Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of May 20, 2024 – May 24, 2024.
May 20, 2024: The IRS released Internal Revenue Bulletin 2024-21, which includes the following:
- Treasury Decision 9992, which includes final regulations on the standards under which a qualified investment entity, such as a real estate investment entity, would be “domestically controlled” for purposes of 897(h)(2) of the Internal Revenue Code (Code), effective as of April 25, 2024. The final regulations are generally consistent with the proposed regulations previously issued on December 29, 2022, and include a 10-year transition rule for certain existing structures.
- Notice 2024-37, which provides guidance on the availability of the Sustainable Aviation Fuel (SAF) Tax Credit found in Code 40B as both an income tax credit and an excise tax credit under Code §§ 6426 and 6427. The notice also provides additional safe harbors under which the SAF’s life cycle greenhouse gas emissions reduction percentage can be calculated.
- Revenue Procedure 2024-24, which provides procedures for requesting private letter rulings for transactions intended to qualify under Code 355 as tax-free spin-offs. The guidance was accompanied by Notice 2024-38, which requests taxpayer comments with respect to all provisions in the guidance.
- Announcement 2024-18, which lists disciplinary sanctions for certain professionals, including lawyers, certified public accountants and appraisers, for violating the regulations governing practice before the IRS set out in Circular 230.
- Announcement 2024-21, which revokes the Code § 501(c)(3) determination for specified organizations and stipulates that contributions made to said organizations by individual donors are no longer deductible under Code § 170(b)(1)(A).
- Supplemental guidance accompanying the proposed regulations from December 26, 2023, relating to the Code 45V tax credit for the production of clean hydrogen and the Code § 48(a)(15) election to treat clean hydrogen production facilities as energy property.
May 20, 2024: The IRS was recognized for its financial management and performance reporting in its 2023 Agency Financial Report.
May 21, 2024: The IRS provided an overview of tax deductions, housing allowances and other tax benefits that homeowners can use to save money and offset related costs.
May 22, 2024: The IRS provided year-round tax planning pointers to help taxpayers stay organized and facilitate their tax planning. Among other things, the IRS suggests creating a system to keep tax records together; checking withholdings using the IRS withholding estimator; and notifying USPS, employers and the IRS of any address or name changes.
May 22, 2024: The IRS announced that the Qualifying Advanced Energy Project Credit Program Applicant Portal (Code § 48C Portal), which provides a tax credit for investments in advanced energy projects, is open for concept paper submissions. Submissions are due by June 21, 2024.
May 22, 2024: The IRS extended its Free File program through 2029, which allows qualified taxpayers to prepare and file federal income tax returns online using guided tax preparation software.
May 22, 2024: The IRS released Notice 2024-44, which extends the transition relief provided under Notice 2022-37 (learn more here) through 2026 for taxpayers to comply with the Code § 871(m) final regulations for dividend equivalents.
May 22, 2024: The IRS released Notice 2024-43, announcing its intent to defer the applicability date of the regulations related to reporting the base erosion and anti-abuse tax’s qualified derivative payments under Code §§ 59A and 6038A to taxable years beginning on or after January 1, 2027.
May 23, 2024: The IRS reminded individuals and businesses in parts of certain states affected by any of the seven different disaster declarations that their 2023 federal income tax returns and tax payments are due on June 17, 2024.
May 24, 2024: The IRS corrected Notice 2024-41, which was released on May 16, 2024 (learn more here), by inserting text that was inadvertently omitted.
May 24, 2024: The IRS released Revenue Ruling 2024-10 and Revenue Procedure 2024-22, which make obsolete former guidance that identified certain state laws that would permit an exempt organization to satisfy the requirements under Code § 508(e). Under the new guidance, a private foundation is responsible for verifying whether Code § 508(e) requirements are satisfied by applicable state law. Private foundations can ensure that they satisfy such requirements by including the provisions described in Code § 508(e) in their governing instruments.
May 24, 2024: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).
