Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of November 8, 2021 – November 12, 2021. Additionally, for continuing updates on the tax impact of COVID-19, please visit our resource page here.

November 9, 2021: The IRS released a Treasury Decision, requesting written comments on T.D. 9360, which provides guidance regarding the information a taxpayer must provide in order to substantiate its computation of its share of a passive foreign investment company (PFIC) post-1986 earning and profits. Written comments must be received before January 10, 2022.

November 9, 2021: The IRS released draft instructions for Form 8992, U.S. Shareholder Calculation of Global Intangible Low-Taxed Income (GILTI). Under these instructions, taxpayers must attach either a separate Schedule A or a separate Schedule B, depending upon whether the entity’s US shareholder is a taxpayer of a US consolidated group. In addition, domestic partnerships are no longer required to fill out Form 8892. Instead, they must now complete Schedules K-2 and K-3 on Form 1065.

November 10, 2021: The IRS issued a news release and a revenue procedure, announcing the tax year 2022 annual inflation adjustments. These adjustments affect more than 60 tax provisions, including the tax rate schedules, and will be used for tax returns filed in 2023.

November 10, 2021: The IRS issued the 2021 IRS Financial Report, which provides a comprehensive view of the IRS’s financial activities and its finance management community. The report specifies, among other items, the tax revenue managed by the IRS, the amount of refunds it has issued and the amount of unpaid assessments.

November 11, 2021: The IRS released a revenue procedure, requesting comments on Revenue Procedure 2008-60, which affects taxpayers who are maintaining a surety bond or a Treasury Direct Account to satisfy the low-income housing tax credit recapture exception in Section 42(j)(6). Written comments must be received before January 14, 2022.

November 12, 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 Jennifer Saperstein in our Chicago office for this week’s roundup.

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