Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of July 31, 2023 – August 4, 2023.
July 31, 2023: The IRS released Revenue Ruling 2023-14, holding that a cash-method taxpayer who receives cryptocurrency units as validation rewards for staking cryptocurrency native to a proof-of-stake blockchain must include the fair market value of the validation rewards in its gross income for the tax year in which the taxpayer gains dominion and control over the validation rewards.
July 31, 2023: The IRS released Tax Tip 2023-97, identifying tax considerations for couples who are separating or divorcing. These considerations include updating tax withholdings by completing a new Form W-4, recognizing alimony payments as income (or deducting) and excluding child support payments from income (or not deducting).
August 1, 2023: The IRS warned tax professionals to be on the lookout for phishing texts and emails and cloud-based attacks intended to steal taxpayer information.
August 2, 2023: The IRS announced that taxpayers will be able to submit all correspondence to the IRS and respond to IRS notices electronically. Further, taxpayers will be able to e-file 20 additional tax forms starting in 2024. By the 2025 filing season, an additional 150 non-tax forms will be available in digital, mobile-friendly formats, and the IRS will digitally process all paper-filed tax and information returns.
August 3, 2023: The IRS released Tax Tip 2023-98, explaining that in most cases, revenue officers will contact taxpayers through appointment letters (Letter 725-B) to schedule a meeting and generally will not make unannounced visits. IRS.gov will be updated to reflect the new policy. Unannounced visits may still be made to serve summonses and subpoenas and in cases involving the seizure of assets where such assets are at risk of being placed beyond the reach of the government.
August 3, 2023: The IRS released proposed regulations that would prevent employee benefit plans and issuers from using nonquantitative treatment limitations to place greater limits on access to mental health and substance use disorder benefits as compared to medical/surgical benefits. Written comments on the proposed regulations are due October 2, 2023.
August 3, 2023: The IRS released proposed regulations that would identify certain monetized installment sale transactions and substantially similar transactions as listed transactions that must be reported to the IRS.
August 3, 2023: The IRS issued Notice 2023-59, which provides the requirements for home energy audits for taxpayers who want to claim the Energy Efficient Home Improvement Credit. The credit amount is equal to 30% of the total amount that taxpayers pay throughout the year for qualified energy efficiency improvements, residential energy property expenditures and home energy audits. The notice provides specific requirements for claiming the Home Energy Improvement Credit and details the process for conducting the home energy audit.
August 4, 2023: The IRS issued Notice 2023-52, announcing that it and the US Department of the Treasury intend to issue proposed regulations under § 5000D. Specifically, the notice proposes that future regulations will provide rules on the scope of sales subject to the Section 5000D tax, rules regarding the taxable sale price, and procedural rules intended to help taxpayers meet their reporting and payment obligations with respect to the tax.
August 4, 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 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 8-10: National Harbor, MD (Washington, DC area)
- August 22-24: San Diego, CA
- August 29-31: Orlando, FL