Notice 2021-6 waives the requirement to file and furnish certain 1099 series forms relating to specified grants, payments, subsidies and loan forgiveness excludible from income under various COVID-19 relief acts. The notice does not waive information reporting requirements to file and furnish Forms 1098 and 1098-T with respect to those amounts.

Notice 2021-11 modifies Notice 2020-65 by providing additional tax relief to taxpayers affected by the Coronavirus Disease (COVID-19) emergency, pursuant to the Consolidated Appropriations Act, 2021. Notice 2020-65, issued on August 28, 2020, gave employers the option to defer the employee portion of Social Security taxes (for employees whose wages are below a certain amount) from September 1, 2020, to December 31, 2020. Any taxes deferred under Notice 2020-65 were to be withheld and paid ratably from employee wages between January 1, 2021, until April 30, 2021. However, the Consolidated Appropriations Act, 2021, signed into law December 27, 2020, extended the period that the deferred taxes are to be withheld and paid ratably. The period is now for the entire year – from January 1, 2021, through December 31, 2021. Penalties, interest and additions to tax will now start to apply on January 1, 2022, for any unpaid balances. Notice 2021-11 makes changes to Notice 2020-65 to reflect this extended period.

This notice extends the temporary relief from certain requirements under § 42 for qualified low-income housing projects and under §§ 142(d) and 147(d) for qualified residential rental projects that was provided in Notice 2020-53, 2020-30 I.R.B. 151 in response to the continuing Coronavirus Disease 2019 (COVID-19) pandemic. This notice also provides relief for additional § 42 requirements not previously addressed in Notice 2020-53.

This Revenue Procedure provides methods for calculating W-2 wages for purposes of section 199A(g)(1)(B)(i), which, for certain specified agricultural or horticultural cooperatives provides a limitation based on W-2 wages to the amount of a deduction under section 199A(g)(1)(A) of 9 percent of the lesser of qualified production activities income or taxable income of a Specified Cooperative. This Revenue Procedure also modifies Revenue Procedure 2019-11, 2019-09 I.R.B. 742, to amend the method for determining W-2 wages for taxpayers with short taxable years.

26 CFR 1.199A-11: Wage limitation for the section 199A(g) deduction

Federal rates; adjusted federal rates; adjusted federal long-term rate, and the long-term tax exempt rate. For purposes of sections 382, 1274, 1288, 7872 and other sections of the Code, tables set forth the rates for February 2021.

(Also Sections 42, 280G, 382, 467, 468, 482, 483, 1288, 7520, 7872.)

The final regulations provide guidance on section 162(f) of the Internal Revenue Code (Code), as amended in 2017, concerning the deduction of certain fines, penalties, and other amounts. The final regulations also provide guidance relating to the information reporting requirements under new section 6050X of the Code with respect to those fines, penalties, and other amounts.

26 CFR 1.162-21; 26 CFR 1.6050X-1

These final regulations provide guidance to cooperatives to which sections 1381 through 1388 of the Internal Revenue Code (Code) apply (Cooperatives) and their patrons regarding the deduction provided by section 199A(a) of the Code for qualified business income (QBI), as well as guidance to specified agricultural or horticultural cooperatives (Specified Cooperatives) and their patrons regarding the deduction provided by section 199A(g) of the Code for eligible domestic production activities undertaken by Specified Cooperatives. These final regulations also provide guidance on section 199A(b)(7), the statutory rule requiring patrons of Specified Cooperatives to reduce their QBI deduction under section 199A(a). In addition, these final regulations include a definition of patronage and nonpatronage sourced items under section 1388 of the Code, and revise existing regulations under section 1382 of the Code to reference this definition. Finally, these final regulations remove the final and temporary regulations under former section 199. These final regulations affect Cooperatives as well as patrons that are individuals, partnerships, S corporations, trusts, and estates engaged in domestic trades or businesses.

26 CFR 1.199A-7-12: Section 199A Rules for Cooperatives and their Patrons

This document contains final regulations relating to the excise taxes imposed on certain amounts paid for transportation of persons and property by air. Specifically, the final regulations relate to the exemption for amounts paid for certain aircraft management services. The final regulations also amend, revise, redesignate, and remove provisions of existing regulations that are out-of-date or obsolete and generally update the existing regulations to incorporate statutory changes, case law, and other published guidance. The final regulations affect persons that provide air transportation of persons and property, and persons that pay for those services.

26 CFR 49.4261-10: Aircraft management services

Notice 2021-8 provides a waiver of an amount of the addition to tax under § 6654 for underpayment of estimated income tax by individual taxpayers, where the underpayment is attributable to the amendment to § 461(l)(1)(B) made by the CARES Act. The relief, which is not automatic, applies only for the purpose of calculating installments of estimated income tax of an affected individual taxpayer that were due on or before July 15, 2020, with respect to the taxable year that began during 2019.

This notice provides partnerships with relief from certain penalties due to the inclusion of incorrect information in reporting their partners’ beginning capital account balances on the 2020 Schedules K-1 (Form 1065) and the 2020 Schedules K-1 (Form 8865) as outlined in the 2020 Instructions for Form 1065, U.S. Return of Partnership Income. This notice also provides relief from accuracy-related penalties for any taxable year for the portion of an imputed underpayment attributable to the inclusion of incorrect information in a partner’s beginning capital account balance reported by a partnership for the 2020 taxable year.