Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of November 28, 2022 – December 2, 2022.
November 28, 2022: The IRS released Internal Revenue Bulletin 2022-48, which highlights the following:
- Notice 2022-59: This notice provides the adjusted applicable dollar amount to be multiplied by the average number of covered lives for purposes of calculating the fee imposed by Sections 4375 and 4376 for policy years and plan years that end on or after October 1, 2022, and before October 1, 2023. The amount is $3.00, up from $2.79.
- Announcement 2022-23: This announcement notifies taxpayers of new credit amounts for calendar year 2022 for the renewable electricity production credit under Section 45, in the case of any qualified facility placed in service after December 31, 2021.
November 28, 2022: The IRS and Security Summit partners announced the kick-off date for the 7th National Tax Security Awareness Week. The group also urged people to be aware of holiday scams and to protect their personal information.
November 28, 2022: The IRS released Tax Tip 2022-181, reminding taxpayers to be aware of gift card scammers during the holidays. One of the common scams used this time of year is con artists asking taxpayers to pay fake tax bills with gift cards. Scammers also sometimes use a compromised email account to request gift card purchases for family and friends.
November 29, 2022: The IRS warned taxpayers to be on alert for scammers using fake charities as a way to make money during the holiday season. The message came on Giving Tuesday as part of Nationwide Tax Security Awareness Week. Tips for avoiding fake charity scams include not giving into pressure, being wary of how donations are requested and not giving more than is needed.
November 29, 2022: The IRS released Tax Tip 2022-182, reminding people that they may be eligible for more than one filing status. The IRS suggests that taxpayers review their options and pick the one that makes the most sense for them.
November 29, 2022: The IRS announced that interest rates will increase for the first quarter of 2023. The new interest rates, published in Revenue Ruling 2022-23, begin January 1, 2023, and are as follows:
- Overpayments: 7%
- Overpayments for corporations: 6%
- Corporate overpayments for portion exceeding $10,000: 4.5%
- Underpayments: 7%
- Large corporate underpayments: 9%
November 29, 2022: The IRS announced that the IRS Office of Chief Counsel, along with the American Bar Association, held its first centralized National Virtual Settlement Event in October. Over the course of four days, 44 cases were settled and at least 59 meetings took place with taxpayers, pro bono attorneys and representatives from the IRS Office of Chief Counsel.
November 29, 2022: The IRS announced guidance on how to satisfy the prevailing wage and apprenticeship requirements for enhanced tax benefits under the Inflation Reduction Act of 2022. Notice 2022-61 provides guidance on what constitutes a prevailing wage and the determination of qualified apprenticeships with accompanying examples. The notice also provides guidance for determining the “beginning of construction” and “installation” for deductions for the cost of energy efficient commercial building property placed in service during the tax year.
November 30, 2022: The IRS and Security Summit partners urged tax professionals to remain focused on security issues and to review resources that may help. They also reminded tax professionals that they are required by federal law to have a written information security plan.
November 30, 2022: The IRS released Tax Tip 2022-183, encouraging taxpayers to develop a good recordkeeping system year-round to help make filing their tax returns easier.
December 1, 2022: The IRS released Tax Tip 2022-184, urging taxpayers to plan ahead with respect to tax credits and deductions. For more information, you can visit Topic No. 01, Should I Itemize? on the IRS website.
December 1, 2022: The IRS released Announcement 2022-27, which reminds state and local housing credit agencies of the deadline related to certain allocation of housing credit dollar amounts under Section 42.
December 1, 2022: The IRS issued a correction to Treasury Decision 9968, originally published on October 13, 2022. This correction contains final regulations under Section 36B that amend the regulations regarding 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.
December 1, 2022: The IRS and Security Summit partners reminded taxpayers of the extra protection they can receive by joining the Identity Protection Personal Identification Number (IP PIN) program. An IP PIN is a six-digit number that prevents someone else from filing a tax return using your Social Security number or Individual Taxpayer Identification Number. The IP PIN program was initially designed for victims of tax-related identity theft and was expanded in 2021 to include taxpayers nationwide who wish to participate.
December 2, 2022: The IRS and Security Summit partners urged businesses to remain vigilant against cyberattacks as they wrapped up National Tax Security Awareness Week.
December 2, 2022: The IRS is requesting comments related to Form 706-A,which is used to compute and pay the additional estate taxes due under Section 2032A(c). The IRS uses the information to determine whether the taxes have been properly computed. Form 706-A is also used for the basis election of Section 1016(c)(1). Comments should be received by January 31, 2023, to be considered.
December 2, 2022: The IRS is requesting comments concerning the occupational tax and registration return for wagering (Form 11-C). The IRS uses this form to register the respondent, collect the annual stamp tax and to verify that the tax on wagers is reported on Form 730, Monthly Tax Return for Wagers. Comments should be received by January 31, 2023, to be considered.
December 2, 2022: The IRS updated frequently asked questions for the 2020 unemployment compensation exclusion. The updates are in Fact Sheet 2022-39, which include:
- Topic D: Amended Return (Form 1040-X)—Combined Questions 1 and 2, removed Question 3 and renumbered Question 4
- Topic E: Impact to Income, Credits and Deductions—Question 2
- Topic G: Receiving a Refund, Letter or Notice—Questions 2, 3, 5, 8 and 9
- Topic H: Finding the Unemployment Compensation Amount—Question 2
December 2, 2022: The IRS released Announcement 2022-26, notifying taxpayers that payments made to property owners under Suffolk County’s Septic Improvement Program are not included in gross income for federal income tax purposes.
December 2, 2022: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).
Special thanks to Sarah Raben in our Chicago office for this week’s roundup.