Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of April 17, 2023 – April 21, 2023.
April 17, 2023: The IRS released Internal Revenue Bulletin 2023-16, which highlights the following:
- Announcement 2023-10: This announcement was issued pursuant to the Ticket to Work and Work Incentives Improvement Act of 1999, which requires the US Secretary of the Treasury to annually report advance pricing agreements and the Advance Pricing and Mutual Agreement Program (APMA Program). This year’s report describes the experience, structure and activities of the APMA Program during 2022.
- REG-105954-22: This notice provides guidance related to Sections 4661, 4662, 4671 and 4672, collectively referred to as the Superfund chemical taxes. Section 4661(a) imposes an excise tax on the sale or use of “taxable chemicals” by manufacturers, producers or importers. Section 4671(a) imposes an excise tax on the sale or use of “taxable substances” by importers. The Superfund chemical taxes previously expired on December 31, 1995, but were reinstated with certain modifications, effective July 1, 2022, by Section 80201 of the Infrastructure Investment and Jobs Act.
- Notice 2023-31: This notice announces that when proposed regulations under Section 903 (REG-112096-22) are finalized, the US Department of the Treasury and the IRS intend to extend the transition period for the single-country exception’s documentation requirement from May 17, 2023, to 180 days after the final regulations are filed. The single-country exception provides relief from the source-based attribution requirement under Section 903 for foreign withholding taxes on royalties paid for the use of intellectual property within the withholding jurisdiction.
- REG-120080-22: This document contains proposed regulations regarding the clean vehicles credit under Section 30D. These proposed regulations will affect persons seeking to claim the credit and qualified manufacturers of clean vehicles. The IRS also issued a reminder that the proposed regulations went into effect on April 18.
- Revenue Ruling 2023-2: This revenue ruling confirms that the basis adjustment under Section 1014 generally does not apply to the assets of an irrevocable grantor trust not included in the deceased grantor’s gross estate for federal estate tax purposes.
April 17, 2023: The IRS released Revenue Ruling 2023-9, which provides the applicable federal rates for federal income tax purposes for May 2023. The short-term federal interest rate is 4.30%, the mid-term rate will drop to 3.57% and the long-term rate will fall to 3.72%.
April 17, 2023: The IRS released Tax Tip 2023-51, providing information to taxpayers regarding how to file a final federal tax return for someone who has died.
April 17, 2023: The IRS reminded last-minute tax return filers that IRS.gov has resources to help them finish their taxes.
April 18, 2023: The IRS released Tax Tip 2023-52, reminding taxpayers on Tax Day that they can request an extension of time to avoid a failure to file penalty.
April 18, 2023: The IRS and the US Departments of Labor and Health and Human Services have jointly issued FAQs to clarify how the COVID-19 coverage and payment requirements under the Families First Coronavirus Response Act and the Coronavirus Aid, Relief and Economic Security Act will change when the public health emergency ends. The FAQs include the following:
- Affordable Care Act Implementation
- Families First Coronavirus Response Act, Coronavirus Aid, Relief, and Economic Security Act, Health Insurance Portability and Accountability Act Implementation Part 58
- Affordable Care Act and Coronavirus Aid, Relief, and Economic Security Act Implementation Part 59
April 18, 2023: The IRS suggested that taxpayers who filed or are about to file their 2022 tax return use the IRS Tax Withholding Estimator to help update the amount of tax withheld from their 2023 pay.
April 18, 2023: The IRS announced that Indiana storm victims now have until July 31, 2023, to file various federal individual and business tax returns and make tax payments as a result of tornados, severe storms and straight-line winds that occurred starting on March 31, 2023. 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.
April 19, 2023: The IRS urged taxpayers who missed the April 18 tax filing deadline to file as soon as possible. Those who owe and missed the deadline without requesting an extension should file quickly to limit penalties and interest. For struggling taxpayers unable to pay their tax bill, the IRS has several options available to help.
April 20, 2023: The IRS reminded tax-exempt organizations of their May 15, 2023, filing deadline. The filing due date for certain returns filed by tax-exempt organizations is normally by the 15th day of the fifth month after the end of an organization’s accounting period. Those operating on a calendar year basis must file a return by May 15, 2023. This includes the following returns:
- Form 990-series annual information returns (Forms 990, 990-EZ and 990-PF)
- Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or Form 990-EZ
- Form 990-T, Exempt Organization Business Income Tax Return (other than certain trusts)
- Form 4720, Return of Certain Excise Taxes
April 20, 2023: The IRS released Tax Tip 2053-54, reminding taxpayers who missed the recent April filing and payment deadline that they should know their obligations and the possible consequences if they don’t file or have an overdue tax bill.
April 20, 2023: The IRS released Notice 2023-33, which provides the corporate bond monthly yield curve and corresponding spot segment rates and the 24-month average segment rates for April 2023. The notice also provides guidance as to interest rates on 30-year Treasury securities and the 30-year Treasury weighted average rates.
April 20, 2023: The IRS released Revenue Procedure 2023-21, which provides the domestic asset/liability percentages and domestic investment yields needed by foreign life insurance companies and foreign property and liability insurance companies to compute their minimum effectively connected net investment income under Section 842(b) for taxable years beginning after December 31, 2021.
April 20, 2023: The IRS released Revenue Procedure 2023-22, which provides issuers of qualified mortgage bonds and mortgage credit certificates with (1) the nationwide average purchase price for residences located in the United States and (2) the average area purchase price safe harbors for residences located in statistical areas in each state, the District of Columbia, Puerto Rico, the Northern Mariana Islands, American Samoa, the Virgin Islands and Guam.
April 21, 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