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Weekly IRS Roundup August 26 – August 30, 2024

by Kevin Spencer, Evan Walters and Sama Kaseer | Sep 6, 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 August 26, 2024 – August 30, 2024.

August 26, 2024: The IRS released Internal Revenue Bulletin 2024-35, which includes the following:

Revenue Ruling 2024-16, which provides the average annual effective interest rates for new loans under the Farm Credit System and lists the states within each Farm Credit System Bank Territory. These rates are used to compute the special use value of farmland for estate tax purposes under § 2032A of the Internal Revenue Code (Code).
Announcement 2024-32, which revokes the Code § 501(c)(3) determination for specified organizations and stipulates that contributions made to said organizations by individual donors are no longer deductible under Code § 170(b)(1)(A).
Proposed regulations that address issues under the dual consolidated loss rules, including the treatment of certain disregarded payments that result in losses for foreign tax purposes. These regulations clarify the interaction of dual consolidated loss rules with intercompany transactions under Code § 1503(d) and introduce rules for foreign hybrid entities.

August 26, 2024: The IRS identified new warning signs of incorrect Employee Retention Credit claims and urged businesses to review their filings to ensure eligibility and avoid mistakes. Common issues include unsupported claims of business suspension, wages paid to family members, and wages reported as payroll costs to qualify for the loan forgiveness.

August 27, 2024: The IRS concluded the “Protect Your Clients; Protect Yourself” summer campaign, which encouraged tax professionals to implement robust security measures to defend against identity theft and emerging data security threats. The campaign highlighted the critical need to protect sensitive information from cybercriminal exploitation.

August 27, 2024: The IRS reminded truckers that the deadline to file IRS Form 22901, Heavy Highway Vehicle Use Tax Return, and pay the heavy highway vehicle use tax for 2024 is September 3, 2024.

August 27, 2024: The IRS encouraged taxpayers to conduct a tax checkup at the end of the summer to adjust their withholding or payments and prevent unexpected tax bills next year. This initiative aims to help taxpayers align their tax payments with what they owe, especially those with gig economy jobs or other income not subject to withholding.

August 28, 2024: The IRS notified employers that they can use educational assistance programs to help employees repay their student loans through December 31, 2025.

August 28, 2024: The IRS extended the deadline to file federal individual and business tax returns and make tax payments for certain individuals and businesses in the US Virgin Islands that were affected by Tropical Storm Ernesto. The new deadline is February 3, 2025. The extended deadline is available to taxpayers in any area designated by the Federal Emergency Management Agency, including individuals and households that reside or have a business in any of the [...]

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Weekly IRS Roundup August 12 – August 16, 2024

by Kevin Spencer, Evan Walters and Sama Kaseer | Aug 22, 2024 | IRS Guidance, Tax Reform

Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of August 12, 2024 – August 16, 2024.

August 12, 2024: The IRS released Internal Revenue Bulletin 2024-33, which includes final regulations on the treatment of property used to acquire parent stock or securities in certain triangular reorganizations involving foreign corporations under Section 367 of the Internal Revenue Code. These regulations, effective July 17, 2024, also cover the consequences for recipients of such stock or securities and subsequent inbound nonrecognition transactions.

August 12, 2024: The IRS reminded taxpayers of the option to electronically request relief for certain late-filed international documents, such as gain recognition agreements and dual consolidated losses, using eFax. This digital option, introduced in August 2023, aims to streamline the process and reduce the burden of paper documentation.

August 12, 2024: The IRS extended the deadline to file federal individual and business tax returns and make tax payments for certain individuals and businesses in Minnesota that were affected by severe weather that began on June 16, 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 Blue Earth County or one of the other 24 specified Minnesota counties.

August 13, 2024: The IRS released an updated Written Information Security Plan (WISP) to help tax professionals protect against identity theft and data breaches. As part of the Protect Your Clients; Protect Yourself campaign, WISP highlights best practices like multifactor authentication and mandatory reporting of security incidents affecting more than 500 individuals.

August 13, 2024: The IRS extended the deadline to file federal individual and business tax returns and make tax payments for certain individuals and businesses in Vermont that were affected by Hurricane Debby. The new deadline is February 3, 2025. The extended deadline is available to taxpayers in any area designated by FEMA, including individuals and households that reside or have a business in any of the 14 Vermont counties.

August 14, 2024: The IRS encouraged qualifying businesses, tax-exempt organizations and government entities to complete pre-filing registration for elective pay related to 2023 projects at least 120 days before they file their tax returns. By registering, taxpayers can earn certain tax credits under the Inflation Reduction Act of 2022 and the CHIPS and Science Act.

August 15, 2024: The IRS announced the opening of the application period for the 2025 Compliance Assurance Process program, which will run from September 4, 2024, to October 31, 2024. This program is available to certain privately held C corporations and publicly traded corporations with at least $10 million in assets.

August 15, 2024: The IRS reminded truckers that the deadline to file IRS Form 2290, Heavy Highway [...]

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Weekly IRS Roundup August 21 – September 1, 2023

by Evan Walters | Sep 5, 2023 | IRS Guidance, Tax Reform, Tax Refunds

Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for August 21, 2023 – September 1, 2023.[1]

August 21, 2023: The IRS released Tax Tip 2023-102, warning tax professionals to be prepared for a variety of schemes aimed at stealing sensitive information, including phishing and attacks on cloud-based applications.

August 23, 2023: The IRS published Revenue Procedure 2023-29, providing the applicable percentage table used to calculate the premium tax credit under Section 36B.

August 24, 2023: The IRS reminded employers and employees that employers who have educational assistance programs can use those programs to help pay student loan obligations for their employees.

August 24, 2023: The IRS released Tax Tip 2023-103, outlining the Heavy Highway Vehicle Use Tax and reminding truckers that the tax payment due date is the last day of the month following the month the vehicle was first used on public highways. Truckers must also file Form 2290, Heavy Highway Vehicle Use Tax Return, by such date.

August 25, 2023: The IRS published Revenue Ruling 2023-17, which provides guidance on the overpayment and underpayment rate of tax under Section 6621. The ruling includes a table of interest rates spanning from 1975 through the present.

August 25, 2023: The IRS published Notice 2023-62, which provides guidance on particular issues involving catch-up contributions to retirement plans that are eligible to be designated as Roth contributions.

August 25, 2023: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).

August 28, 2023: The IRS released Tax Tip 2023-104, explaining that eligible teachers and administrators can claim a tax deduction for part of the cost of technology, supplies and training to the extent those expenses are not reimbursed.

August 29, 2023: The IRS issued proposed regulations that would require brokers to report sales and exchanges of digital assets by customers. The proposed regulations contemplate the creation of new Form 1099-DA.

August 29, 2023: The IRS released Tax Tip 2023-105, listing miscellaneous resources for military spouses who run businesses or do gig work.

August 30, 2023: The IRS issued proposed regulations, frequently asked questions and Publication 5855, which all relate to the increased tax credit or deduction amounts for clean energy facilities and projects if taxpayers satisfy certain prevailing wage and registered apprenticeship requirements.

August 30, 2023: The IRS announced that starting January 1, 2024, Form 8300, Report of Cash Payments Over $10,000, must be filed electronically. (See also FS-2023-19 (August 19, 2023).)

August 30, 2023: The IRS announced tax relief for individuals and businesses in parts of Florida affected by Hurricane Idalia. Currently, [...]

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Weekly IRS Roundup August 14 – August 18, 2023

by Evan Walters | Aug 22, 2023 | 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 August 14, 2023 – August 18, 2023.

August 14, 2023: The IRS published Internal Revenue Bulletin 2023-33, which includes:

Revenue Procedure 2023-26, describing a program that provides an opportunity for fast-track processing of certain requests for letter rulings under the jurisdiction of the Associate Chief Counsel (Corporate), replacing the pilot program described in Revenue Procedure 2022-10, 2022-6 I.R.B. 473.
Proposed regulations that would amend the definition of short-term, limited-duration insurance, which is excluded from the definition of individual health insurance coverage under the Public Health Service Act, and provide guidance as to the requirements for hospital indemnity or other fixed indemnity insurance to be considered an excepted benefit in the group and individual health insurance markets. The proposed regulations would also clarify the tax treatment of certain benefit payments in fixed amounts received under employer-provided accident and health plans.
Revenue Ruling 2023-14, providing that, if a cash-method taxpayer receives cryptocurrency tokens as rewards for staking cryptocurrency native to a proof-of-stake blockchain, the fair market value of the rewards received should be included in the taxpayer’s gross income in the taxable year in which the taxpayer gains dominion and control over the rewards.

August 14, 2023: The IRS released Tax Tip 2023-100, providing information to organizations applying for tax-exempt status, including that Form 1023 must now be submitted electronically, every tax-exempt organization needs an employer identification number, certain churches and ancillary organizations do not need to apply to be tax-exempt, different rules may apply depending on whether the organization is a private foundation or a public charity and charitable organizations must make certain information available to the public.

August 15, 2023: The IRS published Revenue Ruling 2023-16, which sets forth the applicable federal rates for September 2023.

August 15, 2023: The IRS released Tax Tip 2023-101, informing taxpayers that, as part of their right to the finality of tax matters, they are entitled to know the maximum amount of time they have to challenge the IRS’s position on a matter, the maximum amount of time the IRS has to audit a particular tax year or collect a tax debt, when the IRS has finished an audit, that the IRS generally has three years from the date taxpayers file their returns (with exceptions) to assess any additional tax for that tax year and that the IRS generally has 10 years from the assessment date to collect unpaid taxes.

August 15, 2023: The IRS reminded eligible contractors who build or substantially reconstruct qualified new energy-efficient homes that they might qualify for a tax credit of up to $5,000 per home under Code Section 45L. The credit amount depends on the type of home, the home’s energy efficiency and the date when someone buys or leases [...]

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Weekly IRS Roundup August 15 – August 19, 2022

by McDermott Will & Emery | Aug 22, 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 August 15, 2022 – August 19, 2022.

August 15, 2022: The IRS released Internal Revenue Bulletin 2022-33, which highlights the following:

Revenue Procedure 2022-29 (modifying and superseding Revenue Procedure 2006-36, 2006-38 I.R.B 498). This guidance updates how government agencies and members of the public should request the creation of special statistical studies and compilations involving return information. It also sets forth the criteria for determining reasonable fees for the costs associated with the creation of the special statistical studies and compilations.

Revenue Procedure 2022-34. This guidance updates the applicable percentage table used to calculate an individual’s premium tax credit beginning in calendar year 2023 and also updates the required contribution percentage for plan years beginning after calendar year 2022.

August 15, 2022: The IRS announced that interest rates for fourth quarter overpayments and underpayments will increase starting October 1, 2022. The new rates are as follows:

Individuals: 6% per year, compounded daily, for both overpayments and underpayments
Corporations: 5% for overpayments; 6% for underpayments
Corporate overpayments for the portion exceeding $10,000:5%
Large corporate underpayments: 8%

More information can be found in Revenue Ruling 2022-15, which includes tables of the calculations and explanations of how the IRS calculates the rates.

August 15, 2022: The IRS announced that it will delay the effective date of the Foreign Currency Guidance once again. The US Department of the Treasury (Treasury) and the IRS intend to amend the regulations under Internal Revenue Code Section 987 in order to defer the applicability date of the 2016 final regulations and related 2019 final regulations by one additional year. The amendments would apply to the taxable year beginning on January 1, 2024.

August 15, 2022: The IRS released final regulations, providing guidance to states wanting to inspect certain return information for the purpose of administering state laws related to tax-exempt organizations. The final regulations reflect changes to the Internal Revenue Code made by the Pension Protection Act of 2006.

August 15, 2022: The IRS announced that Form 990-N filers will use a new sign-in process beginning in August. Smaller charities that are eligible and choose to file Form 990-N must sign into the IRS modernized authentication platform using either their active IRS username or by creating an account here.

August 15, 2022: The IRS released Tax Tip 2022-124, reminding all truckers to file Form 2290, Heavy Highway Vehicle Use Tax Return, on or before the August 31, 2022, deadline. Truck owners who drive a highway motor vehicle weighing 55,000 pounds or more must file the return and pay the tax. In addition, taxpayers with 25 or more taxed vehicles must e-file the form.

August 16, 2022: [...]

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Weekly IRS Roundup August 8 – August 12, 2022

by McDermott Will & Emery | Aug 15, 2022 | 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 August 8, 2022 – August 12, 2022.

August 8, 2022: The IRS released Internal Revenue Bulletin 2022-32, highlighting Notice 2022-32, which provides guidance on the corporate bond monthly yield curve and corresponding spot segment rates and the 24-month average segment rates. The notice also provides guidance as to interest rates on 30-year Treasury securities and the 30-year Treasury weighted average rates.

August 8, 2022: The IRS released IR-2022-146, reminding truckers to file Form 2290, Heavy Highway Vehicle Use Tax Return, on or before the August 31, 2022, deadline. Truck owners who drive a highway motor vehicle weighing 55,000 pounds or more must file the return and pay the tax. Vehicles that used 5,000 miles or less (7,500 miles for farm vehicles) must file the return but do not have to pay the tax.

August 8, 2022: The IRS released Tax Tip 2022-120, explaining how some money raised through crowdfunding may be a gift and excluded from gross income. Crowdfunding websites must file Form 1099-K, Payment Card and Third-Party Network Transactions.

August 9, 2022: The Security Summit partners unveiled a new sample security plan designed to help tax professionals protect their data, particularly those with smaller practices. Tax professionals, software and industry partners and representatives from state tax groups, along with the IRS, developed the plan, dubbed the Written Information Security Plan. Federal law requires that all professional tax preparers create and implement a data security plan.

August 9, 2022: The IRS released COVID Tax Tip 2022-121, reminding taxpayers of the resources available on IRS.gov to help them file their tax returns electronically, get tax account information and find the status of their refund.

August 10, 2022: The IRS released IR-2022-148, reminding teachers and educators that they can deduct up to $300 of out-of-pocket classroom expenses when they file their 2022 tax return. This is the first increase since the deduction was enacted in 2002. From 2002 through 2021, the limit was $250 per year.

August 10, 2022: The IRS announced that storm victims in parts of Missouri now have until November 15, 2022, to file individual and business tax returns and make tax payments if they had a valid extension to file their 2021 returns. The relief is available to anyone in an area designated by the Federal Emergency Management Agency as qualifying for individual or public assistance. The current list of eligible localities is available here.

August 10, 2022: The IRS released Tax Tip 2022-122, outlining the steps business owners need to take when closing a business.

August 11, 2022: The IRS announced Tax Tip 2022-123, highlighting two educational tax credits available to taxpayers who paid higher [...]

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