disclosures Archives - TAX CONTROVERSY 360

Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of December 18, 2023 – December 22, 2023.

December 18, 2023: The IRS released Internal Revenue Bulletin 2023-51, which includes the following:

Notice 2023-74, which delays the new $600 Form 1099-K reporting threshold requirement for third-party settlement organizations for calendar year 2023 and plans to phase in the reporting requirement in 2024, starting with a threshold of $5,000.
Revenue Procedure 2023-40, which provides guidance in specific circumstances on the adequacy of disclosure on a federal tax return for purposes of reducing the understatement of income tax accuracy-related penalty pursuant to § 6662(d) of the Internal Revenue Code (Code) and avoiding the Code § 6694(a) tax return preparer penalty.
Proposed regulations that would amend the rules applicable to plans that include cash or deferred arrangements pursuant to § 401(k) to provide guidance with respect to long-term, part-time employees. Comments must be received by January 26, 2024. A public hearing is scheduled for March 15, 2024, at 10 am EDT.
Revenue Procedure 2023-37, which sets forth rules for Qualified Pre-approved Plans and § 403(b) Pre-approved Plans. The rules consolidate and conform prior revenue procedures with respect to the pre-approved plans.
Revenue Procedure 2023-38, which provides procedural rules for qualified manufacturers of new clean vehicles to comply with the reporting, certification and attestation requirements regarding the excluded entity restriction.
Revenue Ruling 2023-23, which publishes the base period T-bill rate for the period ending September 30, 2023, under § 995(f).
Revenue Procedure 2023-36, which updates the list of jurisdictions with which the United States has in effect a relevant information exchange agreement or an automatic exchange relationship under Treasury Regulation § 1.6049-4(b)(5) and Treasury Regulation § 1.6049-8(a).

December 18, 2023: The IRS announced the launch of the second phase of a new online self-service tool for businesses that expands the business tax account capabilities and eligible entity types. Individual partners of partnerships and individual shareholders of S Corporation businesses are also now eligible for a business tax account.

December 18, 2023: The IRS issued Revenue Ruling 2024-1, which provides tables of covered compensation under § 401(l)(5)(E) for the 2024 plan year.

December 19, 2023: The IRS announced new penalty relief for certain individuals, businesses and tax-exempt organizations that were not sent automated collection reminder notices during the pandemic. Notice 2024-7 and Fact Sheet 2023-28 provide additional details.

December 19, 2023: The IRS issued Notice 2024-1, which provides the percentage increase for calculating the qualifying payment amounts for items and services furnished during 2024 for purposes of § 9816 and § 9817 of the Code, section 716 and section 717 of the Employee Retirement Income Security Act of [...]

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For decades, large corporate taxpayers under continuous audit have been able to make disclosures under Revenue Procedure 94-69 at the beginning of an examination to notify the Internal Revenue Service (IRS) of adjustments (both positive and negative) to their tax returns and thereby obtain protection from various penalties and obviate the need to file a formal amended tax return. In 2020, the IRS questioned the continuing utility of this disclosure process and invited comments on said process. With the new Revenue Procedure 2022-39, the IRS has moved the largest corporate taxpayers into a new era of voluntary disclosure. This is a significant development for impacted taxpayers.