Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of October 16, 2023 – October 20, 2023.
October 16, 2023: The IRS published Revenue Ruling 2023-20, which provides the November 2023 applicable federal rates.
October 16, 2023: The IRS announced that the deadline for 2022 income tax returns and payments for most California taxpayers has been postponed again until November 16, 2023. Because of natural disasters last winter, spring due dates were previously postponed to October 16, 2023. The list of localities eligible for the extension are available here.
October 16, 2023: Tax professionals can now access 18 self-study seminars that satisfy continuing education requirements for the federal tax law and ethics categories. The seminars can be accessed at Nationwide Tax Forums Online for a fee of $29 per seminar.
October 16, 2023: The IRS announced that it recently awarded $51 million in Tax Counseling for the Elderly and Volunteer Income Tax Assistance grants to organizations that provide free federal tax return preparation services.
October 16, 2023: The IRS released Internal Revenue Bulletin 2023-42, which includes the following:
- Notice 2023-65 provides guidance on the energy efficient home credit under Internal Revenue Code (Code) § 45L. It addresses who is eligible for the credit, how to determine the applicable amount of the credit, energy saving requirements, certification requirements and substantiation requirements.
- Notice 2023-67 gives farmers and ranchers who were impacted by drought an extra year to replace livestock from forced sales and defer gains under Code § 1033(e).
- Notice 2023-69 provides that any cash donations employers make to charitable organizations that provide relief to victims of the wildfires in Hawaii in exchange for sick, vacation, or personal leave that their employees forgo will not be treated as compensation. The notice also provides that these employees will not be treated as receiving the value of the leave as income and cannot claim a deduction for the leave that they donated to their employer. Employers may deduct these cash payments as a business expense or a charitable contribution deduction if the employer otherwise meets the respective requirements of the applicable sections of the Code.
- Revenue Procedure 2023-35 provides that the IRS will not treat a redemption of a share in any money market fund as part of a wash sale under Code 1091.
- Proposed regulations that provide guidance on how manufacturers, producers and importers of designated drugs will report excise tax liability under § 5000D. The proposed regulations also would except such excise tax from semimonthly deposit requirements.
October 18, 2023: The IRS released Notice 2023-70, which provides the adjusted applicable dollar amount to be multiplied by the average number of covered lives for purposes of calculating the fee imposed by §§ 4375 and 4376 for policy years and plan years that end between October 1, 2023, and October 1, 2024.
October 18, 2023: The IRS released Notice 2023-72, which provides the corporate bond monthly yield curve, the corresponding spot segment rates used under § 417(e)(3) and the 24-month average segment rates under § 430(h)(2). The notice also provides guidance as to the interest rate on 30-year Treasury securities under § 417(e)(3)(A)(ii)(II) as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate under § 431(c)(6)(E)(ii)(I).
October 19, 2023: The IRS released Notice 2023-73, which specifies a mortality table for determining the minimum present value under § 417(e)(3) of the Code and Section 205(g)(3) of the Employee Retirement Income Security Act of 1974 for distributions with annuity starting dates that occur during stability periods beginning in the 2024 calendar year.
October 19, 2023: The IRS released FS-2023-23, announcing that Direct File will be introduced as a pilot program for the 2024 filing season. Direct File will be a free IRS-provided tool for preparing and e-filing tax returns. Eligibility to participate in the pilot will be limited to filers with relatively simple tax returns who are reporting only certain types of income and claiming limited credits and deductions. The pilot will be further limited to taxpayers living in certain states.
October 19, 2023: The IRS released FS-2023-24, which offers an option to withdraw claims requesting a refund for an inappropriate Employee Retention Credit. Eligibility and the process for withdrawing a claim are discussed in detail in the fact sheet.
October 20, 2023: The IRS announced several new initiatives using Inflation Reduction Act of 2022 funding to target large corporations, including:
- Increasing compliance efforts involving large foreign-owned transfer pricing issues
- Expanding the Large Corporate Compliance program
- Reviewing high-risk claims involving former § 199
- Prioritizing high-income, high-wealth individuals who have not filed their tax returns or paid their outstanding tax debts.
The announcement also stated that the IRS is working to improve its customer service by opening taxpayer assistance centers and launching business tax accounts to allow business taxpayers to check their tax payment history, make payments, view notices, authorize powers of attorney and conduct other business with the IRS.
October 20, 2023: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).