digital signatures
Subscribe to digital signatures's Posts

Weekly IRS Roundup December 20 – December 24, 2021

Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of December 20, 2021 – December 24, 2021. Additionally, for continuing updates on the tax impact of COVID-19, please visit our resource page here.

December 20, 2021: The IRS published a news release announcing that victims of this month’s tornadoes in parts of Illinois and Tennessee will have until May 16, 2022, to file various individual and business tax returns and make tax payments.

December 20, 2021: The IRS released instructions for Form 8992, U.S. Shareholder Calculation of Global Intangible Low-Taxed Income (GILTI), to reflect a new separate Schedule A and eliminate the requirement for domestic partnerships to file the form.

December 20, 2021: The IRS released Publication 17, Your Federal Income Tax (for Individuals), which was updated for the 2021 tax year. This publication covers the general rules for filing a federal income tax return and supplements the information contained in tax form instructions.

December 21, 2021: The IRS released a memorandum that reissues interim guidance AP-08-0521-0015 concerning procedures for accepting images of signatures and digital signatures and approval to receive documents by email and transmit documents to taxpayers. The memorandum is in response to the COVID-19 pandemic, where the IRS took several steps to protect employees while still delivering on their mission-critical functions.

December 21, 2021: The IRS released Published 15, (Circular E), Employer’s Tax Guide, which explains tax responsibilities as an employer. The updates reflect COVID-19 related employment tax credits and other tax relief.

December 22, 2021: The IRS published a news release announcing that victims of Hurricane Ida in six states now have until February 15, 2022 (extended from January 3), to file various individual and business tax returns and make tax payments. The updated relief covers the entire states of Louisiana and Mississippi, as well as parts of New York, New Jersey, Connecticut and Pennsylvania.

December 23, 2021: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).

Special thanks to Robbie Alipour in our Chicago office for this week’s roundup.




Weekly IRS Roundup November 29 – December 3, 2021

Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of November 29, 2021 – December 3, 2021. Additionally, for continuing updates on the tax impact of COVID-19, please visit our resource page here.

November 29, 2021: The IRS published a news release warning taxpayers and tax professionals to beware of a dangerous combination of events that can increase their exposure to tax scams and identity theft. The IRS stated that the holiday shopping season, the upcoming tax season and the pandemic all create additional opportunities for criminals to steal sensitive personal or finance information.

November 30, 2021: The IRS issued Revenue Procedure 2021-53, which provides temporary guidance regarding the treatment of certain stock distributions by publicly offered real estate investment trusts and publicly offered regulated investment companies in recognition of the need for liquidity as a result of COVID-19. The guidance reduces the minimum required aggregate amount of cash that distributee shareholders may receive to no less than 10% of the total distribution in order for Section 301 (by reason of Section 305(b)) to apply to such distribution.

November 30, 2021: The IRS published a news release warning taxpayers to be wary of fake charities used by scammers to trick unsuspecting donors into providing money and sensitive financial and personal information.

November 30, 2021: The IRS posted an issue snapshot concerning issue indicators and audit tips for public and tax-exempt employer contributions to eligible deferred compensation plans (as defined in Section 457(b)).

December 1, 2021: The US Competent Authority posted the arrangement between Competent Authorities of the United States and Turkey, setting forth parameters on the exchange of county-by-country reporting agreements to combat transfer pricing, base erosion and profit shifting-related risks.

December 1, 2021: The IRS published a news release reminding taxpayers they can get extra protection starting in January by joining its Identity Protection Personal Identification Number (IP PIN) program. Anyone who can verify their identity can protect themselves against tax-related identity theft by opting into the program.

December 2, 2021: The IRS published a news release warning tax professionals that they face additional security risks from cybercriminals seeking to use the pandemic and phishing scams to steal sensitive client information.

December 2, 2021: The IRS recommended nonacquiescence in Mayo Clinic v. United States, 997 F.3d 789 (8th Cir. May 13, 2021), rev’g 412 F. Supp. 3d 1038 (D. Minn. 2019), where the appeals court invalidated Treasury Regulations Section 1.170A-9(c)(1)’s requirement that the primary function of an educational organization described in Section 170(b)(1)(A)(ii) be the presentation of formal instruction. For more background, see our recent post.

December 2, 2021: The IRS published a news release reminding tax professionals and taxpayers that they can use digital signatures on a variety of common IRS forms and access a [...]

Continue Reading




Weekly IRS Roundup November 22 – November 26, 2021

Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of November 22, 2021 – November 26, 2021. Additionally, for continuing updates on the tax impact of COVID-19, please visit our resource page here.

November 22, 2021: The IRS released a memorandum concerning a temporary deviation from the handwritten signature requirement for certain tax forms. To alleviate COVID-19 concerns while promoting timely filing, the IRS will allow taxpayers and representatives to use electronic or digital signatures when signing listed forms that currently require a handwritten signature. No specific technology is required to create the signature. The IRS has listed the eligible forms, which must be postmarked on August 28, 2020, or later.

November 22, 2021: The IRS released a memorandum extending through October 31, 2023, temporary deviations that allow IRS employees to: (1) accept images of signatures and digital signatures on documents related to the determination or collection of tax liability and (2) send or receive documents to or from taxpayers using emails with encrypted attachments when no other approved electronic alternative is available.

November 22, 2021: The IRS released a memorandum providing guidance concerning employee retention credits and the deferral of paying social security taxes in 2020.

November 23, 2021: The IRS published a news release announcing the launch of a new Spanish-language version of the Child Tax Credit Update Portal (CTC-UP). Families who are already receiving monthly payments use the CTC-UP to update their accounts. Now, all the features that have only been available in English are also available in Spanish.

November 26, 2021: The IRS published a notice and request for comments on Form 944, Employer’s Annual Employment Tax Return, and Form 944-X, Adjusted Employer’s Annual Federal Tax Return or Claim for Refund, which are used in part to ensure the smallest non-agricultural and non-household employers are paying the correct amount of social security tax, Medicare tax and withheld federal income tax. Comments are due on or before January 25, 2022.

November 26, 2021: The IRS published a notice and request for comments concerning TD 8857 (addressing the determination of underwriting income by non-life insurance companies), which allows a non-life insurance company to increase unpaid losses on a yearly basis by the amount of estimated salvage recoverable if the company discloses this to the state insurance regulatory authority. Comments are due on or before January 28, 2022.

November 26, 2021: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).

Special thanks to Robbie Alipour in our Chicago office for this week’s roundup.




IRS Releases Fact Sheet on Acceptable Electronic Signatures

The Internal Revenue Service (IRS) released a fact sheet, providing guidance on acceptable methods for taxpayers to electronically or digitally sign certain paper forms that they cannot file electronically. In order to provide taxpayers with greater flexibility during the COVID-19 pandemic, the IRS previously announced taxpayers may use digital signatures for certain forms through the end of 2021. The newly released fact sheet is the first guidance as to what constitutes an acceptable electronic signature.

The fact sheet notes that the IRS is balancing the flexibility of electronic signatures with security and fraud protections. Electronic signatures accepted by the IRS include:

  • A name typed on a signature block
  • A scanned or digitized image of a handwritten signature that is attached to an electronic record
  • A handwritten signature input onto an electronic signature pad
  • A handwritten signature, mark or command input on a display screen with a stylus device
  • A signature created by a third-party software

Additionally, the IRS will accept images of electronic signatures provided the image is a file type supported by Microsoft Office, such as .jpg, .pdf and .tiff.

The fact sheet provides a list of paper-filed forms—which cannot be e-filed—where a taxpayer may use an electronic signature:

  • Form 11-C, Occupational Tax and Registration Return for Wagering;
  • Form 637, Application for Registration (For Certain Excise Tax Activities);
  • Form 706, U.S. Estate (and Generation-Skipping Transfer) Tax Return;
  • Form 706-A, U.S. Additional Estate Tax Return;
  • Form 706-GS(D), Generation-Skipping Transfer Tax Return for Distributions;
  • Form 706-GS(D-1), Notification of Distribution from a Generation-Skipping Trust;
  • Form 706-GS(T), Generation-Skipping Transfer Tax Return for Terminations;
  • Form 706-QDT, U.S. Estate Tax Return for Qualified Domestic Trusts;
  • Form 706 Schedule R-1, Generation Skipping Transfer Tax;
  • Form 706-NA, U.S. Estate (and Generation-Skipping Transfer) Tax Return;
  • Form 709, U.S. Gift (and Generation-Skipping Transfer) Tax Return;
  • Form 730, Monthly Tax Return for Wagers;
  • Form 1066, U.S. Income Tax Return for Real Estate Mortgage Investment Conduit;
  • Form 1120-C, U.S. Income Tax Return for Cooperative Associations;
  • Form 1120-FSC, U.S. Income Tax Return of a Foreign Sales Corporation;
  • Form 1120-H, U.S. Income Tax Return for Homeowners Associations;
  • Form 1120-IC DISC, Interest Charge Domestic International Sales – Corporation Return;
  • Form 1120-L, U.S. Life Insurance Company Income Tax Return;
  • Form 1120-ND, Return for Nuclear Decommissioning Funds and Certain Related Persons;
  • Form 1120-PC, U.S. Property and Casualty Insurance Company Income Tax Return;
  • Form 1120-REIT, U.S. Income Tax Return for Real Estate Investment Trusts;
  • Form 1120-RIC, U.S. Income Tax Return for Regulated Investment Companies;
  • Form 1120-SF, U.S. Income Tax Return for Settlement Funds (Under Section 468B);
  • Form 1127, Application for Extension of Time for Payment of Tax Due to Undue Hardship;
  • Form 1128, Application to Adopt, Change or Retain a Tax Year;
  • Form 2678, Employer/Payer Appointment of Agent;
  • Form 3115, Application for Change in Accounting Method;
  • Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts;
  • Form 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner;
  • Form 4421, Declaration – [...]

    Continue Reading



IRS Extends Use of Digital Signatures for Certain Forms until End of 2021

The list of Internal Revenue Service (IRS) forms that can be digitally signed continues to grow. On August 28, 2020, the IRS issued a memorandum indicating that it would accept the use of digital signatures on various IRS forms because of the restrictions involved with the COVID-19 pandemic. In September 2020, it announced the addition of several more forms. Then, on April 15, 2021, the IRS announced it is extending the authorization to a large number of IRS forms until December 31, 2021. The IRS has not specified which digital signature product tax professionals must use but has advised that there are several commercial products available.

The current list of IRS forms that can be digitally signed are:

  • Form 11-C, Occupational Tax and Registration Return for Wagering
  • Form 1066, U.S. Income Tax Return for Real Estate Mortgage Investment Conduit
  • Form 637, Application for Registration (for Certain Excise Tax Activities)
  • Form 706, U.S. Estate (and Generation-Skipping Transfer) Tax Return
  • Form 706-A, U.S. Additional Estate Tax Return
  • Form 706-GS(D), Generation-Skipping Transfer Tax Return for Distributions
  • Form 706-GS(D-1), Notification of Distribution From a Generation-Skipping Trust
  • Form 706-GS(T), Generation-Skipping Transfer Tax Return for Terminations
  • Form 706-QDT, U.S. Estate Tax Return for Qualified Domestic Trusts
  • Form 706, Schedule R-1, Generation-Skipping Transfer Tax
  • Form 706-NA, U.S. Estate (and Generation-Skipping Transfer) Tax Return
  • Form 709, U.S. Gift (and Generation-Skipping Transfer) Tax Return
  • Form 730, Monthly Tax Return for Wagers
  • Form 1120-C, U.S. Income Tax Return for Cooperative Associations
  • Form 1120-FSC, U.S. Income Tax Return of a Foreign Sales Corporation
  • Form 1120-H, U.S. Income Tax Return for Homeowners Associations
  • Form 1120-IC DISC, Interest Charge Domestic International Sales — Corporation Return
  • Form 1120-L, U.S. Life Insurance Company Income Tax Return
  • Form 1120-ND, Return for Nuclear Decommissioning Funds and Certain Related Persons
  • Form 1120-PC, U.S. Property and Casualty Insurance Company Income Tax Return
  • Form 1120-REIT, U.S. Income Tax Return for Real Estate Investment Trusts
  • Form 1120-RIC, U.S. Income Tax Return for Regulated Investment Companies
  • Form 1120-SF, U.S. Income Tax Return for Settlement Funds (Under Section 468B)
  • Form 1127, Application for Extension of Time for Payment of Tax Due to Undue Hardship
  • Form 1128, Application to Adopt, Change or Retain a Tax Year
  • Form 2678, Employer/Payer Appointment of Agent
  • Form 3115, Application for Change in Accounting Method
  • Form 3520, Annual Return to Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts
  • Form 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner
  • Form 4421, Declaration — Executor’s Commissions and Attorney’s Fees
  • Form 4768, Application for Extension of Time to File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes
  • Form 8038, Information Return for Tax-Exempt Private Activity Bond Issues
  • Form 8038-G, Information Return for Tax-Exempt Governmental Bonds
  • Form 8038-GC; Information Return for Small Tax-Exempt Governmental Bond Issues, Leases, and Installment Sales
  • Form 8283, Noncash Charitable Contributions
  • Form 8453 series, Form 8878 series and Form 8879 series regarding IRS e-file Signature Authorization Forms
  • Form 8802, Application for U.S. [...]

    Continue Reading



STAY CONNECTED

TOPICS

ARCHIVES