Inside This Issue
- IRS Nationwide Tax Forum: Chicago and Orlando sold out; register soon for Baltimore, Dallas
- ETAAC 2024 Annual Report includes recommendations for IRS, Congress
- National Taxpayer Advocate issues midyear report to Congress
- Treasury, IRS issue final rules requiring brokers report sales and exchanges of digital assets that are subject to current tax law
- IRS reminds taxpayers that marijuana remains a schedule I controlled substance
- IRS to send settlement offer letters in July to taxpayers who took part in Syndicated Conservation Easement transactions
- Tax relief for disaster victims in Mississippi
- IRS Whistleblower Office collects $338 million based on Whistleblower information
- IRS extends office hours to assist with IRA/CHIPS pre-filing registration process
- Upcoming webinar for tax practitioners
- Technical Guidance
1. IRS Nationwide Tax Forum: Chicago and Orlando sold out; register soon for Baltimore, Dallas
The IRS Nationwide Tax Forum at Chicago (July 9-11) and Orlando (July 30-Aug. 2) have sold out, but space remains available at Baltimore, Aug. 13-15, Dallas, Aug. 20-22, and San Diego, Sept. 10-12.
The IRS encourages tax professionals to sign up at the remaining locations today.
The Nationwide Tax Forum provides continuing education credit for enrolled agents, certified public accountants, Annual Filing Season Program participants and California Tax Education Council participants. Attendees can earn up to 19 credits this year. The tax forum seminar schedule and seminar descriptions outline the curriculum.
This year attendees can once again bring their toughest unresolved IRS case to the Case Resolution Room. Taxpayer Advocate Service employees and IRS representatives with specialized expertise will be available to meet by appointment with tax professionals. For complete details, visit the Case Resolution Information Page.
For information on special events and to register, visit IRS Nationwide Tax Forum.
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2. ETAAC 2024 Annual Report includes recommendations for IRS, Congress
The IRS Electronic Tax Administration Advisory Committee (ETAAC) this week released its 2024 annual report with a total of 12 recommendations – nine for IRS and three for Congress.
“ETAAC members serve as trusted advisors to the IRS on key issues of interest to tax administration and taxpayers,” said IRS Commissioner Danny Werfel. “The committee has helped on a variety of fronts to help improve tax administration. The IRS leadership team will carefully review the recommendations in this report.”
Members of the ETAAC represent state and local government, the software industry, tax and payroll professionals and individual taxpayers. Members work closely with the IRS Security Summit.
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3. National Taxpayer Advocate issues midyear report to Congress
National Taxpayer Advocate Erin Collins this week released her midyear report to Congress.
“For most taxpayers, the filing season is the only time they interact with the IRS,” Collins wrote. “After several years of abysmal taxpayer service during the COVID-19 pandemic, the IRS has now delivered two filing seasons that demonstrate the agency has restored service to pre-pandemic levels and has improved in most, but not all, areas of service. This is excellent news for most taxpayers.”
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4. Treasury, IRS issue final rules requiring brokers report sales and exchanges of digital assets that are subject to current tax law
The Department of Treasury and the IRS issued final regulations requiring custodial brokers to report sales and exchanges of digital assets, including cryptocurrency. These reporting requirements will help taxpayers to file accurate tax returns with respect to digital asset transactions, which are already subject to tax under current law.
These final regulations reflect consideration of more than 44,000 public comments received last fall on the proposed regulations. They require brokers to report certain sale and exchange transactions that take place beginning in calendar year 2025 and will be reported on the soon-to-be released Form 1099-DA. The regulations implement reporting requirements by the Infrastructure Investment and Jobs Act, enacted in 2021.
"We reviewed thousands of public comments and believe this new guidance addresses those concerns while striking a balance between industry implementation challenges and closing the tax gap related to digital assets," said IRS Commissioner Werfel.
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5. IRS reminds taxpayers that marijuana remains a schedule I controlled substance
Until a final federal rule is published, the Internal Revenue Service today reminded taxpayers that marijuana remains a Schedule I controlled substance and is subject to the limitations of Internal Revenue Code. The law with respect to the schedule or classification of marijuana has not changed. Taxpayers seeking a refund of taxes paid related to Internal Revenue Code Section 280E by filing amended returns are not entitled to a refund or payment.
Although the law has not changed, some taxpayers are filing amended returns. The grounds for filing such claims vary, but these claims are not valid. The IRS is taking steps to address these claims.
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6. IRS to send settlement offer letters in July to taxpayers who took part in Syndicated Conservation Easement transactions
The IRS announced a time-limited settlement offer for certain taxpayers who participated in Syndicated Conservation Easements (SCE) and substantially similar transactions that are under audit in the IRS’s Large Business & International and Small Business and Self-Employed divisions. Eligible taxpayers will be notified by letter with the applicable terms and timelines to respond. Taxpayers who don't receive a letter are not entitled for this resolution, and the IRS will continue enforcement-related actions. Taxpayers with cases pending in the United States Tax Court are not eligible for this settlement offer.
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7. Tax relief for disaster victims in Mississippi
The IRS is providing tax relief for individuals and businesses in Mississippi that were impacted by severe storms, straight-line winds, tornadoes and flooding that began on April 8. Taxpayers now have until Nov. 1, to file various federal individual and business tax returns and make tax payments. The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA). Currently, individuals and households that reside or have a business in Hancock, Hinds, Humphreys, Madison, Neshoba and Scott counties qualify for tax relief. The same relief will be available to any other counties added later to the disaster area.
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8. IRS Whistleblower Office collects $338 million based on Whistleblower information
The Whistleblower Office Report to Congress was recently released, including information showing a 10-year history of awards, the whistleblower claim processing flowchart, average claim processing time by major process, an analysis of length of time for various claim processes and a 5-year analysis of claims built and submissions received. In addition, the report included more information on administrative priorities for the Whistleblower Program. In fiscal year 2023, the Whistleblower Office made 121 awards to whistleblowers totaling more than $88 million (before sequestration). This included 21 awards under IRC section 7623(b). Proceeds collected were $338 million.
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9. IRS extends office hours to assist with IRA/CHIPS pre-filing registration process
The IRS offers additional office hours to help entities with the pre-filing registration process on the new IRA/CHIPS Pre-filing Registration Tool. Pre-filing registration is a required step for applicable entities and eligible taxpayers to take advantage of elective payment or transfer of credits available in the Inflation Reduction Act and CHIPS Act. Representatives from the IRS will be available to answer your pre-filing registration questions over Microsoft Teams. Registration is required and can be completed by clicking on the links:
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10. Upcoming webinar for tax practitioners
The IRS offers the upcoming live webinar to the tax practitioner community:
Understanding Form 2290 - Heavy Highway Vehicle Use Tax on July 18, at 2 p.m. ET. Earn up to 2 CE credits (Federal tax). Certificates of completion are being offered.
For more information or to register, visit Webinars for tax practitioners webpage.
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11. Technical Guidance
