Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of October 31, 2022 – November 4, 2022.
October 31, 2022: The IRS released Internal Revenue Bulletin 2022-44, which highlights the following:
- Treasury Decision 9966: These final regulations increase the renewal user fee for enrolled retirement plan agents from $67 to $140 and also increase both the enrollment and renewal of enrollment user fees for enrolled agents from $67 to $140.
- Proposed Regulations 113068-22: These proposed regulations relate to recordkeeping and reporting requirements for the average income test for purposes of the low-income housing credit.
- Revenue Ruling 2022-19: This revenue ruling provides a rule for valuing noncommercial flights on employer-provided aircraft, including the three Standard Industry Fare Level (SIFL) rates: the Unadjusted SIFL Rate, the SIFL Rate Adjusted for PSP Grants, and the SIFL Rate Adjusted for PSP Grants and Promissory Notes.
- Treasury Decision 9967: This document contains final and temporary regulations, which set forth guidance on the average income test for purposes of the low-income housing credit.
October 31, 2022: The IRS released COVID Tax Tip 2022-166, announcing that more than nine million people may qualify for tax benefits they did not claim by filing a 2021 federal income tax return. Many of these people may be eligible to claim some or all of the 2021 Recovery Rebate Credit, the Child Tax Credit and the Earned Income Tax Credit, among others, which were expanded last year under the American Rescue Plan Act of 2021 and other legislation.
November 1, 2022: The IRS released COVID Tax Tip 2022-167, alerting taxpayers in areas covered by certain Federal Emergency Management Agency disaster declarations that they may have more time to file their returns and may qualify for penalty relief under Notice 2022-36.
November 2, 2022: The IRS released COVID Tax Tip 2022-168, reminding people to review their tax withholdings to avoid tax surprises, such as a balance due or a larger-than-expected refund.
November 3, 2022: The IRS requested comments on three notices related to different aspects of extensions and enhancements of energy tax benefits in the Inflation Reduction Act of 2022. The IRS hopes that comments will aid the agency in drafting the related guidance items. Feedback should be submitted by December 3, 2022. The notices include:
- Notice 2022-56, which requests comments related to the qualified commercial clean vehicles provisions and the alternative fuel vehicle refueling property
- Notice 2022-57, which requests comments related to the carbon capture tax credit
- Notice 2022-58, which requests comments related to the tax credit for the production of clean hydrogen and the clean fuel production tax credit.
November 3, 2022: The IRS announced that in 2022, IRS Criminal Investigation (CI) initiated more than 2,550 criminal investigations, identified more than $31 billion from tax and financial crimes, and subsequently obtained a 90.6% conviction rate on cases accepted for prosecution. The IRS-CI FY2022 Annual Report details these statistics, as well as significant criminal enforcement actions from the past fiscal year, which runs from October 1, 2021, to September 30, 2022.
November 3, 2022: The IRS released Tax Tip 2022-169, reminding taxpayers that when they go through an audit, they have the right to know when the IRS has finished. This right is one of the 10 basic rights included in the Taxpayer Bill of Rights.
November 4, 2022: The IRS Independent Office of Appeals (IRS Appeals) released its focus guide for fiscal year 2023. Priorities include:
- Increasing stakeholder outreach
- Improving access to in-person and video conferences and revising letters and notices to ensure taxpayers understand that it is generally their choice how to meet with IRS Appeals
- Leveraging technology to improve how IRS Appeals works and manages its cases
- Continuing the Practitioner Perspectives series in which tax practitioners share insights and feedback with IRS Appeals employees
- Developing training for IRS Appeals employees on enhancing customer engagement
November 4, 2022: The IRS released Notice 2022-21, requesting recommendations on items to include in the 2022-2023 Priority Guidance Plan. The Priority Guidance Plan is used to identify and prioritize the tax issues that should be addressed through regulations, revenue rulings, revenue procedures, notices and other published administrative guidance.
November 4, 2022: The IRS division of Tax Exempt & Government Entities (TE/GE) released its priorities for the new fiscal year. TE/GE's priorities align with the IRS Strategic Goals, which include:
- Enhance Taxpayer Service
- Strengthen Compliance Activities
- Workforce Development
- Transform Operations
November 4, 2022: The IRS asked for an extension on the Information Collection Request, related to Treasury Decision 8674, which governs Debt Instruments With Original Issue Discount, Contingent Payments and Anti-Abuse Rule and Third-Party Network Transactions. Written comments should be received no later than January 3, 2023.
November 4, 2022: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).
- The IRS's Taxpayer Advocacy Panel will hold the following
committee meetings in November:
- November 8, 2022: Notices and Correspondence Project Committee
- November 8, 2022: Tax Forms and Publications Project Committee
- November 8, 2022: Toll-Free Phone Lines Project Committee
- November 9, 2022: Special Projects Committee
- November 9, 2022: Taxpayer Communications Project Committee
- November 10, 2022: Assistance Center Improvements Project Committee
- November 17, 2022: Taxpayer Advocacy Panel Joint Committee
- The IRS Advisory Council will hold an in-person public meeting on November 16, 2022. To register, members of the public may contact Stephanie Burch at (202)317-4219 or send an email to PublicLiaison@irs.gov.
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.