Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of August 7, 2023 – August 11, 2023.
August 7, 2023: The IRS published Internal Revenue Bulletin 2023-32, which includes:
- Notice 2023-53, setting forth updates on the corporate bond monthly yield curve and the corresponding spot segment rates for July 2023 used under Code Section 417(e)(3)(D); the 24-month average segment rates applicable for July 2023; and the 30-year Treasury rates, as reflected by the application of Code Section 430(h)(2)(C)(iv).
- Proposed regulations that would rescind the moral objection exemption to providing contraceptive services in health plans subject to the Patient Protection and Affordable Care Act and establish a new individual contraceptive arrangement that individuals enrolled in plans or coverage sponsored, arranged, or provided by objecting entities may use to obtain contraceptive services at no cost directly from a provider or facility that furnishes contraceptive services.
- Final regulations that authorize the assessment and collection of erroneous refunds of various credits in the normal course of processing employment tax returns.
- Announcement 2023-22, revoking tax-exempt status for certain organizations.
- Notice 2023-55, providing temporary relief in defining a “foreign income tax” for purposes of Code Sections 901 and 903 for 2022 and 2023 tax years.
- Revenue Ruling 2023-13, listing the applicable federal rates for August 2023.
August 7, 2023: The IRS reminded eligible contractors who build or substantially reconstruct qualified new energy-efficient homes that they might qualify for a tax credit of up to $5,000 per home under Code Section 45L. The credit amount depends on the type of home, the home’s energy efficiency and the date when someone buys or leases the home.
August 8, 2023: The IRS released part four of a five-part “Protect Your Client; Protect Yourself” summer series from the Security Summit, a public-private partnership that works to protect the tax system against tax-related identity theft and fraud. This publication provides information to help protect sensitive taxpayer data.
August 8, 2023: The IRS released Tax Tip 2023-99, explaining the various ways in which scammers may impersonate the IRS, including by mail, electronically and even in person.
August 8, 2023: The IRS’s Large Business and International Division announced a compliance campaign focused on taxpayers who may have inflated their reported cost of goods sold to reduce their taxable income.
August 9, 2023: The IRS warned businesses and tax professionals to be aware of a range of compliance issues associated with employee stock ownership plans (ESOPs). The IRS indicated that it is aware of promoted arrangements using ESOPs that are potentially abusive. Such arrangements may include schemes where a business creates a “management” S corporation whose stock is wholly owned by an ESOP for the sole purpose of diverting taxable business income to the ESOP. The S corporation purports to provide loans to the business owners in the amount of the business income to avoid taxation. Over the next year, the IRS will continue to use a range of compliance tools, including education, outreach and additional examinations, to address compliance issues associated with ESOPs.
August 10, 2023: The IRS provided guidance for owners of certain solar or wind facilities built in connection with low-income communities through final regulations and Revenue Procedure 2023-27. Specifically, the final regulations outline the requirements for project categories eligible for credits under Code Section 48(e) while Revenue Procedure 2023-27 outlines the procedures for potential applicants to apply for an allocation of capacity limitation for purposes of these credits.
August 11, 2023: The IRS released Notice 2023-60, outlining exemptions from and waivers of recent requirements to file tax documents electronically.
August 11, 2023: The IRS released Notice 2023-61, providing guidance on the corporate bond monthly yield curve, the corresponding spot segment rates used under Code Section 417(e)(3), the 24-month average segment rates under Code Section 430(h)(2), the interest rate on 30-year Treasury securities under Code Section 417(e)(3)(A)(ii)(II) as in effect for plan years beginning before 2008, and the 30-year Treasury weighted average rate under Code Section 431(c)(6)(E)(ii)(I).
August 11, 2023: The IRS announced a more efficient way for taxpayers to submit electronic requests for relief for certain late-filed international documents, including gain recognition agreements, late-filed dual consolidated losses and partnership gain deferral contributions. Guidance for making requests under the new process can be found on IRS.gov by clicking the following links:
- Relief for Gain Recognition Agreements
- Late Filing Relief for Dual Consolidated Losses
- Relief for Partnership Gain Deferral Contributions
August 11, 2023: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).
Upcoming Events: Registration for the 2023 IRS Nationwide Tax Forums is open, and the events have returned to an in-person format for the first time since 2019. The IRS Nationwide Tax Forums are designed specifically for tax professionals (e.g., enrolled agents, certified public accountants, certified financial planners and Annual Filing Season Program participants) as well as uncredentialed tax professionals. The remaining dates and locations are as follows:
- August 22-24: San Diego, CA
- August 29-31: Orlando, FL
