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Weekly IRS Roundup May 30 – June 2, 2023

Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of May 30, 2023 – June 2, 2023.

May 30, 2023: The IRS released Internal Revenue Bulletin 2023-22, which highlights the following:

  • Notice 2023-39: This notice describes proposed amendments to Section 148 that the US Department of the Treasury (Treasury) and the IRS intend to issue regarding an exception to arbitrage investment restrictions applicable to bonds on which the interest is excludable from gross income under Section 103(a) (tax-exempt bonds). Specifically, the forthcoming proposed regulations will amend Section 1.148-11(d)(1)(i)(F) regarding whether certain perpetual trust funds created and controlled by states that are pledged as credit enhancements to guarantee tax-exempt bonds will be treated as replacement proceeds of the guaranteed bonds for purposes of the arbitrage investment restrictions on tax-exempt bonds under Section 148.
  • Revenue Procedure 2023-23: This procedure provides the 2024 inflation-adjusted amounts for Health Savings Accounts as determined under Section 223, as well as the maximum amount that may be made newly available for excepted benefit health reimbursement arrangements provided under Section 54.9831-1(c)(3)(viii) of the Pension Excise Tax Regulations.
  • Notice 2023-40: This notice sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates used under Sec. 417(e)(3)(D) and the 24-month average segment rates applicable for May 2023. This notice also provides the 30-year Treasury rates, as reflected by the application of Sec. 430(h)(2)(C)(iv).
  • Notice 2023-38: This notice provides the general rules taxpayers must satisfy to qualify for the domestic content bonus credit amounts and the related recordkeeping and certification requirements. The guidance also describes a safe harbor regarding the classification of certain components in representative types of qualified facilities, energy projects or energy storage technologies.

May 30, 2023: The IRS released Tax Tip 2023-73, reminding taxpayers that the extended deadline to file their 2019 tax returns for unclaimed refunds is July 17, 2023. Taxpayers usually have three years to file; however, the deadline was postponed due to the COVID-19 pandemic.

May 30, 2023: The IRS requested comments on Form 1041, U.S. Income Tax Return for Estates and Trusts, related Schedules D, I, J and K-1, and Form 1041-V. Comments should be received on or before July 31, 2023.

May 30, 2023: The IRS reminded taxpayers living and working abroad to file their 2022 federal income tax return by the June 15 deadline. This applies to both US citizens and resident aliens abroad, including those with dual citizenship.

May 31, 2023: The Treasury and the IRS announced guidance for applicants investing in solar- and wind-powered electricity generation facilities. Notice 2023-17 established the Low-Income Communities Bonus Credit Program back in February 2023 and provided initial guidance for potential applicants. The proposed regulations request comments on certain definitions [...]

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Weekly IRS Roundup March 2 – 6, 2020

Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of March 2 – 6, 2020.

March 2, 2020: The US Treasury Department and the IRS released tax year 2018 statistics to the public, including both individual income tax returns (Form 1040’s) filed through mid-November of 2019 and filings by charitable organizations through December of 2019. The Treasury Department reported that overall average adjusted gross income (AGI) rose by 5.7% relative to the same period the prior year.

March 6, 2020: The IRS issued final regulations that correct TD 9890, which provides guidance on certain due diligence and reporting rules applicable to persons making certain US source payments to foreign persons and guidance on certain aspects of reporting by foreign financial institutions on US accounts. The correction updates the table of contents entries for Example 4 in Treas. Reg. § 1.1441-6(b)(2)(iv)(D).

March 2, 2020: The IRS issued a revenue procedure providing an exemption from the information reporting requirements under IRC section 6048 for certain US individuals with respect to their transactions with, and ownership of, certain tax-favored foreign retirement trusts and nonretirement savings trusts. The revenue procedure also establishes procedures for eligible individuals to request an abatement of penalties that have been assessed or a refund of penalties that have been paid pursuant to IRC section 6677 for the individuals’ failure to comply with information reporting requirements.

March 4, 2020: The Statistics of Income Division of the IRS released Publication 5398, which reports the AGI percentiles by state for the 2017 tax year. In 2017, the AGI cutoff for the top 1 percent of the US income distribution was $516,714; the average AGI for this group of taxpayers was $1,625,221, with labor income, capital income and business income as their three primary sources of income.

March 6, 2020: The IRS changed the date of a public hearing on proposed regulations under IRC section 274, regarding expenditures related to entertainment, amusement or recreation activities. The public hearing, which was originally scheduled for April 7, 2020, has been rescheduled for April 29, 2020. The IRS requests that comments be received by April 13, 2020.

March 6, 2020: The IRS released Instructions to Schedule D of Form 1040, advising taxpayers who are eligible to roll over gain from empowerment zone assets for 2018 (potentially due to recent legislation restoring the empowerment zone rollover for 2019 and retroactively extending it to 2018) to file an amended return using Form 1040-X. The IRS explained how taxpayers may determine if they are eligible to postpone their gain and, if so, how such taxpayers may report their position to the IRS.

March 6, 2020: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).

Special thanks to Jenni [...]

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Weekly IRS Roundup February 4 – 8, 2019

Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of February 4 – 8, 2019.

February 4, 2019: The IRS released final instructions for Form 1065, US Return of Partnership Income, incorporating changes made by the Tax Cuts and Jobs Act.

February 5, 2019: The IRS issued a news release postponing certain tax deadlines for taxpayers affected by the earthquake that occurred in Alaska on November 30, 2018.

February 6, 2019: The IRS released final instructions for Form 1041, US Income Tax Return for Estates and Trusts, and supporting schedules, incorporating changes made by the Tax Cuts and Jobs Act.

February 6, 2019: The IRS released final instructions for Form 8991, dealing with the base erosion and anti-abuse tax (BEAT) of section 59A of the Code, enacted as part of the Tax Cuts and Jobs Act.

February 7, 2019: The IRS issued a news release providing guidance on identifying and avoiding unethical tax return preparers.

February 8, 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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