Child Credit Tax under ARPA; IRS Purchasing Office Vacancies
Below is our summary of the Internal Revenue Service (IRS) key directions and relevant tax matters for the week of June 7, 2021 to June 11, 2021. Additionally, for ongoing updates on the tax impact COVID-19, please visit our resource page here.
June 7, 2021: The IRS issued a Press release announcing that it has started sending letters to inform more than 36 million U.S. families of their potential eligibility to receive monthly child tax credit payments starting in July, in accordance with the tax credit extension for children under the American Rescue Plan Act of 2021 (ARPA).
June 8, 2021: The IRS issued a Press release, soliciting applications for 80 vacancies in its purchasing office, including vacancies for contract specialists who assist the IRS in contracting and administering contracts with third parties.
June 8, 2021: The IRS issued a Press release Reminding taxpayers who make estimated tax payments that the second installment of estimated taxes for 2021 is due on June 15, 2021.
June 9, 2021: The IRS issued a Press release Announcing the disbursement of over 2.3 million economic impact payments valued at over $ 4.2 billion, bringing the total amount of ARPA disbursements to over 169 million payments of worth about $ 395 billion.
June 10, 2021: IRS issued Notice 2021-36, announcing that the date of applicability of certain regulations under Sections 59A and 6038A of the Code, which set out various reporting requirements regarding Qualified Derivative Payments (PDQs) for the purposes of the Base Erosion Tax and the Tax anti-abuse (BEAT), is delayed to tax year 2023.
June 11, 2021: IRS issued final settlement regarding the new mandatory 60-day deferral of certain tax deadlines due to a federally declared disaster, promulgated as Section 7805A (d) of the Code by the Consolidated Supplementary Appropriations Act, 2020.
June 11, 2021: IRS issued Decision on revenue 2021-11, providing the semi-annual rates of the Industry Standard Tariff Level (SIFL) and terminal dues used in calculating the value of non-commercial flights on employer-supplied aircraft for the purposes of taxing employee benefits under of article 61 of the Code. The revenue decision provides for both unadjusted SIFL rates and adjusted SIFL rates for relief given to the airline industry by COVID-related legislation.
June 11, 2021: The IRS issued a Action on decision, announcing that he would not accept TriNet Group, Inc. v. United States, 979 F.3d 1311 (11th Cir. 2020), which held that a professional employers ‘organization (PEO) had “control over the payment of wages” to its clients’ employees and that, therefore, the PEO – and not his clients – was the “employer” (under Section 3401 (d) of the Code) eligible to claim Federal Insurance Contributions Act (FICA) tax credits in respect of such wages.
June 11, 2021: The IRS released its weekly list of written determinations (for example, private letter decisions, technical advice memorandums and advice from the chief counsel).
Special thanks to Le Chen in our Washington, DC office for this week’s roundup.