Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of September 19, 2022 – September 23, 2022.
September 19, 2022: The IRS updated information on the Work Opportunity Tax Credit (WOTC), including information on the pre-screening and certification process. The WOTC is available to employers who hire designated categories of workers facing significant barriers to employment. Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit, must be completed by the job applicant and the employer on or before the day of the job offer to satisfy the pre-screen requirement.
September 19, 2022: The IRS released Tax Tip 2022-143, reminding people that every taxpayer has the right to retain representation when they work with the IRS, including the right to seek assistance from the Low Income Taxpayer Clinic.
September 20, 2022: The IRS announced that it has selected eight new members for the Electronic Tax Administration Advisory Committee. The committee’s main goal is to promote paperless filing of tax and information returns. The following individuals have been appointed for three-year terms on the committee, starting in September:
- Austin Emeagwai, CPA, Ph.D.; Collierville, Tennessee
- Jerry Gaddis, EA, MBA; Winter Haven, Florida
- Nikia Gainey; Orlando, Florida
- Robert Gettemy;Marion, Iowa
- Argi O’Leary; Voorheesville, New York
- Hallie Parchman; Austin, Texas
- RaeAnn Pilarski; Tucson, Arizona
- Keith Richardson; Philadelphia, Pennsylvania
September 20, 2022: The IRS announced that Hurricane Fiona victims in Puerto Rico now have until February 15, 2023, to file various federal individual and business tax returns and make tax payments. The relief is available in all 78 Puerto Rican municipalities, which are designated by the Federal Emergency Management Agency.
September 20, 2022: The IRS released Notice 2022-40, which provides updates on the corporate bond monthly yield curve and corresponding spot segment rates and the 24-month average segment rates for September 2022. The notice also provides guidance as to interest rates on 30-year Treasury securities and the 30-year Treasury weighted average rates.
September 20, 2022: The IRS released Tax Tip 2022-144, recommending that people use caution when choosing a tax preparer since tax preparers have different levels of skill, education and expertise.
September 21, 2022: The IRS released Tax Tip 2022-145, describing the different types of authorizations for third-party representatives. The options include:
- Power of Attorney: This allows someone to represent a taxpayer in tax matters before the IRS. The representative must be an individual authorized to practice before the IRS.
- Tax Information Authorization: This allows a taxpayer to appoint anyone to review or receive a taxpayer’s confidential tax information for a specified type of tax for a specified period.
- Third-Party Designee: This designates a person on a taxpayer’s tax form to discuss that specific tax return and year with the IRS.
- Oral Disclosure: This authorizes the IRS to disclose a taxpayer’s tax information to a person the taxpayer brings into a phone call or meeting with the IRS about a specific tax issue.
September 21, 2022: The IRS advised that improperly forgiven Paycheck Protection Program loans are taxable. The guidance issued confirms that when a taxpayer’s loan is forgiven based upon omissions and misrepresentations, the income from forgiveness is not eligible to be excluded from income.
September 22, 2022: The IRS reminded taxpayers to file their 2019 and 2020 returns by September 30, 2022, in order to be eligible for COVID-19 penalty relief. The IRS is looking to provide relief to individuals and businesses impacted by the pandemic and allow itself to focus its resources on processing backlogged tax returns and taxpayer correspondence.
September 22, 2022: The IRS released Tax Tip 2022-146, highlighting the agency’s Alternative Media Center, which offers a variety of resources available in multiple formats for visually impaired taxpayers.
September 22, 2022: The IRS released Revenue Procedure 2022-35, adding Turkey to the list of jurisdictions that the US Department of the Treasury (Treasury) and the IRS have a relevant information exchange agreement with. The agreement relates to information collected under Treas. Reg. §§ 1.6049-8 and 1.6049-4(b)(5), with respect to certain deposit interest paid to residents of the jurisdictions. The revenue procedure updates and supersedes Revenue Procedure 2021-32.
September 23, 2022: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).
- The following Taxpayer Advocacy Panel Committees are scheduled to meet in October:
- October 11, 2022: Notices and Correspondence Project Committee
- October 11, 2022: Tax Forms and Publications Project Committee
- October 11, 2022: Toll-Free Phone Lines Project Committee
- October 12, 2022: Special Projects Committee
- October 12, 2022: Taxpayer Communications Project Committee
- October 13, 2022: Taxpayer Assistance Center Improvements Project Committee
- The 28th Annual Tax Practitioner and IRS Fall Seminar is scheduled for October 26, 2022, at 10:00 am (CDT). Topics include IRS Operations, Federal Ethics, Tax Pro Account, Offer In Compromise and Estate and Gift Tax.
Special thanks to Sarah Raben in our Chicago office for this week’s roundup.