Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of November 21, 2022 – November 25, 2022.
November 21, 2022: The IRS released Internal Revenue Bulletin 2022-47, which highlights the following:
- Revenue Procedure 2022-40: This revenue procedure provides that a plan sponsor that maintains a Section 403(b) individually designed plan will be permitted to submit a determination letter application for an initial plan determination, for a determination upon plan termination and in certain other circumstances.
- Announcement 2022-22: This announcement contains a correction to Notice 2022-41, which contained a typographical error in the first sentence of the “GUIDANCE” section. The sentence included a reference to a “non-calendar year” cafeteria plan but should instead refer to any cafeteria plan.
- Revenue Ruling 2022-21: This revenue ruling provides that the base period T-bill rate for the period that ended September 30, 2022, is 1.71%.
- Notice 2022-56: This notice requests comments related to the qualified commercial clean vehicles provisions and the alternative fuel vehicle refueling property.
- Notice 2022-57: This notice requests comments related to the tax credit for carbon oxide sequestration.
- Notice 2022-58: This notice requests comments related to the tax credit for the production of clean hydrogen and the clean fuel production credit.
November 21, 2022: The IRS released Tax Tip 2022-178, reminding individuals that the amount they can contribute to their Section 401(k) plans in 2023 will increase to $22,500. All of the cost‑of‑living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2023 are included in Notice 2022-55.
November 21, 2022: The IRS released Notice 2022-62, which contains the 2022 Required Retirement Plan Amendments List. This list establishes the end of the remedial amendment period and the plan amendment deadline for changes in qualification requirements and Section 403(b) requirements set forth on the list for qualified individually designed plans and Section 403(b) individually designed plans, respectively.
November 22, 2022: The IRS released Tax Tip 2022-179, providing guidelines to help keep online personal information safe. The tips include the following:
- Always protect personal data
- Only shop at reputable retailers
- Use security software
- Choose strong passwords and two-factor authentication
- Know the risk of public Wi-Fi
- Learn to recognize and avoid scams
- Be aware of compromised accounts.
November 22, 2022: The IRS encouraged taxpayers to get ready to file their 2022 federal income tax returns by gathering records, renewing expired tax ID numbers and bookmarking online tools at IRS.gov.
November 22, 2022: The IRS issued proposed regulations related to the foreign tax credit, which provide guidance with respect to the reattribution asset rule for purposes of allocating and apportioning foreign taxes, the cost recovery requirement and the attribution rule for withholding tax on royalty payments. Written comments should be received by January 23, 2023, for consideration.
November 23, 2022: The IRS requested comments on Form 2063, US Departing Alien Income Tax Statement. Form 2063 is used by a departing resident alien to certify that they have satisfied all US income tax obligations. Written comments should be received by January 23, 2023, for consideration.
- Have security and data theft plans
- Use multifactor authentication to protect tax accounts
- Use virtual private networks to protect remote sites
- Avoid phishing scams and attempts to steal electronic filing identification numbers.
November 25, 2022: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).
- The IRS Security Summit will hold a free webinar, Deeper Dive into Emerging Cyber Crimes and Crypto Tax Compliance, on November 29, 2022. Registration information can be found here.
Special thanks to Sarah Raben in our Chicago office for this week’s roundup.