Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of May 22, 2023 – May 26, 2023.
May 22, 2023: The IRS released Internal Revenue Bulletin 2023-21, which highlights the following:
- Notice 2023-36: This notice from the US Department of the Treasury (Treasury) and the IRS invites recommendations for the 2023-2024 Priority Guidance Plan. The Priority Guidance Plan is used to identify and prioritize tax issues that should be addressed through regulations, revenue rulings, revenue procedures, notices and other published administrative guidance.
- Announcement 2023-15: This announcement provides the revocation of IRC 501(c)(3) organizations for failure to meet the code section requirements. Contributions made to the organization by individual donors are no longer deductible under Section 170(c).
- REG-124064-19: These proposed regulations related to Section 367(d), Rules for Certain Repatriations of Intangible Property, would (in certain instances) terminate the continued application of certain tax provisions after the previous transfer of intangible property to a foreign corporation when the intangible property is repatriated to certain US persons.
- Overpayments: 7%
- Overpayments for corporations: 6%
- Corporate overpayments for portions exceeding $10,000: 4.5%
- Underpayments: 7%
- Large corporate underpayments: 9%
May 23, 2023: The IRS released Tax Tip 2023-70, reminding taxpayers that requesting an Identity Protection PIN can help stop identity thieves from filing fraudulent tax returns. An Identity Protection PIN is a six-digit number used to prove taxpayers’ identities when filing their federal tax returns.
May 24, 2023: The IRS released Tax Tip 2023-71, providing guidance on how taxpayers can best prepare to request an appeal after the IRS rejects an offer in compromise. After the IRS rejects an offer in compromise, taxpayers have 30 days to request an appeal of the decision.
May 25, 2023: The IRS renewed an alert for businesses to watch out for the telltale signs of misleading claims by aggressive promoters that misrepresent who can qualify for the Employee Retention Credit. The alert reminds taxpayers that businesses improperly claiming the credit must pay it back, possibly with penalties and interest.
May 25, 2023: The IRS released Notice 2023-43, which provides guidance with respect to Section 305 of the SECURE 2.0 Act of 2022. Section 305 provides for the expansion of the Employee Plans Compliance Resolution System, currently set forth in Revenue Procedure 2021-30. This notice provides interim guidance in advance of any updates to Revenue Procedure 2021-31 and is not intended to be comprehensive.