November 2, 2021
Candace J. Dixon
This is a summary of key IRS and tax happenings between October 25-29. 2021:
News & Tips
October 28: The IRS reminded federal tax return preparers to renew their Preparer Tax Identification Numbers (PTIN) for 2022. All current PTINs expire December 31, 2021.
October 29: Filing Season Statistics for Week Ending October 22, 2021 were published showing cumulative statistics comparing 10/23/2020 and 10/22/2021.
October 29: The IRS announced in a news release that families receiving the Child Tax Credit who have income changes must be enter them in the IRS online portal by Monday, November 1 to impact the November 15 payment.
Disaster Relief Updates
October 26: The IRS published tax relief for Hurricane Ida in Mississippi on its Tax Relief in Disaster Situations page following the recent disaster declaration issued by the FEMA; Amite, Claiborne, Copiah, Covington, Franklin, George, Hancock, Harrison, Jackson, Jefferson, Jefferson Davis, Lawrence, Lincoln, Pearl River, Pike, Simpson, Walthall, Wayne, and Wilkinson counties have until January 3, 2022 to file various individual and business tax returns and make tax payments.
October 27: The IRS announced in a news release that Amite, Claiborne, Copiah, Covington, Franklin, Georgia, Hancock, Harrison, Jackson, Jefferson, Jefferson Davis, Lawrence, Lincoln, Pearl River, Pike, Simpson, Walthall, Wayne and Wilkinson counties in Mississippi now have until January 3, 2022 to file various individual and business tax returns and make tax payments due to Hurricane Ida. The deadline remains November 1 for those affected in other parts of Mississippi.
E-Newsletters
October 25: Tax Exempt Bonds Community Update covered a Revision to Form 8038-CP and Instructions and announced two Zoom meetings in November to explain the changes and answer questions.
October 29: e-News for Payroll Professionals discussed the New IRS CP256V Notice – Repayment of deferred Social Security taxes under the CARES Act and the COBRA election period and premium grace period extensions due to COVID-19; reminded e-file providers to complete annual self-certification and URL registration; and discussed checking tax withholding and new forms, instructions and publications.
October 29: e-News for Small Business Issue 2021-15 Reminded employers to e-file payroll tax returns on time; discussed how the IRS helps employers wanting to rehire retirees or retain employees after retirement age; highlighted the IRS column "A Closer Look": Helping cannabis business owners successfully navigate unique tax responsibilities; and covered how it is updating its new tax legislation FAQs process and addressing reliance concerns.
Federal Register
October 26: Proposed Collection; Comment Request for Form 1116 - Foreign Tax Credit (Individual, Estate, or Trust), Schedule B, and Schedule C was published.
October 28: Proposed Collection; Comment Request for Form 8834 - Qualified Electric Vehicle Credit was published.
October 28: Proposed Collection; Comment Request for Form 3468 - Investment Credit was published.
October 29: Proposed Collection; Comment Request for Form 4461, Application for Approval of Standardized or Pre-Approved Defined Contribution Plans; Form 4461-A, Application for Approval of Master or Prototype or Volume Submitter Defined Benefit Plan; Form 4461-B, Application for Approval of Standardized or Nonstandardized Pre-Approved Plans; and Form 4461-C, Application for Approval of Standardized or Nonstandardized 403(b) Pre-Approved Plans was published.
October 29: Proposed Collection; Comment Request for Reg. Project TD 8379 (final) - Excise Tax Relating to Gain or Other Income Realized By Any Person on Receipt of Greenmail; Form 8725 - Excise Tax on Greenmail was published.
October 29: Proposed Collection; Comment Request for SS-4, Application for Employer Identification Number, and Form SS-4PR, Solicitud de Numero de Identification Patronal (EIN) was published.
Latest Internal Revenue Bulletin
Internal Revenue Bulletin: 2021-43 highlights
Notice 2021-58 - Extension of COBRA election and premium payment deadlines under section 7508A(b
Notice 2021-59 - Deferred Applicability Dates for Foreign Currency Guidanc
Rev. Proc. 2021-42 - General Rules and Specifications for Substitute Forms and Schedule
Notable Court Happenings
Criminal Investigation Press Releases
A Charlotte tax preparer was sentenced to 70 months in prison for preparing or causing to be prepared 6,000 tax returns, falsely claiming $3 million in refunds; the court found she set two fires burning client records to obstruct the investigation and prosecution- read press release
The owner of a commercial and residential paving business in Hanover, MA agreed to plead guilty to tax evasion in connection with an income diversion scheme that underreported his income tax obligations and caused a loss to the IRS of nearly $600,000. - read press release
Well-known Sussex County photographer Bruce Kevin Fleming was sentenced to one year in federal prison for federal tax evasion - as of his 2020 plea, he had not filed federal tax returns or paid any taxes since 1981; he was also ordered to pay restitution to the IRS of $192,529 for taxes due and owing from 2002-2016; and $22,584 in payroll taxes he withheld from employees’ wages but never turned over to the IRS. - read press release
A Florida man was sentenced to 15 months in federal prison for conspiracy to commit wire fraud and eight counts of theft of public money for using personal identifying information to file false federal tax returns to obtain unwarranted refunds of over $550,000.- read press release
A federal jury convicted a Williamsburg, VA man who had served as financial officer for business entities related to Ford’s Colony, a large resort community in Williamsburg, of filing false tax returns and failure to file a tax return - read press release
The owner of The Taxman Financial Services in Louisiana pled guilty to aiding in filing false taxes after federal agents determined he filed false tax returns for numerous customers, also using his employees Electronic Filing Identification Numbers to file false tax returns, causing a tax loss to the United States of $241,214.00. - read press release
A Gadsden, Alabama tax preparer pleaded guilty to preparing false tax returns for himself and his clients by falsifying dependent care and education expenses and charitable deductions, and including losses for non-existent businesses, resulting in more than $140,000 in tax loss. - read press release
A Detroit woman was sentenced to 58 months in federal prison after pleading guilty for her role in a $3 million dollar unemployment insurance fraud scheme during the COVID19 pandemic - read press release
Statements & Announcements
October 29: The IRS issued a statement on the Advance Child Tax Credit October payments stating that they delivered a fourth monthly round of 36 million Child Tax Credit payments totaling $15 billion, and that identified some payees who appear to have mistakenly received advance CTC payments because their children are too old to qualify or were claimed on multiple tax returns.
Other IRS Updates
October 29: The IRS updates their weekly list of Written Determinations.