Today, the IRS published the latest executive column, “A Closer Look,” which features Jim Clifford, Deputy Project Director, Taxpayer First Act-Customer Service Strategy, discussing improving underserved taxpayer interactions with the IRS. “Our ultimate goal is to provide high-quality, personalized service to everyone, no matter where they live, what their background is, or what language they speak,” said Clifford. 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.

Please contact newsroom@irs.gov for any questions or requests for interviews.

Notice 2021-13 provides partnerships with relief from certain penalties due to the inclusion of incorrect information in reporting their partners' beginning capital account balances on the 2020 Schedules K-1 (Form 1065) and the 2020 Schedules K-1 (Form 8865) as outlined in the 2020 Instructions for Form 1065, U.S. Return of Partnership Income.  This notice also provides relief from accuracy-related penalties for any taxable year for the portion of an imputed underpayment attributable to the inclusion of incorrect information in a partner’s beginning capital account balance reported by a partnership for the 2020 taxable year. 

Notice 2021-13 will appear in IRB 2021-6, dated Feb. 8, 2021.

Notice 2021-10 provides additional relief under section 7508A of the Internal Revenue Code (Code) for qualified opportunity funds (QOFs) and their investors in response to the ongoing Coronavirus Disease 2019 (COVID-19) pandemic.  This notice also provides additional relief pursuant to section 1400Z-2(f)(3) and Income Tax Regulations under section 1400Z-2 of the Code (section 1400Z 2 regulations).  Specifically, this notice extends the relief for QOFs and their investors provided by Notice 2020-39, 2020-26 I.R.B. 984.

Notice 2021-10 will appear in IRB 2021-6, dated Feb. 8, 2021.

WASHINGTON − The Internal Revenue Service today released Notice 2021-11 addressing how employers who elected to defer certain employees’ taxes can withhold and pay the deferred taxes throughout 2021 instead of just the first four months of the year.

In response to a presidential memorandum signed Aug. 8, 2020, Notice 2020-65 was issued on Aug. 28, 2020, giving employers the option to defer certain employees’ Social Security taxes from Sept. 1, 2020, to Dec. 31, 2020. This applied to employees paid less than $4,000 every two weeks, or an equivalent amount for other pay periods, with each pay period considered separately. The taxes, which are technically called Old Age, Survivors and Disability Insurance, or OASDI, are calculated at 6.2% of employees’ wages.

Any taxes deferred under Notice 2020-65 are withheld and paid ratably from employee wages between Jan. 1, 2021, until April 30, 2021. However, the Consolidated Appropriations Act, 2021, signed into law December 27, extended the period that the deferred taxes are withheld and paid ratably. The period is now for the entire year − from Jan. 1, 2021, through Dec. 31, 2021. Notice 2021-11 makes changes to Notice 2020-65 to reflect this extended period. Payments made by Jan. 3, 2022, will be considered timely because Dec. 31, 2021, is a legal holiday. Penalties, interest and additions to tax will now start to apply on Jan. 1, 2022, for any unpaid balances

Employees could see their deferred taxes being collected immediately. Employees should check with their organization’s payroll point of contact on what their collection schedule will be.

Additional tax relief related to the COVID-19 pandemic can be found on IRS.gov.

Notice 2021-11 provides that the end date of the period during which employers must withhold and pay the deferred taxes is postponed from April 30, 2021, to December 31, 2021, and associated interest, penalties, and additions to tax for late payment with respect to any unpaid deferred taxes will begin to accrue on January 1, 2022, rather than on May 1, 2021. As required by section 274 of the COVID-related Tax Relief Act of 2020, which was enacted as part of the Consolidated Appropriations Act, 2021, on December 27, 2020, this notice modifies Notice 2020 65 by extending the time period during which employers must withhold and pay certain taxes that were deferred under Notice 2020-65.  

Notice 2021-11 will be in IRB:  2021-6, dated February 8, 2021.

Notice 2021-06 waives the requirement to file certain information returns and furnish certain payee statements pursuant to section 279 of the COVID-related Tax Relief Act.  The waiver applies to Form 1099 series information returns for specified grants, payments, subsidies and loan forgiveness excludible from income under various COVID-19 relief acts.  The notice does not waive information reporting requirements to file and furnish Forms 1098 and 1098-T with respect to those amounts.

Notice 2021-06 will be in IRB 2021-6, dated Monday 02/08/2021.

Revenue Ruling 2021-04 provides various prescribed rates for federal income tax purposes including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate, and the adjusted federal long-term tax-exempt rate. These rates are determined as prescribed by § 1274. 
The rates are published monthly for purposes of sections 42, 382, 412, 642, 1288, 1274, 7520, 7872, and various other sections of the Internal Revenue Code.

Revenue Ruling will be in IRB:  2021-06, dated February 8, 2021.

Notice 2021-09 provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates used under § 417(e)(3), and the 24-month average segment rates under § 430(h)(2) of the Internal Revenue Code.  In addition, this notice provides guidance as to the interest rate on 30-year Treasury securities under § 417(e)(3)(A)(ii)(II) as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate under § 431(c)(6)(E)(ii)(I), as reflected by the application of § 430(h)(2)(C)(iv). 

Notice 2021-09 will be in IRB:   2021-5, dated February 1, 2021.

Notice 2021-08 provides a waiver of the addition to tax under § 6654 for underpayment of estimated income tax by individual taxpayers, where the underpayment is attributable to the amendment to § 461(l)(1)(B) made by the CARES Act.  The relief, which is not automatic, applies only for the purpose of calculating installments of estimated income tax of an affected individual taxpayer that were due on or before July 15, 2020, with respect to the taxable year that began during 2019. 

Notice 2021-08 will be in IRB:  2021-6, dated 02/08/2021.

Notice 2021-12 extends the temporary relief from certain requirements under § 42 for qualified low-income housing projects and under §§ 142(d) and 147(d) for qualified residential rental projects that was provided in Notice 2020-53, 2020-30 I.R.B. 151 in response to the continuing Coronavirus Disease 2019 (COVID-19) pandemic.  This notice also provides relief for additional § 42 requirements not previously addressed in Notice 2020-53.

Notice 2021-12 will be in IRB:  2021-6, dated February 8, 2021.

Revenue Ruling 2021-03 provides  the covered compensation tables effective January 1, 2021.

Revenue Ruling 2021-03 will be in IRB: 2021-5, dated February 1, 2021.