Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of February 6, 2023 – February 10, 2023.
February 6, 2023: The IRS released Internal Revenue Bulletin 2023-6, which highlights the following:
- Notice 2023-12: This notice provides updates on the corporate bond monthly yield curve and corresponding spot segment rates and the 24-month average segment rates for January 2023. The notice also provides guidance as to interest rates on 30-year Treasury securities and 30-year Treasury weighted average rates.
- Notice 2023-13: This notice sets forth a proposed revenue procedure establishing the Service Industry Tip Compliance Agreement (SITCA) program. SITCA is a voluntary tip reporting program between the IRS and employers in the service industry that is designed to enhance tax compliance through the use of agreements instead of traditional audit techniques.
- Revenue Procedure 2023-14: This guidance provides the tables of limitations on depreciation deductions for owners of passenger automobiles placed in during calendar year 2023 and the table dollar amounts that must be used to determine income inclusions by lessees of passenger automobiles with a lease term beginning in calendar year 2023.
- Revenue Ruling 2023-3: This revenue ruling provides the applicable federal rates for federal income tax purposes for February 2023. The short-term federal interest rate is 4.47%, the mid-term is 3.82% and the long-term rate is 3.86%.
February 6, 2023: The IRS released Tax Tip 2023-14, highlighting the Taxpayer Bill of Rights, which include the Right to be Informed. Taxpayers have the right to know what they need to do to comply with the tax laws.
February 6, 2023: The IRS and the US Department of the Treasury (Treasury) announced a new program for service industry tip reporting. The proposed SITCA program is designed to take advantage of advancements in point-of-sale, time and attendance systems, and electronic payment settlement methods to improve tip reporting compliance. The proposed program would also decrease taxpayer and IRS administrative burdens and provide more transparency and certainty to taxpayers.
February 6, 2023: The IRS announced special Saturday hours for the next four months at Taxpayer Assistance Centers across the country. The Saturday hours will take place on February 11, March 11, April 8 and May 13 from 9:00 am to 4:00 pm.
February 7, 2023: The IRS released Tax Tip 2023-15, providing information to help business travelers properly claim travel business deductions.
February 8, 2023: The IRS released Announcement 2023-6, which notifies the public that it intends to issue opinion letters by February 28, 2023, for preapproved defined benefit plans that were updated for changes in plan qualification requirements and filed with the IRS during the third six-year remedial amendment cycle. This announcement also notifies the public of the date by which an adopting employer intending to maintain a preapproved defined benefit plan for the third six-year cycle must adopt a newly approved plan and announces the beginning and ending dates of the period during which an adopting employer may file for an individual determination letter.
February 8, 2023: The IRS announced that the IRS Chief Counsel is hiring lawyers to enhance the taxpayer experience and to address high-end, complex noncompliance. Positions are available in multiple cities across the country. Openings for the Small Business/Self Employment and Large Business & International divisions are already posted.
February 8, 2023: The IRS released Tax Tip 2023-16, reminding seniors and retirees of free filing options this tax season. Eligible taxpayers can also have their taxes prepared for free through two programs: Tax Counseling for the Elderly and Volunteer Income Tax Assistance.
February 9, 2023: The IRS released Tax Tip 2023-17, reminding people that military members and their families have access to free online tax help. These options include the US Department of Defense’s MilTax and the IRS Free File program, which both offer online tax preparation, electronic filing and direct deposit at no cost.
February 9, 2023: The IRS announced that taxpayers filing Form 1040X, Amended US Individual Tax Return, are now able to select direct deposit for any resulting refund. Current processing time for both paper and electronically filed amended returns is more than 20 weeks. Taxpayers can also use the Where’s My Amended Return? online tool to check the status of their returns.
February 10, 2023: The IRS announced that it has issued guidance on state tax payments to help taxpayers. The IRS has determined that in the interest of tax administration and other factors, taxpayers in many states will not need to report these payments on their 2022 tax returns.
February 10, 2023: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).