WASHINGTON — The Department of Treasury and the Internal Revenue Service today issued Notice 2024-10 to provide additional interim guidance on the new corporate alternative minimum tax (CAMT).

Previously, the IRS issued Notice 2023-64, which 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.

Today’s guidance provides rules for determining the AFSI of a U.S. Shareholder when a controlled foreign corporation (CFC) pays a dividend to the U.S. Shareholder or another CFC.

The guidance also modifies and clarifies the rules in Notice 2023-64 for determining the applicable financial statement of a corporation that is included in a consolidated tax return.

WASHINGTON –The Internal Revenue Service today reminded taxpayers who didn’t pay enough tax in 2023 to make a fourth quarter tax payment on or before Jan. 16 to avoid a possible penalty or tax bill when filing in 2024.

Taxes are normally paid throughout the year by withholding tax from paychecks, by making quarterly estimated tax payments to the IRS or by a combination of both. This is done because taxpayers need to pay most of their tax during the year as income is earned or received.

Who needs to make a payment?
Taxpayers who earn income not subject to tax withholding such as self-employed people or independent contractors should pay their taxes quarterly to the IRS.

In addition, people who owed tax when they filed their current year tax return often find themselves in the same situation again when they file the next year. Taxpayers in this situation normally include:

• Those who itemized in the past but are now taking the standard deduction,
• Two wage-earner households,
• Employees with non-wage sources of income such as dividends,
• Those with complex tax situations and/or
• Those who failed to increase their tax withholding.

What income is taxable?
The IRS reminds taxpayers that most income is taxable, whether it’s unemployment income, refund interest or income from the gig economy and digital assets. When estimating quarterly tax payments, taxpayers should include all forms of earned income, including from part-time work, side jobs or the sale of goods.

Also, various financial transactions, especially late in the year, can often have an unexpected tax impact. Examples include year-end and holiday bonuses, lottery winnings, stock dividends, capital gain distributions from mutual funds, stocks, bonds, virtual currency, real estate or other property sold at a profit.

Delay in requirement for Forms 1099-K
After feedback from taxpayers, tax professionals and payment processors the IRS announced that calendar year 2023 will be treated as another transition year for the reduced reporting threshold of $600. For calendar year 2023, third-party settlement organizations that issue Forms 1099-K are only required to report transactions where gross payments exceed $20,000 and there are more than 200 transactions. The IRS also issued a fact sheet to help people who may receive Forms 1099-K.

How to make an estimated tax payment
The fastest and easiest way to make an estimated tax payment is to do so electronically. Taxpayers have options when paying electronically from their bank account.

• Pay using IRS Direct Pay. This option allows taxpayers to schedule a payment in advance of the Jan. 16 deadline.
• Pay using IRS Online Account. This option allows taxpayers to view their payment history, pending or recent payments and other tax information.
• Pay using Electronic Filing Tax Payment System, or EFTPS. EFTPS is a free system which offers selections such as scheduling payments a year in advance, paying estimated tax payments and tracking and changing scheduled payments.
• Taxpayers also have the option to pay with their debit or credit card. The card processors, not the IRS, charge a fee for the service.

Using these or other electronic payment options ensures that a payment gets credited promptly. More information on other payment options is available at IRS.gov/payments.

Use the Tax Withholding Estimator to keep track
The Tax Withholding Estimator, available on IRS.gov, can often help taxpayers determine if they need to make an estimated tax payment. It also helps them calculate the correct amount of tax to withhold throughout the year based on their complete set of tax facts and circumstances.

Alternatively, taxpayers can use the worksheet included with Form 1040-ES, Estimated Tax for Individuals, or read through Publication 505, Tax Withholding and Estimated Tax, available on IRS.gov.

Plan ahead
It’s never too early to get ready for the tax-filing season. For more tips and resources, check out the Get Ready and Estimated Tax pages on IRS.gov.

WASHINGTON – As part of ongoing efforts to increase security, the Internal Revenue Service and the Security Summit partners today reminded taxpayers they can get extra protection against identity theft during the 2024 tax season by joining the Identity Protection Personal Identification Number (IP PIN) program.

The IRS IP PIN is a special six-digit number available to anyone who has a Social Security number (SSN) or an Individual Taxpayer Identification Number (ITIN). More than 8.1 million taxpayers are now protecting themselves against tax-related identity theft by participating in the IP PIN program.

"This special code serves as a secret weapon to protect taxpayers against identity thieves filing a bogus tax return,” said IRS Danny Werfel. "The code is only known to the IRS and the taxpayer, so people in this program have an extra layer of security when they file their tax return. An identity thief trying to file a tax return in someone’s name will be stopped cold if they don’t have the code that IP PIN participants have."

As the end of the year and holiday season approaches, the IRS and its Security Summit partners are highlighting the IP PIN program on the third day of National Tax Security Awareness Week 2023.

During National Tax Security Awareness Week, now in its eighth year, the Security Summit partnership of the IRS, state tax agencies and the nation’s tax community work to raise awareness among taxpayers and tax professionals about the importance of safeguarding information to protect against identity theft. The Security Summit formed in 2015 to combat tax-related identity theft through better public-private sector coordination as well as strengthening internal protections in the tax community and raising public awareness about security threats.

With the holiday shopping season underway and tax season fast approaching, the Security Summit partners today reminded taxpayers to take extra steps to protect their financial and tax information from cybercriminals. Identity theft is a serious crime that can occur when thieves steal taxpayers’ identity through obtaining personal information such as a name, address, Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) as well as other personal financial information that they can try to use to file fraudulent tax returns.

An easy, but important step for taxpayers to take to protect their information is by obtaining an IP PIN from the IRS.

The IP PIN helps prevent criminals from filling fraudulent federal income tax returns or stealing refunds using taxpayer’s personal information. IP PINs are unique because they are known only to the taxpayer and the IRS.

The IP PIN program is completely voluntary and available to anyone with an SSN or an ITIN that can successfully verify their identity. More than 8.1 million taxpayers are now shielding themselves against tax-related identity theft by joining the IP PIN opt-in program.

The quickest and easiest way to acquire an IP PIN is through the Get my IP PIN online tool, which is available from mid-January through mid-November.

The IP PIN process
Here’s how the IP PIN process works:

• Taxpayers wanting to get an IP PIN should go to IRS.gov/ippin.
• Once an individual creates an account and completes the prompted steps the IP PIN will be revealed to them.
• Taxpayers should keep in mind that the IP PIN is only valid for one calendar year. Participating taxpayers must acquire a newly generated IP PIN each January.

The IRS encourages any IP PIN applicant previously rejected during the identity authentication process to try applying again as the process continues to be refined.

The Electronic Tax Administration Advisory Committee, a federal advisory committee to the IRS, has urged taxpayers to use the IP PIN to protect their sensitive tax information. ETAAC works closely with the Security Summit and includes members from participating states and members of the tax community.

"The IP PIN is the number one security tool currently available to taxpayers from the IRS," the independent advisory group said in its 2022 annual report to Congress. "This tool is the key to making it more difficult for criminals to file false tax returns in the name of the taxpayer. In our view, the benefits of increased IP PIN use are many."

Other reminders for taxpayers
There are important things for taxpayers to remember to help them avoid fraud and tax-related identity theft.

Taxpayers should remember:

• The IRS will never email, text or call to request an IP PIN.
• Taxpayers should not reveal their IP PIN to anyone but their trusted tax software provider or tax preparer.
• Neither a tax software provider nor a tax preparer should ask for an IP PIN except to complete a tax return. Individuals should protect their IP PIN from theft, especially scams.
• Taxpayers should enter their IP PIN on any return, whether it is filed electronically or on paper. This includes any amended returns or returns for prior years. Doing so will help avoid processing delays or having the return rejected by the IRS.

Authentication options for people
Those who cannot pass the IRS online identity authentication process have two options:

• File Form 15227, Application for an Identity Protection Personal Identification Number (IP PIN).
• Visit an IRS Taxpayer Assistance Center (TAC).

For security reasons, these options could result in a delayed IP PIN delivery as opposed to the online option at IRS.gov/ippin.

For more details and to learn more about this year's National Tax Security Awareness Week's efforts, visit National Tax Security Awareness Week 2023.

WASHINGTON — Following feedback from taxpayers, tax professionals and payment processors and to reduce taxpayer confusion, the Internal Revenue Service today released Notice 2023-74 announcing a delay of the new $600 Form 1099-K reporting threshold for third-party settlement organizations for calendar year 2023.

As the IRS continues to work to implement the new law, the agency will treat 2023 as an additional transition year. This will reduce the potential confusion caused by the distribution of an estimated 44 million Forms 1099-K sent to many taxpayers who wouldn’t expect one and may not have a tax obligation. As a result, reporting will not be required unless the taxpayer receives over $20,000 and has more than 200 transactions in 2023.

Given the complexity of the new provision, the large number of individual taxpayers affected and the need for stakeholders to have certainty with enough lead time, the IRS is planning for a threshold of $5,000 for tax year 2024 as part of a phase-in to implement the $600 reporting threshold enacted under the American Rescue Plan (ARP).

Following feedback from the tax community, the IRS is also looking to make updates to the Form 1040 and related schedules for 2024 that would make the reporting process easier for taxpayers. Changes to the Form 1040 series – the core tax form for more than 150 million taxpayers – are complex and take time; delaying changes to tax year 2024 allows for additional feedback.

“We spent many months gathering feedback from third-party groups and others, and it became increasingly clear we need additional time to effectively implement the new reporting requirements,” said IRS Commissioner Danny Werfel. “Taking this phased-in approach is the right thing to do for the purposes of tax administration, and it prevents unnecessary confusion as we continue to look at changes to the Form 1040. It’s clear that an additional delay for tax year 2023 will avoid problems for taxpayers, tax professionals and others in this area.”

The ARP required third party settlement organizations (TPSOs), which include popular payment apps and online marketplaces, to report payments of more than $600 for the sale of goods and services on a Form 1099-K starting in 2022. These forms would go to the IRS and to taxpayers and would help taxpayers fill out their tax returns. Before the ARP, the reporting requirement applied only to the sale of goods and services involving more than 200 transactions per year totaling over $20,000.

The IRS temporarily delayed the new requirement last year.

Reporting requirements do not apply to personal transactions such as birthday or holiday gifts, sharing the cost of a car ride or meal, or paying a family member or another for a household bill. These payments are not taxable and should not be reported on Form 1099-K.

However, the casual sale of goods and services, including selling used personal items like clothing, furniture and other household items for a loss, could generate a Form 1099-K for many people, even if the seller has no tax liability from those sales.

This complexity in distinguishing between these types of transactions factored into the IRS decision to delay the reporting requirements an additional year and to plan for a threshold of $5,000 for 2024 in order to phase in implementation. The IRS invites feedback on the threshold of $5,000 for tax year 2024 and other elements of the reporting requirement, including how best to focus reporting on taxable transactions.

“The IRS will use this additional time to continue carefully crafting a way forward to minimize burden,” Werfel said. “We want to make this as easy as possible for taxpayers. We will work to make the new reporting requirements easier for them, and we’ll work closely with third-party groups, tax professionals and others to find the smoothest path to ensure compliance with the law. This is consistent with our Strategic Operating Plan. The IRS is focused on meeting taxpayers where they are and helping them get it right the first time.”

Expanded information reporting, which will occur as the result of the change in thresholds for Form 1099-K, is important because it increases tax compliance and can reduce burden on taxpayers seeking to follow the law. The IRS believes that expansion must be managed carefully to help ensure that Forms 1099-K are issued only to taxpayers who should receive them. In addition, it's important that taxpayers understand what to do as a result of this reporting, and that tax professionals and software providers have the information they need to assist taxpayers.

The IRS will continue to provide information on IRS.gov/1099Khttps://www.irs.gov/1099K.

Fact Sheet 2023-27 contains more details about this announcement.

WASHINGTON – The Internal Revenue Service is reminding those who may be entitled to the Recovery Rebate Credit to file a tax return and claim their money before it’s too late.

The vast majority of those eligible for Economic Impact Payments related to Coronavirus tax relief have already received them or claimed them through the Recovery Rebate Credit. The deadlines to file a return and claim the 2020 and 2021 credits are May 17, 2024, and April 15, 2025, respectively.

The Recovery Rebate Credit is a refundable credit for those who missed out on one or more Economic Impact Payments. Economic Impact Payments, also referred to as stimulus payments, were issued in 2020 and 2021. The IRS estimates that some individuals and families are still eligible for the payment(s). However, taxpayers must first file a tax return to make their claim even if they had little or no income from a job, business or other source.

Who is eligible?
Generally, to claim the 2020 Recovery Rebate Credit, a person must:

• Have been a U.S. citizen or U.S. resident alien in 2020.
• Not have been a dependent of another taxpayer for 2020.
• Have a Social Security number issued before the due date of the tax return that is valid for employment in the United States.

Generally, to claim the 2021 Recovery Rebate Credit, a person must:

• Have been a U.S. citizen or U.S. resident alien in 2021.
• Not have been a dependent of another taxpayer for 2021.
• Have a Social Security number issued by the due date of the tax return, claim a dependent who has a Social Security number issued by the due date of the tax return, or claim a dependent with an Adoption Taxpayer Identification Number.

The 2020 RRC can be claimed for someone who died in 2020. The 2020 RRC and 2021 RRC can be claimed for someone who died in 2021 or later.

Filing deadlines if you haven’t yet filed a tax return
To claim the:

• 2020 Recovery Rebate Credit, file a tax return by May 17, 2024.
• 2021 Recovery Rebate Credit, file a tax return by April 15, 2025.

Get free help
Qualified taxpayers can also find free one-on-one tax preparation help nationwide through the Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs. Use the VITA Locator Tool or call 800-906-9887 to locate the nearest site.

This is part of an ongoing IRS effort to encourage people who normally are not required to file to look into possible benefits available to them under the tax law. Every year, people can fail to file a tax return even when they may be entitled to tax credits and a refund. The IRS reminds taxpayers that there is no penalty for claiming a refund on a tax return filed after its due date. The fastest and easiest way to get a refund is to choose direct deposit.

People can also use their IRS Online Account to see if they received any Economic Impact Payments and the total amounts.

Any Recovery Rebate Credit received can’t be counted as income when determining the ability of someone to be eligible for federal benefits like Supplemental Security Income (SSI), Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF) and the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC). Claiming the credit also has no effect on an individual’s immigration status or their ability to get a green card or immigration benefits.

WASHINGTON —The Internal Revenue Service today reminded individual retirement arrangement (IRA) owners age 70½ or over that they can transfer up to $100,000 to charity tax-free each year.

These transfers, known as qualified charitable distributions or QCDs, offer eligible older Americans a great way to easily give to charity before the end of the year. And, for those who are at least 73 years old, QCDs count toward the IRA owner’s required minimum distribution (RMD) for the year.

How to set up a QCD

Any IRA owner who wishes to make a QCD for 2023 should contact their IRA trustee soon so the trustee will have time to complete the transaction before the end of the year.

Normally, distributions from a traditional IRA are taxable when received. With a QCD, however, these distributions become tax-free as long as they’re paid directly from the IRA to an eligible charitable organization.

QCDs must be made directly by the trustee of the IRA to the charity. An IRA distribution, such as an electronic payment made directly to the IRA owner, does not count as a QCD. Likewise, a check made payable to the IRA owner is not a QCD.

Each year, an IRA owner age 70½ or over when the distribution is made can exclude from gross income up to $100,000 of these QCDs. For a married couple, if both spouses are age 70½ or over when the distributions are made and both have IRAs, each spouse can exclude up to $100,000 for a total of up to $200,000 per year.

The QCD option is available regardless of whether an eligible IRA owner itemizes deductions on Schedule A. Transferred amounts are not taxable, and no deduction is available for the transfer.

Report correctly

A 2023 QCD must be reported on the 2023 federal income tax return, normally filed during the 2024 tax filing season.

In early 2024, the IRA owner will receive Form 1099-R from their IRA trustee that shows any IRA distributions made during calendar year 2023, including both regular distributions and QCDs. The total distribution is shown in Box 1 on that form. There is no special code for a QCD.

Like other IRA distributions, QCDs are reported on Line 4 of Form 1040 or Form 1040-SR. If part or all of an IRA distribution is a QCD, enter the total amount of the IRA distribution on Line 4a. This is the amount shown in Box 1 on Form 1099-R.

Then, if the full amount of the distribution is a QCD, enter 0 on Line 4b. If only part of it is a QCD, the remaining taxable portion is normally entered on Line 4b.

Either way, be sure to enter “QCD” next to Line 4b. Further details will be in the instructions to the 2023 Form 1040.

Get a receipt

QCDs are not deductible as charitable contributions on Schedule A. But, as with deductible contributions, the donor must get a written acknowledgement of their contribution from the charitable organization before filing their return.

In general, the acknowledgement must state the date and amount of the contribution and indicate whether the donor received anything of value in return. For details, see the Acknowledgement section in Publication 526, Charitable Contributions.

For more information about IRA distributions and QCDs, see Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs).

WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued proposed regulations that provide guidance under a new section of the law that disallows deductions for certain charitable conservation contributions by partnerships and other pass-through entities. Syndicated conservation easements have been included in the IRS’ annual list of “Dirty Dozen” tax schemes for many years.

The SECURE 2.0 Act of 2022 added new subsections to the part of the tax law that provides rules for deductions for charitable contributions under Internal Revenue Code section 170.

"The IRS is focusing its new compliance efforts on those who evade taxes through complex partnership structures and overvalued conservation easement contributions. The regulations issued today will stem the tide of certain syndicated conservation easements that are nothing more than retail tax shelters, while protecting the integrity of legitimate conservation easements and helping law-abiding taxpayers more easily meet their obligations,” said IRS Commissioner Danny Werfel.

Generally, these regulations affect partnerships and S corporations that make conservation contributions and upper-tier partnerships, upper-tier S corporations, partners and S corporation shareholders that are allocated a portion of these contributions. The regulations provide definitions, explanations, computational guidance and examples of the new law, which disallows deductions if the amount of the contribution is more than two and a half times the sum of each partner’s or shareholder’s relevant basis in the partnership or S corporation.

The proposed regulations also provide guidance on the statutory exceptions to the new disallowance rule, particularly the exception for family partnerships and S corporations and the exception for contributions made outside a three-year holding period. The proposed regulations also provide updates concerning substantiation and reporting rules for certain charitable contributions.

The commitment to making sure that partnerships, other pass-through entities and their owners comply with the tax law is a significant part of the agency’s strategic plan.

WASHINGTON — The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning Jan. 1, 2024.

For individuals, the rate for overpayments and underpayments will be 8% per year, compounded daily. Here is a complete list of the new rates:

• 8% for overpayments (payments made in excess of the amount owed), 7% for corporations.
• 5.5% for the portion of a corporate overpayment exceeding $10,000.
• 8% for underpayments (taxes owed but not fully paid).
• 10% for large corporate underpayments.

Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus three percentage points.

Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus three percentage points and the overpayment rate is the federal short-term rate plus two percentage points. The rate for large corporate underpayments is the federal short-term rate plus five percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half of a percentage point.

The interest rates announced today are computed from the federal short-term rate determined during October 2023. See the revenue ruling for details.

Revenue Ruling 2023-22 announcing the rates of interest, is attached and will appear in Internal Revenue Bulletin 2023-49, dated Dec. 4, 2023.

Revenue Ruling 2023-22 provides the interest rates: underpayments and overpayments, determined under Section 6621 of the code for the calendar quarter beginning January 1, 2024. They will be 8 percent for overpayments (7 percent in the case of a corporation), 8 percent for underpayments, and 10 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 5.5 percent.

Revenue Ruling 2023-22 will be in IRB: IRB 2023-49, dated December 4, 2023.

1.  8th annual National Tax Security Awareness week begins Nov. 27

The Internal Revenue Service, along with its Security Summit partners in state tax agencies and the nation's tax industry, today announced a special week focusing taxpayer and tax professional awareness on protecting sensitive financial information against identity thieves as the holidays and the 2024 tax season approach.

The 8th annual National Tax Security Awareness Week takes place this year from Nov. 27 – Dec. 1, marking an annual campaign by the Security Summit, a coalition of the IRS, state tax administrators, tax software companies, the tax professional community and others in the larger tax community.

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2.  IRS Webinar on Written Information Security Plan scheduled for Nov. 30

The IRS in partnership with the Security Summit will hold a webinar entitled “Developing a Written Information Security Plan, (WISP), on Thursday, November 30, 2023 at 10:30 a.m. Eastern. The webinar will last 75 minutes including Q&A. Register here.

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3.  Get prepared for the upcoming filing season

With the nation's tax season rapidly approaching, remind your clients about the important steps they can take now to help "get ready" to file their 2023 federal tax return, such as:
• Filing through IRS online account.
• Gathering and updating tax records.
• Withholding enough tax from paychecks.
• Establishing direct deposit for refunds.

This is the first in a series of special IRS "Get Ready" reminders to help taxpayers prepare for the upcoming tax filing season in early 2024.

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4.  Tax pros: Become an authorized IRS e-file provider

To file your clients’ federal tax returns electronically, you’ll need to become an authorized e-file provider. The application process takes only a few steps, which are outlined on IRS.gov.

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5.  ITIN holders can register for online access

As a reminder, taxpayers with an Individual Taxpayer Identification Number (ITIN) can access their IRS online account, which provides balance due, payment history, payment plans, tax records and more.

ITIN holders will first verify their identity through a one-time video chat process. During this verification, they will provide documentation proving their identity, address and ITIN. Once verified, taxpayers can access many IRS services including Online Account, Get Transcript Online, Online Payment Agreement, Get an Identity Protection PIN (IP PIN) and other available applications.

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6.  IRS reminds eligible 2020 and 2021 non-filers to claim Recovery Rebate Credit before time runs out

The Internal Revenue Service is reminding those who may be entitled to the Recovery Rebate Credit to file a tax return and claim their money before it’s too late.

The vast majority of those eligible for Economic Impact Payments related to Coronavirus tax relief have already received them or claimed them through the Recovery Rebate Credit. The deadlines to file a return and claim the 2020 and 2021 credits are May 17, 2024, and April 15, 2025, respectively.

The Recovery Rebate Credit is a refundable credit for those who missed out on one or more Economic Impact Payments.

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7.  Eligible IRA owners may transfer up to $100,000 in tax-free gifts to charity

Tax pros: Remember individual retirement arrangement (IRA) owners age 70½ or older can transfer up to $100,000 to charity tax-free each year. These transfers, known as qualified charitable distributions (QCDs), offer eligible older Americans a great way to easily give to charity before the end of the year. And, for those who are at least 73 years old, QCDs count toward the IRA owner's required minimum distribution (RMD) for the year.

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8.  Treasury, IRS propose regulations implementing disallowance of deductions for certain conservation easement contributions

The Department of the Treasury and the Internal Revenue Service today issued proposed regulations that provide guidance under a new section of the law that disallows deductions for certain charitable conservation contributions by partnerships and other pass-through entities. Syndicated conservation easements have been included in the IRS' annual list of Dirty Dozen tax schemes for many years.

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9.  Taxpayers urged to protect against scams, schemes during International Fraud Awareness Week

As part of ongoing efforts to protect taxpayers, the IRS reminds people that International Fraud Awareness Week serves as an important time to protect personal and financial information from scam artists and tax schemes. International Fraud Awareness Week, which runs through Nov. 18, is an effort to minimize the impact of fraud through awareness and education. During the special week, the IRS – including the agency's Office of Fraud Enforcement and IRS Criminal Investigation – continue working to raise awareness to fraud and scams affecting taxpayers across the country.

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10. Energy efficient commercial buildings deductions available for those who qualify

Building owners who place in service energy efficient commercial building property or energy efficient building retrofit property may be able to claim a tax deduction. Find out more about eligibility and qualifications in the Energy Efficient Commercial Buildings Deduction e-poster that you can share with your clients. Visit the Energy Efficient Commercial Buildings Deduction page on IRS.gov for more information.

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11.  News from the Justice Department’s Tax Division

Crystal Ojeda of Houston and her tax return preparation business, Money Market Tax Company LLC, have been permanently enjoined from preparing federal tax returns for others, among other related prohibitions. The complaint alleges that Ojeda prepared more than 10,000 federal income tax returns during 2018-2023, significantly overstating her customers’ tax refund amounts. The complaint also alleges that for some customers’ returns, Ojeda falsely claimed residential energy credits to which her customers were not entitled. Ojeda allegedly caused the United States harm of an estimated $4.8 million in tax revenue just from the years 2020 to 2022, and millions more from earlier years.

Lamar “Cory” Thompson of Texas, formerly of Chicago, was sentenced to 30 months in prison for mail fraud arising out of a scheme to fraudulently obtain tax refunds from the IRS. In total, Thompson attempted to obtain approximately $1.5 million in fraudulent tax refunds from the IRS. In addition to the prison sentence, Thompson has been ordered to serve three years of supervised release and to pay $908,727restitution to the United States.

Vervia Watts of Illinois pleaded guilty to aiding and assisting in the preparation of false income tax returns. According to court documents and statements made in court, from January 2017 through June 2023, Watts prepared and filed individual income tax returns for her clients, intentionally reporting false education expenses and business income. Watts received at least $300 for each return she prepared, which, in total, claimed more than $1.5 million in fraudulent refunds. Watts is scheduled to be sentenced on Feb. 14, 2024, and faces a maximum penalty of three years in prison, and a period of supervised release, restitution and monetary penalties.

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12.  Technical Guidance

Notice 2023-76 sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates for November 2023 used under section 417(e)(3)(D), the 24-month average segment rates applicable for November 2023, and the 30-year Treasury rates, as reflected by the application of section 430(h)(2)(C)(iv).

Revenue Procedure 2023-34 sets forth inflation-adjusted items for 2024 for various Code provisions as in effect on Nov. 9, 2023. The inflation adjusted items for the Code sections set forth in section 3 of this revenue procedure are generally determined by reference to section 1(f) of the Code.

Revenue Ruling 2023-21 provides various prescribed rates for federal income tax purposes including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate and the adjusted federal long-term tax-exempt rate.

WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued proposed regulations updating rules for the investment tax credit under section 48 (ITC) that have been unchanged since 1987. The proposed rules update the types of energy properties eligible for the section 48 ITC, reflecting changes in the energy industry, technological advances, and updates from the Inflation Reduction Act of 2022 (IRA).

Energy industry participants will appreciate that the proposed regulations provide definitions of energy properties for which the ITC was available before the IRA. These include, but are not limited to, solar process heat, fiber-optic solar property, combined heat and power system property, qualified fuel cell property, and qualified microturbine property.

These proposed regulations also address technologies that were added to the ITC as energy property by the IRA, including electrochromic glass, energy storage technology, microgrid controllers, and biogas property. Importantly, the IRA added new provisions to the ITC to allow smaller projects to include the cost of certain types of interconnection property in their credit amount.

Additionally, the proposed regulations provide general rules for the ITC including the application of the “80/20” Rule to retrofitted energy property, dual use property, and issues related to multiple owners of an energy property.

Additional information about guidance issued under the IRA is available at IRS.gov