individual retirement account/IRA Archives

individual retirement account/IRA

Weekly IRS Roundup March 27 – March 31, 2023

by Sarah M. Raben | Apr 3, 2023 | 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 March 27, 2023 – March 31, 2023.

March 27, 2023: The IRS released Internal Revenue Bulletin 2023-13, which highlights the following:

Notice 2023-23: This notice provides guidance to financial institutions on reporting required minimum distributions (RMDs) for 2023 after the amendment to Section 401(a)(9) made by the Consolidated Appropriations Act, 2023. If an individual retirement account (IRA) owner has an RMD due in 2023, the financial institution that is the trustee, custodian, or issuer maintaining the IRA must file a 2022 Form 5498 (IRA Contribution Information) by May 31, 2023, and indicate by checking Box 11 that an RMD is required.

Revenue Procedure 2023-13: This procedure provides the general rules and specifications for paper and computer-generated substitutes for the following:

- Form 941, Employer’s QUARTERLY Federal Tax Return
- Schedule B (Form 941), Report of Tax Liability for Semiweekly Schedule Depositors
- Schedule D (Form 941), Report of Discrepancies Caused by Acquisitions, Statutory Mergers, or Consolidations
- Schedule R (Form 941), Allocation Schedule for Aggregate Form 941 Filers
- Form 8974, Qualified Small Business Payroll Tax Credit for Increasing Research Activities.

Revenue Procedure 2023-18: This procedure addresses how to apply to be a certified professional employer organization (CPEO), the requirements for a CPEO to remain certified and the procedures relating to suspension and revocation of CPEO certification.

Notice 2023-24: This notice provides guidance under Section 45J relating to the credit for the production of electricity from advanced nuclear power facilities. The notice provides (1) guidance for computing the Section 45J credit; (2) the amount of the unutilized national megawatt capacity limitation; (3) the procedures for taxpayers to apply for allocations of—and that the IRS will use to allocate—the unutilized national megawatt capacity limitation solely with respect to facilities that the US Department of Energy previously certified as “advanced nuclear facilities” and (4) the procedures for a “qualified public entity” to elect to transfer the Section 45J credit to an “eligible project partner.”

Notice 2023-26: This notice provides adjustments to the limitation on housing expenses for purposes of Section 911 for specific locations for 2023. These adjustments are based on geographic differences in housing costs relative to housing costs in the United States.

Revenue Procedure 2023-17: This procedure provides indexing adjustments for the applicable dollar amounts under Sections 4980H(c)(1) and (b)(1). These indexed amounts are used to calculate the employer-shared responsibility payments under Section 4980H(a) and (b)(1), respectively.

Revenue Procedure 2023-19: This procedure provides information to any individual who failed to meet Section 911(d)(1) eligibility requirements for 2022 because of adverse conditions in a foreign country.

March 27, 2023: The IRS released a warning as part of the [...]

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Weekly IRS Roundup March 6 – March 10, 2023

by Sarah M. Raben | Mar 13, 2023 | 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 March 6, 2023 – March 10, 2023.

March 6, 2023: The IRS released Internal Revenue Bulletin 2023-10, which highlights the following:

Action on Decision 2023-1: The IRS announced that although it disagrees with the holding that Section 4611(b)(1)(A) imposes a tax on exports in violation of the Export Clause of the US Constitution (US Const. art. I, § 9, cl. 5), in the interest of sound tax administration, it will follow the decision in all circuits.

Notice 2023-17: This notice establishes a program to allocate amounts of environmental justice solar and wind capacity limitation (Capacity Limitation) to qualified facilities eligible for the energy investment credit as determined under Section 48. This notice also provides initial program guidance for potential applicants for allocations of calendar year 2023 Capacity Limitation.

Notice 2023-18: This notice establishes the Section 48C(e)(1) program to allocate $10 billion in credits ($4 billion of which may only be allocated to projects located in certain energy communities census tracts) and provides initial guidance. The goal of the program is to expand US manufacturing capacity and quality jobs for clean energy technologies (including production and recycling), reduce greenhouse gas emissions in the US industrial sector and secure domestic supply chains for critical materials (including specified critical minerals) that serve as inputs for clean energy technology production.

Notice 2023-20: This notice provides interim guidance for the determination of adjusted financial statement income as it relates to (1) variable contracts and similar contracts, (2) funds withheld from reinsurance and modified coinsurance agreements and (3) the basis of certain assets held by certain previously tax-exempt entities that received a “fresh start” basis adjustment.

Revenue Ruling 2023-5: This revenue ruling provides the applicable federal rates for federal income tax purposes for March 2023. The short-term federal interest rate is 4.5%, the mid-term rate is 3.7% and the long-term rate is 3.74%.

March 6, 2023: The IRS announced that it will be open for special Saturday hours throughout tax season, during which taxpayers can receive face-to-face help from IRS employees without an appointment. The next Saturday openings will be April 8 and May 13.

March 6, 2023: The IRS released Tax Tip 2023-28, which offers easy and convenient options for making federal tax payments.

March 7, 2023: The IRS released Notice 2023-23, which provides guidance to financial institutions on reporting required minimum distributions (RMDs) for 2023 after the amendment to Section 401(a)(9) made by the Consolidated Appropriations Act. If an individual retirement account (IRA) owner has an RMD due for 2023, the financial institution that is the trustee, custodian or issuer maintaining the IRA must file a 2022 Form 5498 (IRA Contribution Information) by May 31, 2023, and indicate [...]

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Weekly IRS Roundup March 13 – March 19, 2022

by McDermott Will & Emery | Mar 21, 2022 | 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 March 6 – March 12, 2022

by McDermott Will & Emery | Mar 14, 2022 | 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 6, 2022 – March 12, 2022. Additionally, for continuing updates on the tax impact of COVID-19, please visit our resource page here.

March 6, 2022: The IRS issued a news release reminding taxpayers that individual retirement account (IRA) contributions for 2021 may be made through April 18, 2022.

March 6, 2022: The IRS issued a news release, providing an update to a Fact Sheet containing answers to frequently asked questions regarding the Child Tax Credit under Section 24 of the Code, as expanded by the American Rescue Plan Act of 2021 (ARPA).

March 6, 2022: The IRS issued a news release reminding taxpayers of the benefits available pursuant to the Child and Dependent Care Credit under Section 21 of the Code, as expanded by ARPA.

March 10, 2022: The IRS issued a news release, announcing that it is hiring for more than 5,000 positions at its service processing centers in Austin, Texas, Kansas City, Missouri and Ogden, Utah.

March 10, 2022: The IRS issued a news release, announcing the implementation of voice and chat bots on certain telephone lines and on IRS.gov to alleviate long wait times for taxpayers seeking assistance with simple payment and collections questions.

March 11, 2022: The IRS issued a correction to amendments released on February 22, 2022, to final regulations published on January 25, 2022, concerning the treatment of domestic partnerships that hold stock in foreign corporations.

March 11, 2022: The IRS issued Announcement 2022-5, announcing disciplinary sanctions taken against certain individuals licensed to practice before the IRS.

March 11, 2022: The IRS issued a news release, announcing that it is hiring customer service representatives for a call center in Mississippi as part of an IRS-wide effort to assist under-served communities.

March 11, 2022: 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 Washington, DC, office for this week’s roundup.