Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of August 22, 2022 – August 26, 2022.
August 22, 2022: The IRS released Internal Revenue Bulletin 2022-34, which highlights the following:
- Notice 2022-33. This guidance extends the deadlines for amending a retirement plan or individual retirement arrangement to reflect certain provisions of Division O of the Further Consolidated Appropriations Act, known as the Setting Every Community Up for Retirement Enhancement Act of 2019, and section 104 of Division M of the Further Consolidated Appropriations Act, 2020, known as the Bipartisan American Miners Act of 2019.
- Notice 2022-34. This guidance delays the effective date of Foreign Currency Guidance again. The Department of Treasury and IRS intend to amend the regulations under section 987 to defer the applicability date of the 2016 final regulations and related 2019 final regulations by one additional year. The amendments would apply to the taxable year beginning on January 1, 2024.
August 22, 2022: The IRS issued Notice 2022-35 providing updates on the corporate bond monthly yield curve, the corresponding segment rates, the 24-month average corporate bond segment rates, the 25-year average segment rates, and the 30-year Treasury securities interest rates.
August 23, 2022: The IRS issued Notice 2022-37 announcing that Treasury and the IRS intend to amend the section 871(m) regulations. This will delay the effective/applicability date of certain rules in those final regulations and extend the phase-in period provided in Notice 2020-2.
August 23, 2022: The IRS released the late-May filing season statistics for all Forms 1040 processed by the IRS for tax year 2021.
August 24, 2022: The IRS announced it is refunding $1.2 billion in penalties for 1.6 million taxpayers related to certain 2019 and 2020 tax returns filed late. Notice 2022-36 provides penalty relief from certain failure to file penalties and certain international information return penalties. The relevant penalties will be waived, abated, refunded or credited. The relief is designed to help struggling taxpayers affected by the COVID-19 pandemic, and to allow the IRS to focus resources on processing backlogged tax returns and taxpayer correspondence. We provided a more detailed analysis of the Notice 2022-36 here.
August 25, 2022: The IRS released Covid Tax Tip 2022-131 reminding taxpayers that the deadline to file tax returns for those that requested an extension is October 17, 2022.
August 26, 2022: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).
Special thanks to Sarah Raben in our Chicago office for this week’s roundup.