Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of April 8, 2024 – April 12, 2024.
April 8, 2024: The IRS released Internal Revenue Bulletin 2024-15, which includes the following:
- Announcement 2024-15, which revokes the § 501(c)(3) determination for specified organizations and stipulates that contributions made to said organizations by individual donors are no longer deductible under § 170(b)(1)(A) of the Internal Revenue Code (Code).
- Notice 2024-31, which provides adjustments to the limitation on housing expenses for purposes of Code Section 911 for specific locations for 2024.
- Revenue Procedure 2024-17, which provides a waiver under Code Section 911(d)(4) concerning time requirements for individuals who must leave a foreign country because of war, civil unrest or similar adverse conditions and are electing to exclude their foreign earned income. The revenue procedure also adds Ukraine, Belarus, Sudan, Haiti, Niger and Iraq to the list of waiver countries for tax year 2023 for which the minimum time requirements are waived.
- Revenue Procedure 2024-18, which supplements Revenue Procedure 2023-32 by publishing amounts of unused housing credit carryovers allocated to qualified states under Code Section 42(h)(3)(D) for calendar year 2023 (in addition to those amounts published in Revenue Procedure 2023-32).
- Final regulations, which describe rules for the elective payment of Inflation Reduction Act of 2022 tax credit amounts in a taxable year, including definitions and special rules applicable to partnerships and S corporations and regarding repayment of excessive payments. The regulations also describe rules related to a required IRS pre-filing registration process.
- Final regulations, which describe rules for the elective payment of the advanced manufacturing investment credit under the Creating Helpful Incentives to Produce Semiconductors Act of 2022, including special rules applicable to partnerships and S corporations, repayment of excessive payments, and basis reduction and recapture. The regulations also describe rules related to a required IRS pre-filing registration process.
April 8, 2024: The IRS warned taxpayers about bad tax information on social media that can potentially lead to identity theft and tax problems.
April 9, 2024: The IRS warned tax professionals and businesses to remain vigilant and protect themselves against a continuing barrage of email spearfishing attempts, especially one particular type known as “new client” scams where identity thieves pose as potential clients using fake emails in hopes of stealing valuable information.
April 9, 2024: The IRS reminded taxpayers that its Direct File pilot is open to eligible taxpayers in 12 pilot states and allows the filing of 2023 federal tax returns online for free and directly with the IRS.
April 9, 2024: The IRS released proposed regulations that would implement the statutory netting rule, which reduces the aggregate fair market value of stock repurchased by a taxpayer during a certain taxable year. Additionally, the regulations would implement the statutory “de minimis” exception, which provides that a taxpayer is not subject to the stock repurchase excise tax if the aggregate fair market value of the stock repurchased by the taxpayer during the taxable year does not exceed $1 million.
April 10, 2024: The IRS issued supplemental guidance inviting comments on proposed regulations on the production of clean hydrogen credit and the election to treat clean hydrogen production facilities as energy property. Written comments are due by May 13, 2024.
April 10, 2024: The IRS reminded low- to moderate-income individuals and families, especially those who don’t normally file a tax return, that they can use IRS Free File to prepare their federal tax return and get potentially overlooked refunds and tax credits.
April 10, 2024: The IRS warned wealthy individuals about tax traps designed by dishonest promotors and shady tax practitioners, including improper art donation deductions, misuse of charitable remainder annuity trusts and improper monetized installment sales.
April 10, 2024: The IRS released Notice 2024-34, 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. The notice also 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).
April 10, 2024: The IRS reminded taxpayers that they can use numerous tax credits to potentially reduce their tax bill and increase their refund, including the Earned Income Tax Credit, Child Tax Credit, Dependent Care Tax Credit and the American Opportunity Tax Credit.
April 11, 2024: The IRS warned taxpayers about promoters selling bogus tax strategies and fraudulent offshore schemes designed to reduce or avoid taxes altogether.
April 11, 2024: The IRS reminded taxpayers who need more time to file their returns that they can request an extension through IRS Free File.
April 11, 2024: The IRS reminded taxpayers that several deductions may be available to reduce the amount of tax they may have to pay.
April 12, 2024: The IRS corrected Appendix A and Appendix B of Notice 2024-20 to add additional eligible census tracts for the qualified alternative fuel vehicle refueling property credit.
April 12, 2024: The IRS reminded taxpayers to view the free tools and resources available on IRS.gov while preparing their 2023 tax returns.
April 12, 2024: The IRS reminded taxpayers that they must answer the digital asset question and report all digital asset-related income when they file their 2023 federal income tax return.
April 12, 2024: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).
