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 people that they can stream the IRS Nationwide Tax Forum online. The on-demand version contains 18 self-study seminars that use interactive videos. You can find a complete list of the programs here.
October 26, 2022: The IRS released a draft version of Form 1065, Partnership Instructions for Schedules K-2 and K-3, for the 2022 tax year. You can submit comments to the IRS about draft or final forms, instructions or publications here.
October 27, 2022: The IRS announced that it has hired 4,000 new customer service representatives to help answer phones and provide services in preparation of the 2023 tax filing season. The goal is to hire an additional 1,000 customer service representatives by the end of the year.
October 27, 2022: The IRS urged all tax return preparers to renew their Preparer Tax Identification Numbers (PTINs) before they expire on December 31, 2022. Anyone who prepares or assists in the preparation of a federal tax return for compensation must have a valid PTIN before preparing tax returns. The fee to renew or obtain a PTIN for 2023 is $30.75.
October 27, 2022: The IRS released COVID Tax Tip 2022-165, reminding grandparents and others with eligible dependents to check their eligibility to receive the 2021 Child Tax Credit. Eligible taxpayers who received advance Child Tax Credit payments last year should file a 2021 tax return to receive the second half of the credit. Taxpayers who did not receive advance Child Tax Credit payments last year can claim the full credit by filing a 2021 tax return.
October 28, 2022: The IRS released a new set of tax gap estimates for tax years 2014 through 2016, which show that the estimated gross tax gap increased to $496 billion (up more than $58 billion over the prior estimate). The gross tax gap is the difference between estimated “true” tax liability for a given period and the amount of tax that is paid on time.
October 28, 2022: IRS Commissioner Charles Rettig released a statement announcing that Doug O’Donnell will serve as Acting Commissioner when his current term expires November 12. Doug is currently the IRS Deputy Commissioner for Services and Enforcement, with more than 36 years of experience at the IRS. US Secretary of the Treasury Janet L. Yellen made the designation.
October 28, 2022: The IRS is asking for comments on regulations related to the income source for communications transmission income, as well as income from certain space and ocean activities. Written comments should be received by December 27, 2022.
October 28, 2022: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).
Upcoming Events:
- The Electronic Tax Administration Advisory Committee (ETAAC) will hold a meeting on November 3, 2022, which is open to the public. The purpose of the ETAAC is to provide advice regarding the development and implementation of the IRS’s organizational strategy for electronic tax administration.
- The IRS’s Taxpayer Advocacy Panel will hold the following committee meetings in November:
- November 8, 2022: Notices and Correspondence Project Committee
- November 8, 2022: Tax Forms and Publications Project Committee
- November 8, 2022: Toll-Free Phone Lines Project Committee
- November 9, 2022: Special Projects Committee
- November 9, 2022: Taxpayer Communications Project Committee
- November 10, 2022: Assistance Center Improvements Project Committee
- November 17, 2022: Taxpayer Advocacy Panel Joint Committee
- The IRS Advisory Council will hold an in-person public meeting on November 16, 2022. To register, members of the public may contact Stephanie Burch at (202)317-4219 or send an email to PublicLiaison@irs.gov.
Special thanks to Sarah Raben in our Chicago office for this week’s roundup.
