IRS Tax News

  • 13 Sep 2023 4:11 PM | Anonymous

    WASHINGTON — The Department of Treasury and the Internal Revenue Service today issued Notice 2023-64 to provide additional interim guidance designed to help corporations determine whether the new corporate alternative minimum tax (CAMT) applies to them and how to compute the tax.

    Notice 2023-64, clarifies and supplements Notice 2023-07 and Notice 2023-20, issued earlier this year. Treasury and IRS anticipate that forthcoming proposed regulations will be consistent with this interim guidance.

    The Inflation Reduction Act created the CAMT, which imposes a 15% minimum tax on the adjusted financial statement income (AFSI) of large corporations for taxable years beginning after Dec. 31, 2022. The CAMT generally applies to large corporations with average annual financial statement income exceeding $1 billion.

    Considering the challenges of determining CAMT liability, Notice 2023-42 provides that the IRS will waive the penalty for a corporation’s estimated income tax with respect to its CAMT for a taxable year that begins after Dec. 31, 2022, and before Jan. 1, 2024.

    Among other things, today’s notice provides a list of financial statements that meet the definition of an applicable financial statement (AFS) as well as priority rules for identifying a taxpayer’s AFS.

    The guidance also provides general rules for determining a taxpayer’s financial statement income and AFSI, including when the taxpayer’s financial results are reported on a consolidated financial statement.

    Finally, the notice includes guidance on when corporations are subject to CAMT, CAMT foreign tax credits, tax consolidated groups, foreign corporations, depreciable property, wireless spectrum, duplications and omissions of certain items, and financial statement net operating losses. 

  • 12 Sep 2023 3:34 PM | Anonymous

    Revenue Procedure 2023-31 supersedes Rev. Proc. 2015-47, 2015-39 IRB 419, which sets forth procedures for filers of Forms 8955-SSA and 5500-EZ to request a hardship waiver of the requirement to file those forms electronically. Rev. Proc. 2015-47 is being superseded because of recently issued Treasury regulations which (among other things): (1) implement a lowered threshold for mandatory electronic filing of Forms 8955-SSA and 5500-EZ (as authorized by the Taxpayer First Act of 2019), and (2) provide a new administrative exemption with respect to electronic filing of Form 8955-SSA.  Rather than set forth specific procedures, this revenue procedure refers filers to applicable publications, forms, instructions, or other guidance, including postings on the IRS.gov website, for the procedures for seeking a hardship waiver or administrative exemption from the requirements to file Forms 8955-SSA and 5500-EZ electronically. This revenue procedure is effective with respect to Forms 8955-SSA and 5500-EZ required to be filed for plan years beginning on or after January 1, 2024.  

  • 06 Sep 2023 5:16 PM | Anonymous

    WASHINGTON — The Internal Revenue Service today issued a frequently asked question in Fact Sheet 2023-20 to provide guidance to pass-through entities for electronically filing Schedules K-2 and K-3 to the IRS to report negative amounts.

    For tax year 2022 the schema for Schedule K-2 and K-3 do not permit negative values. This FAQ provides guidance to pass through entities about how to report these amounts.

    More information about reliance is available.

    IRS-FAQ

  • 01 Sep 2023 3:26 PM | Anonymous

    Tax pros: Starting Jan. 1, 2024, businesses are required to electronically file Form 8300, Report of Cash Payments Over $10,000, instead of filing a paper return. This new requirement follows final regulations amending e-filing rules for information returns, including Forms 8300. Visit IRS.gov for related information about waiver applications, exemptions and more. 

  • 23 Aug 2023 1:21 PM | Anonymous

    Revenue Procedure 2023-29 provides the applicable percentage table in § 36B(b)(3)(A) of the Internal Revenue Code for taxable years beginning in calendar year 2024.  This table is used to calculate an individual’s premium tax credit under § 36B.  This revenue procedure also provides the indexing adjustment for the required contribution percentage in § 36B(c)(2)(C)(i)(II) for plan years beginning in calendar year 2024.  This percentage is used to determine whether an individual is eligible for affordable employer-sponsored minimum essential coverage under § 36B. 

    Revenue Procedure 2023-29 will be published in Internal Revenue Bulletin 2023-37 on Sept. 11, 2023

  • 22 Aug 2023 2:04 PM | Anonymous

    In the last segment of the special five-part series, “Protect Your Client; Protect Yourself," the IRS and Security Summit partners share important steps for tax pros and taxpayers to take to reduce identity theft risks. "Tax professionals form a central part of the tax community's defense against identity thieves and cyberattacks," said IRS Commissioner Danny Werfel. "Ensuring strong security at a tax practice – regardless of its size – will help protect not just the business, but also help safeguard individual taxpayers as well as state and federal tax agencies from fraud.” 

  • 21 Aug 2023 4:43 PM | Anonymous

    One year into its modernization efforts under the Inflation Reduction Act, the IRS has made significant progress toward its goals of delivering world-class service, upgrading its technology and ensuring high-income taxpayers, large corporations and complex partnerships pay taxes owed. As the IRS marks this one-year anniversary, it announces two new milestones as part of its Paperless Processing Initiative:

    • Scanning 225 times more forms than in 2022 and
    • Enabling taxpayers to reply to an additional 51 forms and letters online.
    Also, the IRS has met its targets to further improve its customer callback option, so taxpayers do not need to wait on hold during periods of high call volume. The customer callback option will now be available for up to 95% of callers seeking live assistance. Visit IRS.gov to learn about other efforts underway, such as expanded in-person service to reach rural, underserved taxpayers; new ways for taxpayers to respond to notices and file online; new offering of voice and chatbots to improve taxpayer experience; and more.


  • 11 Aug 2023 10:34 AM | Anonymous

    Revenue Procedure 2023-27 provides clarifying and procedural guidance applicable to the low-income communities bonus credit program for the energy investment credit established pursuant to the Inflation Reduction Act of 2022 (Program). Under this Program, applicants investing in certain solar and wind-powered electricity generation facilities may apply for an allocation of environmental justice solar and wind capacity limitation to increase the amount of an energy investment credit under section 48 for the taxable year in which the facility is placed in service. These procedural rules provide guidance necessary to implement the Program, including, in relevant part, information an applicant must submit, the application review process, and the manner of obtaining an allocation. This revenue procedure is being issued simultaneously with the final regulations applicable to the Program provided in TD 9979.

    Revenue Procedure 2023-27 will be in IRB: 2023-35, dated 8/28/2023.

  • 09 Aug 2023 5:28 PM | Anonymous

    Beginning on Jan. 1, 2024, many corporations, limited liability companies and other entities created or registered to do business in the United States must report information about their beneficial owners—the persons who ultimately own or control the company—to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).

    FinCEN.gov/BOI provides guidance to help the small business community understand these requirements and includes:

    Contact FinCEN for more information and answers to any questions.

  • 07 Aug 2023 4:51 PM | Anonymous

    As the next phase of its modernization, the IRS is accelerating paperless processing efforts. Taxpayers are now able to respond to more notices online, and the IRS has made significant progress adopting new technology that automates the scanning of millions of paper returns. Using Inflation Reduction Act resources, the IRS is launching an ambitious plan to ensure that by filing season 2024, taxpayers will be able to go paperless if they choose to do so, and by filing season 2025, the IRS will achieve paperless processing digitizing all paper-filed returns when received. 

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