employer-sponsored minimum essential coverage Archives

Weekly IRS Roundup November 28 – December 2, 2022

by McDermott Will & Emery | Dec 5, 2022 | 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 November 28, 2022 – December 2, 2022.

November 28, 2022: The IRS released Internal Revenue Bulletin 2022-48, which highlights the following:

Notice 2022-59: This notice provides the adjusted applicable dollar amount to be multiplied by the average number of covered lives for purposes of calculating the fee imposed by Sections 4375 and 4376 for policy years and plan years that end on or after October 1, 2022, and before October 1, 2023. The amount is $3.00, up from $2.79.

Announcement 2022-23: This announcement notifies taxpayers of new credit amounts for calendar year 2022 for the renewable electricity production credit under Section 45, in the case of any qualified facility placed in service after December 31, 2021.

November 28, 2022: The IRS and Security Summit partners announced the kick-off date for the 7th National Tax Security Awareness Week. The group also urged people to be aware of holiday scams and to protect their personal information.

November 28, 2022: The IRS released Tax Tip 2022-181, reminding taxpayers to be aware of gift card scammers during the holidays. One of the common scams used this time of year is con artists asking taxpayers to pay fake tax bills with gift cards. Scammers also sometimes use a compromised email account to request gift card purchases for family and friends.

November 29, 2022: The IRS warned taxpayers to be on alert for scammers using fake charities as a way to make money during the holiday season. The message came on Giving Tuesday as part of Nationwide Tax Security Awareness Week. Tips for avoiding fake charity scams include not giving into pressure, being wary of how donations are requested and not giving more than is needed.

November 29, 2022: The IRS released Tax Tip 2022-182, reminding people that they may be eligible for more than one filing status. The IRS suggests that taxpayers review their options and pick the one that makes the most sense for them.

November 29, 2022: The IRS announced that interest rates will increase for the first quarter of 2023. The new interest rates, published in Revenue Ruling 2022-23, begin January 1, 2023, and are as follows:

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

November 29, 2022: The IRS announced that the IRS Office of Chief Counsel, along with the American Bar Association, held its first centralized National Virtual Settlement Event in October. Over the course of four days, 44 cases were settled and at least 59 meetings took place with taxpayers, pro bono attorneys and representatives from the IRS Office of Chief Counsel.

November 29, 2022: The IRS
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Weekly IRS Roundup November 7 – November 11, 2022

by McDermott Will & Emery | Nov 14, 2022 | IRS Guidance, Tax Reform

Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of November 7, 2022 – November 11, 2022.

November 7, 2022: The IRS released Internal Revenue Bulletin 2022-45, which highlights the following:

Proposed Regulations 100719-21: This guidance proposes increases for both the enrollment and renewal of enrollment user fees for enrolled actuaries from $250 to $680.

Revenue Procedure 2022-38: This revenue procedure establishes the annual inflation adjustments for more than 60 tax provisions.

Notice 2022-54: This notice provides guidance on the corporate bond monthly yield curve and corresponding spot segment rates and the 24-month average segment rates for October 2022. The notice also provides guidance as to interest rates on 30-year Treasury securities and 30-year Treasury weighted average rates.

Notice 2022-55: This notice provides the dollar limitations on benefits and contributions under qualified retirement plans.

Notice 2022-53: This notice announces that the US Department of the Treasury (Treasury) and the IRS intend to issue final regulations related to required minimum distributions under Section 401(a)(9) that will apply no earlier than the 2023 distribution calendar year. The notice also provides guidance related to certain Section 401(a)(9) provisions that apply for 2021 and 2022 and the related excise tax under Section 4974.

Proposed Regulation 121509-00: This document withdraws proposed regulations related to exclusion from gross income of previously taxed earnings and profits under Section 959, as well as related basis adjustments under Section 961.

Revenue Ruling 2022-20: This guidance provides the various prescribed rates for federal income tax purposes for November 2022.

Treasury Decision 9968: These final regulations amend the regulations concerning eligibility for the premium tax credit to provide that affordability of employer-sponsored minimum essential coverage for family members of an employee is determined based on the employee’s share of the cost of covering the employee and those family members—not the cost of covering only the employee—under Section 36B.

November 7, 2022: The IRS and the Treasury announced that they will now allow Section 403(b) retirement plans to use the same individually designed retirement plan determination letter program currently used by qualified retirement plans. Revenue Procedure 2022-40 outlines the additions and changes.

November 7, 2022: The IRS issued COVID Tax Tip 2022-170, which cautions employers to be aware of third parties advising them to claim the employee retention credit when they may not qualify.

November 7, 2022: The IRS requested comments on the reporting requirements for settlement funds, which are funds established or approved by a governmental authority to resolve or satisfy certain liabilities (such as those involving tort or breach of contract). Comments should be received by January 6, 2023, to be assured of consideration.

November [...]

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Weekly IRS Roundup October 10 – October 14, 2022

by McDermott Will & Emery | Oct 17, 2022 | 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 October 10, 2022 – October 14, 2022.

October 11, 2022: The IRS released Internal Revenue Bulletin 2022-41, which highlights the following:

Notice 2022-42: This notice announces that the IRS and the US Department of the Treasury (Treasury) intend to amend the regulations under Section 901 with respect to the application of the noncompulsory payment regulations to certain amended Puerto Rico tax decrees.

Notice 2022-44: This notice provides annual awareness of the 2022-2023 special per diem rates for taxpayers to use when substantiating the amount of business expenses incurred while traveling away from home. The guidance addresses (1) the special transportation industry meal and incidental expenses rates, (2) the rate for the incidental expenses only deduction and (3) the rates and list of high-cost localities for purposes of the high-low substantiation method.

Revenue Procedure 2022-19: This revenue procedure provides guidance to allow S corporations and their shareholders to resolve frequently encountered issues with certainty and without requesting a private letter ruling issued by the IRS.

October 11, 2022: The IRS issued Notice 2022-41, which expands the application of permitted change-in-status rules for health coverage under a Section 125 cafeteria plan. This guidance addresses when a plan participant may want to revoke the employee’s election under the cafeteria plan for family coverage under a group health plan (other than a flexible spending arrangement) in order to allow one or more family members to enroll in a Qualified Health Plan through a Health Insurance Exchange in the individual market.

October 11, 2022: The IRS announced that seminars from the 2022 IRS Nationwide Tax Forum are now available online. The platform offers 18 self-study seminars, including ones on the following topics:

IRS Commissioner Chuck Rettig’s Keynote Address

Tax Law Changes for Tax Year 2022 – in English and Spanish

Professional Responsibility Obligations (Ethics) – in English and Spanish

Tax Treatment of Digital Assets

Tax-Exempt Organizations Update

Emerging Cyber Crimes – in English and Spanish

October 11, 2022: The IRS announced that it is expanding dyed diesel penalty relief in response to Hurricane Ian. The IRS will not impose a penalty when dyed diesel fuel with a sulfur content that does not exceed 15 parts-per-million is sold for use or used on highways in the state of Florida. The relief began on September 28, 2022, and lasts through October 19, 2022. The penalty relief previously only applied to emergency vehicles.

October 11, 2022: The IRS issued a statement related to uncertain tax positions (UTP) reporting. Draft changes to the Schedule UTP and the UTP instructions are available at Draft Task Forms. The draft changes are intended to improve the form’s usefulness by incorporating additional relevant examples and [...]

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