marginal properties Archives - TAX CONTROVERSY 360

Weekly IRS Roundup July 24 – July 28, 2023

Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of July 24, 2023 – July 28, 2023.

July 24, 2023: The IRS released Internal Revenue Bulletin 2023-30, which includes proposed regulations that specify the methodology for constructing the corporate bond yield curve used to calculate present value under a defined benefit plan. The Internal Revenue Bulletin also highlights the following:

Announcement 2023-18 relieves taxpayers from reporting the new stock repurchase excise tax under § 4501.
Announcements 2023-19 and 2023-20 revoke the tax-exempt status of certain organizations.
Notice 2023-37 modifies prior guidance regarding benefits related to testing and treating COVID-19.
Notice 2023-50 announces that the applicable percentage for purposes of determining percentage depletion on marginal properties for 2023 is 15%.
Notice 2023-51 publishes the inflation adjustment factor and the reference price for 2023 for the renewable electricity production credit under § 45.
T.D. 9976 provides final regulations that facilitate the transition from the London Interbank Offered Rate (LIBOR) to other interbank offered rates (IBORs).

July 24, 2023: The IRS released Tax Tip 2023-93, warning businesses and tax-exempt organizations about misleading employee retention credit claims. Scammers and unscrupulous promoters have been running aggressive broadcast advertising, direct mail solicitations and online promotions for the credit, many of which misrepresent and exaggerate who can qualify for the credit.

July 24, 2023: The IRS announced that revenue officers will no longer make unannounced visits to taxpayers’ residences in all but a few narrow circumstances. Instead, they will schedule visits via mailed letters.

July 25, 2023: The IRS released Tax Tip 2023-94, advising that applicable entities, including tax-exempt and governmental entities that would otherwise be unable to claim certain credits because they do not owe federal income tax, can benefit from some clean energy tax credits. If an entity opts to receive an elective payment, the amount of such credits is treated as a payment of tax, and overpayments will result in a refund.

July 25, 2023: The IRS released Notice 2023-53, which provides guidance on the corporate bond monthly yield curve, spot segment rates used under § 417(e)(3) and the 12-month average segment rates under § 430(h)(2).

July 25, 2023: The IRS published a special summer series discussing the Identity Protection PIN Opt-In Program, which can provide an extra layer of security for taxpayers filing their tax returns.

July 26, 2023: The IRS released Tax Tip 2023-95, reminding taxpayers that IRS Free File remains available until October 16 for those who still need to file a 2022 tax return.

July 26, 2023: The IRS released Revenue Procedure 2023-26, which provides a program for the fast-track processing of private letter ruling requests, replacing the pilot program described in
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Weekly IRS Roundup May 3 – May 7, 2021

Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of May 3, 2021 – May 7, 2021. Additionally, for continuing updates on the tax impact of COVID-19, please visit our resource page here.

May 3, 2021: The IRS issued a news release announcing the opening of the application period for 2022 grants under the Low Income Taxpayer Clinic (LITC) program, an IRS program to assist organizations in providing pro bono representation to taxpayers who are low income or speak English as a second language (ESL) in federal tax disputes.

May 4, 2021: The IRS issued a news release as part of National Hurricane Preparedness Week and National Wildfire Awareness Month, reminding taxpayers of certain best practices to minimize the effect of natural disasters on tax compliance.

May 5, 2021: The IRS issued a news release announcing an eighth round of Economic Impact Payments consisting of more than 1.1 million payments totaling more than $2 billion, bringing the total amount of disbursements under the American Rescue Plan Act of 2021 (ARPA) to approximately 164 million payments worth approximately $386 billion.

May 5, 2021: The IRS issued a news release announcing the development of Projected Contract Award Date, a web app designed to increase efficiency in procurement by using statistical models to forecast the date on which contracts will be awarded.

May 6, 2021: The IRS issued Notice 2021-29, announcing that the reference price under section 45K(d)(2)(C) of the Code, which is relevant for certain Code sections regarding oil and gas production, is $37.07 for calendar year 2020.

May 6, 2021: The IRS issued Notice 2021-30, announcing that the applicable percentage under section 613A of the Code, which is used to determine percentage depletion for oil and gas produced from marginal properties, is 15% for calendar year 2021.

May 6, 2021: The IRS issued a news release reminding calendar-year tax-exempt organizations that annual Form 990 information returns and certain other filings are due on May 17, 2021.

May 7, 2021: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).

Special thanks to Le Chen in our Washington, DC, office for this week’s roundup.