Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for November 25, 2024 – December 13, 2024.
November 25, 2024: The IRS released Treasury Decision 10011, which modifies the regulations governing the sale of a taxpayer’s property that the IRS seizes by levy. The modified regulations allow the IRS to maximize sale proceeds for the benefit of the taxpayer and the public fisc. Effective November 5, 2024, these regulations affect all sales of property the IRS seizes by levy.
November 26, 2024: The IRS issued Notice 2024-85, announcing revisions to transition relief for third-party settlement organizations under Internal Revenue Code (Code) § 6050W, also known as “payment apps” and “online marketplaces.” Under this guidance, payors will be required to report transactions when the amount of total payments is more than $5,000 in 2024, more than $2,500 in 2025, and more than $600 in calendar year 2026 and after.
November 26, 2024: The IRS issued Announcement 2024-40 in which it confirmed that amounts paid or incurred by a taxpayer for the construction, expansion, or modernization of advanced manufacturing facilities pursuant to an agreement entered into with the US Department of Commerce under 15 U.S.C. § 4652(a)(6)(C) (the CHIPS Act of 2022) will not fail, solely by reason of such agreement, to constitute a “qualified investment” for purposes of determining the amount of any advanced manufacturing investment credit under Code § 48D.
December 2, 2024: The IRS released Internal Revenue Bulletin 2024-49, which includes the following:
- Revenue Ruling 2024-25, which provides the interest rates for overpayments and underpayments of tax for the calendar quarter beginning January 1, 2025.
- Revenue Ruling 2024-26, which provides the December 2024 applicable federal rates for purposes of Code § 1274(d) and relates to the determination of issue price in the case of certain instruments issued for property.
- Notice 2024-81, which provides an update for weighted average interest rates, yield curves, and segment rates.
- Notice 2024-83, which provides an update to the fee on issuers of specified health insurance policies and plan sponsors of applicable self-insured health plans to help fund the Patient-Centered Outcomes Research Trust Fund. This update is effective for plan years ending on or after October 1, 2024, and before October 1, 2025.
December 2, 2024: The IRS issued proposed regulations under Code § 959 regarding companies’ previously taxed earnings and profits (PTEP). These proposed regulations are the first in a series of guidance on PTEP rules. This first tranche of guidance includes a framework on which to build rules on mergers and acquisitions, along with provisions addressing basis adjustments under Code § 961 and foreign-currency gains and losses.
December 2, 2024: The IRS announced that December 2 marked the beginning of the 9th annual National Tax Security Awareness Week. The IRS warned of holiday scams and offered steps that can be taken to protect taxpayers.
December 5, 2024: IRS Criminal Investigation released its Fiscal Year 2024 Annual Report, detailing significant cases involving tax fraud, cybercrime, and more between October 2023 and September 2024.
December 9, 2024: The IRS released Internal Revenue Bulletin 2024-50, which includes the following:
- Treasury Decision 10012, which modifies existing regulations to allow certain unincorporated organizations owned in whole or in part by applicable entities to be excluded from the application of partnership tax rules. “Applicable entities” include tax-exempt organizations, state and local governments, and certain agencies and instrumentalities. These regulations are effective January 19, 2025.
- Treasury Decision 10013, which updates existing regulations relating to the disclosure of specified return information to the US Census Bureau. These regulations require no action by taxpayers and have no effect on their tax liabilities.
- Notice 2024-84, which extends the transition process for claiming a statutory exception to the elective payment phaseouts contained in Section 5 of Notice 2024-9.
- Announcement 2024-38, which provides a deadline for when an employer intending to maintain a Cycle 2 pre-approved plan under Code § 403(b) must adopt said plan. It also provides for the period during which the IRS will accept an application for an individual determination letter.
- Announcement 2024-39, which provides information regarding the revocation of tax exemption status for certain organizations.
December 9, 2024: The IRS announced that the United States and Norway had entered into a competent authority arrangement under the Convention between the two countries for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes, signed December 3, 1971.
December 12, 2024: The IRS announced the launch of a new enforcement campaign targeting a certain tax deferral transaction whereby a plaintiff’s lawyers or law firms fail to report legal fees earned from representing clients in litigation on a contingency fee basis, only to recoup those fees much later.
December 13, 2024: The IRS issued Notice 2025-2, which provides penalty relief in the event that a partnership with unrealized receivables or inventory items fails to furnish by the partnership’s due date for filing its return Part IV of Form 8308, Report of a Sale or Exchange of Certain Partnership Interests, to the transferor and transferee in a Code § 751(a) exchange.
December 13, 2024: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums, and Chief Counsel Advice).
