Notice 2021-05, Renewable Energy Tax Credits; Chief Counsel Advice 202053014, Seafood Trade Relief Program payments exclusion; Form 1099-NEC filing requirements; Form 1099-NEC Awareness Day
Internal Revenue Service (IRS) sent this bulletin at 01/20/2021 04:52 PM EST
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Renewable Energy Tax Credit 10-Year Safe Harbor for Federal Land Projects IRS Notice 2021-05 was released on Thursday, December 31, 2020. For purposes of renewable energy tax credit statutes requiring that projects be completed within a certain period after their construction begins. Notice 2021-05 provides a 10-year safe harbor period for qualifying “Federal Land Projects” where more than 50 percent of the project is sited on “Federal Land.” The notice very broadly defines Federal Land for this purpose as “any land owned or controlled by the United States,” which would include land held in trust by the United States for the benefit of any person(s), including such land held for the benefit of Indian tribes.
Certain Seafood Trade Relief Program Payments Excludable From Income The IRS issued Chief Counsel Advice 202053014 stating that members of a federally recognized Indian tribe who are excluding income from fishing rights-related activity under Internal Revenue Code section 7873 may also exclude payments received under the Seafood Trade Relief Program (STRP) administered by the U.S. Department of Agriculture. The IRS determined that the STRP payments are “income derived from a fishing rights-related activity of the tribe”, as defined in section 7873(a)(1).
Form 1099-NEC Required to Report Nonemployee Compensation The IRS reminds employers that, starting with tax year 2020, payers must complete the new Form 1099-NEC, Nonemployee Compensation to report any payment of $600 or more to a payee. Generally, payers must file Form 1099-NEC by January 31. For 2020 tax returns, the due date is February 1, 2021. There is no automatic 30-day extension to file Form 1099-NEC. However, an extension to file may be available under certain hardship conditions. The tribal community can find answers to many questions on IRS.gov/tribes. If you have a question on any tribal tax matter, please visit Contact ITG for a list of ITG offices that may be able to help you. If you know someone who wants to subscribe to this mailing list, please forward this message to them to subscribe. This message was distributed automatically from the mailing list Indian Tribal Governments News. Please do not reply to this message. |
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