Outreach Connection FY25-01 Disaster tax relief toolkit for people affected by recent disasters   In this edition Disaster relief resources IRS tax relief after major disasters Beware of disaster charity scams Tips for reconstructing tax and financial records More information Disaster relief resources Disaster victim resources on IRS.gov IRS.gov has information disaster victims may need as they recover, including information about disaster-related tax relief and extensions to file and pay taxes. FAQs for disaster victims IRS webinar: Dealing with disaster from an individual tax perspective IRS tax relief after major disasters Disaster tax relief The IRS can authorize disaster tax relief when the disaster meets criteria from the Federal Emergency Management Agency (FEMA).  All disaster tax relief announcements Disaster tax relief announcements by location Beware of disaster charity scams Charity scams following recent hurricanes In the aftermath of Hurricanes Milton and Helene, the IRS cautions taxpayers about scammers who use fake charities to gather sensitive personal and financial data from unsuspecting donors. Tools to help people verify legitimate groups Tips for reconstructing tax and financial records Resources to rebuild records after a disaster The IRS has tips to help disaster victims reconstruct their tax and financial records. They may need these records to help prove and document their losses so they can get federal help or insurance reimbursement.  Casualty, disaster, and theft loss workbook (for individuals) Business casualty, disaster, and theft loss workbook More information IRS disaster tax relief resources: IRS news from around the nation: News about disaster relief and tax provisions that affect certain states. Tax relief in disaster situations: Resources to help affected taxpayers after a disaster. Publication 547, Casualties, Disasters, and Thefts Publication 976, Disaster Relief Follow the IRS on X to get the latest updates @IRSnews Disaster help resources from IRS partners: DisasterAssistance.gov: Help with applying for FEMA disaster assistance and guide to resources. FEMA disaster information: Resources include information on the disaster declaration process, types of disasters and how FEMA gets involved. Get the latest updates on X at @Fema. Ready.gov: Resources for planning ahead of disasters.

WASHINGTON — The Internal Revenue Service today announced the selection of the first Associate Chief Counsel for the newly created Passthroughs, Trusts and Estates office that will focus exclusively on partnerships, S corporations, trusts and estates. Staffing for this office will be drawn from the current Passthroughs and Special Industries office. The new Associate Chief Counsel, Jeffrey Erickson, is expected to join the IRS in January 2025. Most recently, he served as a Principal in Ernst & Young’s National Tax Passthroughs Transaction Group. 

Holly Porter will be the Associate Chief Counsel for the Energy, Credits, and Excise Tax office, which also will be drawn from the current Passthroughs and Special Industries office. 

“We are excited that Jeff will be returning to the IRS to lead Chief Counsel’s work in this priority area,” said IRS Chief Counsel Margie Rollinson. “He will bring an extensive background in tax law that encompasses over 30 years of experience in both the federal government and the private sector.”  

As the Associate Chief Counsel for Passthroughs, Trusts and Estates, Erickson will coordinate and direct the activities of the office and oversee legal advisory services that support the uniform interpretation, application, enforcement and litigation of tax laws involving partnerships, S corporations, trusts and estates. 

Erickson began his tax career in 1991 as an Attorney Advisor at the IRS’s Office of Chief Counsel in Passthroughs and Special Industries and left the IRS in 1999 as an Assistant Branch Chief. Additionally, Erickson has served as an Adjunct Professor at the Georgetown University Law Center, where he co-taught Taxation of Partnerships for LL.M. and J.D. students and has authored articles for inclusion in tax publications.

WASHINGTON – As National Cybersecurity Awareness Month concludes and preparation for next tax season begins, the Internal Revenue Service and its Security Summit partners today reminded taxpayers to be wary of online threats like identity theft and fraud.

Whether shopping online or browsing social media, people unfamiliar with online security could be putting themselves at risk. Lax online behavior can open the door to swindlers eager to swipe people’s personal information and leave themselves vulnerable to tax-related identity theft.

The IRS and Security Summit alert taxpayers to remain vigilant and to teach children and teens how to recognize and avoid online scams to minimize their chances of falling prey or unwittingly exposing their families to identity theft and tax fraud.

The public-private sector partnership encourages everyone to be aware of the many security vulnerabilities they face online and to review a wide range of resources available to them as October’s National Cybersecurity Awareness Month draws to a close.

Members of the Security Summit – a coalition that includes tax software and financial companies, tax professionals, state tax administrators and the IRS – also offer multiple online safety recommendations to protect taxpayers from tax-related identity theft.

Online safety tips

Options to help protect against cybersecurity attacks include:

• Recognize scams and report phishing. It’s important to remember that the IRS does not use unsolicited email and social media to discuss personal tax issues, such as those involving tax refunds, payments or tax bills. Don't reply, open any attachments or click any links. To report phishing, send the full email headers or forward the email as is to phishing@irs.gov; do not forward screenshots or scanned images of emails because this removes valuable information. Then delete the email.
• Protect personal information. Refrain from revealing too much personal information online. Birthdates, addresses, age and financial information, such as bank accounts and Social Security numbers, are among things that should not be shared freely. Encrypt sensitive files such as tax records stored on computers.
• Use strong passwords. Consider using a password manager to store passwords.
• Enable multi-factor authentication (MFA). Use this for extra security on online accounts.
• Use and update computer and phone software. Enable automatic updates to install critical security updates, including anti-virus and firewall protections.
• Use a VPN. Criminals can intercept personal information on insecure public Wi-Fi networks. Individuals are encouraged to always use a virtual private network (VPN) when connecting to public Wi-Fi.

Notice 2024-78 extends the temporary relief provided in Notice 2023-11, subject to the procedures and requirements of this notice, for certain foreign financial institutions (FFIs) required to report U.S. taxpayer identification numbers (U.S. TINs) for certain preexisting accounts.  The extension of the temporary relief granted by Notice 2023-11 is intended to enable the Internal Revenue Service (IRS) to continue to collect and analyze additional information for accounts without U.S. TINs.

Notice 2024-78will be published in Internal Revenue Bulletin 2024-46, on November 12, 2024.

WASHINGTON — The Internal Revenue Service today announced disaster tax relief for individuals and businesses in the Juneau area of Alaska, affected by flooding that began on Aug. 5, 2024. 

Affected taxpayers now have until May 1, 2025, 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, this includes the City and Borough of Juneau in Alaska.

Individuals and households that reside or have a business in this locality qualify for tax relief. The same relief will be available to any other localities added later to the disaster area. The current list of eligible localities is always available on the Tax Relief in Disaster Situations page on IRS.gov. 

Filing and payment relief 

The tax relief postpones various tax filing and payment deadlines that occurred beginning on Aug. 5, 2024, and end on May 1, 2025 (postponement period). As a result, affected individuals and businesses will have until May 1, 2025, to file returns and pay any taxes that were originally due during this period. 

This means, for example, that the May 1, 2025, deadline will now apply to: 

• Any 2024 individual or business tax return normally due during March or April 2025.
• Any individual, business or tax-exempt organization that has a valid extension to file their 2023 federal return. The IRS noted, however, that payments on these returns are not eligible for the extra time because they were due last spring before the flooding occurred. 
• 2024 quarterly estimated income tax payments normally due on Sept. 16, 2024, and Jan. 15, 2025, and 2025 quarterly estimated tax payments normally due on April 15, 2025.
• Quarterly payroll and excise tax returns normally due on Oct. 31, 2024, and Jan. 31 and April 30, 2025. 

In addition, penalties for failing to make payroll and excise tax deposits due on or after Aug. 5, 2024, and before Aug. 20, 2024, will be abated, as long as the deposits were made by Aug. 20, 2024. 

The Disaster Assistance and Emergency Relief for Individuals and Businesses page has details on other returns, payments and tax-related actions qualifying for relief during the postponement period.  

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. These taxpayers do not need to contact the agency to get this relief. 

It is possible an affected taxpayer may not have an IRS address of record located in the disaster area, for example, because they moved to the disaster area after filing their return. In these unique circumstances, the affected taxpayer could receive a late filing or late payment penalty notice from the IRS for the postponement period. The taxpayer should call the number on the notice to have the penalty abated. 

In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization. Disaster area tax preparers with clients located outside the disaster area can choose to use the Bulk Requests from Practitioners for Disaster Relief option, described on IRS.gov. 

Additional tax relief 

Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2024 return normally filed next year), or the return for the prior year (the 2023 return filed this year). Taxpayers have extra time – up to six months after the due date of the taxpayer’s federal income tax return for the disaster year (without regard to any extension of time to file) – to make the election. For individual taxpayers, this means Oct. 15, 2025. Be sure to write the FEMA declaration number – 4836-DR – on any return claiming a loss. See Publication 547, Casualties, Disasters, and Thefts, for details. 

Qualified disaster relief payments are generally excluded from gross income. In general, this means that affected taxpayers can exclude from their gross income amounts received from a government agency for reasonable and necessary personal, family, living or funeral expenses, as well as for the repair or rehabilitation of their home, or for the repair or replacement of its contents. See Publication 525, Taxable and Nontaxable Income, for details. 

Additional relief may be available to affected taxpayers who participate in a retirement plan or individual retirement arrangement (IRA). For example, a taxpayer may be eligible to take a special disaster distribution that would not be subject to the additional 10% early distribution tax and allows the taxpayer to spread the income over three years. Taxpayers may also be eligible to make a hardship withdrawal. Each plan or IRA has specific rules and guidance for their participants to follow. 

The IRS may provide additional disaster relief in the future. 

The tax relief is part of a coordinated federal response to the damage caused by the flooding and is based on local damage assessments by FEMA. For information on disaster recovery, visit disasterassistance.gov. 

Reminder about tax return preparation options 

• Eligible individuals or families can get free help preparing their tax return at Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) sites. To find the closest free tax help site, use the VITA Locator Tool or call 800-906-9887. Note that normally, VITA sites cannot help claim disaster losses.
• To find an AARP Tax-Aide site, use the AARP Site Locator Tool or call 888-227-7669.
• Any individual or family whose adjusted gross income (AGI) was $79,000 or less in 2023 can use IRS Free File’s guided tax software at no cost. There are products in English and Spanish.
• Another Free File option is Free File Fillable Forms. These are electronic federal tax forms, equivalent to a paper 1040 and are designed for taxpayers who are comfortable filling out IRS tax forms. Anyone, regardless of income, can use this option.

• MilTax, a Department of Defense program, offers free return preparation software and electronic filing for federal tax returns and up to three state income tax returns. It’s available for all military members and some veterans, with no income limit.

Inside This Issue

1. Tax Pros: It’s time to renew PTINs for 2025 tax season
2. IRS reminds disaster area filers with extensions: some states must file 2023 returns by Nov.1; others have until Feb. 3 or May 1
3. Encourage your clients to get for an IP PIN for 2025 tax year
4. IRS launches 2024 IRS Nationwide Tax Forum Online; new online seminars available to tax professionals 
5. Tax Talk Today highlights Nationwide Tax Forum, emerging scams and schemes
6. LB&I pass-through unit launches; teams of agency experts to tackle complex exams
7. Treasury, IRS grant tax-exempt organizations relief from filing Form 4626
8. Treasury, IRS issue guidance on advanced manufacturing investment credit implementation 
9. Upcoming webinars for tax practitioners
10. News from the Justice Department’s Tax Division
11. Technical Guidance

1.  Tax Pros: It’s time to renew PTINs for 2025 tax season

Tax pros: The IRS is currently processing renewals of preparer tax identification numbers (PTIN) for 2025. For the upcoming year, more than 810,000 tax return preparers must renew their PTIN. The expiration date of all existing PTINs is Dec. 31. For 2025, the cost to obtain or renew a PTIN is $19.75. The PTIN fee is not refundable.

To renew a PTIN online, users should:

• Log in to their existing online PTIN account;
• Complete the online renewal application by verifying personal information and answering a few questions; and
• Pay the $19.75 renewal fee via credit/debit/ATM card or eCheck.

First time PTIN applicants can also apply for a PTIN online. To apply for a PTIN online:

• Create an account.
• Apply for a PTIN. View a checklist of what’s need before getting started; and
• Pay the $19.75 fee.

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2.  IRS reminds disaster area filers with extensions: some states must file 2023 returns by Nov.1; others have until Feb. 3 or May 1

The IRS reminds taxpayers in disaster areas who were granted extensions to file their 2023 returns that, depending upon their location, their returns are due on Nov. 1, Feb. 3, 2025, or May 1, 2025. 

• Taxpayers in parts of Arkansas, Iowa, Kentucky, Mississippi, New Mexico, Oklahoma, Texas and West Virginia have until Nov. 1, 2024, to file their 2023 returns. 
• Taxpayers in the entire states of Louisiana and Vermont, all of Puerto Rico and the Virgin Islands and parts of Arizona, Connecticut, Illinois, Kentucky, Minnesota, Missouri, New York, Pennsylvania, South Dakota, Texas and Washington state have until Feb. 3, 2025, to file their 2023 returns.
• Taxpayers in the entire states of Alabama, Florida, Georgia, North Carolina and South Carolina, and parts of Tennessee and Virginia will have until May 1, 2025, to file their 2023 returns. For these taxpayers, May 1 will also be the deadline for filing their 2024 returns.

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3.  Encourage your clients to get for an IP PIN for 2025 tax year

Tax pros: Encourage your clients to safeguard their identity by signing up for an identity protection personal identification number (IP PIN) before Nov. 23. After this date, the IP PIN system will not be available again until early January. A taxpayer’s identity will be safeguarded during the filing season if they register for an IP PIN now. New IP PINs are generated for the 2025 filing season during this period, so online enrollees must retrieve their new IP PINs starting early January 2025. The IRS encourages taxpayers to sign up for IRS Online Account, which provides a quick and easy way to obtain an IP PIN. 

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4.  IRS launches 2024 IRS Nationwide Tax Forum Online; new online seminars available to tax professionals 

The IRS recently launched the 2024 Nationwide Tax Forum Online, giving tax professionals access to 18 seminars recorded at the 2024 IRS Nationwide Tax Forum. The Nationwide Tax Forum Online offers tax professionals a convenient way to stay informed about current legislations, IRS procedures, and key topics for the upcoming tax season. Each seminar features a 50-minute interactive video presentation with synchronized slides, downloadable materials, and complete transcripts. Courses can be taken for continuing education (CE) credit for a fee of $29, or they can be reviewed for free (no CE credit). Don’t miss this opportunity to stay informed about important tax changes and further your professional knowledge. 

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5.  Tax Talk Today highlights Nationwide Tax Forum, emerging scams and schemes

Want to learn more about the annual IRS tax forums? Tax Talk Today’s Alan Pinck conducted onsite interviews at the 2024 San Diego Tax Forum touching on an array of topics. View his interview with IRS Communications & Liaison Chief Terry Lemons about the growing threat tax pros and taxpayers face from scams and schemes. 

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6.  LB&I pass-through unit launches; teams of agency experts to tackle complex exams

The new pass-through field operations unit, which the IRS announced last fall, has officially begun work in its Large Business and International division to audit pass-through entities more effectively. The establishment of a new unit dedicated to ensuring pass-throughs of all shapes and sizes —including partnerships, S-corporations and trusts—are in compliance is part of IRS’s broader efforts to devote more focus and funding to a previously neglected area.

"The establishment of pass-through field operations is a significant step in our goal to increase fairness in enforcement while improving service,” said IRS Commissioner Danny Werfel. "By using Inflation Reduction Act funding and enhancing our expertise in this area, we will be able to reverse our historically low audit rates for complex arrangements employed by certain high-wealth individuals and large entities, while at the same time improving the taxpayer experience through a more tailored exam approach.”

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7.  Treasury, IRS grant tax-exempt organizations relief from filing Form 4626

This week, the Department of Treasury and IRS granted tax-exempt organizations a filing exception, allowing them to avoid filing Form 4626, Alternative Minimum Tax – Corporations for the 2023 tax year. To determine whether they are an applicable corporation for the purposes of the alternative minimum tax and, if so, to calculate any corporate alternative minimum tax liability, tax-exempt organizations should keep Form 4626 for recordkeeping purposes. Any tax-exempt organization that is responsible for the alternative minimum tax must pay the tax and report the amount on Part II, Line 5 of Form 990-T, Exempt Organization Business Income Tax Return.

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8.  Treasury, IRS issue guidance on advanced manufacturing investment credit implementation 

The Department of Treasury and the IRS released final rules that offer guidance on how to implement the Advanced Manufacturing Investment Credit, which was created by the CHIPS Act of 2022. The final regulations clarify the updated investment credit recapture provisions and outline the credit’s eligibility requirements.

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9.  Upcoming webinars for tax practitioners

The IRS offers the upcoming live webinars to the tax practitioner community:

• Energy Efficient Home Improvements Credit & Residential Clean Energy Property Credit: How the Inflation Reduction Act revised these credits on Nov. 14, at 2 p.m. ET. Earn up to one continuing education credit (Federal Tax). Certificates of completion are being offered. Click here to register.
• Beneficial Ownership Information presented by Financial Crimes Enforcement Network (FinCEN) on Nov. 19, at 2 p.m. ET. No continuing education credit is being offered. Click here to register.

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10.  News from the Justice Department’s Tax Division

Hophine Bwosinde, a Kansas tax preparation business owner, pleaded guilty to preparing and filing false income tax returns on behalf of his clients. Bwosinde prepared and filed false tax returns on behalf of his clients by inflating legitimate business expenses or by claiming losses related to fake businesses. In addition, Bwosinde falsely reported negative income on clients’ returns. These false items caused his clients to significantly underreport their income to the IRS, which reduced the amount of taxes the clients owed and generated refunds for many to which they were not entitled. Bwosinde caused a total tax loss exceeding $1.5 million. IRS Criminal Investigation is investigating the case.

Gerald Vito, James Eleby and Kwame Thomas were found in contempt by federal court in Miami for violating a permanent injunction that forbade them from preparing, filing or aiding in the preparation or filing of federal tax returns. In March 2021, a complaint was filed against Eleby and Vito for the preparation of tax returns that significantly understated their customers’ tax liabilities by claiming deductions for fabricated or inflated charitable deductions, medical expenses, and employee business expenses. The defendants purposely underreported tax liabilities of their clients. Later that year, the court issued a default judgment of permanent injunction that barred the pair from preparing tax returns for others. In September, the court found that the United States demonstrated by clear evidence that Vito and Eleby violated the permanent injunction by continuing to prepare tax returns for others. The court further found that Thomas, who was not a defendant in the original complaint, violated the injunction by working alongside Eleby to prepare returns in violation of the injunction. The court found Vito, Eleby and Thomas in civil contempt for these infractions and mandated that they disgorge the $988,789.56 in fees they earned while violating the injunction.

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11.  Technical Guidance

Notice 2024-74 provides additional guidance to taxpayers using the safe harbors in Notice 2024-37 with respect to the sustainable aviation fuel (SAF) credit.

Notice 2024-76 provides guidance on the corporate bond monthly yield curve for September 2024, the corresponding spot segment rates used under section 417(e)(3), and the 24-month average segment rates under section 430(h)(2) of the Internal Revenue Code.

Revenue Procedure 2024-31 provides the procedures and requirements that a manufacturer of specified property must follow to be treated as a “qualified manufacturer” (QM) under section 25C(h) of the Internal Revenue Code.

Revenue Procedure 2024-40 provides detailed information on adjustments and changes to more than 60 tax provisions that will impact taxpayers when they file their returns in 2026.

WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued final regulations to provide guidance for the Advanced Manufacturing Production Credit established by the Inflation Reduction Act of 2022 (IRA). 

The Advanced Manufacturing Production Credit provides a tax credit for the production and sale of statutorily specified eligible components to unrelated persons. Such eligible components include solar and wind energy components, inverters, qualifying battery components and 50 applicable critical minerals. The eligible components must be produced in the United States or a territory of the United States. 

Generally, the final regulations define qualifying production activities, provide rules for the sale of eligible components to unrelated persons as well as special rules that apply to sales between related persons, and provide rules to address contract manufacturing scenarios. 

The final regulations also provide definitions of eligible components, rules related to calculating the credit, including eligible production costs, and specific recordkeeping and reporting requirements. 

More information about IRA guidance may be found on the Inflation Reduction Act of 2022 page on IRS.gov.

Revenue Procedure 2024-31 provides the procedures and requirements that a manufacturer of specified property must follow to be treated as a “qualified manufacturer” (QM) under § 25C(h) of the Internal Revenue Code.  Section 25C(h)(1) provides that no credit will be allowed under § 25C(a) with respect to any item of specified property placed in service after December 31, 2024, unless such item is produced by a QM and the taxpayer includes the qualified product identification number (PIN) of such item on the taxpayer’s tax return for the taxable year.  This revenue procedure provides that a manufacturer that wishes to become a QM must register and enter into an agreement with the Internal Revenue Service (IRS), assign a PIN unique to each item of specified property, label such items, and make periodic written reports to the IRS of the PINs so assigned. 

Revenue Procedure 2024-31 will be in IRB:  2024-46, dated 11/12/2024.

WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued Revenue Procedure 2024-31 and proposed regulations to provide guidance for the energy efficient home improvement credit.  

The revenue procedure provides procedures and requirements that a manufacturer of specified property must follow to be treated as a qualified manufacturer (QM). To become a QM, a manufacturer must: 

• Register and enter into an agreement with the IRS.
• Assign a qualified product identification number (PIN) unique to each item of specified property.
• Label such items with PINs.
• Make periodic reports to the IRS of PINs assigned.  

Soon manufacturers will be able to use IRS Energy Credits Online Portal (IRS ECO) to register with the IRS. IRS ECO is a free electronic service that is secure and requires no special software, making it accessible to large and small businesses alike. 

Taxpayers can use the IRS ECO platform to register and provide information to the IRS for filing purposes. In addition, IRS ECO incorporates validation checks and other risk-mitigation measures and allows for monitoring in real time of key metrics to include identification of customer-service enhancements and fraudulent activity. 

For property placed in service beginning in 2023, a taxpayer may take a credit equal to 30% of the total amount paid for certain energy efficient products or for a home energy audit.  

The credit is limited to certain amounts, per taxpayer and per tax year. A taxpayer may claim a total credit of up to $3,200, with a general total limit of $1,200, and a separate total limit of $2,000 for electric or natural gas heat pump water heaters, electric or natural gas heat pumps, and biomass stoves or boilers that meet certain requirements.  

The $1,200 general limit also includes additional limitations specific to certain types of property that meet the requirements: 

• $600 for any item of qualified energy property.
• $600 in total for exterior windows and skylights.
• $250 for an exterior door.
• $600 in total for exterior doors. 
• Home energy audits are limited to $150. 

Beginning in 2025, for each item of specified property placed in service, no credit will be allowed unless the item was produced by a QM and the taxpayer includes the PIN for the item on the taxpayer’s tax return.  

Resources

• Publication 5967, Energy Efficient Home Improvement Credit (25C) 
• Publication 5976, How to claim an Energy Efficient Home Improvement tax credit RESIDENTIAL ENERGY PROPERTY 
• Publication 5978, How to claim an Energy Efficient Home Improvement tax credit HOME ENERGY AUDIT 
• Publication 5979, How to claim an Energy Efficient Home Improvement tax credit EXTERIOR DOORS, WINDOWS, SKYLIGHTS AND INSULATION MATERIALS 

WASHINGTON — The Department of the Treasury and the Internal Revenue Service today granted a filing exception for tax-exempt organizations; they do not have to file Form 4626, Alternative Minimum Tax – Corporations, for tax year 2023.

The Inflation Reduction Act of 2022 created an alternative minimum tax for corporations – a 15% minimum tax on the adjusted financial statement income (AFSI) of corporations that have average annual AFSI greater than $1 billion, beginning in 2023. For tax-exempt organizations, the corporate alternative minimum tax applies only to the AFSI of any unrelated trades or businesses.  

Tax-exempt organizations should maintain Form 4626 in their books and records for purposes of documenting whether they are an applicable corporation for purposes of the alternative minimum tax and, if so, for determining any corporate alternative minimum tax liability. In addition, any tax-exempt organization that is liable for the alternative minimum tax must pay the tax and report the amount on Part II, Line 5 of Form 990-T, Exempt Organization Business Income Tax Return.

In Notice 2023-7 and in the proposed regulations published on Sept. 13, 2024, Treasury and the IRS provided a simplified method for determining whether a corporation is an applicable corporation, but this method did not take into account the specific AFSI adjustment provided by the statute for tax-exempt organizations. Comments on the proposed regulations are due Dec. 12, 2024.

To give taxpayers and the IRS time to consider the comments on the proposed regulations, including comments relating to reporting for tax-exempt entities and on the application of the simplified method for tax-exempt entities, tax-exempt organizations are exempted from the obligation to file Form 4626 for tax year 2023.