Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of March 4, 2024 – March 8, 2024.
March 4, 2024: The IRS released Internal Revenue Bulletin 2024-10, which includes the following:
- Revenue Ruling 2024-6, which provides that the overpayment interest rate under § 6621 of the Internal Revenue Code (Code) for the calendar quarter beginning April 1, 2024, will be 8% (7% in the case of a corporation), the underpayment interest rate will be 8% and the interest rate for large corporate underpayments will be 10%. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 5.5%.
- Notice 2024-24, which provides updates on 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 applicable for February 2024, and the 30-year Treasury rates, as reflected by the application of § 430(h)(2)(C)(iv).
- Announcement 2024-13, which revokes § 501(c)(3) determinations for certain organization(s) and stipulates that contributions made to the organization(s) by individual donors are no longer deductible under § 170(b)(1)(A).
- Revenue Ruling 2024-04, which provides the March 2024 applicable federal rates.
March 4, 2024: The IRS announced that registration for its 2024 Nationwide Tax Forum is now open, providing tax professionals the opportunity to attend special continuing education sessions in five cities across the nation.
March 4, 2024: The IRS reminded taxpayers that the legal deadline for claiming the Recovery Rebate Credit in 2020 is May 17, 2024. The deadline for claiming the Recovery Rebate Credit in 2021 will be April 15, 2025.
March 5, 2024: The IRS issued final regulations, providing that certain tax-exempt organizations and political entities that earn certain clean energy credits can choose to make an elective payment election. Such an election results in the credits being treated as payments against the electing entity’s federal income tax liabilities with the IRS refunding any excess value. Notice 2024-27, in turn, requests additional comments on situations in which an elective payment election should be permitted with respect to credits purchased in a transfer for which an election under § 6418(a) is made.
March 6, 2024: The IRS reminded taxpayers that they are generally required to report all earned income on their tax returns, including income earned from digital asset transactions, the gig economy and the service industry as well as income from foreign sources.
March 6, 2024: The IRS released a statement acknowledging concerns related to a proposed policy change from January 2 that would limit access to tax return information from the IRS to protect taxpayer confidentiality. In response to comments, the IRS has suspended any changes under the proposed policy.
March 6, 2024: The IRS announced that Margie Rollinson took the oath of office today, officially making her the 49th IRS Chief Counsel and the first woman to permanently hold the top legal position at the nation’s tax agency.
March 6, 2024: The IRS reminded taxpayers and heath spending plan administrators that personal expenses for general health and wellness are not considered medical expenses under the tax law. This reminder acts as a response to some companies misrepresenting the circumstances under which food and wellness expenses can be paid or reimbursed under flexible spending accounts and other health spending plans.
March 7, 2024: The IRS announced that it will open 70 Taxpayer Assistance Centers on Saturday, March 16 from 9:00 am to 4:00 pm to provide in-person help across the nation.
March 7, 2024: The IRS announced that due to disruptions to the diesel fuel supply resulting from wildfires, penalties will not be imposed when dyed diesel fuel with a sulfur content that does not exceed 15 parts-per-million is sold for use or used by diesel-powered vehicles in certain Texas counties.
March 7, 2024: The IRS released Notice 2024-28, which invites the public to submit recommendations for items to be included in the 2024-2025 Priority Guidance Plan. The IRS uses the Priority Guidance Plan to prioritize the tax issues it intends to address through regulations, revenue rulings, revenue procedures, notices and other published administrative guidance.
March 7, 2024: The IRS reminded taxpayers that if they sold goods or services in 2023 and received payments through certain payment apps or online marketplaces or accepted payment cards, they could have received a third-party reporting document Form 1099-K, Payment Card and Third Party Network Transactions.
March 7, 2024: The IRS announced that the IRS Direct File pilot, which provides a way to file taxes quickly, easily, and for free directly with the IRS, is now available for taxpayers in 12 states.
March 8, 2024: The IRS reminded taxpayers that those who want to learn more about resolving incorrect Employee Retention Credit (ERC) claims before the March 22 deadline to apply to the ERC Voluntary Disclosure Program should view the IRS’s free webinar on the ERC Voluntary Disclosure Program and other IRS efforts to help taxpayers who may have been misled by aggressive marketing and misinformation around ERC eligibility.
March 8, 2024: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).
