Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of August 14, 2023 – August 18, 2023.
August 14, 2023: The IRS published Internal Revenue Bulletin 2023-33, which includes:
- Revenue Procedure 2023-26, describing a program that provides an opportunity for fast-track processing of certain requests for letter rulings under the jurisdiction of the Associate Chief Counsel (Corporate), replacing the pilot program described in Revenue Procedure 2022-10, 2022-6 I.R.B. 473.
- Proposed regulations that would amend the definition of short-term, limited-duration insurance, which is excluded from the definition of individual health insurance coverage under the Public Health Service Act, and provide guidance as to the requirements for hospital indemnity or other fixed indemnity insurance to be considered an excepted benefit in the group and individual health insurance markets. The proposed regulations would also clarify the tax treatment of certain benefit payments in fixed amounts received under employer-provided accident and health plans.
- Revenue Ruling 2023-14, providing that, if a cash-method taxpayer receives cryptocurrency tokens as rewards for staking cryptocurrency native to a proof-of-stake blockchain, the fair market value of the rewards received should be included in the taxpayer’s gross income in the taxable year in which the taxpayer gains dominion and control over the rewards.
August 14, 2023: The IRS released Tax Tip 2023-100, providing information to organizations applying for tax-exempt status, including that Form 1023 must now be submitted electronically, every tax-exempt organization needs an employer identification number, certain churches and ancillary organizations do not need to apply to be tax-exempt, different rules may apply depending on whether the organization is a private foundation or a public charity and charitable organizations must make certain information available to the public.
August 15, 2023: The IRS published Revenue Ruling 2023-16, which sets forth the applicable federal rates for September 2023.
August 15, 2023: The IRS released Tax Tip 2023-101, informing taxpayers that, as part of their right to the finality of tax matters, they are entitled to know the maximum amount of time they have to challenge the IRS’s position on a matter, the maximum amount of time the IRS has to audit a particular tax year or collect a tax debt, when the IRS has finished an audit, that the IRS generally has three years from the date taxpayers file their returns (with exceptions) to assess any additional tax for that tax year and that the IRS generally has 10 years from the assessment date to collect unpaid taxes.
August 15, 2023: The IRS reminded eligible contractors who build or substantially reconstruct qualified new energy-efficient homes that they might qualify for a tax credit of up to $5,000 per home under Code Section 45L. The credit amount depends on the type of home, the home’s energy efficiency and the date when someone buys or leases the home.
August 15, 2023: The IRS released the last part in a five-part series about protecting personal information. In this final installment, the IRS urges tax professionals to take critical steps to protect their information, including taking extra care with how they handle data and security at their business and at home.
August 16, 2023: The IRS announced that it has made significant progress toward upgrading its technology and increasing its compliance efforts involving high-income taxpayers, large corporations and complex partnerships, thanks in part to resources provided by the Inflation Reduction Act of 2022.
August 17, 2023: The IRS encouraged truckers and others who have registered large trucks and buses with a gross weight above 55,000 pounds to e-file Form 2290 by the August 31 payment deadline for vehicles first used in July 2023.
August 17, 2023: The IRS reminded teachers that they can deduct up to $300 of out-of-pocket classroom expenses for this year when they file their 2023 federal income tax returns. Due to inflation adjustments, the former $250 limit increased to $300.
August 18, 2023: The IRS announced tax relief for Hawaii wildfire victims in Maui and Hawaii counties. Taxpayers in these areas now have until February 15, 2024, to file various federal individual and business tax returns and make tax payments.
August 18, 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 open, and the events have returned 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 remaining dates and locations are as follows:
- August 22-24: San Diego, CA
- August 29-31: Orlando, FL