Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of September 11, 2023 – September 15, 2023.
September 11, 2023: The IRS released Internal Revenue Bulletin 2023-37, which includes the following:
- Revenue Ruling 2023-16 provides the applicable federal rates for September 2023.
- Revenue Ruling 2023-17 sets forth the underpayment and overpayment interest rates under Code Section 6621 for the calendar quarter beginning October 1, 2023.
- Revenue Procedure 2023-29 provides the applicable percentage table used to calculate the premium tax credit under Code Section 36B.
- Notice 2023-62 announces a two-year administrative transition period with respect to the requirement under Code Section 603 that catch-up contributions made on behalf of certain eligible participants be designated as Roth contributions. The notice also requests comments for further guidance with respect to Code Section 603.
- Announcement 2023-25 and Announcement 2023-26 revoke tax-exempt classification for specified organizations.
- Announcement 2023-28 corrects citations in Revenue Procedure 2023-27.
September 12, 2023: The IRS released Notice 2023-64, which provides interim guidance on the corporate alternative minimum tax (CAMT). The notice lists financial statements that meet the definition of an applicable financial statement, provides general rules for determining “financial statement income” and includes guidance on when corporations are subject to the CAMT. Notice 2023-64 supplements and clarifies Notice 2023-07 and Notice 2023-20.
September 12, 2023: The IRS released Revenue Procedure 2023-31, providing guidance on Form 8955-SSA, Annual Registration Statement Identifying Separated Participants With Deferred Vested Benefits, and Form 5500-EZ, Annual Return of A One-Participant (Owners/Partners and Their Spouses) Retirement Plan or A Foreign Plan, which must be filed for plan years beginning on or after January 1, 2024. Revenue Procedure 2023-31 supersedes Revenue Procedure 2015-47.
September 12, 2023: The IRS published Tax Tip 2023-110, advising taxpayers to look out for scammers posing as charities and to ensure their donations are going to legitimate charitable organizations.
September 13, 2023: The IRS extended tax relief to individuals and businesses impacted by Hurricane Idalia in 28 counties in Georgia. As a result, affected individuals filing personal income tax returns on extensions expiring October 16, 2023, calendar-year partnerships and S corporations whose extensions expire on October 16, 2023, and calendar-year corporations whose 2022 extensions expire on November 15, 2023, now have until February 15, 2024, to file returns and pay related taxes.
September 14, 2023: The IRS announced an immediate moratorium through at least the end of the year on processing new claims for the Employee Retention Credit (ERC). The moratorium is in response to promoters who have aggressively marketed the credit to businesses without regard for their eligibility. Hundreds of criminal cases related to ERC claims are being worked, and thousands of claims have been referred for audit. Payouts on existing claims will continue during the moratorium period but at a slower pace due to detailed compliance reviews.
September 15, 2023: The IRS released Notice 2023-66, providing guidance on the corporate bond monthly yield curve, the corresponding spot segment rates used under Code Section 417(e)(3) and the 24-month average segment rates under Code Section 430(h)(2).
September 15, 2023: The IRS released Revenue Ruling 2023-18, publishing the applicable federal rates for October 2023.
September 15, 2023: The IRS requested comments from taxpayers and advisors on improving and expanding tax certainty and issue resolution options for business taxpayers. Under Initiative 2.4, the IRS Strategic Operating Plan highlights a commitment to enabling taxpayers to resolve potential compliance issues upfront through expanded pre-filing and tax certainty programs. To achieve this, the IRS is evaluating current tax certainty programs and tools to determine potential enhancements that would enable faster resolution of taxpayer issues and a reduction in post-filing compliance activities for participating taxpayers, as well as new or alternative programs to advance tax certainty and issue resolution for business taxpayers of all sizes.
September 15, 2023: The IRS announced the opening of more than 3,700 positions nationwide to help with expanded enforcement work focused on complex partnerships and large corporations. These compliance positions will be open in more than 250 locations and are part of a larger effort to add fairness to the tax system and expand tax enforcement involving areas of concern with high-income earners, partnerships, large corporations and promoters. The positions are intended for higher-graded revenue agents, which are specialized technical positions that generally focus on audits.
September 15, 2023: The IRS released a preview of proposed changes to certain sections of Form 6765, Credit for Increasing Research Activities (i.e., the Research Credit). The IRS is providing a preview to solicit feedback in advance of the formal draft release process and is considering making the changes effective beginning with tax year 2024.
September 15, 2023: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).