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IRS releases New Instruction Updates

Comply would like to call your attention to a few updates that the IRS published last week!

New Instructions for Form 2848, DRAFT 2021 Form 1099-INT, and DRAFT Instructions for Forms 8804, 8805, 8813, and 8804-W.

  • Instructions for Form 2848, Power of Attorney and Declaration of Representative (Rev. September 2021) are now live. The key updates here relate to electronic signatures. First, acceptable methods now include a signature created by a third party software. Further, to authenticate a business entity taxpayer’s identity for remote transactions, the third party must confirm through documentation that the individual who is signing the form has authority to sign on behalf of the taxpayer. Finally, with respect to Forms 2848 signed electronically in a remote transaction, the third party must authenticate the signing individual’s entity and, in the case of an entity taxpayer, must authenticate the relationship between the entity taxpayer and the individual signing on behalf of the taxpayer. That is, unless the third party has personal knowledge allowing the third party to authenticate this information. Check out the final Instructions here: https://www.irs.gov/pub/irs-pdf/i2848.pdf
  • Updates from the DRAFT to final version are mostly editorial, but also include:
    • Request for a private letter ruling or technical advice refer to Rev. Proc. 2021-1, but now include the latest annual update available on IRS.gov.
    • Added references to letter designations in Part II of the form instead of naming them (e.g., reference to “k” designation in Part II instead of ‘Qualifying Student’ designation).

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New Instruction Updates From The IRS

This document contains general information only and is not a substitute for accounting, tax, or any other professional advice or services. The information provided is considered accurate at the time of publishing and will not be updated with new regulation requirements.

Form 1099-K: IRS Updates to FAQ’s

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