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Weekly IRS Roundup September 2 – September 6, 2024

by , and | Sep 13, 2024 | ,

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 [...]

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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 July 1 – July 5, 2024

by , and | Jul 11, 2024 | , ,

Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of July 1, 2024 – July 5, 2024.

July 1, 2024: The IRS released Internal Revenue Bulletin 2024-27, which includes the following:

  • Notice 2024-52, which provides the applicable reference price and the credit amount used for determining the Marginal Well Production Credit under 45I of the Internal Revenue Code (Code) for qualified natural gas production from qualified marginal wells for tax years beginning in calendar year 2024.
  • Announcement 2024-27, which revokes the Code § 501(c)(3) determination for specified organizations and stipulates that contributions made to said organizations by individual donors are no longer deductible under Code § 170(b)(1)(A).

July 1, 2024: The IRS reminded homeowners who make energy-efficient improvements to their homes that they may qualify for home energy tax credits, such as the Energy Efficient Home Improvement Credit and the Residential Clean Energy Credit, to offset the costs of making such improvements. Qualifying taxpayers should file Form 5695, Residential Energy Credits, with their tax return.

July 2, 2024: The IRS launched the Protect Your Clients; Protect Yourself campaign to help tax professionals guard against tax-related identity theft. This initiative aims to raise awareness about security threats and provide guidance for maintaining strong security in a series of eight news releases coinciding with the IRS Nationwide Tax Forum, which features webinars to educate tax professionals on security-related topics.

July 2, 2024: The IRS released Revenue Procedure 2024-30, which modifies Revenue Procedure 2024-23 to provide procedures under Code § 446 for obtaining automatic consent to change accounting methods to the Allowance Charge-off Method described in proposed Treasury Regulation § 1.166-2. This method determines when a debt instrument held by a regulated financial company is conclusively presumed to be worthless for purposes of the bad debt rules under Code § 166.

July 3, 2024: The IRS reminded individuals and businesses in parts of Alaska, Maine and Rhode Island affected by disaster declarations that their 2023 federal income tax returns and tax payments are due on July 15, 2024.

July 3, 2024: The IRS warned about a new scam involving tax return preparers misrepresenting the rules for claiming clean energy credits that taxpayers cannot ultimately benefit from and leading to potential compliance actions and repayment obligations.

July 5, 2024: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).



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Weekly IRS Roundup March 4 – March 8, 2024

by , and | Mar 12, 2024 | , ,

Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of March 4, 2024 – March 8, 2024.

March 4, 2024: The IRS released Internal Revenue Bulletin 2024-10, which includes the following:

  • Revenue Ruling 2024-6, which provides that the overpayment interest rate under § 6621 of the Internal Revenue Code (Code) for the calendar quarter beginning April 1, 2024, will be 8% (7% in the case of a corporation), the underpayment interest rate will be 8% and the interest rate for large corporate underpayments will be 10%. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 5.5%.
  • Notice 2024-24, which provides updates on the corporate bond monthly yield curve and corresponding spot segment rates for January 2024 used under Code § 417(e)(3)(D), the 24-month average segment rates applicable for February 2024, and the 30-year Treasury rates, as reflected by the application of § 430(h)(2)(C)(iv).
  • Announcement 2024-13, which revokes § 501(c)(3) determinations for certain organization(s) and stipulates that contributions made to the organization(s) by individual donors are no longer deductible under § 170(b)(1)(A).
  • Revenue Ruling 2024-04, which provides the March 2024 applicable federal rates.

March 4, 2024: The IRS announced that registration for its 2024 Nationwide Tax Forum is now open, providing tax professionals the opportunity to attend special continuing education sessions in five cities across the nation.

March 4, 2024: The IRS reminded taxpayers that the legal deadline for claiming the Recovery Rebate Credit in 2020 is May 17, 2024. The deadline for claiming the Recovery Rebate Credit in 2021 will be April 15, 2025.

March 5, 2024: The IRS issued final regulations, providing that certain tax-exempt organizations and political entities that earn certain clean energy credits can choose to make an elective payment election. Such an election results in the credits being treated as payments against the electing entity’s federal income tax liabilities with the IRS refunding any excess value. Notice 2024-27, in turn, requests additional comments on situations in which an elective payment election should be permitted with respect to credits purchased in a transfer for which an election under § 6418(a) is made.

March 6, 2024: The IRS reminded taxpayers that they are generally required to report all earned income on their tax returns, including income earned from digital asset transactions, the gig economy and the service industry as well as income from foreign sources.

March 6, 2024: The IRS released a statement acknowledging concerns related to a proposed policy change from January 2 that would limit access to tax return information from the IRS to protect taxpayer confidentiality. In response to comments, the IRS has suspended any changes under the proposed policy.

March 6, 2024: The IRS announced that Margie Rollinson took the oath [...]

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