Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of March 1, 2021 – March 5, 2021. Additionally, for continuing updates on the tax impact of COVID-19, please visit our resource page here.
March 1, 2021: The IRS issued Notice 21-20 providing guidance regarding the employee retention credit provided under section 2301 of the Coronavirus Aid, Relief, and Economic Security Act. Specifically, Notice 21-20 addresses the employee retention credit as it applies to qualified wages paid after March 12, 2020, and before January 1, 2021.
March 2, 2021: The IRS issued Revenue Ruling 21-6, which provides certain applicable interest rates for the overpayments and underpayments of taxes. Specifically, Revenue Ruling 21-6 provides the daily compound interest for annual rates of 0.5% and the annual interest rates to be compounded daily pursuant to section 6622 that apply for prior periods.
March 2, 2021: The IRS issued Notice 21-15 providing guidance regarding the application of section 214 of the Taxpayer Certainty and Disaster Tax Relief Act of 2020, which provides temporary special rules for health flexible spending arrangements and dependent care assistance programs under section 125 of the Internal Revenue Code.
March 4, 2021: The IRS released Internal Revenue Bulletin 2021-10, dated March 8, 2021, containing the following highlights: Notice 2021-16 (Employee Plans); Notice 2021-15 (Income Tax); and Rev. Rul. 2021-5 (Income Tax).
March 5, 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 Samuel DiPietro in our Chicago office for this week’s roundup.