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Weekly IRS Roundup August 21 – September 1, 2023

by | Sep 5, 2023 | , ,

Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for August 21, 2023 – September 1, 2023.[1]

August 21, 2023: The IRS released Tax Tip 2023-102, warning tax professionals to be prepared for a variety of schemes aimed at stealing sensitive information, including phishing and attacks on cloud-based applications.

August 23, 2023: The IRS published Revenue Procedure 2023-29, providing the applicable percentage table used to calculate the premium tax credit under Section 36B.

August 24, 2023: The IRS reminded employers and employees that employers who have educational assistance programs can use those programs to help pay student loan obligations for their employees.

August 24, 2023: The IRS released Tax Tip 2023-103, outlining the Heavy Highway Vehicle Use Tax and reminding truckers that the tax payment due date is the last day of the month following the month the vehicle was first used on public highways. Truckers must also file Form 2290, Heavy Highway Vehicle Use Tax Return, by such date.

August 25, 2023: The IRS published Revenue Ruling 2023-17, which provides guidance on the overpayment and underpayment rate of tax under Section 6621. The ruling includes a table of interest rates spanning from 1975 through the present.

August 25, 2023: The IRS published Notice 2023-62, which provides guidance on particular issues involving catch-up contributions to retirement plans that are eligible to be designated as Roth contributions.

August 25, 2023: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).

August 28, 2023: The IRS released Tax Tip 2023-104, explaining that eligible teachers and administrators can claim a tax deduction for part of the cost of technology, supplies and training to the extent those expenses are not reimbursed.

August 29, 2023: The IRS issued proposed regulations that would require brokers to report sales and exchanges of digital assets by customers. The proposed regulations contemplate the creation of new Form 1099-DA.

August 29, 2023: The IRS released Tax Tip 2023-105, listing miscellaneous resources for military spouses who run businesses or do gig work.

August 30, 2023: The IRS issued proposed regulations, frequently asked questions and Publication 5855, which all relate to the increased tax credit or deduction amounts for clean energy facilities and projects if taxpayers satisfy certain prevailing wage and registered apprenticeship requirements.

August 30, 2023: The IRS announced that starting January 1, 2024, Form 8300, Report of Cash Payments Over $10,000, must be filed electronically. (See also FS-2023-19 (August 19, 2023).)

August 30, 2023: The IRS announced tax relief for individuals and businesses in parts of Florida affected by Hurricane Idalia. Currently, [...]

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Weekly IRS Roundup August 14 – August 18, 2023

by | Aug 22, 2023 | , ,

Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of August 14, 2023 – August 18, 2023.

August 14, 2023: The IRS published Internal Revenue Bulletin 2023-33, which includes:

  • Revenue Procedure 2023-26, describing a program that provides an opportunity for fast-track processing of certain requests for letter rulings under the jurisdiction of the Associate Chief Counsel (Corporate), replacing the pilot program described in Revenue Procedure 2022-10, 2022-6 I.R.B. 473.
  • Proposed regulations that would amend the definition of short-term, limited-duration insurance, which is excluded from the definition of individual health insurance coverage under the Public Health Service Act, and provide guidance as to the requirements for hospital indemnity or other fixed indemnity insurance to be considered an excepted benefit in the group and individual health insurance markets. The proposed regulations would also clarify the tax treatment of certain benefit payments in fixed amounts received under employer-provided accident and health plans.
  • Revenue Ruling 2023-14, providing that, if a cash-method taxpayer receives cryptocurrency tokens as rewards for staking cryptocurrency native to a proof-of-stake blockchain, the fair market value of the rewards received should be included in the taxpayer’s gross income in the taxable year in which the taxpayer gains dominion and control over the rewards.

August 14, 2023: The IRS released Tax Tip 2023-100, providing information to organizations applying for tax-exempt status, including that Form 1023 must now be submitted electronically, every tax-exempt organization needs an employer identification number, certain churches and ancillary organizations do not need to apply to be tax-exempt, different rules may apply depending on whether the organization is a private foundation or a public charity and charitable organizations must make certain information available to the public.

August 15, 2023: The IRS published Revenue Ruling 2023-16, which sets forth the applicable federal rates for September 2023.

August 15, 2023: The IRS released Tax Tip 2023-101, informing taxpayers that, as part of their right to the finality of tax matters, they are entitled to know the maximum amount of time they have to challenge the IRS’s position on a matter, the maximum amount of time the IRS has to audit a particular tax year or collect a tax debt, when the IRS has finished an audit, that the IRS generally has three years from the date taxpayers file their returns (with exceptions) to assess any additional tax for that tax year and that the IRS generally has 10 years from the assessment date to collect unpaid taxes.

August 15, 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 [...]

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Weekly IRS Roundup August 7 – August 11, 2023

by | Aug 14, 2023 | ,

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 [...]

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Weekly IRS Roundup July 31 – August 4, 2023

by | Aug 9, 2023 | ,

Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of July 31, 2023 – August 4, 2023.

July 31, 2023: The IRS released Revenue Ruling 2023-14, holding that a cash-method taxpayer who receives cryptocurrency units as validation rewards for staking cryptocurrency native to a proof-of-stake blockchain must include the fair market value of the validation rewards in its gross income for the tax year in which the taxpayer gains dominion and control over the validation rewards.

July 31, 2023: The IRS released Tax Tip 2023-97, identifying tax considerations for couples who are separating or divorcing. These considerations include updating tax withholdings by completing a new Form W-4, recognizing alimony payments as income (or deducting) and excluding child support payments from income (or not deducting).

August 1, 2023: The IRS warned tax professionals to be on the lookout for phishing texts and emails and cloud-based attacks intended to steal taxpayer information.

August 2, 2023: The IRS announced that taxpayers will be able to submit all correspondence to the IRS and respond to IRS notices electronically. Further, taxpayers will be able to e-file 20 additional tax forms starting in 2024. By the 2025 filing season, an additional 150 non-tax forms will be available in digital, mobile-friendly formats, and the IRS will digitally process all paper-filed tax and information returns.

August 3, 2023: The IRS released Tax Tip 2023-98, explaining that in most cases, revenue officers will contact taxpayers through appointment letters (Letter 725-B) to schedule a meeting and generally will not make unannounced visits. IRS.gov will be updated to reflect the new policy. Unannounced visits may still be made to serve summonses and subpoenas and in cases involving the seizure of assets where such assets are at risk of being placed beyond the reach of the government.

August 3, 2023: The IRS released proposed regulations that would prevent employee benefit plans and issuers from using nonquantitative treatment limitations to place greater limits on access to mental health and substance use disorder benefits as compared to medical/surgical benefits. Written comments on the proposed regulations are due October 2, 2023.

August 3, 2023: The IRS released proposed regulations that would identify certain monetized installment sale transactions and substantially similar transactions as listed transactions that must be reported to the IRS.

August 3, 2023: The IRS issued Notice 2023-59, which provides the requirements for home energy audits for taxpayers who want to claim the Energy Efficient Home Improvement Credit. The credit amount is equal to 30% of the total amount that taxpayers pay throughout the year for qualified energy efficiency improvements, residential energy property expenditures and home energy audits. The notice provides specific requirements for claiming the Home Energy Improvement Credit and details the process for conducting the home energy audit.

August 4, 2023: The IRS issued
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Weekly IRS Roundup July 24 – July 28, 2023

by | Aug 1, 2023 | , , ,

Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of July 24, 2023 – July 28, 2023.

July 24, 2023: The IRS released Internal Revenue Bulletin 2023-30, which includes proposed regulations that specify the methodology for constructing the corporate bond yield curve used to calculate present value under a defined benefit plan. The Internal Revenue Bulletin also highlights the following:

  • Announcement 2023-18 relieves taxpayers from reporting the new stock repurchase excise tax under § 4501.
  • Announcements 2023-19 and 2023-20 revoke the tax-exempt status of certain organizations.
  • Notice 2023-37 modifies prior guidance regarding benefits related to testing and treating COVID-19.
  • Notice 2023-50 announces that the applicable percentage for purposes of determining percentage depletion on marginal properties for 2023 is 15%.
  • Notice 2023-51 publishes the inflation adjustment factor and the reference price for 2023 for the renewable electricity production credit under § 45.
  • T.D. 9976 provides final regulations that facilitate the transition from the London Interbank Offered Rate (LIBOR) to other interbank offered rates (IBORs).

July 24, 2023: The IRS released Tax Tip 2023-93, warning businesses and tax-exempt organizations about misleading employee retention credit claims. Scammers and unscrupulous promoters have been running aggressive broadcast advertising, direct mail solicitations and online promotions for the credit, many of which misrepresent and exaggerate who can qualify for the credit.

July 24, 2023: The IRS announced that revenue officers will no longer make unannounced visits to taxpayers’ residences in all but a few narrow circumstances. Instead, they will schedule visits via mailed letters.

July 25, 2023: The IRS released Tax Tip 2023-94, advising that applicable entities, including tax-exempt and governmental entities that would otherwise be unable to claim certain credits because they do not owe federal income tax, can benefit from some clean energy tax credits. If an entity opts to receive an elective payment, the amount of such credits is treated as a payment of tax, and overpayments will result in a refund.

July 25, 2023: The IRS released Notice 2023-53, which provides guidance on the corporate bond monthly yield curve, spot segment rates used under § 417(e)(3) and the 12-month average segment rates under § 430(h)(2).

July 25, 2023: The IRS published a special summer series discussing the Identity Protection PIN Opt-In Program, which can provide an extra layer of security for taxpayers filing their tax returns.

July 26, 2023: The IRS released Tax Tip 2023-95, reminding taxpayers that IRS Free File remains available until October 16 for those who still need to file a 2022 tax return.

July 26, 2023: The IRS released Revenue Procedure 2023-26, which provides a program for the fast-track processing of private letter ruling requests, replacing the pilot program described in
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Weekly IRS Roundup July 17 – July 21, 2023

by | Jul 24, 2023 | , ,

Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of July 17, 2023 – July 21, 2023.

July 17, 2023: The IRS released Internal Revenue Bulletin 2023-29, which includes Notices 2023-29, 2023-45 and 2023-47. These notices provide guidance to taxpayers seeking to qualify for the energy community bonus credit under §§ 45, 45Y, 48 and 48E.

July 17, 2023: The IRS released Revenue Ruling 2023-13, providing the applicable federal rates for federal income tax purposes for August 2023. The short-term federal interest rate is 5.07%, the mid-term rate is 4.09% and the long-term rate is 4.03%.

July 17, 2023: The IRS released Tax Tip 2023-90, identifying summer activities that can affect individuals’ tax returns. For example, the cost of sending a child to summer camp may count toward the Child and Dependent Care Credit.

July 19, 2023: The IRS released Tax Tip 2023-91, reminding newlywed couples to report any name or address changes to the Social Security Administration, the US Postal Service and the IRS to update their withholding allowances. The Tax Tip also clarifies that a couple married as of December 31 is treated as married for the whole year for tax purposes.

July 20, 2023: The IRS released Tax Tip 2023-92, providing guidance to taxpayers filing returns on extension and reminding them that they may be eligible to use IRS Free File. Taxpayers getting a refund can expect to receive it faster by requesting that the refund be paid electronically via direct deposit.

July 21, 2023: The IRS released Notice 2023-55, which provides relief for taxpayers in determining which foreign taxes are creditable for tax years beginning on or after December 28, 2021, and ending on or before December 31, 2023.

July 21, 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 now open, and the events are returning 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 dates and locations are as follows:

  • July 25-27: Atlanta, GA
  • August 8-10: National Harbor, MD (Washington, DC area)
  • August 22-24: San Diego, CA
  • August 29-31: Orlando, FL


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Weekly IRS Roundup June 5 – June 9, 2023

by | Jun 12, 2023 | , ,

Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of June 5, 2023 – June 9, 2023.

June 5, 2023: The IRS released Internal Revenue Bulletin 2023-23, which highlights the following:

  • Revenue Ruling 2023-11: This revenue ruling establishes that the following interest rates will remain the same for the calendar quarter beginning July 1, 2023:
    • Overpayments: 7%
    • Overpayments for corporations: 6%
    • Corporate overpayments for portions exceeding $10,000: 4.5%
    • Underpayments: 7%
    • Large corporate underpayments: 9%
  • Notice 2023-41: This notice provides the applicable reference price for qualified natural gas production from qualified marginal wells during taxable years beginning in calendar year 2022 for the purpose of determining the marginal well production credit under Section 45I.
  • REG-108054-21: These proposed regulations provide guidance on the application of the transfer for valuable consideration rules under Section 101 and associated information reporting requirements for reportable policy sales of interests in life insurance contracts under Section 6050Y. The proposed regulations would amend the rules for exchanges of life insurance contracts qualifying for nonrecognition of gain or loss, as well as for certain acquisitions of interests in life insurance contracts in transactions that qualify as corporate reorganizations.
  • Revenue Ruling 2023-10: This revenue ruling provides the applicable federal rates for federal income tax purposes for June 2023. The short-term federal interest rate is 4.43%, the mid-term rate will drop to 3.56% and the long-term rate is 3.79%.

June 6, 2023: The IRS released Tax Tip 2023-76, providing business taxpayers with tips for income tax deductions before they travel on work trips.

June 7, 2023: The IRS issued a statement reassuring California taxpayers covered by disaster declarations that they’ll continue to have an automatic extension to file and pay taxes. The IRS is legally required to send a Notice CP14 to taxpayers with a balance due. While the notice says they need to pay in 21 days, California taxpayers under the disaster declaration have until later this year to pay.

June 7, 2023: The IRS released Tax Tip 2023-77, reminding tax professionals to register for the 2023 IRS Nationwide Tax Forums. Early registration expires June 15. See additional information below under Upcoming Events.

June 7, 2023: The IRS announced it was granting penalty relief for corporations that did not pay estimated tax related to the new corporate alternative minimum tax (CAMT). Notice 2023-42 provides that the IRS will waive the penalty for failure to pay estimated income tax for a taxable year that begins after December 31, 2022, and before January 1, 2024, because of the challenges associated with determining the amount of a corporation’s CAMT liability and whether a corporation is subject to the CAMT.

June 7, 2023: The IRS reminded taxpayers of the 2023 mid-June [...]

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Weekly IRS Roundup May 30 – June 2, 2023

by | Jun 5, 2023 | , ,

Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of May 30, 2023 – June 2, 2023.

May 30, 2023: The IRS released Internal Revenue Bulletin 2023-22, which highlights the following:

  • Notice 2023-39: This notice describes proposed amendments to Section 148 that the US Department of the Treasury (Treasury) and the IRS intend to issue regarding an exception to arbitrage investment restrictions applicable to bonds on which the interest is excludable from gross income under Section 103(a) (tax-exempt bonds). Specifically, the forthcoming proposed regulations will amend Section 1.148-11(d)(1)(i)(F) regarding whether certain perpetual trust funds created and controlled by states that are pledged as credit enhancements to guarantee tax-exempt bonds will be treated as replacement proceeds of the guaranteed bonds for purposes of the arbitrage investment restrictions on tax-exempt bonds under Section 148.
  • Revenue Procedure 2023-23: This procedure provides the 2024 inflation-adjusted amounts for Health Savings Accounts as determined under Section 223, as well as the maximum amount that may be made newly available for excepted benefit health reimbursement arrangements provided under Section 54.9831-1(c)(3)(viii) of the Pension Excise Tax Regulations.
  • Notice 2023-40: This notice sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates used under Sec. 417(e)(3)(D) and the 24-month average segment rates applicable for May 2023. This notice also provides the 30-year Treasury rates, as reflected by the application of Sec. 430(h)(2)(C)(iv).
  • Notice 2023-38: This notice provides the general rules taxpayers must satisfy to qualify for the domestic content bonus credit amounts and the related recordkeeping and certification requirements. The guidance also describes a safe harbor regarding the classification of certain components in representative types of qualified facilities, energy projects or energy storage technologies.

May 30, 2023: The IRS released Tax Tip 2023-73, reminding taxpayers that the extended deadline to file their 2019 tax returns for unclaimed refunds is July 17, 2023. Taxpayers usually have three years to file; however, the deadline was postponed due to the COVID-19 pandemic.

May 30, 2023: The IRS requested comments on Form 1041, U.S. Income Tax Return for Estates and Trusts, related Schedules D, I, J and K-1, and Form 1041-V. Comments should be received on or before July 31, 2023.

May 30, 2023: The IRS reminded taxpayers living and working abroad to file their 2022 federal income tax return by the June 15 deadline. This applies to both US citizens and resident aliens abroad, including those with dual citizenship.

May 31, 2023: The Treasury and the IRS announced guidance for applicants investing in solar- and wind-powered electricity generation facilities. Notice 2023-17 established the Low-Income Communities Bonus Credit Program back in February 2023 and provided initial guidance for potential applicants. The proposed regulations request comments on certain definitions [...]

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Weekly IRS Roundup May 22 – May 26, 2023

by | May 30, 2023 | , ,

Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of May 22, 2023 – May 26, 2023.

May 22, 2023: The IRS released Internal Revenue Bulletin 2023-21, which highlights the following:

  • Notice 2023-36: This notice from the US Department of the Treasury (Treasury) and the IRS invites recommendations for the 2023-2024 Priority Guidance Plan. The Priority Guidance Plan is used to identify and prioritize tax issues that should be addressed through regulations, revenue rulings, revenue procedures, notices and other published administrative guidance.
  • Announcement 2023-15: This announcement provides the revocation of IRC 501(c)(3) organizations for failure to meet the code section requirements. Contributions made to the organization by individual donors are no longer deductible under Section 170(c).
  • REG-124064-19: These proposed regulations related to Section 367(d), Rules for Certain Repatriations of Intangible Property, would (in certain instances) terminate the continued application of certain tax provisions after the previous transfer of intangible property to a foreign corporation when the intangible property is repatriated to certain US persons.

May 22, 2023: The IRS announced that interest rates will remain the same for the calendar quarter beginning July 1, 2023. Revenue Ruling 2023-11 establishes the interest rates as follows:

  • Overpayments: 7%
  • Overpayments for corporations: 6%
  • Corporate overpayments for portions exceeding $10,000: 4.5%
  • Underpayments: 7%
  • Large corporate underpayments: 9%

May 23, 2023: The IRS released Tax Tip 2023-70, reminding taxpayers that requesting an Identity Protection PIN can help stop identity thieves from filing fraudulent tax returns. An Identity Protection PIN is a six-digit number used to prove taxpayers’ identities when filing their federal tax returns.

May 24, 2023: The IRS released Tax Tip 2023-71, providing guidance on how taxpayers can best prepare to request an appeal after the IRS rejects an offer in compromise. After the IRS rejects an offer in compromise, taxpayers have 30 days to request an appeal of the decision.

May 25, 2023: The IRS renewed an alert for businesses to watch out for the telltale signs of misleading claims by aggressive promoters that misrepresent who can qualify for the Employee Retention Credit. The alert reminds taxpayers that businesses improperly claiming the credit must pay it back, possibly with penalties and interest.

May 25, 2023: The IRS released Notice 2023-43, which provides guidance with respect to Section 305 of the SECURE 2.0 Act of 2022. Section 305 provides for the expansion of the Employee Plans Compliance Resolution System, currently set forth in Revenue Procedure 2021-30. This notice provides interim guidance in advance of any updates to Revenue Procedure 2021-31 and is not intended to be comprehensive.

May 25, 2023: The IRS released Tax Tip 2023-72, announcing that improvements to IRS phone service and online options are coming as a result of the Inflation [...]

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