e-News for Tax Professionals 2021-35

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Issue Number:  2021-35

Inside This Issue

1. Tax relief for victims of Hurricane Ida
2. IRS grants dyed diesel fuel penalty relief in Louisiana
3. Tax relief for disaster victims in California, Tennessee
4. IRS urges taxpayers to prepare for natural disasters
5. How Tax Court petitioners can contact the IRS about premature assessments, enforcement actions
6. Webinar: Form 8027 and Large Food and Beverage Establishments
7. Technical Guidance

Victims of Hurricane Ida that began on Aug. 26 now have until Jan. 3, 2022, to file various individual and business tax returns and make tax payments. Currently, the entire state of Louisiana is eligible for this relief, but taxpayers in Ida-impacted localities designated by FEMA will automatically receive the same filing and payment relief. Visit the disaster relief page on IRS.gov for the current list of eligible localities. Tax-filing and tax-payment deadlines extended to Jan. 3, 2022, include:

• The Sept. 15 deadline for a calendar-year partnership or S corporation that had a valid extension, due to run out on that date.
• The Sept. 15 deadline for filing an income tax return for a corporation with a fiscal year that ended on June 30.
• The Sept. 15 deadline for making estimated tax payments.
• The Oct. 15 deadline for anyone who had a valid extension to file an individual or business return, due to run out on that date.
• The Nov. 1 deadline for quarterly payroll and excise tax returns.
• The Nov. 15 deadline for a tax-exempt organization that had a valid extension, due to run out on that date.

In addition, penalties on payroll and excise tax deposits due on or after Aug. 26 and before Sept. 10, will be abated if the deposits are made by Sept. 10, 2021.

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In response to shortages of undyed diesel fuel caused by Hurricane Ida, the IRS will not impose a penalty when dyed diesel fuel is sold for use or used on the highway for a number of parishes in the state of Louisiana. This relief is effective as of Aug. 29, 2021, and will remain in effect through Sept. 15, 2021.

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California victims of wildfires that began July 14, 2021, now have until Nov. 15, 2021, to file various individual and business tax returns and make tax payments. Individuals and households affected by wildfires that reside or have a business in Lassen, Nevada, Placer and Plumas counties qualify. Also, Tennessee victims of severe storms and flooding that occurred on Aug. 21, 2021, now have until Jan. 3, 2022, to file various individual and business tax returns and make tax payments. Individuals and households affected by severe storms and flooding that reside or have a business in Dickson, Hickman, Houston and Humphreys counties qualify.

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September is National Preparedness Month. With the height of hurricane season fast approaching and the ongoing threat of wildfires, storms and flooding in some parts of the country, the IRS reminds everyone to develop an emergency preparedness plan. Encourage your clients to secure and duplicate essential tax and financial documents. Securing this information can help in the aftermath of a disaster, and it can help people more quickly take advantage of disaster relief available from the IRS. This article is also available in Spanish and Simplified Chinese.

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The United States Tax Court has reported a significant increase in the number of petitions, receiving more than 26,000 this year. The Court continues to process petitions and has begun to notify the IRS of petitions received prior to service to limit the potential for premature assessment and enforcement action against petitioners. Additionally, the IRS has established a dedicated email address for petitioners to reach out with concerns about premature assessments or enforcement action: taxcourt.petitioner.premature.assessment@irs.gov.

When submitting an inquiry to the email address, be sure to include: each petitioner’s full name and address, tax years involved, date the petition was mailed to the Tax Court, the docket number (if known) and the names of any IRS attorneys or paralegals who have worked on the petitioner’s case, if known.

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The IRS hosts the Form 8027 and Large Food and Beverage Establishments webinar on Tuesday, Sept. 14 at 2 p.m. ET. Earn up to 2 continuing education credits for this session. Visit the registration page to learn more about the webinar and to sign up. If you have questions, email cl.sl.web.conference.team@irs.gov.

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Notice 2021-52 announces the special per diem rates effective Oct. 1, 2021, which taxpayers may use to substantiate the amount of expenses for lodging, meals and incidental expenses when traveling away from home.

Revenue Procedure 2021-37 sets forth the procedures of the IRS for issuing opinion letters regarding the satisfaction in form of section 403(b) pre-approved plans with respect to the requirements of section 403(b) of the Internal Revenue Code for the second remedial amendment cycle (Cycle 2). This revenue procedure also sets forth the rules for determining when remedial amendment periods expire for section 403(b) pre-approved plans.

Revenue Procedure 2021-38 modifies Rev. Proc. 2016-37 to extend the deadline for adopting an interim amendment for a section 401(a) pre-approved plan to match the deadline for adopting an interim amendment for a section 403(b) pre-approved plan, which is set forth in Rev. Proc. 2021-37 (issued simultaneously).

Revenue Procedure 2021-39 provides temporary guidance regarding the public approval requirement under section 47(f) of the Internal Revenue Code for tax-exempt qualified private activity bonds. 

Revenue Procedure 2021-40 amplifies Rev. Proc. 2021-3, 2021-1 IRB 140, which sets forth areas of the Internal Revenue Code relating to issues on which the IRS will not issue letter rulings or determination letters. The revenue procedure announces that the IRS will not issue letter rulings on whether certain transactions are self-dealing within the meaning of section 4941(d) of the Code.

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