e-News for Tax Professionals 2021-05

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Issue Number:  2021-06

Inside This Issue

1. IRS Nationwide Tax Forums go virtual again in 2021
2. Tax professionals can upload third-party authorizations to IRS using new online tool
3. IRS names new director of Taxpayer First Act Office
4. Educators can now deduct out-of-pocket expenses for COVID-19 protective items
5. IRS updates FAQs on paid sick leave credit and family leave credit
6. New law increases deduction limit for corporate cash contributions for disaster relief; IRS provides recordkeeping relief
7. Covid-19 international mail disruption and Form SSA-1099
8. A Closer Look: Working to change IRS acquisition culture from risk avoidance to innovation, speed and agility
9. News from the Justice Department’s Tax Division
10. Technical Guidance

Due to the ongoing health and safety concerns resulting from COVID-19, the 2021 IRS Nationwide Tax Forums will once again be held virtually. Starting in July, the 2021 Tax Forums will provide thousands of individuals the opportunity to learn and earn continuing education credits and hear the latest updates on tax law, cybersecurity, ethics and other topics directly from IRS experts and IRS association partners. As always, attendees will have the chance to interact with presenters, network with other attendees and visit industry-leading vendors in our Expo Hall.

Registration for the 2021 IRS Nationwide Tax Forums begins March 1. For more information, visit www.irstaxforum.com.

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Tax professionals can now use a new online tool to upload authorization forms with either electronic or ink signatures. This tool is part of the IRS’s efforts to develop transaction options that help tax practitioners and their clients reduce face-to-face contact.

Tax professionals must have a Secure Access username and password or create an account. For more information on how to submit these forms, please review Fact Sheet 2021-01 or the IRS webinar, Uploading Forms 2848 and 8821 with Electronic Signatures.

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The IRS today named Heather C. Maloy to the position of director, Taxpayer First Act Office. Maloy will provide advice and assistance to the IRS Commissioner in areas such as implementation strategy, management and organizational issues and equitable treatment of taxpayers. She will also help set the strategic direction of IRS programs with a focus on a comprehensive taxpayer experience strategy, a holistic training strategy and a modernized IRS organizational structure.

“I’m truly pleased to welcome Heather back to the IRS and into this critical role,” said IRS Commissioner Chuck Rettig. “Given Heather’s vast knowledge and leadership experience from both inside and outside the IRS, she will be an important asset to both the IRS and the nation’s taxpayers going forward as we strategically implement the Taxpayer First Act report’s recommendations.”

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Eligible educators can deduct unreimbursed expenses for COVID-19 protective items to stop the spread of COVID-19 in the classroom. COVID-19 protective items include, but are not limited to:

• Face masks
• Disinfectant for use against COVID-19
• Hand soap
• Hand sanitizer
• Disposable gloves
• Tape, paint or chalk to guide social distancing
• Physical barriers (for example, clear plexiglass)
• Air purifiers
• Other items recommended the Centers for Disease Control and Prevention recommends that individuals use for the prevention of the spread of COVID-19

Rev. Proc. 2021-15 provides guidance for educators and their expenses under the COVID-related Tax Relief Act of 2020. For more information about the educator expense deduction, the COVID-related Tax Relief Act of 2020 and other tax changes, visit IRS.gov.

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The IRS posted updated FAQs about recent legislation that extended and amended tax relief to certain small- and mid-sized employers under the Families First Coronavirus Response Act (FFCRA). The FAQs are available at COVID-19-Related Tax Credits for Required Paid Leave Provided by Small and Midsize Businesses FAQs.

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Corporations may qualify for the new 100 percent limit for disaster relief contributions and offered a temporary waiver of the recordkeeping requirement for corporations otherwise qualifying for the increased limit. Under the new law, qualified disaster areas are those in which a major disaster has been declared under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act. Qualified contributions must be paid by the corporation during the period beginning on Jan. 1.

For additional details on the recordkeeping rules for substantiating gifts to charity, see Publication 526, Charitable Contributions. More information about other coronavirus-related relief, can be found at IRS.gov.

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To avoid mail delays due to Covid-19 international mail disruption, your clients can obtain their Form SSA-1099 or 1042S, Social Security Benefit Statement, online by visiting this Social Security Administration’s webpage.

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The latest IRS executive column, “A Closer Look,” features Shanna Webbers, IRS Chief Procurement Officer. She discusses how IRS Procurement is working to manage risk while embracing innovation, transforming its culture and improving internal operations. The column is also available in Spanish.

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A Louisiana tax return preparer was sentenced to 24 months in prison for conspiring to defraud the U.S. According to court documents, Michegel Butler of St. John the Baptist Parish, La., owned Crown Tax Service LLC, a tax preparation business located in Kenner, La. From approximately January 2013 through April 2013, Butler and others conspired to defraud the U.S. by preparing returns that fraudulently inflated clients’ tax refunds. To substantiate the false income and expenses, Butler and others directed clients to create bogus receipts. In total, Butler caused over $100,000 in tax losses. In addition to the term of imprisonment, the district judge ordered Butler to serve three years of supervised release and to pay approximately $90,856 in restitution to the U.S.

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Announcement 2021-2 notifies lenders who have filed or furnished Forms 1099-MISC, Miscellaneous Information, reporting certain payments on loans subsidized by the Administrator of the U.S. Small Business Administration (SBA) as income of the borrower, that the lenders must file and furnish corrected Forms 1099-MISC that exclude these subsidized loan payments.

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