Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of March 27, 2023 – March 31, 2023.
March 27, 2023: The IRS released Internal Revenue Bulletin 2023-13, which highlights the following:
- Notice 2023-23: This notice provides guidance to financial institutions on reporting required minimum distributions (RMDs) for 2023 after the amendment to Section 401(a)(9) made by the Consolidated Appropriations Act, 2023. If an individual retirement account (IRA) owner has an RMD due in 2023, the financial institution that is the trustee, custodian, or issuer maintaining the IRA must file a 2022 Form 5498 (IRA Contribution Information) by May 31, 2023, and indicate by checking Box 11 that an RMD is required.
- Revenue Procedure 2023-13: This procedure provides the general rules and specifications for paper and computer-generated substitutes for the following:
- Form 941, Employer’s QUARTERLY Federal Tax Return
- Schedule B (Form 941), Report of Tax Liability for Semiweekly Schedule Depositors
- Schedule D (Form 941), Report of Discrepancies Caused by Acquisitions, Statutory Mergers, or Consolidations
- Schedule R (Form 941), Allocation Schedule for Aggregate Form 941 Filers
- Form 8974, Qualified Small Business Payroll Tax Credit for Increasing Research Activities.
- Revenue Procedure 2023-18: This procedure addresses how to apply to be a certified professional employer organization (CPEO), the requirements for a CPEO to remain certified and the procedures relating to suspension and revocation of CPEO certification.
- Notice 2023-24: This notice provides guidance under Section 45J relating to the credit for the production of electricity from advanced nuclear power facilities. The notice provides (1) guidance for computing the Section 45J credit; (2) the amount of the unutilized national megawatt capacity limitation; (3) the procedures for taxpayers to apply for allocations of—and that the IRS will use to allocate—the unutilized national megawatt capacity limitation solely with respect to facilities that the US Department of Energy previously certified as “advanced nuclear facilities” and (4) the procedures for a “qualified public entity” to elect to transfer the Section 45J credit to an “eligible project partner.”
- Notice 2023-26: This notice provides adjustments to the limitation on housing expenses for purposes of Section 911 for specific locations for 2023. These adjustments are based on geographic differences in housing costs relative to housing costs in the United States.
- Revenue Procedure 2023-17: This procedure provides indexing adjustments for the applicable dollar amounts under Sections 4980H(c)(1) and (b)(1). These indexed amounts are used to calculate the employer-shared responsibility payments under Section 4980H(a) and (b)(1), respectively.
- Revenue Procedure 2023-19: This procedure provides information to any individual who failed to meet Section 911(d)(1) eligibility requirements for 2022 because of adverse conditions in a foreign country.
March 27, 2023: The IRS released a warning as part of the Dirty Dozen series, cautioning taxpayers to avoid unscrupulous tax return preparers and providing tips to find the right one.
March 27, 2023: The IRS released Tax Tip 2023-39, alerting taxpayers to a new scam on social media that urges people to use wage information on a tax return to claim false credits in hopes of securing a big refund.
March 27, 2023: The IRS released Notice 2023-28, which 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.
March 27, 2023: The IRS released Revenue Procedure 2023-20, modifying the effective date of additions to the list of taxable substances or chemicals 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).
March 28, 2023: The IRS announced that Mississippi 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 storms that occurred between March 24 and March 25, 2023. 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.
March 28, 2023: The IRS released Tax Tip 2023-40, reminding people about IRS Free File, an online tax preparation software that is free for families with a total adjusted gross income of $73,000 or less.
March 28, 2023: The IRS released a warning about trusting tax advice on social media that can lure otherwise honest taxpayers and tax professionals into compromising tax situations. The announcement comes on day seven of the IRS’s Dirty Dozen campaign.
March 29, 2023: The IRS released Tax Tip 2023-41, reminding people to bookmark IRS.gov for tax information and helpful tools.
March 29, 2023: The IRS released Revenue Procedure 2022-38, setting the inflation-adjusted items for 2023 for various Code provisions as in effect on October 18, 2022.
March 29, 2023: The IRS warned tax professionals and businesses that they remain a top target for identity thieves on this year’s Dirty Dozen list through spearphishing. Phishing is a term given to emails or text messages designed to get users to provide personal information, either directly or by clicking on a link or attachment. Spearphishing is a tailored phishing attempt at a specific organization or business.
March 29, 2023: The IRS released Revenue Ruling 2023-2, clarifying the basis of property acquired from a decedent under Section 1014.
March 29, 2023: The IRS released Announcement 2023-10, as part of the Ticket to Work and Work Incentives Improvement Act of 1999, which requires the US Secretary of the Treasury to annually report advance pricing agreements (APAs) and the Advance Pricing and Mutual Agreement Program (APMA Program), formerly known as the Advance Pricing Agreement Program (APA Program). This report describes the experience, structure and activities of the APMA Program during calendar year 2022.
March 30, 2023: The IRS released Tax Tip 2023-42, reminding people that all income is taxable, including gig economy and tip income.
March 30, 2023: The IRS renewed a warning for so-called Offer in Compromise “mills” that often mislead taxpayers into believing they can settle a tax debt for pennies on the dollar. The IRS continues to see instances of heavily advertised promises offering to settle taxpayer debt at steep discounts. The IRS also sees many situations where taxpayers don’t meet the technical requirements for an offer, but they had to face excessive fees from promoters for information they can easily obtain themselves.
March 31, 2023: The IRS announced that it issued a proposed regulation related to certain requirements that must be met for critical minerals and battery components for the new clean vehicle credit. The Inflation Reduction Act of 2022 (IRA) allows a maximum credit of $7,500 per vehicle for vehicles that meet certain requirements relating to critical minerals and battery components. New clean vehicles placed in service on or after April 18, 2023, are subject to the critical mineral and battery component requirements even if the vehicle was ordered or purchased before April 18, 2023. As a result of this guidance, the IRS updated the FAQs for the clean vehicle credits in Fact Sheet 2023-08.
March 31, 2023: The IRS cautioned taxpayers to resist questionable tax practitioners and independent promoters selling schemes aimed at wealthy taxpayers as part of the IRS’s annual Dirty Dozen campaign.
March 31, 2023: The IRS released its weekly list of written 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