Check out our summary of significant Internal Revenue Service
(IRS) guidance and relevant tax matters for the week of April 10,
2023 – April 14, 2023.
April 10, 2023: The IRS released Internal Revenue Bulletin 2023-15, which
highlights the following:
- Revenue Procedure 2023-20: This
revenue procedure modifies the effective date of additions to the
taxable substances or chemicals list under Section 4672(a).
Specifically, this revenue procedure changes the date on which
substances are added to the list for purposes of refund claims
under Section 4662(e).
- Notice 2023-27: This notice
announces that the US Department of the Treasury and the IRS intend
to issue guidance related to the tax treatment of certain
non-fungible tokens (NFTs). The guidance requests comments on the
treatment of NFTs as collectibles and describes how the IRS intends
to determine whether an NFT is a collectible until further guidance
is issued.
- Notice 2023-28: This notice
extends temporary relief regarding deposits of the excise tax
imposed on certain chemicals under Section 4661 and the excise tax
imposed on certain imported chemical substances under Section 4671
(collectively, Superfund chemical taxes). The extended relief is
available in connection with deposits of the Superfund chemical
taxes for semimonthly periods in the second, third and fourth
calendar quarters of 2023.
- REG-120653-22: These proposed
regulations implement the advanced manufacturing investment credit,
a new current-year business tax credit under Section 48D to
incentivize the manufacture of semiconductors and semiconductor
manufacturing equipment within the United States. The regulations
address the credit’s eligibility requirements, an election that
eligible taxpayers may make to be treated as making a payment of
tax (including an overpayment of tax) or for an eligible
partnership or S corporation to receive an elective payment instead
of claiming a credit, and a special 10-year credit recapture rule
that applies if there is a significant transaction involving the
material expansion of semiconductor manufacturing capacity in a
foreign country of concern.
- Revenue Ruling 2023-7: This
revenue ruling provides the fringe benefits aircraft valuation
formula. For purposes of Section 1.61-21(g) of the regulations,
relating to the rule for valuing non-commercial flights on
employer-provided aircrafts, the Standard Industry Fare Level
(SIFL) cents-per-mile rates and terminal charge in effect for the
first half of 2023 are as follows:
April 10, 2023: The IRS released Tax Tip 2023-47, providing
guidance on when to file an amended income tax return.
April 10, 2023: The IRS and the Treasury issued Notice 2023-30, providing safe harbor deed
language for extinguishment and boundary line adjustment clauses as
required by the SECURE 2.0 Act of 2022. Section 605(d)(2) provides
donors with the opportunity to amend certain conservation easement
deeds to substitute the safe harbor language for the corresponding
language in the original deed. Taxpayers will have until July 24,
2023, to record their safe harbor deed amendments.
April 10, 2023: The IRS announced proposed regulations
identifying certain micro-captive transactions as “listed
transactions” and certain other micro-captive transactions as
“transactions of interest” in Announcement 2023-11.
April 10, 2023: The IRS announced that Tennessee storm
victims now have until July 31, 2023, to file various federal
individual and business tax returns and make tax payments as a
result of tornados, severe storms and straight-line winds that
occurred starting on March 31, 2023. Relief is available to anyone
in an area designated by the Federal Emergency Management Agency
(FEMA) as qualifying for individual or public assistance. The
current list of eligible localities is available here.
April 11, 2023: The IRSannounced that it wants to
debunk common myths about filing taxes, finding refund information
and adjusting withholding. For example, one untrue myth is that
taxpayers don’t need to report income if they didn’t
receive a Form 1099-K. The filing deadline for income tax returns
is April 18, 2023.
April 11, 2023: The IRS
released Tax Tip 2023-48, reminding
taxpayers that common errors on a tax return can lead to longer
processing times.
April 11, 2023: The IRSannounced that taxpayers who
filed their federal income taxes early in this year’s filing
season and reported certain state 2022 tax refunds as taxable
income should consider filing an amended return.
April 12, 2023: The IRS reminded taxpayers of the
upcoming estimated tax payment deadline. April 18 (Tax Day) is also
the deadline for first quarter estimated tax payments for tax year
2023.
April 12, 2023: The IRS released Tax Tip 2023-49, informing
taxpayers of how to claim clean vehicle tax credits. Beginning
January 1, 2023, eligible vehicles may qualify for a tax credit of
up to $7,500. The amount of the credit depends on when the eligible
new clean vehicle is placed in service and whether the vehicle
meets certain requirements for a full or partial credit.
April 12, 2023: The IRS released Revenue Ruling 2023-8, which
obsoletes Revenue Ruling 58-74. Revenue Ruling 58-74 allowed
taxpayers to file a claim for refund or amended return to deduct
research or experimental expenditures that for prior taxable years,
the taxpayer had failed to deduct and for which the expense method
under former Section 174(a) was applicable.
April 12, 2023: The IRS announced that nearly 1.5
million people across the nation have unclaimed refunds for tax
year 2019 and face a July 17 deadline to submit their tax
returns.
April 13, 2023: The IRS released Tax Tip 2023-50, reminding
taxpayers that they have the right to pay no more than the correct
amount of tax due. This is one of the 10 basic rights known as the
Taxpayer Bill of Rights.
April 13, 2023: The IRS reminded low-to moderate-income
taxpayers to consider IRS FreeFile for preparing
their own federal tax return to potentially receive tax credits or
refunds.
April 14, 2023: The IRS issued FAQs in Fact Sheet FS-2023-11,
providing guidance for victims who have received state compensation
payments for forced, involuntary or coerced sterilization.
April 14, 2023: The IRS released its annual Data Book for fiscal year 2022,
describing the agency’s activities, including revenue and tax
returns processed. The 2022 Data Book reports examination coverage
rates by type and size of return for examinations in process or
closed as of September 30, 2022. In an announcement, the IRS explained
that the Inflation Reduction Act of 2022 provides resources to
expand enforcement areas where current audit rates have been too
low to address systematic noncompliance while encouraging some
taxpayers to take greater risks given such low audit rates.
April 14, 2023: The IRS released its weekly
list ofwritten determinations
(e.g., Private Letter Rulings, Technical Advice
Memorandums and Chief Counsel Advice).
Upcoming Events: Registration for the 2023 IRS Nationwide Tax
Forums is now open, and the events are returning to an in-person
format for the first time since 2019. The IRS Nationwide Tax Forums
are designed specifically for tax professionals (e.g.,
enrolled agents, certified public accountants, certified financial
planners and Annual Filing Season Program participants) as well as
uncredentialed tax professionals. The dates and locations are as
follows:
- July 11-13: New Orleans, LA
- July 25-27: Atlanta, GA
- August 8-10: National Harbor, MD (Washington, DC area)
- August 22-24: San Diego, CA
- August 29-31: Orlando, FL
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
