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Weekly IRS Roundup February 27 – March 3, 2023

By Sarah M. Raben on Mar 6, 2023
Posted In IRS Guidance, Tax Reform, Tax Refunds

Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of February 27, 2023 – March 3, 2023.

February 27, 2023: The IRS released Internal Revenue Bulletin 2023-9, which highlights the following:

Revenue Ruling 2023-4: This revenue ruling establishes the interest rates on tax overpayments and underpayments for the second quarter of 2023. As of April 1, 2023, the rates will be as follows:
- Overpayments: 7%
- Overpayments for corporations: 6%
- Corporate overpayments for portion exceeding $10,000: 4.5%
- Underpayments: 7%
- Large corporate underpayments: 9%

Announcement 2023-6: This announcement notifies the public that the IRS intends to issue opinion letters by February 28, 2023, for pre-approved defined benefit plans that were updated for changes in plan qualification requirements and filed with the IRS during the third six-year remedial amendment cycle. This announcement also notifies the public of the date by which an adopting employer intending to maintain a pre-approved defined benefit plan for the third six-year cycle must adopt a newly approved plan and announces the beginning and ending dates of the period during which, an adopting employer may file for an individual determination letter.

February 27, 2023: The IRS released Notice 2023-21, which provides relief under Section 7508A(a) for certain persons affected by COVID-19 by disregarding the period beginning on April 15, 2020, and ending on July 15, 2020, in determining the beginning of the lookback period. Under the relief, if a taxpayer files a claim for credit or refund on or before June 22, 2023, the lookback period extends three years back from the date of the claim, disregarding the period from April 15, 2020, to July 15, 2020. As a result, the limit to the amount of the credit or refund would include the taxpayer’s withheld income taxes deemed paid on April 15, 2020. Relief is automatic.

February 27, 2023: The IRS released Tax Tip 2023-24, highlighting Tax Pro Account, which lets tax professionals submit an authorization request to a taxpayer’s IRS Online Account, including both power of attorney and tax information authorization requests. Taxpayers can then review, approve and sign the request electronically.

February 28, 2023: The IRS reminded farmers and fishers who did not pay all their 2022 estimated taxes by January 17 that they must file their 2022 tax return and pay the entire tax due by March 1. Disaster-area taxpayers, including farmers and fishers, have more time to file and pay.

February 28, 2023: The IRS released Tax Tip 2023-25, providing guidance on what to do when a W-2 or Form 1099 is missing or incorrect.

March 1, 2023: The IRS reminded taxpayers of their reporting and potential tax obligations on income from the gig economy and service industry, transactions from digital assets and foreign sources or holding certain foreign assets. The gig [...]

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Weekly IRS Roundup October 24 – October 28, 2022

By McDermott Will & Emery on Oct 31, 2022
Posted In IRS Guidance, Tax Reform, Tax Refunds

Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of October 24, 2022 – October 28, 2022.

October 24, 2022: The IRS released Internal Revenue Bulletin 2022-43, which highlights the following:

Revenue Procedure 2022-31: This procedure provides guidance on the development, printing and approval of 2022 substitute tax forms.

Revenue Procedure 2022-37: This procedure provides the amounts of unused housing credit carryovers allocated to qualified states under Section 42(h)(3)(D) of the Internal Revenue Code for calendar year 2022.

Notice 2022-41: This notice expands the application of permitted change-in-status rules for health coverage under a Section 125 cafeteria plan. Specifically, this notice addresses when a plan participant may want to revoke an employee’s election under the cafeteria plan for family coverage under a group health plan (other than a flexible spending arrangement) in order to allow one or more family members to enroll in a Qualified Health Plan through a Health Insurance Exchange in the individual market.

Notice 2022-46: This notice requests comments on tax credits for clean vehicles.

Notice 2022-47: This notice requests comments on energy security tax credits for manufacturing.

Notice 2022-48: This notice requests comments on incentive provisions for improving the energy efficiency of residential and commercial buildings.

Notice 2022-49: This notice requests comments on certain energy generation incentives.

Notice 2022-50: This notice requests comments on the elective payment of applicable credits and the transfer of certain credits.

Notice 2022-51: This notice requests comments on prevailing wage, apprenticeship, domestic content and energy community requirements under the Inflation Reduction Act of 2022.

Notice 2022-52: This notice provides additional temporary relief from certain requirements under Section 42 by extending the placed-in-service deadlines for qualified low-income housing projects. The notice is a result of numerous inquiries received related to labor and supply chain disruptions delaying the construction, rehabilitation and restoration of properties.

October 24, 2022: The IRS reminded taxpayers who sell goods and provide services that they may receive a Form 1099-K, Payment Card and Third-Party Network Transactions, for transactions that amount to more than $600 for the year. Income from part-time work and side jobs is taxable, and taxpayers must report all their income unless it is excluded by law. Money received from friends and relatives as personal gifts or reimbursements for expenses is not taxable.

October 24, 2022: The IRS released COVID Tax Tip 2022-162, providing information related to early withdrawals from retirement funds.

October 25, 2022: The IRS reminded farmers, ranchers and farm workers that they can find ag-related tax information on IRS.gov.

October 26, 2022: The IRS released Tax Tip 2022-164, advising [...]

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Weekly IRS Roundup October 3 – October 7, 2022

By McDermott Will & Emery on Oct 10, 2022
Posted In IRS Appeals, IRS Guidance, Tax Reform, Tax Refunds

Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of October 3, 2022 – October 7, 2022.

October 3, 2022: The IRS released Internal Revenue Bulletin 2022-40, which highlights the following:

Notice 2022-40: This notice provides updates on the corporate bond monthly yield curve and corresponding spot segment rates and the 24-month average segment rates for September 2022. The notice also provides guidance as to interest rates on 30-year Treasury securities and 30-year Treasury weighted average rates.

Notice 2022-39: This notice provides rules related to the Inflation Reduction Act of 2022. Claimants must follow this guidance in order to make a one-time claim for the credit and payment allowable for alternative fuels sold or used during the first, second and third calendar quarters of 2022.

Revenue Procedure 2022-35: This guidance adds Turkey to the list of jurisdictions that the US Department of the Treasury (Treasury) and the IRS have a relevant information exchange agreement with. The agreement relates to information collected under Treas. Reg. §§ 1.6049-8 and 1.6049-4(b)(5), with respect to certain deposit interest paid to residents of the jurisdictions.

Revenue Procedure 2022-36: This ruling provides the domestic asset/liability percentages and domestic investment yields needed by foreign life insurance companies and foreign property and liability insurance companies to compute their minimum effectively connected net investment income under Section 842(b) for taxable years beginning in 2021.

Revenue Ruling 2022-18: This ruling provides the federal rates, adjusted federal rates, adjusted federal long-term rate and long-term tax-exempt rate for October 2022.

October 3, 2022: The IRS released Tax Tip 2022-151, providing information on the tax implications when someone is employed by a family member. The list includes married people in business together, children employed by their parents and parents employed by their child.

October 4, 2022: The IRS announced that the IRS Independent Office of Appeals (IRS Appeals) made two revisions to its initial contact letters in response to feedback from taxpayers and practitioners. The revised letters clarify that taxpayers and representatives can choose how they meet with IRS Appeals, whether it be by telephone, video or in-person. In addition, the initial contact letters now include the name and phone number of the IRS Appeals Officer’s manager. For more information, see our post here.

October 4, 2022: The IRS released Tax Tip 2022-152, reminding farmers and ranchers in drought stricken regions that they may have additional time to replace livestock and defer tax on any gains from the forced sales. Notice 2022-43 lists the applicable regions, counties and jurisdictions that are eligible for federal assistance. The relief extends to 44 states, two US territories and two independent nations and generally applies to capital gains realized on sales of livestock held [...]

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Weekly IRS Roundup September 26 – September 30, 2022

By McDermott Will & Emery on Oct 3, 2022
Posted In IRS Appeals, IRS Guidance, Tax Reform, Tax Refunds

Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of September 26, 2022 – September 30, 2022.

September 26, 2022: The IRS released Internal Revenue Bulletin 2022-39, which highlights the following:

REG-125693-19: These proposed regulations clarify issues that do not meet the definition of a federal tax controversy, exceptions to consideration by the IRS Office of Appeals (IRS Appeals), and procedural and timing requirements that must be met before IRS Appeals will consider an issue. The proposed regulations also provide the requirements a taxpayer must meet to receive the notice described in Internal Revenue Code (Code) Section 7803(e)(5) when the taxpayer requests consideration by IRS Appeals and the request is denied. More coverage of this issue can be found here.

Notice 2022-38: This notice publishes the inflation adjustment factor for the carbon oxide sequestration credit under § 45Q for calendar year 2022. This notice also informs taxpayers that 2022 will be the final calendar year for which they may claim a credit under Code Section 45Q(a)(1) and (2) for qualified carbon oxide that is captured by carbon capture equipment originally placed in service at a qualified facility before the date of enactment of the Bipartisan Budget Act of 2018.

September 26, 2022: The IRS issued Notice 2022-44, providing annual notice of the 2022 to 2023 special per diem rates for taxpayers to use when substantiating the amount of business expenses incurred while traveling away from home. Specifically, the notice addresses (1) the special transportation industry meal and incidental expenses rates, (2) the rate for the incidental expenses only deduction and (3) the rates and list of high-cost localities for purposes of the high-low substantiation method.

September 26, 2022: The IRS released Notice 2022-45, extending the deadline for amending an eligible retirement plan to reflect the Coronavirus Aid, Relief, and Economic Security Act and the Taxpayer Certainty and Disaster Tax Relief Act of 2020. Both allow for special tax treatment with respect to a coronavirus-related distribution or a qualified disaster distribution.

September 26, 2022: The IRS released Tax Tip 2022-147, highlighting five resources people can find on IRS.gov. These resources are:

September 27, 2022: The IRS released Tax Tip 2022-148, providing the steps for becoming an IRS-authorized e-file provider.

September 27, 2022: The IRS announced that victims of storms and flooding in Alaska, which started on September 15, now have until February 15, 2023, to file various federal individual and business tax returns and make tax payments. The relief is available to anyone in an area designated by the Federal Emergency Management Agency [...]

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Weekly IRS Roundup March 13 – March 19, 2022

By McDermott Will & Emery on Mar 21, 2022
Posted In IRS Guidance, Tax Reform

Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of March 13, 2022 – March 19, 2022. Additionally, for continuing updates on the tax impact of COVID-19, please visit our resource page here.

March 14, 2022: The IRS issued Announcement 2022-6, announcing that, effective March 14, 2022, and until further notice, the IRS will no longer accept applications for opinion letters relating to traditional individual retirement accounts (IRAs), Roth IRAs, Savings Incentive Match Plan for Employees (SIMPLE) IRAs or simplified employee pensions (SEPs) in order to revise associated forms and procedures and issue guidance to reflect recent legislation.

March 15, 2022: The IRS issued Revenue Ruling 2022-8, providing various prescribed interest rates for federal income tax purposes for April 2022.

March 15, 2022: The IRS issued Notice 2022-13, providing relief to certain taxpayers with income from a farming or fishing business from penalties under Section 6654 of the Code for underpayments of estimated income tax.

March 15, 2022: The IRS issued a news release announcing an expansion of the multilingual options available with respect to certain IRS forms and publications.

March 16, 2022: The IRS issued Revenue Procedure 2022-17, providing updated tables for use in determining limitations on, and reductions to, depreciation deductions with respect to passenger automobiles under Section 280F of the Code.

March 16, 2022: The IRS issued a news release announcing that it is hiring for more than 200 information technology positions as part of an initiative to modernize its systems.

March 16, 2022: The IRS issued a news release, providing tips for taxpayers to protect themselves against tax-related fraud and identity theft.

March 17, 2022: The IRS issued minor corrections to proposed regulations published on March 1, 2022, relating to renewal fees for enrolled agents and enrolled retirement plan agents.

March 18, 2022: The IRS issued minor corrections to proposed regulations published on February 24, 2022, relating to required minimum distributions with respect to certain employee pension and retirement plans.

March 18, 2022: The IRS issued Revenue Ruling 2022-06, providing the semi-annual Standard Industry Fare Level (SIFL) rates and terminal charge used in computing the value of noncommercial flights on employer-provided aircrafts for purposes of the taxation of fringe benefits under Section 61 of the Code. The Revenue Ruling provides both unadjusted SIFL rates and SIFL rates as adjusted for relief provided to the airline industry by COVID-related legislation.

March 18, 2022: The IRS issued Revenue Procedure 2022-20, providing that hearings held by teleconference must generally meet the public approval requirement under Section 147(f) of the Code for tax-exempt qualified private activity bonds.

March 18, 2022: The IRS issued Notice 2022-11, in conjunction with the US Department of Labor and the [...]

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Weekly IRS Roundup February 18 – 22, 2019

By McDermott Will & Emery on Feb 25, 2019
Posted In IRS Guidance, Tax Reform, Uncategorized

Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of February 18 – 22, 2019.

February 19, 2019: The IRS issued a news release promoting online resources for answering taxpayer questions, in light of high call volume during the period following Presidents Day.

February 19, 2019: The IRS issued a news release reminding farmers and fishermen to file Form 1040 and remit all taxes owed by March 1, 2019, if they had elected to forgo making quarterly estimated tax payments.

February 19, 2019: The IRS acquiesced to the decision only in Jacobs v. Commissioner, 148 TC No. 24 (2017), dealing with whether the Boston Bruins’ pre-game meals at away game hotels were de minimis fringe benefits under section 132(e)(2) of the Code.

February 21, 2019: The IRS issued a news release urging taxpayers to file reports of large cash transactions electronically, in lieu of filing a paper Form 8300.

February 22, 2019: The IRS released final regulations amending compliance monitoring regulations for the low-income housing credit of section 42 of the Code.

February 22, 2019: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).

Special thanks to Le Chen in our DC office for this week’s roundup.

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Sarah Raben

Weekly IRS Roundup February 27 – March 3, 2023

Weekly IRS Roundup October 24 – October 28, 2022

Weekly IRS Roundup October 3 – October 7, 2022

Weekly IRS Roundup September 26 – September 30, 2022

Weekly IRS Roundup March 13 – March 19, 2022

Weekly IRS Roundup February 18 – 22, 2019

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