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Weekly IRS Roundup September 2 – September 6, 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 November 8 – November 12, 2021

Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of November 8, 2021 – November 12, 2021. Additionally, for continuing updates on the tax impact of COVID-19, please visit our resource page here.

November 9, 2021: The IRS released a Treasury Decision, requesting written comments on T.D. 9360, which provides guidance regarding the information a taxpayer must provide in order to substantiate its computation of its share of a passive foreign investment company (PFIC) post-1986 earning and profits. Written comments must be received before January 10, 2022.

November 9, 2021: The IRS released draft instructions for Form 8992, U.S. Shareholder Calculation of Global Intangible Low-Taxed Income (GILTI). Under these instructions, taxpayers must attach either a separate Schedule A or a separate Schedule B, depending upon whether the entity’s US shareholder is a taxpayer of a US consolidated group. In addition, domestic partnerships are no longer required to fill out Form 8892. Instead, they must now complete Schedules K-2 and K-3 on Form 1065.

November 10, 2021: The IRS issued a news release and a revenue procedure, announcing the tax year 2022 annual inflation adjustments. These adjustments affect more than 60 tax provisions, including the tax rate schedules, and will be used for tax returns filed in 2023.

November 10, 2021: The IRS issued the 2021 IRS Financial Report, which provides a comprehensive view of the IRS’s financial activities and its finance management community. The report specifies, among other items, the tax revenue managed by the IRS, the amount of refunds it has issued and the amount of unpaid assessments.

November 11, 2021: The IRS released a revenue procedure, requesting comments on Revenue Procedure 2008-60, which affects taxpayers who are maintaining a surety bond or a Treasury Direct Account to satisfy the low-income housing tax credit recapture exception in Section 42(j)(6). Written comments must be received before January 14, 2022.

November 12, 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 Jennifer Saperstein in our Chicago office for this week’s roundup.