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Weekly IRS Roundup January 3 – January 6, 2023

by | Jan 9, 2023 | , ,

Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of January 3, 2023 – January 6, 2023.

January 3, 2023: The IRS released Internal Revenue Bulletin 2023-1, which highlights the following:

  • Revenue Procedure 2023-1: This contains the revised procedures for letter rulings and information letters issued by the different offices of the Associate Chief Counsel. This procedure also contains the revised procedures for determination letters issued by the Large Business and International (LB&I) Division, the Small Business/Self Employed Division, the Wage and Investment Division and the Tax Exempt and Government Entities (TE/GE) Division.
  • Revenue Procedure 2023-2: This procedure explains when and how an associate office within the Office of Chief Counsel provides technical advice conveyed in technical advice memoranda (TAM). It also explains the rights a taxpayer has when a field office requests a TAM.
  • Revenue Procedure 2023-3: This procedure provides a revised list of areas of the Internal Revenue Code (IRC) under the jurisdiction of the Associate Chief Counsel offices of Corporate, Financial Institutions and Products, Income Tax and Accounting, Passthroughs and Special Industries, Procedure and Administration, Employee Benefits, Exempt Organizations and Employment Taxes. These relate to matters in which the IRS will not issue letter rulings or determination letters.
  • Revenue Procedure 2023-4: This document provides guidance relating to the types of advice the IRS provides to taxpayers on issues under the jurisdiction of the TE/GE Division, Employee Plans Rulings and Agreements and the procedures that apply to requests for determination letters and private letter rulings.
  • Revenue Procedure 2023-5: This provides the procedures for issuing determination letters on items under the jurisdiction of the Director, Exempt Organizations Rulings and Agreements.
  • Revenue Procedure 2023-7: This procedure provides the areas under the jurisdiction of the Associate Chief Counsel International in which rulings will not be issued.

January 3, 2023: The IRS encouraged taxpayers to review the Taxpayer Bill of Rights, which may help resolve filing season questions. Each month, Tax Tips will focus on one of the 10 categories of taxpayer rights.

January 3, 2023: The IRS issued Revenue Procedure 2023-10, which prescribes the loss payment patterns for the 2022 determination year and the discount factors for the 2022 accident year for use by insurance companies in computing discounted unpaid losses under Section 846 and discounted estimated salvage recoverable under Section 832.

January 4, 2023: The IRS reminded taxpayers that final 2022 quarterly estimated tax payments are due January 17. The IRS recommends for taxpayers who earn or receive income not subject to tax withholding, such as self-employed individuals or independent contractors, to pay their taxes quarterly.

January 5, 2023: The IRS released its latest executive column in A Closer [...]

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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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Senate Confirms Rettig as Next IRS Commissioner; Desmond Next?

by and | Sep 13, 2018 | , , ,

On September 12, 2018, the Senate confirmed, by a vote of 64-33, Charles P. Rettig to be Commissioner of the Internal Revenue for the term expiring November 12, 2022. We previously discussed the nomination of Mr. Rettig and his background here.

The IRS Commissioner presides over the United States’ tax system and is responsible for establishing and interpreting tax administration policy and for developing strategic issues, goal and objectives for managing and operating the IRS. This includes responsibility for overall planning, directing, controlling and evaluating IRS policies, programs, and performance. The IRS Commissioner is also required by statute under Internal Revenue Code (Code) Section 7803 to ensure that all IRS employees are familiar with and act in accord with the Taxpayer Bill of Rights.

The nomination of Michael J. Desmond to be Chief Counsel of the Internal Revenue Service (IRS) remains pending in the Senate. We previously discussed the nomination of Mr. Desmond and his background here.

The IRS Chief Counsel serves as the chief legal advisor to the IRS Commissioner on all matters pertaining to the interpretation, administration, and enforcement of the Internal Revenue Code, as well as all other legal matters. Attorneys in the IRS Chief Counsel’s Office serve as lawyers for the IRS. Their role is to provide the IRS and taxpayers with guidance on interpreting Federal tax laws correctly, represent the IRS in litigation, and provide all other legal support required to carry out the IRS mission



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Taxpayer Rights Around the World

by | Jul 19, 2018 |

On May 3 and 4, 2018, the 3rd International Conference on Taxpayer Rights was held in The Netherlands. Participants from every continent (except Antarctica) attended the conference, which focused on good governance and legal remedies. From a US perspective, there were significant discussions on the Taxpayer Bill of Rights (which we have previously written about here. Overall, the conference was tremendously insightful and helpful in understanding tax issues throughout the world and we are very appreciative for being allowed to participate in the panel discussion on Preventing Disputes 2: Taxpayer Rights in the Administrative Phase.

Videos of each panel discussion are now available on YouTube:

Day One:

Day Two:

 

The 4th International Conference on Taxpayer Rights will be held May 23-24, 2019, in Minneapolis, Minnesota. The focus will be on administrative positions and transparency, with issues such as how governments issue guidance, how taxpayers learn about guidance and how much weight is afforded to guidance. More information can be found here.



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National Taxpayer Advocate Reminds Congress of IRS Deficiencies

by and | Apr 18, 2018 | , ,

On April 17, 2018, the Taxpayer Advocate, Nina E. Olson, testified before a Congressional Oversight Committee regarding on-going challenges to the administration of an efficient and effective tax system. Ms. Olson runs the Taxpayer Advocate Service (TAS), an independent office within the Internal Revenue Service (IRS). The Taxpayer Advocate is appointed by and reports directly to the Commissioner of Internal Revenue. The office was created under the Taxpayer Bill of Rights, which became law on July 30, 1996. The office replaced the IRS Office of the Ombudsman. (more…)



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Taxpayer Bill of Rights | Another Tool for Taxpayers?

by | Mar 13, 2018 | , ,

In 2015, after repeated efforts by Nina E. Olson, the National Taxpayer Advocate, Congress enacted the Taxpayer Bill of Rights (TBOR) in Internal Revenue Code (Code) Section 7803(a)(3). We have previously written about TBOR here, here and here.

Since TBOR was enacted, the IRS has issued information on its website regarding the 10 rights contained in Code Section 7803(a)(3). The IRS provides a summary of these rights. Additionally, the IRS has provided specific information on these rights. To summarize, the 10 rights are:

  1. The right to be informed.
  2. The right to quality services.
  3. The right to pay no more than the correct amount of tax.
  4. The right to challenge the position of the Internal Revenue Service and be heard.
  5. The right to appeal a decision of the Internal Revenue Service in an independent forum.
  6. The right to finality.
  7. The right to privacy.
  8. The right to confidentiality.
  9. The right to retain representation.
  10. The right to a fair and just tax system.

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Taxpayer Rights Around the World (Follow-Up)

by | May 4, 2017 | , , ,

We previously wrote two blog posts about the 2nd International Conference on Taxpayer Rights held in Vienna, Austria in March 2017 here and here. Videos of each panel discussion are now available for viewing here. Planning is currently underway for the 3rd International Conference on Taxpayer Rights, which will be held in The Netherlands on May 3-4.



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Taxpayer Advocate Questions IRS CID’s Narrow Reading of the Taxpayer Bill of Rights

by | Apr 6, 2017 | , ,

On March 30, 2017, the US Treasury Inspector General for Tax Administration (TIGTA) published a report identifying numerous violations of taxpayer rights from 2012 to 2014 by the Internal Revenue Service Criminal Investigation Division (IRS CID) in structuring cases. TIGTA examined over 300 investigations for structuring in this time period and identified 21 cases in which taxpayer rights had been compromised.

The Bank Secrecy Act of 1970 (BSA) requires US financial institutions to file reports of currency transactions exceeding $10,000. A provision of the BSA, 31 U.S.C. § 5324(a), prohibits structuring, that is, setting up a transaction for the purpose of evading this reporting requirement. Violations of the law can result in fines, imprisonment and asset forfeiture. This law is administered by the US Department of the Treasury, and one of its major goals is to monitor traffic in illegal-source funds (i.e., funds used in drug transactions or to support terrorism). (more…)



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Taxpayer Rights Around the World (Part 1)

by | Mar 22, 2017 | , , ,

On March 13 and 14, the 2nd International Conference on Taxpayer Rights was held in Vienna, Austria. More than 150 individuals from more than 40 countries attended the conference, which connects government official, scholars and practitioners from around the world to explore how taxpayer rights globally serve as the foundation for effective tax administration. This is the first of two posts recapping the issues discussed at the conference.

Four panels were held on March 13: (1) The Framework and Justification for Taxpayer Rights; (2) Privacy and Transparency; (3) Protection of Taxpayer Rights in Multi-Jurisdictional Disputes; and (4) Access to Rights: the Right to Quality Service in an Era of Reduced Agency Budgets.

(more…)



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