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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