Applicable Federal Rates Archives - Page 3 of 8

Applicable Federal Rates

Weekly IRS Roundup August 7 – August 11, 2023

by Evan Walters | Aug 14, 2023 | IRS Guidance, Tax Reform

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 17 – July 21, 2023

by Evan Walters | Jul 24, 2023 | IRS Guidance, Tax Reform, Tax Refunds

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

Weekly IRS Roundup June 5 – June 9, 2023

by Sarah M. Raben | Jun 12, 2023 | IRS Guidance, Tax Reform, Tax Refunds

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 15 – May 19, 2023

by Sarah M. Raben | May 22, 2023 | IRS Audits, IRS Guidance, Tax Reform

Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of May 15, 2023 – May 19, 2023.

May 15, 2023: The IRS released Internal Revenue Bulletin 2023-20, which highlights the following:

Announcement 2023-16: The IRS announced that it will no longer conduct public hearings on notices of proposed rulemaking solely by telephone for proposed regulations that are published in the Federal Register after May 11, 2023. The change comes with the end of the COVID-19 pandemic. A telephonic option will remain available for those who prefer to attend or testify at a public hearing by telephone.

May 15, 2023: The IRS released a letter from Commissioner Daniel Werfel to the US Senate regarding the request for information about racial disparity in the selection of tax returns for audit and the IRS’s plan to address the issue.

May 15, 2023: The IRS released Tax Tip 2023-67, announcing that tax relief is available for people living in areas that are declared disasters by the Federal Emergency Management Agency. Click here to find out which areas qualify for federal disaster relief.

May 15, 2023: The IRS released Notice 2023-40, which provides the corporate bond monthly yield curve and corresponding spot segment rates and the 24-month average segment rates for May 2023. This notice also provides guidance as to interest rates on 30-year Treasury securities and 30-year Treasury weighted average rates.

May 15, 2023: The IRS released Revenue Ruling 2023-10, providing 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%.

May 16, 2023: The IRS released Tax Tip 2023-68, reminding taxpayers that installing solar panels or making other home improvements may qualify them for the home energy credit.

May 16, 2023: The IRS released Revenue Procedure 2023-23, which provides the 2024 inflation-adjusted amounts for Health Savings Accounts (HSAs) as determined under Section 223 and the maximum amount that may be made newly available for excepted benefit health reimbursement arrangements (HRAs) provided under Section 54.9831-1(c)(3)(viii) of the Pension Excise Tax Regulations.

May 16, 2023: The IRS announced the release of the IRS’s report from Commissioner Werfel evaluating the feasibility of providing taxpayers with a free Direct File option. The evaluation of the system focused on three areas: taxpayer opinions, cost and feasibility. The report also includes an analysis conducted by an independent third party. The IRS plans to pilot the project for the 2024 filing season.

May 17, 2023: The IRS released Tax Tip 2023-69, reminding taxpayers that emergency preparedness plans should include financial records and tax information.

May 19, 2023: The IRS released its weekly list of written determinations (e.g., Private [...]

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Weekly IRS Roundup May 8 – May 12, 2023

by Sarah M. Raben | May 15, 2023 | IRS Appeals, IRS Guidance, Tax Reform

Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of May 8, 2023 – May 12, 2023.

May 8, 2023: The IRS released Internal Revenue Bulletin 2023-19, which highlights the following:

Revenue Procedure 2023-22: This revenue procedure provides qualified mortgage bond issuers and mortgage credit certificate issuers with (1) the nationwide average purchase price for residences located in the United States, and (2) the average area purchase price safe harbors for residences located in statistical areas in each state, the District of Columbia, Puerto Rico, the Northern Mariana Islands, American Samoa, the Virgin Islands and Guam.

Announcement 2023-14: This announcement provides the revocation of IRC 501(c)(3) Organizations for failure to meet the code section requirements. Contributions made to the organizations by individual donors are no longer deductible under IRC 170(b)(1)(A).

Notice 2023-34: This notice provides that convertible virtual currency should be treated as property for federal tax purposes and general tax principles applicable to property transactions apply to transactions using convertible virtual currency. This notice modifies Notice 2014-21 by revising a sentence in the background section to remove the statement that virtual currency does not have legal tender status in any jurisdiction, among other changes.

Revenue Procedure 2023-21: This revenue procedure provides the domestic asset/liability percentages and domestic investment yields needed by foreign life insurance companies and foreign property and liability insurance companies to compute their minimum effectively connected net investment income under Section 842(b) for taxable years beginning after December 31, 2021.

Revenue Ruling 2023-9: This revenue ruling provides the applicable federal rates for federal income tax purposes for May 2023. The short-term federal interest rate is 4.30%, the mid-term rate will drop to 3.57% and the long-term rate will fall to 3.72%

May 8, 2023: The IRS announced Saturday hours for May 13 in more than 40 locations across 25 states. The Saturday hours were to help taxpayers who may have a tax concern or questions about an IRS notice.

May 8, 2023: The IRS released Tax Tip 2023-63, providing IRS websites and other publications with tax-related disaster relief information that can help taxpayers.

May 9, 2023: The IRS announced that it will accept applications for Low Income Taxpayer Clinic (LITC) matching grants from May 8, 2023, to June 26, 2023. The funding will be for the 2023 calendar year. The IRS awards matching grants to qualifying organizations to develop, expand or maintain an LITC. An LITC must match every dollar of funding awarded by the IRS.

May 9, 2023: The IRS released Tax Tip 2023-64, highlighting the Taxpayer Bill of Rights and the right to challenge the IRS’s position.

May 10, 2023: The IRS released Notice 2023-39, which describes proposed amendments to [...]

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Weekly IRS Roundup April 17 – April 21, 2023

by Sarah M. Raben | Apr 24, 2023 | IRS Guidance, Tax Reform, Tax Refunds

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

April 17, 2023: The IRS released Internal Revenue Bulletin 2023-16, which highlights the following:

Announcement 2023-10: This announcement was issued pursuant to the Ticket to Work and Work Incentives Improvement Act of 1999, which requires the US Secretary of the Treasury to annually report advance pricing agreements and the Advance Pricing and Mutual Agreement Program (APMA Program). This year’s report describes the experience, structure and activities of the APMA Program during 2022.

REG-105954-22: This notice provides guidance related to Sections 4661, 4662, 4671 and 4672, collectively referred to as the Superfund chemical taxes. Section 4661(a) imposes an excise tax on the sale or use of “taxable chemicals” by manufacturers, producers or importers. Section 4671(a) imposes an excise tax on the sale or use of “taxable substances” by importers. The Superfund chemical taxes previously expired on December 31, 1995, but were reinstated with certain modifications, effective July 1, 2022, by Section 80201 of the Infrastructure Investment and Jobs Act.

Notice 2023-31: This notice announces that when proposed regulations under Section 903 (REG-112096-22) are finalized, the US Department of the Treasury and the IRS intend to extend the transition period for the single-country exception’s documentation requirement from May 17, 2023, to 180 days after the final regulations are filed. The single-country exception provides relief from the source-based attribution requirement under Section 903 for foreign withholding taxes on royalties paid for the use of intellectual property within the withholding jurisdiction.

REG-120080-22: This document contains proposed regulations regarding the clean vehicles credit under Section 30D. These proposed regulations will affect persons seeking to claim the credit and qualified manufacturers of clean vehicles. The IRS also issued a reminder that the proposed regulations went into effect on April 18.

Revenue Ruling 2023-2: This revenue ruling confirms that the basis adjustment under Section 1014 generally does not apply to the assets of an irrevocable grantor trust not included in the deceased grantor’s gross estate for federal estate tax purposes.

April 17, 2023: The IRS released Revenue Ruling 2023-9, which provides the applicable federal rates for federal income tax purposes for May 2023. The short-term federal interest rate is 4.30%, the mid-term rate will drop to 3.57% and the long-term rate will fall to 3.72%.

April 17, 2023: The IRS reminded taxpayers who need additional time to file their taxes that they can get an extension via IRS Free File.

April 17, 2023: The IRS released Tax Tip 2023-51, providing information to taxpayers regarding how to file a final federal tax return for someone who has died.

April 17, 2023: The IRS reminded last-minute tax [...]

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Weekly IRS Roundup April 3 – April 7, 2023

by Sarah M. Raben | Apr 10, 2023 | IRS Guidance, Tax Reform, Tax Refunds

Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of April 3, 2023 – April 7, 2023.

April 3, 2023: The IRS released Internal Revenue Bulletin 2023-14, which highlights the following:

Notice 2023-25: This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates and the 24-month average segment rates. It also provides guidance as to the interest rate on 30-year Treasury securities as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate.

Revenue Ruling 23-6: This revenue ruling provides the applicable federal rates for federal income tax purposes for April 2023. The annual short-term rate is 3.67%, the mid-term rate is 3.14% and the long-term rate is 3.04%.

April 3, 2023: The IRS released Notice 2023-31, announcing an Extension of the Transition Period for the Single-Country Exception Under Section 903.

April 3, 2023: The IRS announced special Saturday hours at Taxpayer Assistance Centers. The final Saturday opening will be May 13, 2023, from 9:00 am to 4:00 pm.

April 3, 2023: The IRS released the last entry in its Dirty Dozen campaign, cautioning taxpayers to beware of promoters peddling bogus tax schemes aimed at reducing or avoiding taxes.

April 3, 2023: The IRS announced that Arkansas storm victims now have until July 31, 2023, to file various federal individual and business tax returns and make tax payments as a result of storms that occurred on March 31, 2023. Relief is available to anyone in an area designated by the Federal Emergency Management Agency as qualifying for individual or public assistance. The current list of eligible localities is available here.

April 3, 2023: The IRS reminded taxpayers that tax credits are available for a portion of the qualifying expenses related to energy improvements to their homes. Taxpayers can claim either the Energy Efficient Home Improvement Credit or the Residential Energy Clean Property Credit for the year when qualifying improvements are made.

April 3, 2023: The IRS released Tax Tip 2023-43, reminding taxpayers that IRS.gov has tax information in seven languages: Spanish, Chinese Traditional, Chinese Simplified, Korean, Russian, Vietnamese and Haitian Creole.

April 4, 2023: The IRS released Revenue Procedure 2023-12, which updates the procedures for exempt organizations determination letters with respect to the electronically submitted Form 8940, Request for Miscellaneous Determination. This modification to Revenue Procedure 2023-5 provides that the electronic submission process is the exclusive means of submitting a completed Form 8940, except for submissions eligible for the 90-day transition relief.

April 4, 2023: The IRS announced guidance related to the eligibility requirement for energy communities for the bonus credit program under the Inflation Reduction Act of 2022 (IRA). Notice 2023-29 describes certain [...]

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Weekly IRS Roundup March 13 – March 17, 2023

by Sarah M. Raben | Mar 20, 2023 | IRS Guidance, Tax Reform, Tax Refunds

Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of March 13, 2023 – March 17, 2023.

March 13, 2023: The IRS released Internal Revenue Bulletin 2023-11, which highlights the following:

Notice 2023-21: This notice postpones the beginning of the lookback periods under Section 6511 for certain taxpayers to file a claim for refund. Affected taxpayers include those who had tax returns due from April 15, 2020 to July 15, 2020, or from April 15, 2021 to May 17, 2021, and due to the COVID-19 pandemic, those due dates were postponed by Notice 2020-23 or Notice 2021-21 to July 15, 2020 or May 17, 2021, respectively.

Treasury Decision 9972: These final regulations amend the rules for filing certain returns and statements electronically to reflect changes made by the Taxpayer First Act of 2019 and to promote electronic filing.

Notice 2023-19: This notice provides guidance on the corporate bond monthly yield curve, corresponding spot segment rates and the 24-month average segment rates for February 2023. The notice also provides guidance as to interest rates on 30-year Treasury securities and 30-year Treasury weighted average rates.

REG 122286-18: These proposed regulations provide rules relating to the use of forfeitures in qualified retirement plans, including a deadline for the use of forfeitures in defined contribution plans, and clarify that forfeitures arising in any defined contribution plan may be used for one or more of the following purposes, as specified in the plan, to (1) pay plan administrative expenses, (2) reduce employer contributions under the plan or (3) increase benefits in other participants’ accounts in accordance with plan terms.

Action on Decision 2023-2: The IRS announced nonacquiescence to the US Tax Court’s decision in Complex Media, Inc. v. Commissioner, T.C. Memo. 2021-14, that the parties’ failure to report transactions fully or consistently should not be a major factor in a decision of whether to allow a taxpayer to disavow the form of its transactions and to the standard the Court applied to allow a petitioner to disavow its form. The IRS also announced nonacquiescence to the court’s determination that the fair market value of a “Deferred Payment Right” for purposes of Section 351(b)(1) is not equal to its issue price.

Treasury Decision 9973: This document contains final regulations that treat members of a consolidated group as a single US shareholder in certain cases for purposes of Section 951(a)(2)(B). The final regulations affect consolidated groups that own stock of foreign corporations.

March 13, 2023: The IRS announced that Danny Werfel began work as the 50th Commissioner of the IRS. Werfel was confirmed by the US Senate on March 9, 2023, and his term will run through November 12, 2027. You can read more about his confirmation
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Weekly IRS Roundup March 6 – March 10, 2023

by Sarah M. Raben | Mar 13, 2023 | IRS Guidance, Tax Reform, Tax Refunds

Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of March 6, 2023 – March 10, 2023.

March 6, 2023: The IRS released Internal Revenue Bulletin 2023-10, which highlights the following:

Action on Decision 2023-1: The IRS announced that although it disagrees with the holding that Section 4611(b)(1)(A) imposes a tax on exports in violation of the Export Clause of the US Constitution (US Const. art. I, § 9, cl. 5), in the interest of sound tax administration, it will follow the decision in all circuits.

Notice 2023-17: This notice establishes a program to allocate amounts of environmental justice solar and wind capacity limitation (Capacity Limitation) to qualified facilities eligible for the energy investment credit as determined under Section 48. This notice also provides initial program guidance for potential applicants for allocations of calendar year 2023 Capacity Limitation.

Notice 2023-18: This notice establishes the Section 48C(e)(1) program to allocate $10 billion in credits ($4 billion of which may only be allocated to projects located in certain energy communities census tracts) and provides initial guidance. The goal of the program is to expand US manufacturing capacity and quality jobs for clean energy technologies (including production and recycling), reduce greenhouse gas emissions in the US industrial sector and secure domestic supply chains for critical materials (including specified critical minerals) that serve as inputs for clean energy technology production.

Notice 2023-20: This notice provides interim guidance for the determination of adjusted financial statement income as it relates to (1) variable contracts and similar contracts, (2) funds withheld from reinsurance and modified coinsurance agreements and (3) the basis of certain assets held by certain previously tax-exempt entities that received a “fresh start” basis adjustment.

Revenue Ruling 2023-5: This revenue ruling provides the applicable federal rates for federal income tax purposes for March 2023. The short-term federal interest rate is 4.5%, the mid-term rate is 3.7% and the long-term rate is 3.74%.

March 6, 2023: The IRS announced that it will be open for special Saturday hours throughout tax season, during which taxpayers can receive face-to-face help from IRS employees without an appointment. The next Saturday openings will be April 8 and May 13.

March 6, 2023: The IRS released Tax Tip 2023-28, which offers easy and convenient options for making federal tax payments.

March 7, 2023: The IRS released Notice 2023-23, which provides guidance to financial institutions on reporting required minimum distributions (RMDs) for 2023 after the amendment to Section 401(a)(9) made by the Consolidated Appropriations Act. If an individual retirement account (IRA) owner has an RMD due for 2023, the financial institution that is the trustee, custodian or issuer maintaining the IRA must file a 2022 Form 5498 (IRA Contribution Information) by May 31, 2023, and indicate [...]

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Weekly IRS Roundup February 13 – February 17, 2023

by Sarah M. Raben | Feb 21, 2023 | IRS Guidance, Tax Reform, Tax Refunds

Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of February 13, 2023 – February 17, 2023.

February 13, 2023: The IRS released Internal Revenue Bulletin 2023-7, which highlights the following:

Revenue Procedure 2023-9: This procedure provides new rules and conditions for implementing the optional safe harbor method of accounting for real estate developers to determine when common improvement costs may be included in the basis of individual units of real property in a real property development project held for sale to determine the gain or loss from sales of those units (the Alternative Cost Method).

February 13, 2023: The IRS announced that interest rates will remain the same for the second quarter of 2023. As of April 1, 2023, the rates will be as follows:

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

Revenue Ruling 2023-4 contains the complete explanation of the calculations.

February 13, 2023: The IRS announced a new pilot phase for the Compliance Assurance Process (CAP) program called “Bridge Plus.” CAP is a cooperative pre-filing program for large corporate taxpayers. Taxpayers will be required to provide book-to-tax reconciliations, credit utilization and other supporting documentation shortly after their audited financial statement is finalized. An IRS team will then risk-assess the documents to determine if the taxpayer is suitable for the “Bridge Plus” phase.

February 13, 2023: The US Department of the Treasury (Treasury) and the IRS announced guidance to establish a program that would provide solar and wind power to certain low-income areas under the Inflation Reduction Act of 2022. Notice 2023-17 establishes the Low-Income Communities Bonus Credit Program and provides initial guidance for potential applicants for allocations of calendar year 2023 capacity limitation.

February 13, 2023: The IRS and the Treasury announced guidance on the Qualifying Advanced Energy Product Credit. Notice 2023-18 establishes the Section 48C(e) program to allocate $10 billion in credits ($4 billion of which may only be allocated to projects located in certain energy communities census tracts). The notice also provides initial program guidance. The goal of the program is to expand US manufacturing capacity and quality jobs for clean energy technologies (including production and recycling), reduce greenhouse gas emissions in the US industrial sector and secure domestic supply chains for critical materials (including specified critical minerals) that serve as inputs for clean energy technology production.

February 13, 2023: The IRS released Tax Tip 2023-18, reminding people that the Earned Income Tax Credit is a major tax benefit for millions of low- and moderate-income workers. Taxpayers can check their eligibility and how much they qualify for here.

February 14, 2023: The IRS released Tax Tip 2023-19, providing resources and suggestions for choosing [...]

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