Tax Counseling for the Elderly program Archives

Weekly IRS Roundup September 30 – October 4, 2024

by Kevin Spencer, Evan Walters and Sama Kaseer | Oct 15, 2024 | 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 September 30, 2024 – October 4, 2024.

September 30, 2024: The IRS released Internal Revenue Bulletin 2024-40, which includes the following:

Revenue Ruling 2024-20, which provides the terminal charge and Standard Industry Fare Level mileage rates for valuing noncommercial flights on employer-provided aircraft for the second half of 2024.
Treasury Decision 9991, which contains final regulations that provide guidance on the consistent basis requirement under 1014(f) of the Internal Revenue Code (Code), applicable to recipients of certain property from a decedent, and the reporting requirements under Code § 6035, applicable to executors and other persons required to file an estate tax return. The final regulations adopt the 2016 proposed regulations (with some modifications) and are designed to ensure accurate reporting and compliance.
Proposed regulations, which amend the definition of “coverage month” to include any month where the premium paid, including advance payments, is sufficient to maintain an individual’s coverage from being terminated for that month when computing their premium tax credit (PTC). The proposed regulations also modify certain rules for calculating an individual taxpayer’s health insurance PTC and clarify eligibility criteria for state basic health programs.
Proposed regulations, which update the qualified domestic trust rules under Code 2056A by removing outdated references to align with current IRS procedures and revising filing requirements and addresses. The proposed regulations primarily affect estates passing property to noncitizen spouses.

September 30, 2024: The IRS released draft IRS Form 7217, Partner’s Report of Property Distributed by a Partnership, which requires partners to report property distributions from partnerships beginning in tax year 2024. Distributions consisting solely of money or marketable securities treated as money are excluded.

September 30, 2024: The IRS released Notice 2024-70, which extends the replacement period under Code § 1033(e) for livestock sold or exchanged because of drought conditions in specified counties across 41 US states, allowing more time for eligible farmers and ranchers to replace livestock.

October 1, 2024: The IRS extended the deadline to file federal individual and business tax returns and make tax payments for certain individuals and businesses in Illinois that were affected by severe weather that began on July 13, 2024. The new deadline is February 3, 2025. The extended deadline is available to taxpayers in any area designated by the Federal Emergency Management Agency (FEMA), including individuals and households that reside or have a business in the following counties: Cook, Fulton, Henry, St. Clair, Washington, Will, and Winnebago.

October 1, 2024: The IRS announced it is seeking volunteers for the Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs to provide free tax services during the upcoming filing season. Interested individuals can sign up from October to January, with flexible hours and various roles [...]

Continue Reading

Weekly IRS Roundup December 12 – December 16, 2022

by McDermott Will & Emery | Dec 19, 2022 | IRS Appeals, 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 December 12, 2022 – December 16, 2022.

December 12, 2022: The IRS released Internal Revenue Bulletin 2022-50, which highlights the following:

Revenue Procedure 2022-41: This guidance specifies when information shown on an income tax return will be an adequate disclosure for purposes of reducing an understatement of income tax under Section 6662(d) and for purposes of avoiding the Section 6694(a) preparer penalty. This revenue procedure updates Revenue Procedure 2021-52 and applies to any income tax return filed on 2022 tax forms for a taxable year beginning in 2022 and any income tax return filed in 2023 on 2022 tax forms for short taxable years beginning in 2023.

December 12, 2022: The IRS reminded people over the age of 72 to start withdrawals from individual retirement arrangements (IRAs) and retirement plans in order to avoid penalties. Required minimum distributions (RMDs) are the minimum amounts that many retirement plan and IRA account owners must withdraw annually after they reach age 72. Account owners can delay taking their first RMD until April 1 following the later of the calendar year in which they reach age 72 or, with a workplace retirement plan, when they retire. RMDs are taxable income and may be subject to penalties if not timely taken.

December 12, 2022: The IRS and the US Department of the Treasury (Treasury) announced a new revenue procedure that sets out key processes for manufacturers and sellers of clean vehicles. Revenue Procedure 2022-42 provides guidance on new rules added as part of the Inflation Reduction Act of 2022 on how to enter into a written agreement with the IRS to provide periodic written reports containing specified information related to a manufactured clean vehicle. The revenue procedure also provides the procedures for people selling vehicles to report information to the IRS in order for the vehicle to be eligible for the credit.

December 13, 2022: The IRS urged families and people paying for disability-related expenses to consider using an Achieving a Better Life Experience (ABLE) savings account. ABLE accounts do not affect a person’s eligibility for government assistance programs and can also provide tax advantages.

December 13, 2022: The IRS released Revenue Procedure 2022-43, which sets out the final qualified intermediary withholding agreement (QI agreement) entered into under Section 1.1441-1(e)(5) of the regulations, which begins on January 1, 2023. The QI agreement allows certain people to enter into an agreement with the IRS to simplify their obligations as withholding agents and as payors for amounts paid to their account holders and allows certain people to act as qualified derivatives dealers and assume primary withholding and reporting responsibilities on all dividend equivalent payments they make.

December 14, 2022: The IRS Independent Office of Appeals selected Elizabeth (Liz) [...]

Continue Reading

Weekly IRS Roundup April 26 – April 30, 2021

by McDermott Will & Emery | May 3, 2021 | 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 April 26, 2021 – April 30, 2021. Additionally, for continuing updates on the tax impact of COVID-19, please visit our resource page here.

April 26, 2021: The IRS issued Revenue Procedure 2021-23, making superseding changes to earlier Revenue Procedures related to the Child Tax Credit under section 24 of the Code, the Earned Income Credit under section 32 of the Code and the Premium Tax Credit under section 36B of the Code in order to reflect statutory amendments made by the American Rescue Plan Act of 2021 (ARPA).

April 26, 2021: The IRS issued a news release reporting the results of its March 2021 inaugural National Virtual Settlement Month, an IRS-coordinated nationwide initiative to provide pro bono legal advice to pro se US Tax Court litigants.

April 27, 2021: The IRS issued corrections to final regulations published in December 2020 regarding the elimination of the deduction for expenses associated with certain employer-provided transportation and commuting benefits under section 274 of the Code.

April 27, 2021: The IRS issued a news release, describing various electronic services it provides and urging taxpayers and tax professionals to use such services to speed up the processing of tax returns, payments and refunds.

April 28, 2021: The IRS issued a news release announcing a seventh round of Economic Impact Payments consisting of nearly two million payments totaling more than $4.3 billion, bringing the total amount of disbursements under ARPA to approximately 163 million payments worth approximately $384 billion.

April 29, 2021: The IRS issued a news release, providing information and resources to assist with tax compliance by gig economy workers and taxpayers who claimed unemployment compensation in 2020.

April 29, 2021: The IRS issued a news release, reminding taxpayers of the availability of tax-filing extensions upon request and listing certain categories of taxpayers who automatically obtain extensions without request.

April 30, 2021: The IRS issued Announcement 2021-8, listing attorneys, Certified Public Accountants (CPAs) and other practitioners who have received disciplinary sanctions for violating the regulations governing practice before the IRS.

April 30, 2021: The IRS issued a news release announcing the release of updated 2021 versions of Schedules K-2 and K-3 for Forms 1065, 1120-S and 8865. The updated Schedules are intended to provide greater clarity regarding the reporting of certain international tax items with respect to pass-through entities.

April 30, 2021: The IRS issued a news release announcing that it is now accepting grant applications by eligible organizations under the Tax Counseling for the Elderly (TCE) and Volunteer Income Tax Assistance (VITA) programs, which provide tax assistance services to elderly taxpayers and underserved communities, respectively.

April 30, 2021: The IRS released its weekly list of written determinations (e.g., [...]

Continue Reading