Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of March 20, 2023 – March 24, 2023.
March 20, 2023: The IRS released Internal Revenue Bulletin 2023-12, which highlights the following:
- Notice 2023-22: This notice advises state and local housing credit agencies that allocate low-income housing tax credits under Section 42, as well as states and other issuers of tax-exempt private activity bonds under Section 141, of the population figures to use in calculating the (1) state housing credit ceiling under Section 42(h), (2) private activity bond volume cap under Section 146 and (3) private activity bond volume limit under Section 142(k).
March 20, 2023: The IRS announced tips to avoid processing delays and refund adjustments as the April 18, filing deadline approaches. The tips include gathering all tax documents, filing electronically, using the correct filing status, double-checking names and social security numbers, answering the digital assets question and reporting all taxable income.
March 20, 2023: The IRS announced a new entry into the annual Dirty Dozen list of tax scams: promoter claims involving the Employee Retention Credit (ERC). Some third parties continue to widely advertise services that target taxpayers who may not be eligible for the ERC. The advertisements, along with the increased prevalence of websites touting how easy it is to qualify for the ERC, suggest that the abusive claims may be legitimate. The annual list of schemes is aimed at raising awareness of aggressive promoters and con artists. These schemes put people at financial risk and increase the chances of identity theft.
March 20, 2023: The IRS released Tax Tip 2023-35, providing options for taxpayers who cannot pay their tax bill by April 18. The IRS also reminded taxpayers to still file their tax returns even if they cannot pay to avoid a failure-to-file penalty.
March 21, 2023: The IRS announced that it is requesting feedback regarding the tax treatment of a non-fungible token (NFT) as a collectible under the tax law in Notice 2023-27. An NFT is a unique digital identifier that is recorded using distributed ledger technology and may be used to certify the authenticity and ownership of an associated right or asset. The guidance also requests comments on the treatment of NFTs as collectibles and describes how the IRS intends to determine whether an NFT is a collectible until further guidance is issued.
March 21, 2023: The IRS issued proposed regulations that provide guidance on the implementation of the Advanced Manufacturing Investment Credit, established by the Creating Helpful Incentives to Produce Semiconductors Act of 2022 (CHIPS Act). The credit incentivizes the manufacture of semiconductors and semiconductor manufacturing equipment within the United States.
March 21, 2023: The IRS released Tax Tip 2023-36, reminding taxpayers living abroad that their worldwide income is still subject to US income tax, regardless of where they live or where they earn their income. A taxpayer has an automatic two-month extension until June 15, 2023, if both their tax home and abode are outside the United States or Puerto Rico. Even with an extension, a taxpayer will have to pay interest on any tax not paid by the regular due date of April 18, 2023.
March 22, 2023: The IRS warned taxpayers on day three of the Dirty Dozen campaign to watch out for scammers who try to sell or offer help setting up an online account on IRS.gov, which may put their tax and financial information at risk of identity theft.
March 22, 2023: The IRS released Tax Tip 2023-37, providing information to taxpayers who receive a Form 1099-K, Payment Card and Third Party Network Transactions. The new threshold is any amount more than $600 for tax year 2023 and future years.
March 23, 2023: The IRS warned taxpayers to watch out for promoters pushing improper fuel tax credit claims that they are not qualified to receive. The message came on day four of the annual Dirty Dozen campaign.
March 23, 2023: The IRS reminded taxpayers that it reaches out in multiple ways to educate while ensuring it fairly enforces the nation’s tax laws. For people who owe taxes, the IRS provides different payment options to meet their obligations.
March 24, 2023: The IRS released Tax Tip 2023-38, cautioning taxpayers to not fall for federal tax refund myths. No matter how a taxpayer plans to use their tax refund, knowing fact from fiction can help manage expectations as they wait for their money.
March 24, 2023: The IRS warned of scammers using fake charities to exploit taxpayers, especially following major disasters. Scammers often try to prey on well-intentioned donors by posing as fake charities, hoping to steal money.
March 24, 2023: The IRS announced that New York storm victims now have until May 15, 2023, to file various federal individual and business tax returns and make tax payments, as a result of storms that occurred between December 23 and December 28, 2022. Relief is available to anyone in an area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual or public assistance. The current list of eligible localities is available here.
March 24, 2023: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).
Upcoming Events: Registration for the 2023 IRS Nationwide Tax Forums 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 (e.g., enrolled agents, certified public accountants, certified financial planners and Annual Filing Season Program participants) as well as uncredentialed tax professionals. 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