Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of February 20, 2023 – February 24, 2023.
February 21, 2023: The IRS released Internal Revenue Bulletin 2023-8, which highlights the following:
- Notice 2023-16: This notice modifies the definition of certain vehicle classifications by changing the standard by which vans, sport utility vehicles, pickup trucks and other vehicles are defined for purposes of the clean vehicle credit under Section 30D.
February 21, 2023: The IRS and the US Department of the Treasury (Treasury) announced final regulations on e-file for businesses. Treasury Decision 9972 affects filers of partnership returns, corporate income tax returns, unrelated business income tax returns, withholding tax returns, certain information returns, registration statements, disclosure statements, notifications, actuarial reports and certain excise tax returns. Specifically, the final regulations:
- Reduce the 250-return threshold enacted in prior regulations to generally require electronic filing by filers of 10 or more returns in a calendar year
- Require filers to aggregate almost all information return types covered by the regulation to determine whether a filer meets the 10-return threshold and is required to e-file their information returns
- Eliminate the e-filing exception for income tax returns of corporations that report total assets under $10 million at the end of their taxable year
- Require partnerships with more than 100 partners to e-file information returns. They must also file at least 10 returns of any type during the calendar year to e-file their partnership return.
February 21, 2023: The IRS released Tax Tip 2023-22, providing additional information on the Credit for Other Dependents, which is available to taxpayers who do not qualify for the Child Tax Credit. Taxpayers can claim this credit in addition to the Child and Dependent Care Credit and the Earned Income Credit.
February 22, 2023: The IRS released Notice 2023-19, which provides guidance on the corporate bond monthly yield curve and corresponding spot segment rates and the 24-month average segment rates for February 2023. The notice also provides guidance as to interest rates on 30-year Treasury securities and 30-year Treasury weighted average rates.
February 22, 2023: The IRS reminded taxpayers to gather the necessary information and visit IRS.gov for updated resources that will help with filing their 2022 tax return. The announcement is part of a series called the Tax Time Guide, a resource to help taxpayers file an accurate return.
February 22, 2023: The IRS released Notice 2023-18, which provides initial guidance on establishing a qualifying advanced energy project credit allocation program under Section 48C(e). The goal of the program is to expand US manufacturing capacity and quality jobs for clean energy technologies (including production and recycling), reduce greenhouse gas emissions in the US industrial sector, and secure domestic supply chains for critical materials (including specified critical minerals) that serve as inputs for clean energy technology production.
February 22, 2023: The IRS released Tax Tip 2023-23, providing some of the common mistakes international filers make when using Free File Fillable Forms. Common mistakes include using special characters, hyphens, and spaces, entering an international address and phone number and using banks outside of the US for direct deposit.
February 23, 2023: The IRS released final regulations that treat members of a consolidated group as a single US shareholder in certain cases for purposes of Section 951(a)(2)(B). The final regulations affect consolidated groups that own stock of foreign corporations.
February 24, 2023: The IRS released final forms and instruction revisions for Form 5500, Annual Return/Report of Employee Benefit Plan, and Form 5500-SF, Short Form Annual Return/Report of Small Employee Benefit Plan, effective for plan years beginning on or after January 1, 2023. The forms and instruction revisions relate to statutory amendments to the Employee Retirement Income Security Act and the Setting Every Community Up for Retirement Enhancement Act for multiple employer plans and groups of plans.
February 24, 2023: The IRS issued proposed regulations that would provide rules relating to the use of forfeitures in qualified retirement plans, including a deadline for the use of forfeitures in defined contribution plans. These proposed regulations would affect participants, beneficiaries, administrators and sponsors of qualified retirement plans.
February 24, 2023: The IRS announced that disaster area taxpayers in California, Alabama and Georgia now have until October 16, 2023, to file various federal individual and business tax returns and make tax payments. The deadline had been previously postponed to May 15 for these areas. Relief is available to anyone in an area designated by the Federal Emergency Management Agency as qualifying for individual or public assistance. The current list of eligible localities is available here.
February 24, 2023: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).