IRS Guidance and Tax Updates for the Week of December 20, 2021 – December 24, 2021

The Internal Revenue Service (IRS) has been busy this week providing guidance and updates on various tax matters. From extending tax filing deadlines for victims of natural disasters to releasing updated forms and publications, the IRS has been working to ensure taxpayers are informed and supported during these challenging times.

One significant announcement made by the IRS this week was the extension of the tax filing deadline for victims of the recent tornadoes in Illinois and Tennessee. Individuals and businesses in these areas now have until May 16, 2022, to file their tax returns and make payments. This extension provides much-needed relief for those affected by the devastating storms.

In addition to the deadline extension, the IRS also released instructions for Form 8992, which is used to calculate Global Intangible Low-Taxed Income (GILTI). The updated form includes a new separate Schedule A and eliminates the requirement for domestic partnerships to file the form. This change aims to simplify the reporting process for taxpayers.

Furthermore, the IRS updated Publication 17, Your Federal Income Tax, for the 2021 tax year. This publication provides general rules for filing a federal income tax return and supplements the information found in tax form instructions. The updates reflect changes in tax laws and regulations for the current tax year.

The IRS also issued guidance on accepting digital signatures and documents via email in response to the COVID-19 pandemic. This measure aims to protect employees while ensuring the IRS can continue its mission-critical functions during these challenging times.

Overall, the IRS has been proactive in providing support and guidance to taxpayers during these uncertain times. By extending deadlines, updating forms and publications, and implementing new procedures, the IRS is working to make the tax filing process as smooth as possible for individuals and businesses alike.