Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of September 2, 2024 – September 6, 2024.
September 2, 2024: The IRS released Internal Revenue Bulletin 2024-36, which includes Notice 2024-63. The notice provides guidance on matching contributions for qualified student loan payments under § 401(k) of the Internal Revenue Code (Code) and other similar retirement plans. This guidance aims to help plan sponsors with setting up these programs for plan years beginning after December 31, 2024, until proposed regulations are issued.
September 3, 2024: The IRS reminded taxpayers to develop or update their emergency preparedness plans as part of National Preparedness Month, especially with the peak of hurricane season imminent and elevated wildfire risks. Key steps include protecting and duplicating essential documents, creating property inventories, and knowing how to reconstruct records if needed.
September 4, 2024: The IRS announced it is using funding from the Inflation Reduction Act of 2022 (IRA) to modernize taxpayer services with new online tools, including the IRS Energy Credits Online platform, which simplifies the process for claiming clean energy credits. These improvements aim to save taxpayers time and money while enhancing compliance and fraud mitigation.
September 4, 2024: The IRS released Revenue Procedure 2024-34, which modifies Revenue Procedure 2024-23 to provide procedures under Code § 446 for obtaining automatic consent to change accounting methods for Code § 174 research or experimental expenditures paid or incurred after December 31, 2021. The new revenue procedure also limits audit protection for these expenditures if changes are not made in the applicable tax year.
September 4, 2024: The IRS reminded tax professionals to be vigilant for signs of data breaches, such as slow computer performance, unexpected cursor movements, and clients receiving IRS authentication letters for returns they did not file. Immediate reporting to the IRS and proactive measures, such as obtaining an Identity Protection PIN, are crucial to mitigate the impact of data theft.
September 5, 2024: The IRS encouraged taxpayers to use Identity Protection PINs and establish an IRS online account to safeguard against identity theft and fraud. These tools help protect personal and financial information from being stolen by scammers.
September 5, 2024: The IRS reminded taxpayers that the deadline for the third quarter estimated tax payment is September 16, 2024. Taxpayers in disaster-affected areas in 17 US states, Puerto Rico, and the Virgin Islands may qualify for an extended deadline.
September 5, 2024: The IRS released Notice 2024-65, requesting public comments on the implementation of Saver’s Match contributions, a new initiative under Code § 6433 aimed at boosting retirement savings for low-to-moderate-income individuals. Public comments are sought on various aspects, including eligibility, claiming processes, and outreach to traditionally marginalized communities, with a deadline of November 4, 2024.
September 6, 2024: The IRS announced it successfully recovered unpaid taxes from high-income individuals through new enforcement initiatives funded by the IRA. This effort targeted wealthy taxpayers who had not filed taxes since 2017.
September 6, 2024: The IRS issued Revenue Procedure 2024-35, which provides the inflation-adjusted amounts for various tax provisions for the year 2024, including adjustments to tax rate tables, credits, and deductions.
September 6, 2024: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).
