Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of February 12, 2024 – February 16, 2024.
February 12, 2024: The IRS released Internal Revenue Bulletin 2024-7, which includes the following:
- Revenue Ruling 2024-5, which provides that if one or more of a state’s allocations of housing credit dollar amounts under § 305 of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 to qualified disaster zones in 2021 or 2022 are returned after 2022, then the returned housing credit dollar amounts are not restricted to projects located in qualified disaster zones.
- Announcement 2024-7, which corrects Revenue Procedure 2024-5 by providing initially omitted effective dates for changes to the user fees that apply to certain requests for advance approvals.
- Announcement 2024-8, which revokes tax-exempt status for the Altruistic United Humanity Association.
- Announcement 2024-9, which revokes tax-exempt status for the West Los Angeles Obedience Training Club Inc.
- Notice 2024-20, which advises that forthcoming proposed regulations will set forth (i) requirements for qualifying as an eligible census tract for purposes of the alternative fuel vehicle refueling property credit under § 30C of the Internal Revenue Code (Code) and (ii) guidance as to how taxpayers can verify that property satisfies the geographic requirements of Code § 30C.
- Notice 2024-23, which provides special relief under Code § 529 for certain rollovers to or from Maryland Prepaid College Trust (MPCT) accounts. Due to accounting discrepancies and administrative issues, access to MPCT interest earnings was frozen in April 2022 and restored July 2023. Due to the freeze, many taxpayers executed a qualified rollover out of MPCT accounts. Notice 2024-23 permits taxpayers to transfer funds back into an MPCT account in a qualified rollover even though the transfer of funds out of the MPCT account may have occurred within the past 12 months.
February 12, 2024: The IRS announced that Jim Lee, chief of IRS Criminal Investigation, will retire effective April 6, 2024.
February 12, 2024: The IRS issued Revenue Procedure 2024-14, which provides indexing adjustments for applicable dollar amounts used to calculate the employer shared responsibility payments under § 4980H(a) and (b)(1) of the Code.
February 12, 2024: The IRS reminded senior taxpayers of free tax filing options, including the programs Tax Counseling for the Elderly, Volunteer Income Tax Assistance and IRS Free File.
February 13, 2024: The IRS highlighted seven suspicious signs that an Employee Retention Credit claim may be questionable and could signal future IRS problems to help small businesses that may need to resolve incorrect claims.
February 13, 2024: The IRS alerted tax professionals to watch out for a “new client” scam, which is an email scheme (in which cybercriminals pose as potential clients) that peaks during the busy tax filing season.
February 14, 2024: The IRS reminded taxpayers of IRS Free File, which provides free tax preparation, free electronic filing and free direct deposit for eligible taxpayers that have adjusted gross income of $79,000 or less.
February 14, 2024: The IRS announced special Saturday hours from 9:00 am to 4:00 pm local time for the next four months at specific Taxpayer Assistance Centers across the country.
February 15, 2024: The IRS announced that individuals and businesses in parts of Michigan affected by the severe storms, tornadoes and flooding that began on August 24, 2023, now have until June 17, 2024, to file various federal individual and business tax returns and make tax payments.
February 15, 2024: The IRS released Revenue Ruling 2024-04, which announces the March 2024 applicable federal rates.
February 15, 2024: The IRS released Notice 2024-24, which provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates used under § 417(e)(3), and the 24-month average segment rates under § 430(h)(2) of the Code. Additionally, the Notice provides guidance as to the interest rate on 30-year Treasury securities under § 417(e)(3)(A)(ii)(II) as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate under § 431(c)(6)(E)(ii)(I).
February 16, 2024: The IRS released a correction to REG-132569-17, clarifying that gas upgrading equipment that is necessary to concentrate the gas from qualified biogas property into the appropriate mixture for injection into a pipeline through removal of other gases such as carbon dioxide, nitrogen or oxygen, would be energy property if it is an integral part of an energy property as defined in Treas. Reg. § 1.48-9(f)(3), as proposed.
February 16, 2024: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).
