Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of September 6, 2022 – September 9, 2022.
September 6, 2022: The IRS released Internal Revenue Bulletin 2022-36, which highlights the following:
- Notice 2022-36: This guidance provides relief from certain failure to file penalties with respect to the 2019 and 2020 tax years. The IRS is refunding $1.2 billion in penalties for 1.6 million taxpayers, which 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.
- Notice 2022-35: This notice provides 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.
- Revenue Ruling 2022-17: This ruling provides the federal rates, adjusted federal rates, adjusted federal long-term rate and the long-term tax-exempt rate for September 2022.
September 6, 2022: The IRS reminded taxpayers who pay estimated taxes that the deadline to submit their third quarter payments is September 15, 2022. Taxpayers not subject to withholding may need to make quarterly estimated payments, including those who are self-employed, investors, or retirees or those with other income not subject to withholding, such as interest, dividends, capital gains, alimony, cryptocurrency and rental income.
September 6, 2022: The IRS released Tax Tip 2022-136, explaining common tricks and scams that lead to identity theft. The IRS also suggested a few steps to help protect data, which include:
- Using multifactor authentication to protect client accounts
- Allowing anti-virus software to update automatically
- Using drive encryption and regularly backing up files to help stop theft and ransomware attacks.
September 7, 2022: The IRS is seeking comments on regulations that provide guidance on proving delivery for documents with a filing deadline, specifically in cases where there is no direct proof. The IRS is inviting comments on (1) whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; (2) the accuracy of the agency’s estimate of the burden of the collection of information; (3) ways to enhance the quality, utility and clarity of the information collected; (4) ways to minimize the burden of the collection of information on respondents; and (5) estimates of capital or start-up costs and costs of operation, maintenance and purchase of services to provide information. The comment window closes on November 7, 2022.
September 7, 2022: The IRS released Tax Tip 2022-137, highlighting the work opportunity tax credit for businesses looking to hire help. The credit encourages employers to hire workers certified as members of any of the 10 groups identified as facing barriers to employment.
September 8, 2022: The IRS is seeking comments on rules that deny deductions for excess golden parachute payments. A parachute payment is payment compensation to a disqualified individual that is contingent on a change in ownership or control of a corporation. Written comments should be received by November 7, 2022.
September 8, 2022: The IRS released Tax Tip 2022-138, explaining what is deductible and what is not for homeowners after they purchase a home.
September 9, 2022: The IRS released its latest executive column in A Closer Look. The article, “Streamlining the 1023 – A Success Story,” features Sunita Lough, commissioner of the Tax Exempt/Government Entities Division, discussing the Form 1023-EZ, which was launched in 2014 to help small charitable organizations seeking federal tax-exempt status.
September 9, 2022: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).
- The IRS is offering a webinar, “World of Offer in Compromise: Follow-Up Session” on September 14 at 1:00 pm (CDT) to address questions received during its May 26, 2022, webinar that discussed the definition of an Offer in Compromise and described the process and lifecycle.
- The IRS Advisory Council plans to meet on September 14 to discuss possible topics for future council reports. The Advisory Council delivers an annual report to the IRS Commissioner and suggests improvements to operations and taxpayer services.
- The IRS is offering a free webinar, “Digital Day – IRS’ Online Services” on September 15 at 1:00 pm (CDT) that will provide an overview of Tax Pro Account and Online Account and include a live Q&A.
- The “Quarterly Update: Program & Policy Updates from SBA, DCEO, IRS, SBAC” will be held on September 15, 2022, and December 15, 2022. Representatives from the Small Business Administration (SBA), Illinois Department of Commerce & Economic Opportunity (DCEO), the IRS and the Small Business Advocacy Council (SBAC) will provide updates on the agency programs, policies and legislation affecting small businesses.
- A webinar to discuss Innocent Spouse Relief is scheduled for September 20 at 12:30 pm (CDT). The program will discuss the innocent spouse relief provision, allocation of deficiency (also known as separation of liability) and equitable relief.
- The IRS Office of Chief Counsel is hosting a webinar, “Understanding Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding” on September 20 at 1:00 pm (CDT). The webinar will provide an overview of Forms 1042-S and 1042-T and discuss common errors made on Form 1042-S.
- The IRS will hold a closed meeting of the Art Advisory panel on September 22, 2022. The meeting agenda includes review and evaluation of the acceptability of fair market value appraisals involved in federal income, estate and gift tax returns. The meeting will not be open to the public.
- 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
Special thanks to Sarah Raben in our Chicago office for this week’s roundup.