Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of February 27, 2023 – March 3, 2023.
February 27, 2023: The IRS released Internal Revenue Bulletin 2023-9, which highlights the following:
- Revenue Ruling 2023-4: This revenue ruling establishes the interest rates on tax overpayments and underpayments for the second quarter of 2023. As of April 1, 2023, the rates will be as follows:
- Overpayments: 7%
- Overpayments for corporations: 6%
- Corporate overpayments for portion exceeding $10,000: 4.5%
- Underpayments: 7%
- Large corporate underpayments: 9%
- Announcement 2023-6: This announcement notifies the public that the IRS intends to issue opinion letters by February 28, 2023, for pre-approved 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 pre-approved 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 27, 2023: The IRS released Notice 2023-21, which provides relief under Section 7508A(a) for certain persons affected by COVID-19 by disregarding the period beginning on April 15, 2020, and ending on July 15, 2020, in determining the beginning of the lookback period. Under the relief, if a taxpayer files a claim for credit or refund on or before June 22, 2023, the lookback period extends three years back from the date of the claim, disregarding the period from April 15, 2020, to July 15, 2020. As a result, the limit to the amount of the credit or refund would include the taxpayer’s withheld income taxes deemed paid on April 15, 2020. Relief is automatic.
February 27, 2023: The IRS released Tax Tip 2023-24, highlighting Tax Pro Account, which lets tax professionals submit an authorization request to a taxpayer’s IRS Online Account, including both power of attorney and tax information authorization requests. Taxpayers can then review, approve and sign the request electronically.
February 28, 2023: The IRS reminded farmers and fishers who did not pay all their 2022 estimated taxes by January 17 that they must file their 2022 tax return and pay the entire tax due by March 1. Disaster-area taxpayers, including farmers and fishers, have more time to file and pay.
February 28, 2023: The IRS released Tax Tip 2023-25, providing guidance on what to do when a W-2 or Form 1099 is missing or incorrect.
March 1, 2023: The IRS reminded taxpayers of their reporting and potential tax obligations on income from the gig economy and service industry, transactions from digital assets and foreign sources or holding certain foreign assets. The gig economy includes activity where people earn income providing on-demand work, services or goods, such as selling goods online, driving a car for deliveries or renting out property.
March 1, 2023: The IRS released Tax Tip 2023-26, reminding taxpayers that they can quickly review, approve and sign power of attorney and tax information authorization requests through their IRS Online Account.
March 2, 2023: The IRS announced eight new members selected to serve on the Taxpayer Advocacy Panel (TAP) for 2023. New members were chosen from a pool of approximately 200 interested individuals who applied during an open recruitment period last spring and from alternate members who applied in previous years. Recruitment is now open for the 2024 TAP year.
March 2, 2023: The IRS released Tax Tip 2023-27, reminding people of the benefits of filing a tax return even if they are not required to file.
March 2, 2023: The IRS announced the 2023 IRS Nationwide Tax Forums to be held in five cities. Registration is now open, and the events are returning to an in-person format for the first time since 2019. The IRS Nationwide Tax Forums are designed specifically for tax professionals (i.e., enrolled agents, certified public accountants, certified financial planners and Annual Filing Season Program participants) as well as uncredentialed tax professionals. Attendees may earn up to 18 continuing education credits and can register here. The dates and locations are as follows:
- July 11-13: New Orleans, LA
- July 25-27: Atlanta, GA
- August 8-10: National Harbor, MD (Washington, DC area)
- August 22-24: San Diego, CA
- August 29-31: Orlando, FL
March 3, 2023: The IRS issued a consumer alert warning for taxpayers related to new filing season scams that promise big tax refunds. One scheme encourages people to use tax software to manually fill out Form W-2, Wage and Tax Statement, and includes false income information. Scam artists suggest people make up large incomes and withholding figures, then instruct people to file the bogus tax return electronically in hopes of getting a substantial refund.
March 3, 2023: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).