e-News for Small Business Issue 2021-16

e-News for Small Business November 26, 2021
Tax Resources for Small Business Small Business and Self-Employed One-Stop Resource Small Business Forms & Instructions Small Business Events Small Business Webinars e-File for Businesses and Self-Employed Businesses with Employees Small Business Products Self-Employed Individuals S Corporations Other Resources IRS.gov Find it Fast! All Forms and Instructions Filing Your Taxes Make a Payment Taxpayer Advocate Service Retirement Plans Tax Information for Charities and Other Non-Profits State Links SSA/IRS Reporter IRS Social Media	Issue Number: 2021-16 Inside This Issue IRS provides guidance on per diem rates and the temporary 100% deduction for food or beverages from restaurants IRS relief: Hurricane Ida and California wildfires IRS provides how-to videos to help taxpayers apply for Offer in Compromise Year-end giving reminder: Special tax deduction helps most people give up to $600 to charity, even if they don't itemize Reporting guidance for partnership interests held in connection with the performance of services Other tax news 1.  IRS provides guidance on per diem rates and the temporary 100% deduction for food or beverages from restaurants##line  The IRS issued Notice 2021-63 to make clear how the temporary 100% business deduction for food or beverages from restaurants applies to taxpayers properly applying the rules of Revenue Procedure 2019-48 for using per diem rates.  The notice has a special rule about treating the full meal portion of a per diem rate or allowance as being attributable to food or beverages from a restaurant. Back to top 2.  IRS relief: Hurricane Ida and California wildfires The IRS announced additional time – until January 3, 2022 – to file various individual and business tax returns and make tax payments for victims of: Hurricane Ida throughout Mississippi Hurricane Ida in parts of Connecticut Wildfires in parts of California Back to top 3.  IRS provides how-to videos to help taxpayers apply for Offer in Compromise The IRS unveiled a new how-to video series enabling taxpayers to avoid potential scams by considering and applying for an Offer in Compromise (OIC) themselves and avoid paying excessive fees to companies advertising outlandish claims. The IRS periodically warns against hiring and paying needless fees to "Offer in Compromise mills" that contort the IRS program into something it's not and mislead people who have no chance of meeting the requirements while charging excessive fees, often thousands of dollars. Back to top 4. Year-end giving reminder: Special tax deduction helps most people give up to $600 to charity, even if they don't itemize  A temporary law change now permits taxpayers to claim a limited deduction on their 2021 federal income tax returns for cash contributions made to qualifying charitable organizations. To receive a deduction, taxpayers must donate to a qualified charity. To check the status of a charity, they can use the IRS Tax Exempt Organization Search tool. Back to top 5.  Reporting guidance for partnership interests held in connection with the performance of services The IRS shared detailed reporting directions for certain passthrough entities and taxpayers reporting of partnership interests held in connection with the performance of services, often referred to as "carried interests," in the form of frequently asked questions (FAQs). The FAQs have worksheets and instructions. Their purpose is to provide guidance relating to both Passthrough Entity filing and reporting requirements and Owner Taxpayer filing requirements. Back to top 6.  Other tax news The following information may be of interest to individuals and groups in or related to small businesses: Credits, deductions and refunds Updates to the 2021 Child Tax Credit and Advance Child Tax Credit Payments Frequently Asked Questions IRS issues another 430,000 refunds for adjustments related to unemployment compensation IRS updates FAQs for 2020 Unemployment Compensation Exclusion Higher 401(k) contribution limit announced Reports IRS Advisory Council issues 2021 Annual Report IRS Financial Report available on IRS.gov IRS Criminal Investigation releases annual report highlighting 2,500+ investigations, law enforcement partnerships Tax professionals Tax professionals can now order more transcripts from the IRS General news New online identity verification process for accessing self-help tools Tax inflation adjustments for tax year 2022 Back to top         Thank you for subscribing to this IRS email service. This message was distributed automatically from the mailing list e-News For Small Business. Please Do Not Reply To This Message.

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