Document summaries for the week of Feb. 1, 2021


IRS notifying certain lenders of Forms 1099-MISC requirements

The IRS is notifying lenders who have filed or furnished Forms 1099-MISC, Miscellaneous Information, reporting certain payments on loans subsidized by the Administrator of the U.S. Small Business Administration as income of the borrower, that the lenders must file and furnish corrected Forms 1099-MISC that exclude these subsidized loan payments. The Consolidated Appropriations Act, 2021, P.L. 116-260, provides that these payments are not includible in the borrowers’ gross income, and Notice 2021-6 waived Form 1099-MISC reporting requirements for these payments. Announcement 2021-2 (2/1/21) (see related news story).

IRS provides safe harbor for educators deducting PPE and other COVID-19–related supply expenses

The IRS issued a revenue procedure that provides a safe harbor for eligible educators, within the meaning of Sec. 62(d)(1), to treat unreimbursed expenses paid or incurred after March 12, 2020, for personal protective equipment, disinfectant, and other COVID-19–related supplies used for the prevention of the spread of COVID-19 in the classroom, as deductible expenses. This deduction was enacted in Section 275 of the COVID-Related Tax Relief Act of 2020, which was part of the Consolidated Appropriations Act, 2021, P.L. 116-260. Rev. Proc. 2021-15 (2/4/21) (see related news story).



IRS can request account holder information from certain foreign financial institutions

In a heavily redacted memorandum, the Office of Chief Counsel advised that the IRS may request from participating foreign financial institutions (FFIs) information relating to certain U.S. citizens or residents. According to the Chief Counsel’s Office, the request is permitted under the FFI agreement without regard to whether the United States has a tax exchange agreement in effect with the country of residence of any of the participating FFIs. PMTA 2021-01 (2/5/21).



Guidance on low-income taxpayer clinic matching grants

The Office of Chief Counsel was asked whether an academic institution is eligible for multiple low-income taxpayer clinic matching grants of $100,000 under Sec. 7526. In a memorandum dated July 1, 2009, but posted to the Chief Counsel’s website in 2021, the Chief Counsel’s Office advised that an academic institution that operates more than one clinical program listed in Sec. 7526(b)(2)(A) and otherwise meets the requirements of Sec. 7526 is eligible for multiple matching grants of $100,000. PMTA 2021-02 (2/5/21).

Modification to Chief Counsel signature block highlighted

The Office of Chief Counsel advised all Chief Counsel employees of a necessary modification to the Chief Counsel signature block, pursuant to Sec. 7452, on all documents signed and filed with the U.S. Tax Court, all correspondence sent to the U.S. Department of Justice, and all other documents prepared on behalf of the Chief Counsel, effective after noon on Jan. 20, 2021. The guidance stems from the resignation of former Chief Counsel Michael J. Desmond, effective as of noon on Jan. 20, 2021, followed by the installation of William M. Paul as the acting chief counsel. CC-2021-003 (2/5/21).

Chief Counsel addresses change in instructions for addressing correspondence to Tax Division

The Office of Chief Counsel advised that, as of noon on Jan. 20, 2021, Deputy Assistant Attorney General David A. Hubbert is the supervisory career official in charge of the Department of Justice’s Tax Division. According to the Chief Counsel’s Office, his title will remain Deputy Assistant Attorney General and he will continue in his role as deputy assistant attorney general for Civil Matters and, until further notice, will also serve as acting deputy assistant attorney general for Appellate and Review and as acting deputy assistant attorney general for Policy and Planning. CC-2021-004 (2/5/21).

Tax Insider Articles


Business meal deductions after the TCJA

This article discusses the history of the deduction of business meal expenses and the new rules under the TCJA and the regulations and provides a framework for documenting and substantiating the deduction.


Quirks spurred by COVID-19 tax relief

This article discusses some procedural and administrative quirks that have emerged with the new tax legislative, regulatory, and procedural guidance related to COVID-19.