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Weekly IRS Roundup September 11 – September 15, 2023

by Evan Walters | Sep 19, 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 September 11, 2023 – September 15, 2023.

September 11, 2023: The IRS released Internal Revenue Bulletin 2023-37, which includes the following:

Revenue Ruling 2023-16 provides the applicable federal rates for September 2023.
Revenue Ruling 2023-17 sets forth the underpayment and overpayment interest rates under Code Section 6621 for the calendar quarter beginning October 1, 2023.
Revenue Procedure 2023-29 provides the applicable percentage table used to calculate the premium tax credit under Code Section 36B.
Notice 2023-62 announces a two-year administrative transition period with respect to the requirement under Code Section 603 that catch-up contributions made on behalf of certain eligible participants be designated as Roth contributions. The notice also requests comments for further guidance with respect to Code Section 603.
Announcement 2023-25 and Announcement 2023-26 revoke tax-exempt classification for specified organizations.
Announcement 2023-28 corrects citations in Revenue Procedure 2023-27.

September 12, 2023: The IRS released Notice 2023-64, which provides interim guidance on the corporate alternative minimum tax (CAMT). The notice lists financial statements that meet the definition of an applicable financial statement, provides general rules for determining “financial statement income” and includes guidance on when corporations are subject to the CAMT. Notice 2023-64 supplements and clarifies Notice 2023-07 and Notice 2023-20.

September 12, 2023: The IRS released Revenue Procedure 2023-31, providing guidance on Form 8955-SSA, Annual Registration Statement Identifying Separated Participants With Deferred Vested Benefits, and Form 5500-EZ, Annual Return of A One-Participant (Owners/Partners and Their Spouses) Retirement Plan or A Foreign Plan, which must be filed for plan years beginning on or after January 1, 2024. Revenue Procedure 2023-31 supersedes Revenue Procedure 2015-47.

September 12, 2023: The IRS published Tax Tip 2023-110, advising taxpayers to look out for scammers posing as charities and to ensure their donations are going to legitimate charitable organizations.

September 13, 2023: The IRS extended tax relief to individuals and businesses impacted by Hurricane Idalia in 28 counties in Georgia. As a result, affected individuals filing personal income tax returns on extensions expiring October 16, 2023, calendar-year partnerships and S corporations whose extensions expire on October 16, 2023, and calendar-year corporations whose 2022 extensions expire on November 15, 2023, now have until February 15, 2024, to file returns and pay related taxes.

September 14, 2023: The IRS announced an immediate moratorium through at least the end of the year on processing new claims for the Employee Retention Credit (ERC). The moratorium is in response to promoters who have aggressively marketed the credit to businesses without regard for their eligibility. Hundreds of criminal cases related to ERC claims are being worked, [...]

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Weekly IRS Roundup August 21 – September 1, 2023

by Evan Walters | Sep 5, 2023 | IRS Guidance, Tax Reform, Tax Refunds

Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for August 21, 2023 – September 1, 2023.[1]

August 21, 2023: The IRS released Tax Tip 2023-102, warning tax professionals to be prepared for a variety of schemes aimed at stealing sensitive information, including phishing and attacks on cloud-based applications.

August 23, 2023: The IRS published Revenue Procedure 2023-29, providing the applicable percentage table used to calculate the premium tax credit under Section 36B.

August 24, 2023: The IRS reminded employers and employees that employers who have educational assistance programs can use those programs to help pay student loan obligations for their employees.

August 24, 2023: The IRS released Tax Tip 2023-103, outlining the Heavy Highway Vehicle Use Tax and reminding truckers that the tax payment due date is the last day of the month following the month the vehicle was first used on public highways. Truckers must also file Form 2290, Heavy Highway Vehicle Use Tax Return, by such date.

August 25, 2023: The IRS published Revenue Ruling 2023-17, which provides guidance on the overpayment and underpayment rate of tax under Section 6621. The ruling includes a table of interest rates spanning from 1975 through the present.

August 25, 2023: The IRS published Notice 2023-62, which provides guidance on particular issues involving catch-up contributions to retirement plans that are eligible to be designated as Roth contributions.

August 25, 2023: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).

August 28, 2023: The IRS released Tax Tip 2023-104, explaining that eligible teachers and administrators can claim a tax deduction for part of the cost of technology, supplies and training to the extent those expenses are not reimbursed.

August 29, 2023: The IRS issued proposed regulations that would require brokers to report sales and exchanges of digital assets by customers. The proposed regulations contemplate the creation of new Form 1099-DA.

August 29, 2023: The IRS released Tax Tip 2023-105, listing miscellaneous resources for military spouses who run businesses or do gig work.

August 30, 2023: The IRS issued proposed regulations, frequently asked questions and Publication 5855, which all relate to the increased tax credit or deduction amounts for clean energy facilities and projects if taxpayers satisfy certain prevailing wage and registered apprenticeship requirements.

August 30, 2023: The IRS announced that starting January 1, 2024, Form 8300, Report of Cash Payments Over $10,000, must be filed electronically. (See also FS-2023-19 (August 19, 2023).)

August 30, 2023: The IRS announced tax relief for individuals and businesses in parts of Florida affected by Hurricane Idalia. Currently, [...]

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Weekly IRS Roundup November 28 – December 2, 2022

by McDermott Will & Emery | Dec 5, 2022 | 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 November 28, 2022 – December 2, 2022.

November 28, 2022: The IRS released Internal Revenue Bulletin 2022-48, which highlights the following:

Notice 2022-59: This notice provides the adjusted applicable dollar amount to be multiplied by the average number of covered lives for purposes of calculating the fee imposed by Sections 4375 and 4376 for policy years and plan years that end on or after October 1, 2022, and before October 1, 2023. The amount is $3.00, up from $2.79.

Announcement 2022-23: This announcement notifies taxpayers of new credit amounts for calendar year 2022 for the renewable electricity production credit under Section 45, in the case of any qualified facility placed in service after December 31, 2021.

November 28, 2022: The IRS and Security Summit partners announced the kick-off date for the 7th National Tax Security Awareness Week. The group also urged people to be aware of holiday scams and to protect their personal information.

November 28, 2022: The IRS released Tax Tip 2022-181, reminding taxpayers to be aware of gift card scammers during the holidays. One of the common scams used this time of year is con artists asking taxpayers to pay fake tax bills with gift cards. Scammers also sometimes use a compromised email account to request gift card purchases for family and friends.

November 29, 2022: The IRS warned taxpayers to be on alert for scammers using fake charities as a way to make money during the holiday season. The message came on Giving Tuesday as part of Nationwide Tax Security Awareness Week. Tips for avoiding fake charity scams include not giving into pressure, being wary of how donations are requested and not giving more than is needed.

November 29, 2022: The IRS released Tax Tip 2022-182, reminding people that they may be eligible for more than one filing status. The IRS suggests that taxpayers review their options and pick the one that makes the most sense for them.

November 29, 2022: The IRS announced that interest rates will increase for the first quarter of 2023. The new interest rates, published in Revenue Ruling 2022-23, begin January 1, 2023, and are as follows:

Overpayments: 7%
Overpayments for corporations: 6%
Corporate overpayments for portion exceeding $10,000: 4.5%
Underpayments: 7%
Large corporate underpayments: 9%

November 29, 2022: The IRS announced that the IRS Office of Chief Counsel, along with the American Bar Association, held its first centralized National Virtual Settlement Event in October. Over the course of four days, 44 cases were settled and at least 59 meetings took place with taxpayers, pro bono attorneys and representatives from the IRS Office of Chief Counsel.

November 29, 2022: The IRS
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Weekly IRS Roundup November 7 – November 11, 2022

by McDermott Will & Emery | Nov 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 November 7, 2022 – November 11, 2022.

November 7, 2022: The IRS released Internal Revenue Bulletin 2022-45, which highlights the following:

Proposed Regulations 100719-21: This guidance proposes increases for both the enrollment and renewal of enrollment user fees for enrolled actuaries from $250 to $680.

Revenue Procedure 2022-38: This revenue procedure establishes the annual inflation adjustments for more than 60 tax provisions.

Notice 2022-54: This notice provides guidance on the corporate bond monthly yield curve and corresponding spot segment rates and the 24-month average segment rates for October 2022. The notice also provides guidance as to interest rates on 30-year Treasury securities and 30-year Treasury weighted average rates.

Notice 2022-55: This notice provides the dollar limitations on benefits and contributions under qualified retirement plans.

Notice 2022-53: This notice announces that the US Department of the Treasury (Treasury) and the IRS intend to issue final regulations related to required minimum distributions under Section 401(a)(9) that will apply no earlier than the 2023 distribution calendar year. The notice also provides guidance related to certain Section 401(a)(9) provisions that apply for 2021 and 2022 and the related excise tax under Section 4974.

Proposed Regulation 121509-00: This document withdraws proposed regulations related to exclusion from gross income of previously taxed earnings and profits under Section 959, as well as related basis adjustments under Section 961.

Revenue Ruling 2022-20: This guidance provides the various prescribed rates for federal income tax purposes for November 2022.

Treasury Decision 9968: These final regulations amend the regulations concerning eligibility for the premium tax credit to provide that affordability of employer-sponsored minimum essential coverage for family members of an employee is determined based on the employee’s share of the cost of covering the employee and those family members—not the cost of covering only the employee—under Section 36B.

November 7, 2022: The IRS and the Treasury announced that they will now allow Section 403(b) retirement plans to use the same individually designed retirement plan determination letter program currently used by qualified retirement plans. Revenue Procedure 2022-40 outlines the additions and changes.

November 7, 2022: The IRS issued COVID Tax Tip 2022-170, which cautions employers to be aware of third parties advising them to claim the employee retention credit when they may not qualify.

November 7, 2022: The IRS requested comments on the reporting requirements for settlement funds, which are funds established or approved by a governmental authority to resolve or satisfy certain liabilities (such as those involving tort or breach of contract). Comments should be received by January 6, 2023, to be assured of consideration.

November [...]

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Weekly IRS Roundup October 10 – October 14, 2022

by McDermott Will & Emery | Oct 17, 2022 | 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 10, 2022 – October 14, 2022.

October 11, 2022: The IRS released Internal Revenue Bulletin 2022-41, which highlights the following:

Notice 2022-42: This notice announces that the IRS and the US Department of the Treasury (Treasury) intend to amend the regulations under Section 901 with respect to the application of the noncompulsory payment regulations to certain amended Puerto Rico tax decrees.

Notice 2022-44: This notice provides annual awareness of the 2022-2023 special per diem rates for taxpayers to use when substantiating the amount of business expenses incurred while traveling away from home. The guidance 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.

Revenue Procedure 2022-19: This revenue procedure provides guidance to allow S corporations and their shareholders to resolve frequently encountered issues with certainty and without requesting a private letter ruling issued by the IRS.

October 11, 2022: The IRS issued Notice 2022-41, which expands the application of permitted change-in-status rules for health coverage under a Section 125 cafeteria plan. This guidance addresses when a plan participant may want to revoke the 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.

October 11, 2022: The IRS announced that seminars from the 2022 IRS Nationwide Tax Forum are now available online. The platform offers 18 self-study seminars, including ones on the following topics:

IRS Commissioner Chuck Rettig’s Keynote Address

Tax Law Changes for Tax Year 2022 – in English and Spanish

Professional Responsibility Obligations (Ethics) – in English and Spanish

Tax Treatment of Digital Assets

Tax-Exempt Organizations Update

Emerging Cyber Crimes – in English and Spanish

October 11, 2022: The IRS announced that it is expanding dyed diesel penalty relief in response to Hurricane Ian. The IRS will not impose a penalty when dyed diesel fuel with a sulfur content that does not exceed 15 parts-per-million is sold for use or used on highways in the state of Florida. The relief began on September 28, 2022, and lasts through October 19, 2022. The penalty relief previously only applied to emergency vehicles.

October 11, 2022: The IRS issued a statement related to uncertain tax positions (UTP) reporting. Draft changes to the Schedule UTP and the UTP instructions are available at Draft Task Forms. The draft changes are intended to improve the form’s usefulness by incorporating additional relevant examples and [...]

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Weekly IRS Roundup August 15 – August 19, 2022

by McDermott Will & Emery | Aug 22, 2022 | 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 August 15, 2022 – August 19, 2022.

August 15, 2022: The IRS released Internal Revenue Bulletin 2022-33, which highlights the following:

Revenue Procedure 2022-29 (modifying and superseding Revenue Procedure 2006-36, 2006-38 I.R.B 498). This guidance updates how government agencies and members of the public should request the creation of special statistical studies and compilations involving return information. It also sets forth the criteria for determining reasonable fees for the costs associated with the creation of the special statistical studies and compilations.

Revenue Procedure 2022-34. This guidance updates the applicable percentage table used to calculate an individual’s premium tax credit beginning in calendar year 2023 and also updates the required contribution percentage for plan years beginning after calendar year 2022.

August 15, 2022: The IRS announced that interest rates for fourth quarter overpayments and underpayments will increase starting October 1, 2022. The new rates are as follows:

Individuals: 6% per year, compounded daily, for both overpayments and underpayments

Corporations: 5% for overpayments; 6% for underpayments

Corporate overpayments for the portion exceeding $10,000:5%

Large corporate underpayments: 8%

More information can be found in Revenue Ruling 2022-15, which includes tables of the calculations and explanations of how the IRS calculates the rates.

August 15, 2022: The IRS announced that it will delay the effective date of the Foreign Currency Guidance once again. The US Department of the Treasury (Treasury) and the IRS intend to amend the regulations under Internal Revenue Code Section 987 in order to defer the applicability date of the 2016 final regulations and related 2019 final regulations by one additional year. The amendments would apply to the taxable year beginning on January 1, 2024.

August 15, 2022: The IRS released final regulations, providing guidance to states wanting to inspect certain return information for the purpose of administering state laws related to tax-exempt organizations. The final regulations reflect changes to the Internal Revenue Code made by the Pension Protection Act of 2006.

August 15, 2022: The IRS announced that Form 990-N filers will use a new sign-in process beginning in August. Smaller charities that are eligible and choose to file Form 990-N must sign into the IRS modernized authentication platform using either their active IRS username or by creating an account here.

August 15, 2022: The IRS released Tax Tip 2022-124, reminding all truckers to file Form 2290, Heavy Highway Vehicle Use Tax Return, on or before the August 31, 2022, deadline. Truck owners who drive a highway motor vehicle weighing 55,000 pounds or more must file the return and pay the tax. In addition, taxpayers with 25 or more taxed vehicles must e-file the form.

August 16, 2022: [...]

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Weekly IRS Roundup July 25 – July 29, 2022

by McDermott Will & Emery | Aug 1, 2022 | 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 July 25, 2022 – July 29, 2022. Additionally, for continuing updates on the tax impact of COVID-19, please visit our resource page here.

July 25, 2022: The IRS released Internal Revenue Bulletin 2022-30, which highlights the following:

Employee Plans: Revenue Ruling 2022-13 addresses the application of section 432(b)(7) in the case of a merger of a multiemployer defined benefit pension plan that receives special financial assistance (SFA) from the Pension Benefit Guaranty Corporation into a multiemployer defined benefit pension plan that does not receive SFA.

Estate Tax: Revenue Procedure 2022-32 provides a simplified method for certain estates to receive a time extension for filing a return before the fifth anniversary of the decedent’s death to elect portability of the deceased spousal unused exclusion amount. This revenue procedure applies to estates that are not normally required to file an estate tax return because the value falls under the filing threshold.

Income Tax: REG 130675-17 includes proposed regulations that define the term “foreign currency contract” to include only foreign currency forward contracts.

July 25, 2022: The Treasury Inspector General for Tax Administration (TIGTA) released its report, American Rescue Plan Act: Assessment of the Child Tax Credit Update Portal’s Capabilities and Related Processes. In January, TIGTA made recommendations to the IRS for improving and correcting the Child Tax Credit website. TIGTA also recommended that the IRS develop a reconciliation process for undeliverable checks. This report confirms that the IRS followed and implemented both recommendations.

July 25, 2022: The IRS asked for comments on Form 6781, Gains and Losses from Section 1256 Contracts and Straddles, which is used to calculate gains and losses from section 1256 contracts and straddles.

July 25, 2022: The IRS provided a status update on the Income Verification Express Service (IVES) program. During the third week of July, IVES processed Acknowledgments for requests dated through July 6, 2022, and Transcripts/Rejection Notices for requests dated through June 27, 2022. The IRS also reminded IVES participants that starting August 16, 2022, only the new coversheet from January 1, 2022, will be accepted.

July 25, 2022: The IRS released Tax Tip 2022-112, reminding people with disabilities to use the “Achieving a Better Life Experience” account to help pay qualified disability-related expenses. The tax-advantaged savings account does not affect their eligibility for government assistance programs.

July 26, 2022: The IRS released Tax Tip 2022-113, promoting its IRS2Go app to help people find IRS tools and resources faster and with less scrolling. The IRS2Go app works on mobile devices to check refund statuses and find tax help.

July 26, 2022: The IRS announced a warning for tax professionals [...]

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Weekly IRS Roundup April 3 – April 9, 2022

by McDermott Will & Emery | Apr 11, 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 April 3, 2022 – April 9, 2022. Additionally, for continuing updates on the tax impact of COVID-19, please visit our resource page here.

April 4, 2022: The IRS issued a news release, announcing that the application period for 2023 grants under the Low Income Taxpayer Clinic (LITC) program, an IRS program created to assist organizations in providing pro bono representation to low-income and English as a second language (ESL) taxpayers in federal tax disputes, will begin on or around May 2, 2022.

April 4, 2022: The IRS issued a news release, announcing that, in advance of the federal tax filing deadline, free face-to-face tax preparation assistance will be provided at Taxpayer Assistance Centers around the country on April 9, 2022.

April 5, 2022: The IRS issued proposed regulations amending the eligibility requirements for the premium tax credit under Section 36B of the Code. The proposed regulations generally provide that, for purposes of determining eligibility for the premium tax credit, the affordability of an employer-sponsored health plan with respect to an employee’s family members is determined based on the cost of covering the employee and their family members, rather than on the cost of covering the employee individually.

April 6, 2022: The IRS issued a news release, reminding taxpayers who make estimated tax payments that the due date for the first estimated tax installment is April 18, 2022.

April 8, 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.

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Weekly IRS Roundup April 26 – April 30, 2021

by McDermott Will & Emery | May 3, 2021 | 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 April 26, 2021 – April 30, 2021. Additionally, for continuing updates on the tax impact of COVID-19, please visit our resource page here.

April 26, 2021: The IRS issued Revenue Procedure 2021-23, making superseding changes to earlier Revenue Procedures related to the Child Tax Credit under section 24 of the Code, the Earned Income Credit under section 32 of the Code and the Premium Tax Credit under section 36B of the Code in order to reflect statutory amendments made by the American Rescue Plan Act of 2021 (ARPA).

April 26, 2021: The IRS issued a news release reporting the results of its March 2021 inaugural National Virtual Settlement Month, an IRS-coordinated nationwide initiative to provide pro bono legal advice to pro se US Tax Court litigants.

April 27, 2021: The IRS issued corrections to final regulations published in December 2020 regarding the elimination of the deduction for expenses associated with certain employer-provided transportation and commuting benefits under section 274 of the Code.

April 27, 2021: The IRS issued a news release, describing various electronic services it provides and urging taxpayers and tax professionals to use such services to speed up the processing of tax returns, payments and refunds.

April 28, 2021: The IRS issued a news release announcing a seventh round of Economic Impact Payments consisting of nearly two million payments totaling more than $4.3 billion, bringing the total amount of disbursements under ARPA to approximately 163 million payments worth approximately $384 billion.

April 29, 2021: The IRS issued a news release, providing information and resources to assist with tax compliance by gig economy workers and taxpayers who claimed unemployment compensation in 2020.

April 29, 2021: The IRS issued a news release, reminding taxpayers of the availability of tax-filing extensions upon request and listing certain categories of taxpayers who automatically obtain extensions without request.

April 30, 2021: The IRS issued Announcement 2021-8, listing attorneys, Certified Public Accountants (CPAs) and other practitioners who have received disciplinary sanctions for violating the regulations governing practice before the IRS.

April 30, 2021: The IRS issued a news release announcing the release of updated 2021 versions of Schedules K-2 and K-3 for Forms 1065, 1120-S and 8865. The updated Schedules are intended to provide greater clarity regarding the reporting of certain international tax items with respect to pass-through entities.

April 30, 2021: The IRS issued a news release announcing that it is now accepting grant applications by eligible organizations under the Tax Counseling for the Elderly (TCE) and Volunteer Income Tax Assistance (VITA) programs, which provide tax assistance services to elderly taxpayers and underserved communities, respectively.

April 30, 2021: The IRS released its weekly list of written determinations (e.g., [...]

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