Revenue Procedure 2022-23 provides guidance allowing a taxpayer to make late elections under §§ 168(j)(8) and 168(l)(3)(D) of the Internal Revenue Code for the taxpayer’s taxable year ending in 2018 or in 2019 for certain property placed in service by the taxpayer after December 31, 2017. This revenue procedure also provides guidance allowing a taxpayer to make a late election under § 181(a)(1) of the Code for the taxpayer’s taxable year ending in 2018 or in 2019 for certain film, television, or live theatrical productions commenced by the taxpayer after December 31, 2017.

Revenue Procedure 2022-23 will be published in Internal Revenue Bulletin 2022-18 on May 2, 2022.

Notice 2022-16 sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates for April 2022 used under § 417(e)(3)(D), the 24-month average segment rates applicable for April 2022, and the 30-year Treasury rates, as reflected by the application of § 430(h)(2)(C)(iv). 

Notice 2022-16 will be in IRB: 2022-18, dated May 2, 2022.

IRS YouTube Video:
2022 IRS Nationwide Tax Forum- Virtual – English

WASHINGTON — The Internal Revenue Service today announced the 2022 IRS Nationwide Tax Forum will be held virtually over five weeks starting July 19, with a series of live-streamed webinars every Tuesday, Wednesday and Thursday.

Held each summer for more than 30 years, the IRS Nationwide Tax Forum is the IRS’s marquee outreach event to the tax professional community. Even as some areas of the country are lifting limits on indoor gatherings, the IRS will once again present the Nationwide Tax Forum in a virtual format out of an abundance of caution.

The virtual format allows experts from the IRS and its association partners to educate and update the tax professional community on tax law, professional ethics, virtual currency, collection issues and many other topics. Registering and attending these virtual seminars will allow many to fully satisfy their annual continuing education requirements.

Tax professionals are encouraged to register now to take advantage of this virtual program.

Seminar dates and agenda
The 2022 IRS Nationwide Tax Forum will begin on July 19, and continue through Aug. 18, with live-streamed webinars broadcast on Tuesdays, Wednesdays and Thursdays. Registration enables attendees to participate in all of the live webinars earning up to 28 continuing education credits.

The IRS Nationwide Tax Forum will feature a keynote address from Commissioner Charles P. Rettig, a plenary session with tax law and publications updates and multiple sessions on high-interest topics. Presentations are made by both IRS experts and partner associations.

This year four seminars, including the plenary session and an ethics webinar, will be offered both in English and Spanish. Additional multilingual resources will be available for attendees in the Virtual Expo.

Course details, including webinar titles, descriptions and schedule will be available soon.

2022 registration and fees
Tax professionals who register by 5 p.m. ET on June 15, qualify for an Early Bird rate of $240 per person. The standard rate starting June 16, will be $289.

Discounts for national association members
Members of the IRS national partner associations listed below qualify for a discount of $10 off the Early Bird rate, but only if they register by June 15. Participating association members should contact their association directly for more information:

Virtual Expo and focus groups
Registration at the 2022 IRS Nationwide Tax Forum includes access to the Virtual Expo. The Virtual Expo provides a great opportunity to visit with exhibitors representing dozens of commercial leaders in tax software and financial services, as well as leading national associations and several key IRS offices. Highlights of the Virtual Expo include:

In addition, attendees are invited to share their experiences and discuss innovative ideas directly with the IRS in numerous small, virtual focus groups. Please check the website for the list of topics and qualifying criteria.

WASHINGTON — The Department of the Treasury and the Internal Revenue Service have received requests from taxpayers and their advisors for relief from penalties arising when additional income tax is owed because the deduction for qualified wages is reduced by the amount of a retroactively claimed employee retention tax credit (ERTC), but the taxpayer is unable to pay the additional income tax because the ERTC refund payment has not yet been received.

Treasury and the IRS are aware that this situation may arise, in part, due to the IRS’s backlog in processing adjusted employment tax returns (e.g., Form 941-X) on which the taxpayers claim ERTC retroactively. Based on applicable law, IRS guidance provides that an employer must reduce its income tax deduction for the ERTC qualified wages by the amount of the ERTC for the tax year in which such wages were paid or incurred. Taxpayers that claimed the ERTC retroactively and filed an amended income tax return reducing their deduction for the ERTC qualified wages paid or incurred in the tax year for which the ERTC is retroactively claimed have an increased income tax liability, but may not yet have received their ERTC refund.

This release reminds taxpayers that, consistent with the relief from penalties for failure to timely pay noted in Notice 2021-49, they may be eligible for relief from penalties for failing to pay their taxes if they can show reasonable cause and not willful neglect for the failure to pay. In general, taxpayers may also qualify for administrative relief from penalties for failing to pay on time under the IRS’s First Time Penalty Abatement program if the taxpayer:

1. Did not previously have to file a return or had no penalties for the three prior tax years,
2. Filed all currently required returns or filed an extension of time to file and
3. Paid, or arranged to pay, any tax due.

For general information, visit the Penalty Relief page on IRS.gov.

Revenue Ruling 2022-09 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. These rates are determined as prescribed by § 1274. 

The rates are published monthly for purposes of sections 42, 382, 412, 642, 1288, 1274, 7520, 7872, and various other sections of the Internal Revenue Code.

It will appear in IRB: 2022-18 dated May 2, 2022.

Today, the IRS published the latest executive column, “A Closer Look,” which features IRS Commissioner Chuck Rettig, discussing the challenges and successes of this filing season. “All of us at the IRS want to serve taxpayers well,” said Rettig. “We want our phones answered quickly. We want the nation’s tax laws enforced fairly. We want people to get the help they need whenever they need it.” Read more here. Read the Spanish version here.

“A Closer Look” is a column from IRS executives that covers a variety of timely issues of interest to taxpayers and the tax community. It also provides a detailed look at key issues affecting everything from IRS operations and employees to issues involving taxpayers and tax professionals.

Check here for prior posts and new updates.

WASHINGTON — Taxpayers requesting an extension will have until Monday, Oct. 17, 2022, to file a return. Not everyone has to ask for more time, however. Disaster victims, taxpayers serving in combat zones and those living abroad automatically have longer to file.

An extension of time to file will also automatically process when taxpayers pay all or part of their taxes electronically by this year’s original due date of April 18, 2022. Although taxpayers can file up to six months later when they have an extension, taxes are still owed by the original due date.
Here’s more about those who get automatic extensions:

Disaster victims

Victims of the December 2021 tornadoes and flooding in Arkansas, Illinois, Kentucky and Tennessee have until May 16, 2022, to file their 2021 returns and pay any tax due, as do victims of Colorado wildfires and straight-line winds that began Dec. 30. In addition, victims of severe storms, flooding and landslides that began on Feb. 4 in Puerto Rico will have until June 15, 2022, to file and pay.  

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in a federally declared disaster area when at least one area qualifies for FEMA's Individual Assistance program. Ordinarily, this means that taxpayers need not contact the IRS to get disaster tax relief.

This relief also includes more time for making 2021 contributions to IRAs and other plans and making 2022 estimated tax payments. In some cases, relief is also available to people living outside the disaster area if, for example, they have a business located in the disaster area, have tax records located in the disaster area or are assisting in disaster relief. For details on all available relief, visit the Around the Nation page on IRS.gov.

Combat zone taxpayers

Military service members and eligible support personnel serving in a combat zone have at least 180 days after they leave the combat zone to file their tax returns and pay any tax due. This includes those serving in Iraq, Afghanistan and other combat zones. A complete list of designated combat zone localities can be found in Publication 3, Armed Forces' Tax Guide, available on IRS.gov.

Combat zone extensions also give affected taxpayers more time for a variety of other tax-related actions, including contributing to an IRA. Various circumstances affect the exact length of the extension available to taxpayers. Details, including examples illustrating how these extensions are calculated, are in the Extensions of Deadlines section in Publication 3.

Taxpayers outside the United States

U.S. citizens and resident aliens who live and work outside the U.S. and Puerto Rico have until June 15, 2022, to file their 2021 tax returns and pay any tax due.

The special June 15 deadline also applies to members of the military on duty outside the U.S. and Puerto Rico who do not qualify for the longer combat zone extension. Affected taxpayers should attach a statement to their return explaining which of these situations apply.

Though taxpayers abroad get more time to pay, interest -- currently at the rate of 4% per year, compounded daily -- applies to any payment received after this year's April 18 deadline. For more information about the special tax rules for U.S. taxpayers abroad, see Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad, on IRS.gov.

Everyone else

Taxpayers who don't qualify for any of these three special situations can still get more time to file by submitting a request for an automatic extension. This will extend their filing deadline until Oct. 17, 2022. But because this is only a tax-filing extension, their 2021 tax payments are still due by April 18.

An easy way to get the extra time is through IRS Free File on IRS.gov. In a matter of minutes, anyone, regardless of income, can use this free service to electronically request an extension on Form 4868. To get the extension, taxpayers must estimate their tax liability on this form.

Another option is to pay electronically and get a tax-filing extension. The IRS will automatically process an extension when a taxpayer selects Form 4868 and makes a full or partial federal tax payment by the April 18 due date using their Online Account,  Direct Pay, the Electronic Federal Tax Payment System (EFTPS) or a debit, credit card or digital wallet. Under this option, there is no need to file a separate Form 4868. Taxpayers must register for EFTPS before using. Electronic payment options are available at IRS.gov/payments.

The deadline to submit 2021 tax returns or an extension to file and pay tax owed this year falls on April 18, instead of April 15, because of the Emancipation Day holiday in the District of Columbia. Taxpayers in Maine or Massachusetts have until April 19, 2022, to file their returns due to the Patriots' Day holiday in those states.

WASHINGTON — Beginning in mid-April 2022, the Internal Revenue Service will send CP2100 and CP2100A notices to financial institutions, businesses or payers who filed certain types of information returns that don’t match IRS records.

These information returns include:

CP2100 and CP2100A notices are sent twice a year; an initial mailing in September and October and a second mailing in April of the following year. The notices inform payers that the information return is missing a Taxpayer Identification Number (TIN), has an incorrect name or a combination of both.

Each notice has a list of payees, or the persons receiving certain types of income payments, with identified TIN issues. Payers need to compare the accounts listed on the notice with their account records and correct or update their records, if necessary. This can also include correcting backup withholding on payments made to payees.

The notices also inform payers that they are responsible for backup withholding. Payments reported on the information returns listed above are subject to backup withholding if:

Payers remain liable for the amount they failed to backup withhold, and penalties may apply. Publication 1281, Backup Withholding on Missing and Incorrect Name/TINs, has more information to help payers comply with backup withholding.

Notice 2022-15 provides relief for the third and fourth calendar quarters of 2022, and the first calendar quarter of 2023, regarding the failure to deposit penalties imposed by section 6656 of the Code as those penalties relate to the Superfund chemical taxes.  This notice also provides that during the first, second, and third calendar quarters of 2023, the Internal Revenue Service will not withdraw a taxpayer’s right to use the deposit safe harbor rules of § 40.6302(c)-1(b)(2) of the Excise Tax Procedural Regulations for failure to make required deposits of Superfund chemical taxes if certain requirements are met.

The Infrastructure Investment and Jobs Act (IIJA), Public Law 117-58, 135 Stat. 429 (November 15, 2021), reinstates the excise taxes imposed by sections 4661 and 4671 of the Internal Revenue Code (the Superfund chemical taxes), effective July 1, 2022. 

This notice will be published in Internal Revenue Bulletin 2022-18 on May 2, 2022.

WASHINGTON — The Internal Revenue Service is reminding taxpayers the deadline to file and pay tax owed for most individual income tax returns is Monday, April 18. The agency wants last-minute filers to know tax help is available to file a tax return, request an extension or make a payment, 24 hours a day on IRS.gov.

The IRS encourages taxpayers to file electronically because tax software does the calculations, flags common errors and reduces tax return errors by prompting taxpayers for missing information. The fastest way to receive a refund is to file electronically and use direct deposit.

IRS Free File is available to any person or family with an adjusted gross income (AGI) of $73,000 or less in 2021. Leading tax software providers make their online products available for free. Taxpayers can use IRS Free File to claim the remaining amount of their Child Tax Credit, the Earned Income Tax Credit and other important credits. IRS Free File Fillable Forms is available to anyone who is comfortable preparing their own tax return - so there is a free option for everyone.

Online Account provides information to help file an accurate return, including Advance Child Tax Credit and Economic Impact Payment amounts, Adjusted Gross Income amounts from last year’s tax return, estimated tax payment amounts and refunds applied as a credit.

Get a 6-month extension to file
The IRS estimates 15 million taxpayers will request an extension of time to file and the easiest way to request an extension to file is using IRS Free File. In a matter of minutes, anyone can request an extension until October 17, using Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. An extension of time to file is not an extension of time to pay, however, and taxpayers must estimate their tax liability on this form and pay any amount due by the April 18 filing deadline to avoid penalties and interest.

Taxpayers can also request more time by paying all or part of their estimated income tax due and indicate that the payment is for an extension. They can do this using Direct Pay, the Electronic Federal Tax Payment System (EFTPS), or a debit, credit card or digital wallet. This way they don’t have to file a separate extension form and will receive a confirmation number for their records.

IRS Form 4868 can also be downloaded from IRS.gov/forms, completed and addressed to the correct IRS office, and must be postmarked by the filing deadline.

Who automatically has more time to file?
The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in areas covered by Federal Emergency Management Agency disaster declarations. Deadlines to file tax returns and make tax payments are extended for affected taxpayers in certain areas of Arkansas, Colorado, Kentucky and Tennessee until May 16, 2022, and for Puerto Rico until June 15, 2022. For details on all available relief, visit the Around the Nation page on IRS.gov.

Special rules may apply for some military personnel serving in a combat zone or a qualified hazardous duty area. This also applies to individuals serving in the combat zone in support of the U.S. Armed Forces. A complete list of designated combat zone localities can be found in Publication 3, Armed Forces’ Tax Guide, available on IRS.gov. U.S. citizens and resident aliens living outside the United States have until June 15, 2022, to file their 2021 tax returns and pay any tax due.

$1.5 billion in unclaimed 2018 refunds
The IRS estimates 1.5 million taxpayers did not file a 2018 tax return to claim tax refunds worth more than $1.5 billion. The three-year window of opportunity to claim a 2018 tax refund closes April 18, 2022, for most taxpayers. If they do not file a 2018 tax return by April 18, 2022, the money becomes the property of the U.S. Treasury. The law requires taxpayers to properly address, mail and ensure the 2018 tax return is postmarked by that date.

Other April 18 deadlines
April 18 is also the deadline to make 2021 contributions to Individual Retirement Arrangements (IRAs). Contributions can be made to a traditional or Roth IRA until the filing due date, April 18, but must be designated for 2021 to the financial institution. For more information, see Retirement Plans FAQs Regarding IRAs or Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs).

Employment taxes are due April 18 for household employees including housekeepers, maids, babysitters, gardeners and others who work in or around a private residence as an employee if they were paid $2,300. For more information, see Publication 926, Household Employer's Tax Guide.

The deadline to submit 2021 tax returns or an extension to file and pay tax owed this year falls on April 18, instead of April 15, because of the Emancipation Day holiday in the District of Columbia. Taxpayers in Maine or Massachusetts have until April 19, 2022, to file their returns due to the Patriots' Day holiday in those states.

The first quarter estimated tax payment for 2022 is also due on April 18. Taxpayers are encouraged to check their withholding for 2022 after they’ve filed their 2021 tax return. It can protect against having too little tax withheld and facing an unexpected tax bill or penalty at tax time next year. It can also help taxpayers adjust their tax withheld up front, so taxpayers receive a bigger paycheck and smaller refund at tax time.