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 for draft, dairy or breeding purposes.
October 4, 2022: The IRS announced that it has awarded $41 million in Tax Counseling for the Elderly (TCE) and Volunteer Income Tax Assistance (VITA) grants. The TCE program provides free tax counseling and federal return preparation to individuals who are at least 60 years old. The VITA program assists underserved communities, such as low- to moderate-income individuals, and limited English proficient taxpayers.
October 4, 2022: The IRS issued a statement regarding Letter 6534. Starting in October, it will mail out letters on behalf of the Centers for Medicare & Medicaid Services that provide information about obtaining Marketplace healthcare coverage. Anyone with questions should call the Marketplace Call Center at (800)318-2596 or visit HealthCare.gov.
October 5, 2022: The IRS issued Tax Tip 2022-153, highlighting the advantages of an IRS online account.
October 5, 2022: The IRS is seeking comments related to the Annual Return/Report of Employee Benefit Plan and the Payment of Pension Plan Excise Taxes. Specifically, the IRS is requesting comments concerning (1) Form 5500, associated Schedules and Form 5558 and (2) Forms 5330 and 8868.
October 5, 2022: The IRS issued six notices requesting comments on energy guidance. Comments should be provided by November 4, 2022. See the full list below:
- Notice 2022-46 requests comments on credits for clean vehicles.
- Notice 2022-47 requests comments on energy security tax credits for manufacturing.
- Notice 2022-48 requests comments on incentive provisions for improving the energy efficiency of residential and commercial buildings.
- Notice 2022-49 requests comments on certain energy generation incentives.
- Notice 2022-50 requests comments on the elective payment of applicable credits and the transfer of certain credits.
- Notice 2022-51 requests comments on prevailing wage, apprenticeship, domestic content and energy community requirements.
October 5, 2022: The IRS announced that Hurricane Ian victims in North and South Carolina now have until February 15, 2023, to file various federal individual and business tax returns and make tax payments. This announcement is similar to relief announced last week for Hurricane Ian victims in Florida and is available to anyone in an area designated by the Federal Emergency Management Agency as qualifying for individual or public assistance. The current list of eligible localities is available here.
October 6, 2022: The IRS reminded taxpayers and domestic legal entities that October 15 is the extension deadline to file their annual Report of Foreign Bank and Financial Accounts (FBAR). Filers who missed the April 15 annual due date earlier this year received an automatic extension until October 15, 2022, to file their FBAR. Additional information is available on the Financial Crimes Enforcement Network’s (FinCEN) website.
October 6, 2022: The IRS released Tax Tip 2022-154, reminding people of the Taxpayer Bill of Rights, which outlines the fundamental rights of every taxpayer.
October 7, 2022: The IRS reminded taxpayers who requested an extension to file their 2021 tax return that they have until October 17, 2022, to get it filed. The IRS also urges taxpayers who already have their information ready to file as soon as possible.
October 7, 2022: The IRS released Notice 2022-52, which 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 7, 2022: The IRS released Notice 2022-53, which announced that the 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 provisions of Section 401(a)(9) that apply for 2021 and 2022.
October 7, 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 following Taxpayer Advocacy Panel Committees are scheduled to meet in October:
- October 11, 2022: Notices and Correspondence Project Committee
- October 11, 2022: Tax Forms and Publications Project Committee
- October 11, 2022: Toll-Free Phone Lines Project Committee
- October 12, 2022: Special Projects Committee
- October 12, 2022: Taxpayer Communications Project Committee
- October 13, 2022: Taxpayer Assistance Center Improvements Project Committee
- The 28th Annual Tax Practitioner and IRS Fall Seminar is scheduled for October 26, 2022, at 10:00 am (CDT). Topics include IRS Operations, Federal Ethics, Tax Pro Account, Offer In Compromise and Estate and Gift Tax.
Special thanks to Sarah Raben in our Chicago office for this week’s roundup.
