Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of January 8, 2024 – January 12, 2024.
January 8, 2024: The IRS released Internal Revenue Bulletin 2024-2, which includes the following:
- Notice 2024-7, which provides eligible taxpayers with automatic relief from additions to tax for failure to pay with respect to certain income tax returns for 2020 and 2021.
- Announcement 2024-3, which explains Voluntary Disclosure Program eligibility criteria, terms and procedures for taxpayers to resolve refunds or credits for erroneous Employee Retention Credit (ERC) claims.
- Notice 2024-2, which provides guidance on certain SECURE 2.0 Act of 2022 provisions.
- Notice 2024-3, which sets forth the 2023 Cumulative List of Changes in Plan Qualification Requirements for Defined Contribution Qualified Pre-approved Plans.
- Notice 2024-4, which updates the corporate bond monthly yield curve and corresponding spot segment rates for December 2023 used under Internal Revenue Code (Code) § 417(e)(3)(D), the 24-month average segment rates for December 2023 and the 30-year Treasury rates, as reflected by the application of § 430(h)(2)(C)(iv).
- Revenue Ruling 2024-1, which provides covered compensation tables under § 401(1)(5)(E) for the 2024 plan year.
- Notice 2024-1, which provides the percentage increase for calculating the qualifying payment amounts for items and services furnished in 2024 for purposes of Code §§ 9816 and 9817, §§ 716 and 717 of the Employee Retirement Income Security Act of 1974, and §§ 2799A-1 and 2799A-2 of the Public Health Service Act.
- Notice 2024-6, which provides additional guidance on the sustainable aviation fuel (SAF) credit, including methods and Renewable Fuel Standard program safe harbors used to qualify for and calculate the SAF credit.
- Announcement 2024-1, which revokes § 501(c)(3) determinations for certain organizations and stipulates that contributions made to the organizations by individual donors are no longer deductible under § 170(b)(1)(A).
- Notice 2024-5, which provides a safe harbor for the incremental cost of certain qualified commercial clean vehicles placed in service in calendar year 2024 for purposes of the credit pursuant to § 45W.
- Notice 2024-8, which provides the optional 2024 standard mileage rates that taxpayers can use when computing the deductible costs of operating an automobile for business, charitable, medical or moving expense purposes.
- Notice 2024-9, which notes the IRS’s intent to propose regulations concerning statutorily required exceptions to the elective payment phaseout for entities that do not satisfy the domestic content requirements of §§ 45, 45Y, 48 and 48E. The notice also provides the transitional process for how applicable entities can claim the statutory exception for elective payment projects that begin construction during calendar year 2024 and fail to satisfy the domestic content requirement.
- Notice 2024-11, which updates the list of treaties that meet the requirements of § 1(h)(11)(C)(i)(II) as it relates to dividends taxed as net capital gain.
- Proposed regulations that would provide guidance to qualified manufacturers of new clean vehicles on how to comply with rules concerning excluded entities pursuant to § 30D, as established by the Inflation Reduction Act of 2022. Comments must be received by January 18, 2024.
- Revenue Ruling 2024-2, which provides the January 2024 applicable federal rates.
January 8, 2024: The IRS announced that January 29, 2024, is the official start date of the tax filing season for 2023 personal income tax returns.
January 9, 2024: The IRS alerted tax professionals to watch out for “new client” filing season-related email schemes where cybercriminals pose as potential clients.
January 9, 2024: The IRS reminded employers that January 31, 2024, is the deadline to submit wage statements and forms for independent contractors with the government.
January 10, 2024: IRS Commissioner Danny Werfel updated the Senate Finance Committee on the IRS’s efforts to protect taxpayers and combat fraud in the ERC program.
January 10, 2024: National Taxpayer Advocate Erin M. Collins released her 2023 Annual Report to Congress. The report is required to identify the 10 most serious problems taxpayers are experiencing in their dealings with the IRS and to make administrative and legislative recommendations to address said problems.
January 11, 2024: The IRS posted a free replay of a recent 2023 Form 1099-K webinar. Other video resources are available at irsvideos.gov.
January 11, 2024: The IRS issued a notice of proposed rulemaking, which provides that a public hearing pertaining to proposed regulations that would provide guidance on the clean vehicle credits pursuant to §§ 25E, 30D and 6213 will take place on January 31, 2024. Speaker outlines detailing the topics to be discussed must be received by January 18, 2024.
January 11, 2024: The IRS issued Notice 2024-19, which provides relief from penalties under § 6722 to partnerships that are mandated to furnish Form 8308 to transferors and transferees after a § 751 exchange.
January 12, 2024: The IRS announced its continued progress in expanding enforcement efforts related to high-income individuals, large corporations and complex partnerships as part of its wider efforts to transform the agency. Of note is the IRS’s intention to expand the Global High Wealth Program to have 350 more employees, signaling an increased focus on high-wealth taxpayers.
January 12, 2024: The IRS announced that the IRS Free File Guided Tax Software is ready for taxpayers to use.
January 12, 2024: The IRS issued Notice 2024-22, which provides guidance to help employers with the implementation of pension-linked emergency savings accounts.
January 12, 2024: The IRS issued final regulations that specify the methodology for constructing the corporate bond yield curve utilized to derive the interest rates when calculating present value and making other calculations under a defined benefit plan, as well as for discounting unpaid losses and estimated salvage recoverable of insurance companies. The final regulations are effective January 12, 2024.
January 12, 2024: The IRS issued Notice 2024-18, which addresses the availability of administrative exemptions from the requirement to file certain returns and other documents in electronic form.
January 12, 2024: The IRS issued Notice 2024-21, which updates the corporate bond monthly yield curve and corresponding spot segment rates for January 2024 used under Code § 417(e)(3)(D), the 24-month average segment rates for January 2024 and the 30-year Treasury rates, as reflected by the application of § 430(h)(2)(C)(iv).
January 12, 2024: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).
