Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of September 26, 2022 – September 30, 2022.
September 26, 2022: The IRS released Internal Revenue Bulletin 2022-39, which highlights the following:
- REG-125693-19: These proposed regulations clarify issues that do not meet the definition of a federal tax controversy, exceptions to consideration by the IRS Office of Appeals (IRS Appeals), and procedural and timing requirements that must be met before IRS Appeals will consider an issue. The proposed regulations also provide the requirements a taxpayer must meet to receive the notice described in Internal Revenue Code (Code) Section 7803(e)(5) when the taxpayer requests consideration by IRS Appeals and the request is denied. More coverage of this issue can be found here.
- Notice 2022-38: This notice publishes the inflation adjustment factor for the carbon oxide sequestration credit under § 45Q for calendar year 2022. This notice also informs taxpayers that 2022 will be the final calendar year for which they may claim a credit under Code Section 45Q(a)(1) and (2) for qualified carbon oxide that is captured by carbon capture equipment originally placed in service at a qualified facility before the date of enactment of the Bipartisan Budget Act of 2018.
September 26, 2022: The IRS issued Notice 2022-44, providing annual notice of the 2022 to 2023 special per diem rates for taxpayers to use when substantiating the amount of business expenses incurred while traveling away from home. Specifically, the notice addresses (1) the special transportation industry meal and incidental expenses rates, (2) the rate for the incidental expenses only deduction and (3) the rates and list of high-cost localities for purposes of the high-low substantiation method.
September 26, 2022: The IRS released Notice 2022-45, extending the deadline for amending an eligible retirement plan to reflect the Coronavirus Aid, Relief, and Economic Security Act and the Taxpayer Certainty and Disaster Tax Relief Act of 2020. Both allow for special tax treatment with respect to a coronavirus-related distribution or a qualified disaster distribution.
September 26, 2022: The IRS released Tax Tip 2022-147, highlighting five resources people can find on IRS.gov. These resources are:
- Taxpayer Bill of Rights
- How to apply for 501(c)3 status
- IRS tax volunteer opportunities
- Latest tax scams
- Interactive Tax Assistant
September 27, 2022: The IRS released Tax Tip 2022-148, providing the steps for becoming an IRS-authorized e-file provider.
September 27, 2022: The IRS announced that victims of storms and flooding in Alaska, which started on September 15, now have until February 15, 2023, to file various federal individual and business tax returns and make tax payments. The relief is available to anyone in an area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual or public assistance. The current list of eligible localities is available here.
September 28, 2022: The IRS announced that it has updated its frequently asked questions on Coronavirus State and Local Fiscal Recovery Funds. These funds aid eligible state and local governments in meeting pandemic response needs. The update adds Questions 15 through 17.
September 28, 2022: The IRS reminded farmers and ranchers in regions stricken by drought that they may have additional time to replace livestock and defer tax on any gains from the forced sales. Notice 2022-43 lists the applicable regions, counties and jurisdictions that are eligible for federal assistance. The relief extends to 44 states, two US territories and two independent nations. It generally applies to capital gains realized on sales of livestock held for draft, dairy or breeding purposes.
September 28, 2022: The IRS warned of a significant increase in texting scams aimed at stealing personal and financial information. The IRS has identified thousands of fraudulent domains tied to multiple MMS/SMS/text scams targeting taxpayers, which has increased exponentially in recent months.
September 28, 2022: The IRS issued COVID Tax Tip 2022-149, reminding individuals and businesses affected by the COVID-19 pandemic that they may qualify for late-filing penalty relief if they file their 2019 and 2020 tax returns by September 30, 2022.
September 29, 2022: The IRS announced that Hurricane Ian victims in Florida now have until February 15, 2023, to file various federal individual and business tax returns and make tax payments. The relief is available to anyone in an area designated by FEMA as qualifying for individual or public assistance. The current list of eligible localities is available here.
September 29, 2022: The IRS released final regulations increasing the renewal user fee for enrolled retirement plan agents from $67 to $140. The regulations also increase both the enrollment and renewal of enrollment user fees for enrolled agents from $67 to $140.
September 29, 2022: The IRS released Tax Tip 2022-150, directing people to who they should call if their business suffers data theft or loss.
September 29, 2022: The IRS issued a reminder that all online providers must complete the annual self-certification questionnaire to ensure compliance with Publication 1345 IRS e-file security, privacy and business standards beginning October 1, 2022.
September 29, 2022: The IRS released its latest executive column in A Closer Look. The article, “Using Voice and Chat Bots to Improve the Collection Taxpayer Experience,” features Darren Guillot, Small Business/Self-Employed Deputy Commissioner, and discusses the use of voice and chat bots to improve the collection taxpayer experience.
September 30, 2022: The IRS announced that it will not impose a penalty when dyed diesel fuel with a sulfur content that does not exceed 15 parts-per-million is sold for use or used by emergency vehicles on the highway in Florida. This response comes from disruptions caused by Hurricane Ian. The relief began on September 28, 2022, and will last through October 19, 2022.
September 30, 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.