IRS

The IRS has issued a draft 2021 Tax Year Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs). Several noteworthy items have been outlined in the “What’s New” section of the publication.

The IRS has issued a news release announcing the postponement of certain tax-related deadlines for victims of wildfires and straight-line winds in Colorado. The tax relief postpones various tax filing deadlines that began December 30, 2021. Affected individuals and households who reside or have a business in Boulder county, as well as taxpayers with records located in the covered area that are needed to meet covered deadlines, qualify for relief.

The IRS has released the 2022 Form W-4P, Withholding Certificate for Periodic Pension or Annuity Payments and 2022 Form W-4R, Withholding Certificate for Nonperiodic Payments and Eligible Rollover Distributions.

December 30, 2021 – The Department of Labor’s Employee Benefits Security Administration (EBSA), the IRS, and the Pension Benefit Guaranty Corporation (PBGC) jointly released the 2021 Form 5500, Annual Return/Report of Employee Benefit Plan, 2021 Form 5500-SF, Annual Return/Report of Small Employee Benefit Plan, and their respective instructions. The IRS likewise released the 2021 Form 5500-EZ, Annual Return of a One-Participant Retirement Plan or Foreign Plan, and instructions.

December 29, 2021 – The IRS has issued a news release announcing the postponement of certain tax-related deadlines for victims of severe storms and tornados in Arkansas. The tax relief postpones various tax filing deadlines that began December 10, 2021. Affected individuals and households who reside or have a business in Craighead, Jackson, Mississippi, Poinsett, and Woodruff counties, as well as taxpayers with records located in the covered area that are needed to meet covered deadlines, qualify for relief.

December 28, 2021 – The IRS has issued a news release announcing the postponement of certain tax-related deadlines for victims of severe storms, straight-line winds, and tornados in Illinois. The tax relief postpones various tax filing deadlines that began December 10, 2021. Affected individuals and households who reside or have a business in Bond, Cass, Coles, Effingham, Fayette, Jersey, Macoupin, Madison, Menard, Montgomery, Morgan, Moultrie, Pike, and Shelby counties, as well as taxpayers with records located in the covered area that are needed to meet covered deadlines, qualify for relief.

December 28, 2021 – The IRS has issued a news release announcing the postponement of certain tax-related deadlines for victims of severe storms and flooding in Alabama. The tax relief postpones various tax filing deadlines that began October 6, 2021. Affected individuals and households who reside or have a business in Jefferson and Shelby counties, as well as taxpayers with records located in the covered area that are needed to meet covered deadlines, qualify for relief.

The IRS has issued Notice 2022-2, which contains updated guidance on factors used in certain defined benefit (DB) pension plan minimum funding and present value calculations. Updates include the corporate bond monthly yield curve, the corresponding spot segment rates used under Internal Revenue Code Section (IRC Sec.) 417(e)(3), and the 24-month average segment rates under IRC Sec. 430(h)(2). IRC Sec. 417 contains definitions and special rules for minimum survivor annuity requirements in DB plans. IRC Sec. 430 addresses minimum funding standards for single-employer DB plans.

The IRS has issued a news release announcing the postponement of certain tax-related deadlines for Kentucky victims of severe storms, flooding, and tornadoes. The tax relief postpones various tax filing and payment deadlines that occurred starting December 10. The areas included in the relief are Caldwell, Fulton, Graves, Hopkins, Marshall, Muhlenberg, Taylor, and Warren counties.

On November 19, 2021, the U.S. House of Representatives passed H.R. 5376, the Build Back Better Act ("BBB Act" or "the Act"). Following quickly on the heels of the Infrastructure Investment and Jobs Act, the BBB Act contains several retirement and benefits provisions that may affect financial organizations, service providers, and consumers. This bill has gone through numerous revisions as it made its journey to the House floor for a vote. It will now go to the Senate, which will likely make further revisions. So the Act’s final version—if passed by both the House and Senate—may be different from the current version.