Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of April 24, 2023 – April 28, 2023.
April 24, 2023: The IRS released Internal Revenue Bulletin 2023-17, which highlights the following:
- REG 121709-19: This document provides proposed regulations regarding supervisory approval of penalties. The purpose is to address the uncertainty surrounding various aspects of supervisory approval of penalties due to recent judicial decisions.
- Announcement 2023-12: This announcement informs taxpayers and practitioners that the IRS has revised Form 3115, Application for Change in Accounting Method, and its instructions. This announcement also provides guidance to allow for a reasonable period for taxpayers to transition to the December 2022 Form 3115.
- Announcement 2023-11: This announcement notifies the public that a proposed regulation identifies certain micro-captive transactions as “listed transactions” and certain other micro-captive transactions as “transactions of interest.”
- Revenue Procedure 2023-12: This revenue procedure modifies specific language in Revenue Procedure 2023-5 to allow for the new electronic submission process of Form 8940, Request for Miscellaneous Determination. This revenue procedure also provides a 90-day transition relief period, during which paper Forms 8940 and letter applications will be accepted and processed by EO Determinations.
- Notice 2023-30: This notice publishes the safe harbor deed language for extinguishment and boundary line adjustment clauses required by Section 605(d)(1). This notice also clarifies the process certain donors may use to amend an easement deed to substitute the safe harbor language for the corresponding language in the original deed.
- Announcement 2023-07: This announcement informs federal civilian employees and other civilians who received certain reimbursement payments in 2022 and 2023 from the US Department of Defense for lodging, meals, and personal property damage expenses after the release of petroleum from the Red Hill Bulk Fuel Storage Facility on O‘ahu, Hawaii, that such payments are excludable from gross income for federal income tax purposes under Section 139.
- REG 109309-22: These proposed regulations identify transactions that are the same as, or substantially similar to, certain micro-captive transactions as listed transactions and certain other micro-captive transactions as transactions of interest. The proposed regulations also provide guidance as to the reporting requirements for participants and material advisors to the transactions.
April 24, 2023: The IRS released Notice 2023-34, which provides that convertible virtual currency is treated as property for federal tax purposes and that general tax principles applicable to property transactions apply to transactions using convertible virtual currency. This notice modifies Notice 2014-21 by revising a sentence in the background section to remove the statement that virtual currency does not have legal tender status in any jurisdiction.
April 24, 2023: The IRS released Tax Tip 2023-55, reminding taxpayers that they don’t need to panic when they get a letter from the IRS. The IRS sends notices and letters when it needs to ask a question about a taxpayer’s tax return, let taxpayers know about a change to their account or request a payment.
April 24, 2023: The IRS is accepting membership applications for the 2024 Internal Revenue Service Advisory Council (IRSAC). The IRSAC serves as an advisory body to the IRS Commissioner and provides an organized public forum for the discussion of relevant tax administration issues between IRS officials and representatives of the public. Applications will be accepted through May 31, 2023.
April 25, 2023: The IRS released Tax Tip 2023-56, reminding taxpayers and tax professionals that they should remain aware of common scams, schemes and cons to avoid losing money, personal information or client data.
April 26, 2023: The IRS released Tax Tip 2023-57, warning taxpayers about unscrupulous tax preparers and tax fraud promoters who make big promises and charge high fees. Taxpayers should only use reputable tax professionals and know what is on their tax return since taxpayers are the ones legally responsible for what is on their returns.
April 27, 2023: The IRS released Tax Tip 2023-58, reminding taxpayers that an Offer in Compromise can sometimes help resolve tax debt. An Offer in Compromise is an agreement between a taxpayer and the IRS that settles a tax debt for less than the full amount owed. The application fee for an Offer in Compromise is $205.
April 28, 2023: The IRS announced that it will no longer conduct public hearings on notices of proposed rulemaking solely by telephone for proposed regulations published in the Federal Register after May 11, 2023. The change comes with the end of the COVID-19 pandemic. A telephonic option will remain available for those who prefer to attend or testify at a public hearing via telephone.
April 28, 2023: The IRS is accepting applications for the Tax Counseling for the Elderly and Volunteer Income Tax Assistance grants, which provide eligible organizations with funding that will enable them to offer free federal tax return preparation assistance for up to three years. You can apply for the grant at grants.gov between May 1 and May 31, 2023.
April 28, 2023: The IRS highlights information and free resources in recognition of National Small Business Week, which is an annual effort led by the Small Business Administration to recognize the hard work, ingenuity and dedication of America’s small businesses and to celebrate their contributions to the economy. From April 30 to May 6, the IRS has a variety of resources available for small business owners to help them understand and meet their tax responsibilities.
April 28, 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