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Weekly IRS Roundup August 5 – August 9, 2024

by , and | Aug 16, 2024 | ,

Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of August 5, 2024 – August 9, 2024.

August 5, 2024: The IRS released Internal Revenue Bulletin 2024-32, which includes final regulations on the excise tax for certain sales by manufacturers, producers and importers of designated drugs under Internal Revenue Code § 5000D. Effective August 5, 2024, these regulations offer comprehensive guidance on the quarterly reporting and payment of the excise tax.

August 5, 2024: The IRS reminded educators working at least 900 hours in a school year that they may qualify for the Educator Expense Deduction, which allows them to deduct unreimbursed expenses for classroom supplies, technology and training from their taxes.

August 6, 2024: The IRS alerted taxpayers about the American opportunity tax credit and the lifetime learning credit, which help offset education costs for post-high school coursework. To claim these credits, taxpayers must complete IRS Form 8863 and meet specific eligibility requirements.

August 6, 2024: The IRS reminded tax professionals that they must use multifactor authentication to safeguard clients’ sensitive information in accordance with the Federal Trade Commission’s safeguards rule. This measure, effective as of June 2023, aims to enhance account security and reduce the risk of data breaches.

August 7, 2024: The IRS released statistics on the Inflation Reduction Act of 2022’s clean energy tax credits for tax year 2023, which show that taxpayers claimed significant amounts in residential clean energy and energy-efficient home improvement credits. These credits cover investments in solar electricity, solar water heating, battery storage, heat pumps, efficient air conditioners, insulation, windows and doors.

August 7, 2024: The IRS notified taxpayers that employer-offered educational assistance programs can help employees pay for college expenses, including tuition, books, supplies and student loan payments.

August 8, 2024: The IRS announced it will accelerate the processing of Employee Retention Credit claims while intensifying audits and investigations to prevent improper payments.

August 9, 2024: The IRS released an early draft of the updated IRS Form 1099-DA for brokers to use in 2025 to report digital asset transactions. This draft reflects the final regulations and related guidance for custodial broker reporting and includes transitional relief measures.

August 9, 2024: The IRS extended the deadline to file federal individual and business tax returns and make tax payments for certain individuals and businesses in South Carolina, North Carolina, Florida and Georgia that were affected by Hurricane Debby. The new deadline is February 3, 2025. The extended deadline is available to taxpayers in any area designated by the Federal Emergency Management Agency, including individuals and households that reside or have a business in all counties in South Carolina and select counties in Georgia, Florida and North Carolina.

August 9, 2024: The IRS released its weekly list of written determinations (e.g., Private [...]

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Weekly IRS Roundup April 8 – April 12, 2024

by , and | Apr 15, 2024 | , ,

Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of April 8, 2024 – April 12, 2024.

April 8, 2024: The IRS released Internal Revenue Bulletin 2024-15, which includes the following:

  • Announcement 2024-15, which revokes the § 501(c)(3) determination for specified organizations and stipulates that contributions made to said organizations by individual donors are no longer deductible under § 170(b)(1)(A) of the Internal Revenue Code (Code).
  • Notice 2024-31, which provides adjustments to the limitation on housing expenses for purposes of Code Section 911 for specific locations for 2024.
  • Revenue Procedure 2024-17, which provides a waiver under Code Section 911(d)(4) concerning time requirements for individuals who must leave a foreign country because of war, civil unrest or similar adverse conditions and are electing to exclude their foreign earned income. The revenue procedure also adds Ukraine, Belarus, Sudan, Haiti, Niger and Iraq to the list of waiver countries for tax year 2023 for which the minimum time requirements are waived.
  • Revenue Procedure 2024-18, which supplements Revenue Procedure 2023-32 by publishing amounts of unused housing credit carryovers allocated to qualified states under Code Section 42(h)(3)(D) for calendar year 2023 (in addition to those amounts published in Revenue Procedure 2023-32).
  • Final regulations, which describe rules for the elective payment of Inflation Reduction Act of 2022 tax credit amounts in a taxable year, including definitions and special rules applicable to partnerships and S corporations and regarding repayment of excessive payments. The regulations also describe rules related to a required IRS pre-filing registration process.
  • Final regulations, which describe rules for the elective payment of the advanced manufacturing investment credit under the Creating Helpful Incentives to Produce Semiconductors Act of 2022, including special rules applicable to partnerships and S corporations, repayment of excessive payments, and basis reduction and recapture. The regulations also describe rules related to a required IRS pre-filing registration process.

April 8, 2024: The IRS warned taxpayers about bad tax information on social media that can potentially lead to identity theft and tax problems.

April 9, 2024: The IRS warned tax professionals and businesses to remain vigilant and protect themselves against a continuing barrage of email spearfishing attempts, especially one particular type known as “new client” scams where identity thieves pose as potential clients using fake emails in hopes of stealing valuable information.

April 9, 2024: The IRS reminded taxpayers that its Direct File pilot is open to eligible taxpayers in 12 pilot states and allows the filing of 2023 federal tax returns online for free and directly with the IRS.

April 9, 2024: The IRS released proposed regulations that would implement the statutory netting rule, which reduces the aggregate fair market value of stock repurchased by a taxpayer during a certain taxable year. Additionally, [...]

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