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Weekly IRS Roundup July 31 – August 4, 2023

by | Aug 9, 2023 | ,

Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of July 31, 2023 – August 4, 2023.

July 31, 2023: The IRS released Revenue Ruling 2023-14, holding that a cash-method taxpayer who receives cryptocurrency units as validation rewards for staking cryptocurrency native to a proof-of-stake blockchain must include the fair market value of the validation rewards in its gross income for the tax year in which the taxpayer gains dominion and control over the validation rewards.

July 31, 2023: The IRS released Tax Tip 2023-97, identifying tax considerations for couples who are separating or divorcing. These considerations include updating tax withholdings by completing a new Form W-4, recognizing alimony payments as income (or deducting) and excluding child support payments from income (or not deducting).

August 1, 2023: The IRS warned tax professionals to be on the lookout for phishing texts and emails and cloud-based attacks intended to steal taxpayer information.

August 2, 2023: The IRS announced that taxpayers will be able to submit all correspondence to the IRS and respond to IRS notices electronically. Further, taxpayers will be able to e-file 20 additional tax forms starting in 2024. By the 2025 filing season, an additional 150 non-tax forms will be available in digital, mobile-friendly formats, and the IRS will digitally process all paper-filed tax and information returns.

August 3, 2023: The IRS released Tax Tip 2023-98, explaining that in most cases, revenue officers will contact taxpayers through appointment letters (Letter 725-B) to schedule a meeting and generally will not make unannounced visits. IRS.gov will be updated to reflect the new policy. Unannounced visits may still be made to serve summonses and subpoenas and in cases involving the seizure of assets where such assets are at risk of being placed beyond the reach of the government.

August 3, 2023: The IRS released proposed regulations that would prevent employee benefit plans and issuers from using nonquantitative treatment limitations to place greater limits on access to mental health and substance use disorder benefits as compared to medical/surgical benefits. Written comments on the proposed regulations are due October 2, 2023.

August 3, 2023: The IRS released proposed regulations that would identify certain monetized installment sale transactions and substantially similar transactions as listed transactions that must be reported to the IRS.

August 3, 2023: The IRS issued Notice 2023-59, which provides the requirements for home energy audits for taxpayers who want to claim the Energy Efficient Home Improvement Credit. The credit amount is equal to 30% of the total amount that taxpayers pay throughout the year for qualified energy efficiency improvements, residential energy property expenditures and home energy audits. The notice provides specific requirements for claiming the Home Energy Improvement Credit and details the process for conducting the home energy audit.

August 4, 2023: The IRS issued
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Weekly IRS Roundup October 31 – November 4, 2022

by | Nov 7, 2022 | , , , ,

Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of October 31, 2022 – November 4, 2022.

October 31, 2022: The IRS released Internal Revenue Bulletin 2022-44, which highlights the following:

  • Treasury Decision 9966: These final regulations increase the renewal user fee for enrolled retirement plan agents from $67 to $140 and also increase both the enrollment and renewal of enrollment user fees for enrolled agents from $67 to $140.
  • Proposed Regulations 113068-22: These proposed regulations relate to recordkeeping and reporting requirements for the average income test for purposes of the low-income housing credit.
  • Revenue Ruling 2022-19: This revenue ruling provides a rule for valuing noncommercial flights on employer-provided aircraft, including the three Standard Industry Fare Level (SIFL) rates: the Unadjusted SIFL Rate, the SIFL Rate Adjusted for PSP Grants, and the SIFL Rate Adjusted for PSP Grants and Promissory Notes.
  • Treasury Decision 9967: This document contains final and temporary regulations, which set forth guidance on the average income test for purposes of the low-income housing credit.

October 31, 2022: The IRS released COVID Tax Tip 2022-166, announcing that more than nine million people may qualify for tax benefits they did not claim by filing a 2021 federal income tax return. Many of these people may be eligible to claim some or all of the 2021 Recovery Rebate Credit, the Child Tax Credit and the Earned Income Tax Credit, among others, which were expanded last year under the American Rescue Plan Act of 2021 and other legislation.

November 1, 2022: The IRS released COVID Tax Tip 2022-167, alerting taxpayers in areas covered by certain Federal Emergency Management Agency disaster declarations that they may have more time to file their returns and may qualify for penalty relief under Notice 2022-36.

November 2, 2022: The IRS released COVID Tax Tip 2022-168, reminding people to review their tax withholdings to avoid tax surprises, such as a balance due or a larger-than-expected refund.

November 3, 2022: The IRS requested comments on three notices related to different aspects of extensions and enhancements of energy tax benefits in the Inflation Reduction Act of 2022. The IRS hopes that comments will aid the agency in drafting the related guidance items. Feedback should be submitted by December 3, 2022. The notices include:

  • Notice 2022-56, which requests comments related to the qualified commercial clean vehicles provisions and the alternative fuel vehicle refueling property
  • Notice 2022-57, which requests comments related to the carbon capture tax credit
  • Notice 2022-58, which requests comments related to the tax credit for the production of clean hydrogen and the clean fuel production tax credit.

November 3, 2022: The IRS
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Weekly IRS Roundup October 17 – October 21, 2022

by | Oct 24, 2022 | , ,

Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of October 17, 2022 – October 21, 2022.

October 17, 2022: The IRS released Internal Revenue Bulletin 2022-42, which highlights the following:

  • Notice 2022-45: This notice extends the deadline for amending an eligible retirement plan to reflect the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (Relief Act). Both allow for special tax treatment with respect to a coronavirus-related distribution or a qualified disaster distribution.
  • Notice 2022-43: This notice provides guidance regarding the extension of the four-year replacement period for livestock sold because of the drought. The relief extends to 44 states, two US territories and two independent nations. It generally applies to capital gains realized on sales of livestock held for draft, dairy or breeding purposes.

October 17, 2022: The IRS announced its continued support to fight fraud targeting charities, businesses and individuals during Charity Fraud Awareness Week, which was October 17 to October 21. The IRS estimates that charities lose 5% of their revenue each year to fraud.

October 17, 2022: The IRS released Tax Tip 2022-158, reminding taxpayers to review their withholdings and estimated tax payments.

October 17, 2022: The IRS released Revenue Ruling 2022-20, providing various prescribed rates for federal income tax purposes for November 2022.

October 17, 2022: The IRS released Notice 2022-54, which 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.

October 17, 2022: The IRS reminded families that they may be eligible for the Child Tax Credit if they claim at least one child as their dependent. The IRS specifically urges grandparents, foster parents or people caring for siblings or other relatives to check whether they are eligible to receive the 2021 Child Tax Credit.

October 18, 2022: The IRS released Tax Tip 2022-159, suggesting that taxpayers with an outstanding tax bill consider making an Offer in Compromise. An Offer in Compromise is an option for taxpayers who cannot pay their full tax liabilities or in situations where paying the balance would create financial hardship.

October 18, 2022: The IRS announced the 2023 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes. The Inflation Reduction Act of 2022 is extending certain tax breaks related to energy for the first time in 2023. The standard deduction for a married couple filing jointly and single and married taxpayers filing separately is also increasing. All of the 2023 adjustments can be found in
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