conservation easements
In syndicated conservation easements promoters take a provision of tax law for conservation easements and twist it through using inflated appraisals of undeveloped land and partnerships. These abusive arrangements are designed to game the system and generate inflated and unwarranted tax deductions, often by using inflated appraisals of undeveloped land and partnerships devoid of a legitimate business purpose. More information can be found here.

Abusive micro-captive arrangements
In abusive “micro-captive” structures, promoters, accountants or wealth planners persuade owners of closely held entities to participate in schemes that lack many of the attributes of insurance. For example, coverages may “insure” implausible risks, fail to match genuine business needs or duplicate the taxpayer’s commercial coverages. But the “premiums” paid under these arrangements are often excessive and used to skirt tax law. Additional information can be found here. Recently, the IRS has stepped up enforcement against a variation using potentially abusive offshore captive insurance companies domiciled in Puerto Rico and elsewhere.

Potentially abusive use of the US-Malta tax treaty
Some U.S. citizens and residents are relying on an interpretation of the U.S.-Malta Income Tax Treaty (Treaty) to take the position that they may contribute appreciated property tax free to certain Maltese pension plans and that there are also no tax consequences when the plan sells the assets and distributes proceeds to the U.S. taxpayer. Ordinarily gain would be recognized upon disposition of the plan’s assets and distributions of the proceeds. The IRS is evaluating the issue to determine the validity of these arrangements and whether Treaty benefits should be available in such instances and may challenge the associated tax treatment.

Improper claims of business credits
Improper claims for the research and experimentation credit generally involve failures to participate in, or substantiate, qualified research activities and/or satisfy the requirements related to qualified research expenses. To claim a research credit, taxpayers must evaluate and appropriately document their research activities over a period of time to establish the amount of qualified research expenses paid for each qualified research activity. Taxpayers should carefully review reports or studies to ensure they accurately reflect the taxpayer’s activities.

Improper monetized installment sales
Promoters find taxpayers seeking to defer the recognition of gain upon the sale of appreciated property and organize an abusive shelter through selling them monetized installment sales. These transactions occur when an intermediary purchases appreciated property from a seller in exchange for an installment note, which typically provides for payments of interest only, with principal being paid at the end of the term. In these arrangements, the seller gets the lion’s share of the proceeds but improperly delays the gain recognition on the appreciated property until the final payment on the installment note, often slated for many years later. 

The IRS continues to pursue actions against promoters of these schemes as well as the taxpayers who participate in them. 

“We are stepping up our enforcement against abusive arrangements,” said IRS Commissioner Chuck Rettig. “Don’t be lulled into these shady deals. The IRS recommends that anyone who participated in one of these abusive arrangements should consult independent counsel about coming into compliance.”

For more on tax schemes, visit IRS.gov/Dirty-Dozen.

Revenue Ruling 2021-13  explains: (1) that an acid gas removal unit at an industrial  facility is a component of carbon capture equipment within the meaning of § 1.45Q-2(c); (2) an investor in certain components of carbon capture equipment at an industrial facility is not required to own every component of carbon capture equipment within a single process train at an industrial facility to be the person to whom the section 45Q credit is attributable under § 1.45Q-1(h), but must own at least one component of carbon capture equipment in the single process train of carbon capture equipment at the industrial facility; (3) solely for purposes of section 45Q(a), the original placed-in-service date of a single process train of carbon capture equipment at an industrial facility that includes the existing acid gas removal unit and new components of carbon capture equipment is the date that the single process train is placed in a condition or state of readiness and availability for the capture, processing, and preparation of carbon oxide for transport for disposal, injection, or utilization; and (4) the original placed-in-service date of the single process train for purposes of section 45Q has no effect on the placed-in-service date of the existing acid gas removal unit for depreciation purposes under sections 167 and 168.

Revenue Ruling 2021-13 will be in IRB:  2021-30, dated July 2021.