The bulletin, dated May 3, includes guidance from the IRS that extends relief from penalties under Internal Revenue Code Section 6656
for employers that reduce their employment tax deposits with the IRS to account for tax credits under coronavirus relief law. Paid sick and family leave tax credits and the employee retention tax credit were originally authorized by the Families First Coronavirus Response Act and Coronavirus Aid, Relief and Economic Security Act and extended by the American Rescue Plan Act .The bulletin also highlighted proposed rules on opportunity zones under the 2017 Tax Cuts and Jobs Act
. The IRS is considering the way transfers capital gains are treated under IRC Sections 1445 , 1446(a) and 1446(f) , so that eligible foreign investors could have withholdings deferred under Section 1400Z-2 , according to the rules.An IRS request for recommendations for its annual priority guidance plan, applicable federal rates for May and pension plan rates for April were also included in the bulletin.
--Additional reporting by Joseph Boris. Editing by Vincent Sherry.
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