Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of November 7, 2022 – November 11, 2022.
November 7, 2022: The IRS released Internal Revenue Bulletin 2022-45, which highlights the following:
- Proposed Regulations 100719-21: This guidance proposes increases for both the enrollment and renewal of enrollment user fees for enrolled actuaries from $250 to $680.
- Revenue Procedure 2022-38: This revenue procedure establishes the annual inflation adjustments for more than 60 tax provisions.
- Notice 2022-54: This notice provides guidance on the corporate bond monthly yield curve and corresponding spot segment rates and the 24-month average segment rates for October 2022. The notice also provides guidance as to interest rates on 30-year Treasury securities and 30-year Treasury weighted average rates.
- Notice 2022-55: This notice provides the dollar limitations on benefits and contributions under qualified retirement plans.
- Notice 2022-53: This notice announces that the US Department of the Treasury (Treasury) and the IRS intend to issue final regulations related to required minimum distributions under Section 401(a)(9) that will apply no earlier than the 2023 distribution calendar year. The notice also provides guidance related to certain Section 401(a)(9) provisions that apply for 2021 and 2022 and the related excise tax under Section 4974.
- Proposed Regulation 121509-00: This document withdraws proposed regulations related to exclusion from gross income of previously taxed earnings and profits under Section 959, as well as related basis adjustments under Section 961.
- Revenue Ruling 2022-20: This guidance provides the various prescribed rates for federal income tax purposes for November 2022.
- Treasury Decision 9968: These final regulations amend the regulations concerning eligibility for the premium tax credit to provide that affordability of employer-sponsored minimum essential coverage for family members of an employee is determined based on the employee’s share of the cost of covering the employee and those family members—not the cost of covering only the employee—under Section 36B.
November 7, 2022: The IRS and the Treasury announced that they will now allow Section 403(b) retirement plans to use the same individually designed retirement plan determination letter program currently used by qualified retirement plans. Revenue Procedure 2022-40 outlines the additions and changes.
November 7, 2022: The IRS issued COVID Tax Tip 2022-170, which cautions employers to be aware of third parties advising them to claim the employee retention credit when they may not qualify.
November 7, 2022: The IRS requested comments on the reporting requirements for settlement funds, which are funds established or approved by a governmental authority to resolve or satisfy certain liabilities (such as those involving tort or breach of contract). Comments should be received by January 6, 2023, to be assured of consideration.
November 7, 2022: The IRS requested additional time to receive comments related to excise taxes on excess inclusions of real estate mortgage investment conduit residual interests. Comments should be received by January 6, 2023, to be assured of consideration.
November 8, 2022: The IRS released Tax Tip 2022-171, reminding seniors that they can reduce their tax bill by donating to a qualified charity through their individual retirement accounts.
November 8, 2022: The IRS released Notice 2022-41, which expands the application of the permitted change-in-status rules for healthcare coverage under Section 125 cafeteria plans. Specifically, this notice addresses when a plan participant may want to revoke the employee’s election under the cafeteria plan for family coverage under a group health plan (other than a flexible spending arrangement) to allow one or more family members to enroll in a qualified health plan through a health insurance exchange in the individual market.
November 8, 2022: The IRS requested comments on the collection tools, reporting and record-keeping requirements related to Revenue Procedure 2001-29 when taxpayers are seeking an advanced ruling on the validity of a leveraged lease transaction. Comments should be received by January 9, 2023, to be assured of consideration.
November 8, 2022: The IRS requested comments related to Disclosure Statement (Form 8275) and Regulation Disclosure Statement (Form 8275-R). The IRS imposes accuracy-related penalties for substantial understatement of tax liability or negligence, as well as similar penalties on return preparers. Regulations allow for the reduction of these penalties if the taxpayer makes adequate disclosure of the tax treatment on Form 8275 or, if the position is contrary to the regulations, on Form 8275-R. Comments should be received by January 9, 2023, to be assured of consideration.
November 9, 2022: The IRS released Tax Tip 2022-172, reminding members of the military, veterans and their families that the IRS has many tax resources specifically for them.
November 9, 2022: The IRS announced that it plans to hire more than 700 new employees to help taxpayers at Taxpayer Assistance Centers (TAC) around the country. The openings are for Individual Taxpayer Advisory Specialists, who will provide assistance in IRS TAC offices, and for Initial Assistance Representatives, who will be responsible for greeting and determining the needs of taxpayers visiting TAC offices.
November 10, 2022: The IRS released a statement, IRS Commissioner Charles Rettig’s final message. Commissioner Rettig’s four-year term expired on November 12, 2022. Last week, we reported that US President Joe Biden announced his intent to nominate Danny Werferl to serve as the next IRS Commissioner, which you can read more about here.
November 10, 2022: The IRS released Announcement 2022-23, which notifies taxpayers of new credit amounts for calendar year 2022 for the renewable electricity production credit under Section 45 in the event a qualified facility is placed in service after December 31, 2021.
November 10, 2022: The IRS released Tax Tip 2022-173, reminding taxpayers of how the IRS communicates with them.
November 11, 2022: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).
- The IRS’s Taxpayer Advocacy Panel will hold the Taxpayer Advocacy Panel Joint Committee meeting on November 17, 2022.
- The IRS Advisory Council will hold an in-person public meeting on November 16, 2022. To register, members of the public may contact Stephanie Burch at (202)317-4219 or send an email to PublicLiaison@irs.gov.
Special thanks to Sarah Raben in our Chicago office for this week’s roundup.