IRS issues IRC 301 and large refund webpage
Below is our summary of important Internal Revenue Service (IRS) guidance and relevant tax matters for the week of September 20-24, 2021. Additionally, for ongoing updates on the tax impact of COVID -19, please visit our resources page here.
September 22, 2021: The United States Department of the Treasury (Treasury) and the IRS have published final settlement under IRC § 301. The regulations update the existing regulations under IRC § 301 to reflect legislative changes made by the Technical and Miscellaneous Revenue Act 1988, which amendments provide that the amount of he distribution of property made by a corporation to its shareholder is the fair market value of the property distributed. The settlements affect shareholders who receive a distribution of property from a corporation.
September 22, 2021: Theirs introduced a new webpage that provides information for taxpayers whose large refunds are subject to further review by the Joint Committee on Taxation.
September 22, 2021: The IRS released instructions for Form 1065, US Return of Partnership Income, to reflect the addition of Schedules K-2 and K-3. The new schedules help partnerships provide partners with the information necessary for partners to file their returns with respect to international IRC tax provisions. The IRS has also issued related instructions for Form 1120-S, United States Income Tax Return for an S Corporation, to reflect Schedules K-2 and K-3, which help report items of material importance. international tax related to the operation of an S corporation.
September 24, 2021: The Treasury Department and the IRS released final settlement under IRC under Sections 250 and 951A relating to the calculation of investment in qualifying business assets for qualifying improvement property under the alternative depreciation system. The regulations also address transition rules relating to the impact on loss accounts of net operating loss carrybacks permitted by the Coronavirus Aid, Relief and Economic Security Act. The final rule affects U.S. shareholders of controlled foreign corporations, domestic corporations eligible for the Section 250 deduction, and taxpayers claiming foreign income tax credits or deductions.
September 24, 2021: The IRS has released its weekly list of written determinations (for examplePrivate Letter Rules, Technical Advice Memorandums and Chief Counsel Advice).
Special thanks to Robbie Alipour from our Chicago office for this week’s roundup.
© 2022 McDermott Will & EmeryNational Law Review, Volume XI, Number 270