Check out our summary of significant Internal Revenue Service
(IRS) guidance and relevant tax matters for the week of March 20,
2023 – March 24, 2023.
March 20, 2023: The IRS released Internal
Revenue Bulletin 2023-12, which highlights the following:
- Notice
2023-22: This notice advises state and local housing credit
agencies that allocate low-income housing tax credits under Section
42, as well as states and other issuers of tax-exempt private
activity bonds under Section 141, of the population figures to use
in calculating the (1) state housing credit ceiling under Section
42(h), (2) private activity bond volume cap under Section 146 and
(3) private activity bond volume limit under Section 142(k).
March 20, 2023: The IRS announced tips to avoid processing delays and
refund adjustments as the April 18, filing deadline
approaches. The tips include gathering all tax documents, filing
electronically, using the correct filing status, double-checking
names and social security numbers, answering the digital assets
question and reporting all taxable income.
March 20, 2023: The IRS announced a new entry into the annual Dirty Dozen list of tax scams: promoter claims
involving the Employee Retention Credit (ERC). Some third parties
continue to widely advertise services that target taxpayers who may
not be eligible for the ERC. The advertisements, along with the
increased prevalence of websites touting how easy it is to qualify
for the ERC, suggest that the abusive claims may be legitimate. The
annual list of schemes is aimed at raising awareness of aggressive
promoters and con artists. These schemes put people at financial
risk and increase the chances of identity theft.
March 20, 2023: The IRS released Tax Tip 2023-35, providing options for
taxpayers who cannot pay their tax bill by April 18. The IRS also
reminded taxpayers to still file their tax returns even if they
cannot pay to avoid a failure-to-file penalty.
March 21, 2023: The IRS announced that it is requesting feedback
regarding the tax treatment of a non-fungible token (NFT) as a
collectible under the tax law in Notice 2023-27. An NFT is a unique digital
identifier that is recorded using distributed ledger technology and
may be used to certify the authenticity and ownership of an
associated right or asset. The guidance also 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.
March 21, 2023: The IRS issued proposed regulations that provide guidance on
the implementation of the Advanced Manufacturing Investment Credit,
established by the Creating Helpful Incentives to Produce
Semiconductors Act of 2022 (CHIPS Act). The credit incentivizes the
manufacture of semiconductors and semiconductor manufacturing
equipment within the United States.
March 21, 2023: The IRS cautioned taxpayers to watch out for scammers
using email and text messages to try to steal their information as
part of day two of the annual Dirty Dozen campaign.
March 21, 2023: The IRS released Tax Tip 2023-36, reminding taxpayers living
abroad that their worldwide income is still subject to US income
tax, regardless of where they live or where they earn their income.
A taxpayer has an automatic two-month extension until June 15,
2023, if both their tax home and abode are outside the United
States or Puerto Rico. Even with an extension, a taxpayer will have
to pay interest on any tax not paid by the regular due date of
April 18, 2023.
March 22, 2023: The IRS announced that it has revised FAQs for Form
1099-K, Payment Card and Third Party Network Transactions, in Fact Sheet FS-2023-06.
March 22, 2023: The IRS warned taxpayers on day three of the Dirty Dozen campaign to watch out for scammers
who try to sell or offer help setting up an online account on
IRS.gov, which may put their tax and financial information at risk
of identity theft.
March 22, 2023: The IRS released Tax Tip 2023-37, providing information to
taxpayers who receive a Form 1099-K, Payment Card and Third Party Network
Transactions. The new threshold is any amount more than $600
for tax year 2023 and future years.
March 23, 2023: The IRS warned taxpayers to watch out for promoters
pushing improper fuel tax credit claims that they are not qualified
to receive. The message came on day four of the annual Dirty Dozen campaign.
March 23, 2023: The IRS reminded taxpayers that it reaches out in
multiple ways to educate while ensuring it fairly enforces the
nation’s tax laws. For people who owe taxes, the IRS provides
different payment options to meet their obligations.
March 24, 2023: The IRS released Tax Tip 2023-38, cautioning taxpayers to not
fall for federal tax refund myths. No matter how a taxpayer plans
to use their tax refund, knowing fact from fiction can help manage
expectations as they wait for their money.
March 24, 2023: The IRS warned of scammers using fake charities to
exploit taxpayers, especially following major disasters. Scammers
often try to prey on well-intentioned donors by posing as fake
charities, hoping to steal money.
March 24, 2023: The IRS announced that New York storm victims now have
until May 15, 2023, to file various federal individual and business
tax returns and make tax payments, as a result of storms that
occurred between December 23 and December 28, 2022. 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.
March 24, 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
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.