Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of November 14, 2022 - November 18, 2022.
November 14, 2022: The IRS released Internal Revenue Bulletin 2022-46, which highlights the following:
- Announcement 2022-21: The Office of Professional Responsibility announced recent disciplinary sanctions involving lawyers, certified public accountants, enrolled agents, enrolled actuaries, enrolled retirement plan agents and appraisers.
November 14, 2022: The IRS released Notice 2022-59, which provides the adjusted applicable dollar amount to be multiplied by the average number of covered lives for purposes of calculating the fee imposed by Sections 4375 and 4376 for policy years and plan years that end on or after October 1, 2022, and before October 1, 2023. The amount is $3.00, up from $2.79.
November 14, 2022: The IRS released Tax Tip 2022-174, which provides an overview of the Taxpayer Bill of Rights (TBOR). We have previously posted about TBOR.
November 15, 2022: The IRS released Tax Tip 2022-175, reminding people that Giving Tuesday is coming up and is a good time to review whether their charitable donation is tax deductible. Giving Tuesday is the Tuesday after Thanksgiving.
November 15, 2022: The IRS reminded taxpayers that IRS Free File will be closed after November 17. IRS Free File allows people with incomes of $73,000 or less to file a return online for free using brand name software.
November 15, 2022: The IRS Advisory Council issued its 2022 Public Report, which includes recommendations for new and continuing issues in tax administration. The report emphasized the need for "consistent and multi-year funding for the IRS to achieve its goals of providing efficient, effective, modern service to the nation's taxpayers." The 146-page report details recommendations for 21 issues, including:
- IRS business and information technology modernization
- Reduction in electronic filing threshold for information return filers
- Alignment of electronic signature requirements on withholding certificates
- Accelerated issuance of IRS Form 6166, Certification of US Residency
- Series 8038 Form Redesign and Updates
- Business Master File Transcript Delivery Service
November 15, 2022: The IRS issued Revenue Rule 2022-22, which provides the applicable federal rates for federal income tax purposes for December 2022. The short-term federal interest rate will increase to 4.55%, the mid-term rate will rise to 4.27% and the long-term rate will rise to 4.34%.
November 16, 2022: The IRS released Revenue Procedure 2022-39, which obsoletes Revenue Procedure 94-69, 1994-2 C.B. 804, and sets out the procedures for eligible taxpayers to file an amended return in accordance with Section 1.6664-2(c)(4)(ii) of the regulations. This revenue procedure also sets out the procedures for eligible taxpayers to avoid the Sections 6662(b)(1) and 6662(b)(2) accuracy related penalties to the extent that the taxpayers report errors resulting in additional tax or adequately discloses the tax treatment of an item that has a reasonable basis. The special procedures set forth in this revenue procedure are intended for the disclosure of errors and omissions that were not known at the time of filing a return. We will be providing more analysis of this soon but have previously posted on this issue.
November 16, 2022: The IRS released Notice 2022-60, which provides updates on the corporate bond monthly yield curve, the corresponding spot segment rates and the 24-month average segment rates for November 2022. The notice also provides guidance as to interest rates on 30-year Treasury securities and 30-year Treasury weighted average rates.
November 16, 2022: The IRS released Tax Tip 2022-176, reminding tax return preparers that they must renew their Preparer Tax Identification Numbers (PTINs) for 2023. All PTINs will expire December 31, 2022. The fee to renew or get a PTIN is $30.75.
November 16, 2022: The IRS is requesting comments on the Reimbursable Agreement-Non-Federal Entities and Statistics of Income-User Fee and Forms 14417 and 14417-A. Form 14417 is for funds in reimbursable agreements with non-federal entities such as state, local, foreign governments and non-federal public entities. Form 14417-A is used after a customer contacts the Statistics of Income Division requesting data that is not already available on the TaxStats IRS website. Comments should be received by January 17, 2023.
November 16, 2022: The IRS is requesting comments related to Revenue Procedure 2007-12, Certification for Information Reporting on Real Estate Transactions. The revenue procedure sets out the acceptable forms of written assurances that are required from the seller of a principal residence to except the sale or exchange from the information reporting requirements for real estate transactions under Section 6045(e)(5).
November 17, 2022: The IRS released Tax Tip 2022-177, reminding non-credentialed tax preparers of its Annual Filing Season Program. The purpose of the program is to increase knowledge and improve filing readiness.
November 17, 2022: The IRS is requesting comments related to Form 1098-F, Fines, Penalties, and Other Amounts. Governments and certain other entities use Form 1098-F to report fines and other payments received to the IRS under Section 6050X. Comments should be received by January 16, 2023.
November 17, 2022: The IRS reminded individual retirement arrangement (IRA) owners over the age of 70.5 of their option to transfer up to $100,000 to charity, tax free, each year. For those who are at least 72 years old, qualified charitable distributions count toward the IRA owner's required minimum distribution for the year.
November 18, 2022: The IRS announced that the annual National Tax Security Awareness Week is scheduled for November 28, 2022, through December 2, 2022. This is the seventh year for the event, which was started to combat tax-related identity theft by increasing protections against fraud and raising security awareness.
November 18, 2022: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).
- The IRS Security Summit will hold a free webinar, Deeper Dive into Emerging Cyber Crimes and Crypto Tax Compliance, on November 29, 2022. Registration information can be found here.
Special thanks to Sarah Raben in our Chicago office for this week's roundup.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.