Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of April 3, 2023 – April 7, 2023.
April 3, 2023: The IRS released Internal Revenue Bulletin 2023-14, which highlights the following:
- Notice 2023-25: This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates and the 24-month average segment rates. It also provides guidance as to the interest rate on 30-year Treasury securities as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate.
- Revenue Ruling 23-6: This revenue ruling provides the applicable federal rates for federal income tax purposes for April 2023. The annual short-term rate is 3.67%, the mid-term rate is 3.14% and the long-term rate is 3.04%.
April 3, 2023: The IRS released Notice 2023-31, announcing an Extension of the Transition Period for the Single-Country Exception Under Section 903.
April 3, 2023: The IRS announced special Saturday hours at Taxpayer Assistance Centers. The final Saturday opening will be May 13, 2023, from 9:00 am to 4:00 pm.
April 3, 2023: The IRS announced that Arkansas 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 storms that occurred 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 3, 2023: The IRS reminded taxpayers that tax credits are available for a portion of the qualifying expenses related to energy improvements to their homes. Taxpayers can claim either the Energy Efficient Home Improvement Credit or the Residential Energy Clean Property Credit for the year when qualifying improvements are made.
April 3, 2023: The IRS released Tax Tip 2023-43, reminding taxpayers that IRS.gov has tax information in seven languages: Spanish, Chinese Traditional, Chinese Simplified, Korean, Russian, Vietnamese and Haitian Creole.
April 4, 2023: The IRS released Revenue Procedure 2023-12, which updates the procedures for exempt organizations determination letters with respect to the electronically submitted Form 8940, Request for Miscellaneous Determination. This modification to Revenue Procedure 2023-5 provides that the electronic submission process is the exclusive means of submitting a completed Form 8940, except for submissions eligible for the 90-day transition relief.
April 4, 2023: The IRS announced guidance related to the eligibility requirement for energy communities for the bonus credit program under the Inflation Reduction Act of 2022 (IRA). Notice 2023-29 describes certain rules that the IRS intends to include in forthcoming proposed regulations for determining what constitutes an energy community for the production and investment tax credits. Additional information can be found here. The following are appendices related to Notice 2023-29:
- Appendix A: Treasury/IRS-defined metropolitan statistical areas (MSAs) and non-metropolitan statistical areas (non-MSAs) for IRA Energy Community Tax Credit Bonus.
- Appendix B: MSAs and non-MSAs that meet the Fossil Fuel Employment threshold (unemployment rate requirement yet to be determined).
- Appendix C: Census tracts that have ever had, since December 31, 1999, a closed coal mine or have ever had, since December 31, 2009, a retired coal-fired electric generating unit, and directly adjoining tracts.
April 4, 2023: The IRS issued the revised Form 8940, Request for Miscellaneous Determination, and its instructions to allow electronic filing. The IRS will provide a 90-day grace period during which it will continue to accept paper versions of Form 8940 (Rev. 6-2011), however, after this grace period ends Form 8940 must be submitted electronically.
April 4, 2023: The IRS released Tax Tip 2023-44, reminding employers to watch out for Employee Retention Credit schemes.
April 5, 2023: The IRS released Tax Tip 2023-45, reminding taxpayers that when filing 2022 tax year Forms 1040 and 1040-SR, they must check a box indicating whether they received digital assets as a reward, award or payment for property or services or disposed of any digital asset that was held as a capital asset through a sale, exchange or transfer.
April 5, 2023: The IRS released Announcement 2023-07 regarding certain payments in 2022 and 2023 from the US Department of Defense for both federal and non-federal civilian employees. Reimbursements for lodging, meals and personal property damage expenses after the release of petroleum from the Red Hill Bulk Fuel Storage Facility on Oʻahu, Hawaii (Red Hill Fuel Spill) are excludable from gross income for federal income tax purposes under Section 139.
April 6, 2023: The IRS announced its Strategic Operating Plan to transform and improve service to taxpayers throughout the next decade. The 150-page report outlines the agency’s historic plans to make fundamental changes following funding from the IRA. The plan includes 42 initiatives and 190 projects designed to help taxpayers and the tax community.
April 6, 2023: The IRS released Tax Tip 2023-46, reminding taxpayers that they can avoid processing delays and refund adjustments by filing electronically, gathering all tax documents, reporting all taxable income and requesting an extension, if needed.
April 7, 2023: The IRS released Announcement 2023-12, informing people that it has revised Form 3115, Application for Change in Accounting Method, and its instructions. The Form 3115 (Rev. December 2022) is the current Form 3115 (December 2022 Form 3115) and replaces the December 2018 version.
April 7, 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