Friday, April 30, 2021

IRS Extends QI/WP/WT Certification and Waiver Application Due Dates

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Qualified Intermediaries News April 30, 2021

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Issue Number:  2021-02

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  1. IRS Extends QI/WP/WT Certification and Waiver Application Due Dates

1.  IRS Extends QI/WP/WT Certification and Waiver Application Due Dates

If your periodic certification is due in 2021, the due dates are automatically extended.  The due date depends on the periodic review year you select:

  • 2018 and 2019  -  Certifications and applications to waive the periodic review requirement are due by December 1, 2021.               
  • 2020  -  Certifications are due by March 1, 2022.

You cannot change your periodic review year after you've selected and confirmed it on the QI system. 

Please refer to FAQ number 10 on the QI/WP/WT FAQs page under the section, Certifications and Periodic Reviews for more details.

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IR-2021-99: IRS now accepting TCE and VITA grant applications

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Issue Number:    IR-2021-99

Inside This Issue


IRS now accepting TCE and VITA grant applications

WASHINGTON — Eligible organizations can now submit applications for the Internal Revenue Service's Tax Counseling for the Elderly and Volunteer Income Tax Assistance grant programs, allowing some organizations to apply for up to three years of annual funding.

Organizations can apply on Grants.gov through June 4, 2021, and can find application packages and guidelines on IRS.gov. In 2021, the IRS awarded 31 TCE grantees $11 million and 297 VITA grantees $25 million. The two programs prepare millions of tax returns each year.

The IRS established the TCE program in 1978 to provide tax counseling and return preparation to persons age 60 or older and to give training and technical assistance to the volunteers who provide free federal income tax assistance within elderly communities across the nation. For more information visit the TCE webpage on IRS.gov.

The IRS created the VITA program in 1969. In 2007, the IRS established the VITA Grant program to supplement VITA partners' efforts. VITA provides free tax filing assistance to underserved communities. The grant program enables VITA to extend services to underserved populations in the hardest-to-reach urban and non-urban areas, to increase the capacity of targeted taxpayers to file returns electronically, to enhance training of volunteers and to improve the accuracy rate of returns prepared at VITA sites. For more information visit the VITA webpage on IRS.gov.

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Consejo en video del IRS: Consejos para evitar errores en la declaración de impuestos

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IR-2021-98: Draft Schedules K-2 and K-3 released to enhance reporting of international tax matters by pass-through entities

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Issue Number:    IR-2021-98

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Draft Schedules K-2 and K-3 released to enhance reporting of international tax matters by pass-through entities

WASHINGTON — The Treasury and the IRS released today updated early drafts of new Schedules K-2 and K-3 for Forms 1065, 1120-S, and 8865 for tax year 2021 (filing season 2022). The schedules are designed to provide greater clarity for partners and shareholders on how to compute their U.S. income tax liability with respect to items of international tax relevance, including claiming deductions and credits.

The early release drafts of the schedules are intended to give a preview of the changes before final versions are released.  The release of an early draft of the instructions for the schedules is planned for this summer.

The redesigned forms and instructions will also give useful guidance to partnerships, S corporations and U.S persons who are required to file Form 8865 with respect to controlled foreign partnerships on how to provide international tax information.  The updated forms will apply to any persons required to file Form 1065, 1120-S or 8865, but only if the entity for which the form is being filed has items of international tax relevance (generally foreign activities or foreign partners).

The changes do not affect partnerships and S corporations with no items of international tax relevance.

The Treasury Department and the IRS released prior drafts of Schedules K-2 and K-3 for the Form 1065 in July 2020 and engaged with stakeholders to solicit input on the changes.  Helpful comments were received, and changes have been made to the schedules and instructions as appropriate.

To promote compliance with adoption of Schedules K-2 and K-3 by affected pass-through entities and their partners and shareholders, the Treasury Department and the IRS intend to provide certain penalty relief for the 2021 tax year in future guidance.

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IRS video tax tip: Tax Return Errors-Tips to Avoid Them

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Issue Number:    Tax Return Errors-Tips to Avoid Them

Inside This Issue


Here is a video tax tip from the IRS: 

Tax Return Errors-Tips to Avoid Them English | Spanish | ASL

Subscribe today: The IRS YouTube channels provide short, informative videos on various tax related topics in English, Spanish and ASL.

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