Tax Alerts
Tax Briefing(s)

The Internal Revenue Service announced a new Voluntary Disclosure Program that gives at employers who received erroneous Employee Retention Credit funds the opportunity pay them back at a discounted rate.

The IRS has provided certain eligible taxpayers with automatic relief from additions to tax for failure to pay income tax for tax years 2020 and 2021Relief is only available to taxpayers who filed an eligible return during the relief period, which begins on either the date the IRS issued an initial balance due notice or February 5, 2022, whichever is later, ends on March 31, 2024.

The IRS has issued final regulations regarding the de minimis safe harbors from the penalties under Code Sec. 6721 for failure to file information returns and Code Sec. 6722 for failure to furnish payee statements. The regulations also include the time and manner a payee may elect out of the safe harbor, as well as rules on reporting basis of securities by brokers as it relates to the de minimis safe harbors. The final regulations adopt the 2018 proposed regulations with only minor modifications.

The Treasury Department and the IRS have issued guidance pertaining to the new credit for qualified commercial clean vehicles, established by the Inflation Reduction Act of 2022 (P.L. 117-169). Notice 2024-5 establishes a safe harbor regarding the incremental cost of certain qualified commercial clean vehicles placed in service in calendar year 2024.

The IRS and the Department of Treasury (the Treasury) have announced that they intend to propose regulations to implement the product identification number (PIN) requirement with respect to the energy efficient home improvement credit under Code Sec. 25C as amended by the Inflation Reduction Act of 2022 (IRA) (P. L. 117-169). The IRS has also requested comments on the PIN requirement under Code Sec. 25C(h) (PIN requirement) by February 27, 2024.

Taxpayers may rely on an IRS notice that describes forthcoming regulations for the alternative fuel vehicle refueling property credit. The notice focuses on the census tract requirement added by the Inflation Reduction Act of 2022 (P.L. 117-169). 

The IRS has provided relief from the failure to furnish a payee statement penalty under Code Sec. 6722 to certain partnerships with unrealized receivables or inventory items described in Code Sec. 751(a) (Section 751 property) that fail to furnish, by the due date specified in Reg. §1.6050K-1(c)(1), Part IV of Form 8308, Report of a Sale or Exchange of Certain Partnership Interests, to the transferor and transferee in a Section 751(a) exchange that occurred in calendar year 2023.

The IRS has issued a notice addressing the availability of administrative exemptions from the requirement to file certain returns and other documents in electronic form. The notice also addresses the availability of information about the procedure to request a waiver of the requirement to file electronically Forms 1120, 1120-S, 1120-F, and 1065. In addition, thr IRS has provided information about resources pertaining to failed attempts to electronically file Forms 1120, 1120-S, and 1120-F using IRS filing systems.

Although 2023 was a year of transition for the IRS and taxpayers, National Taxpayer Advocate Erin Collins has reason to be more optimistic for 2024.

An increased emphasis on millionaires who may be evading taxes by Internal Revenue Service compliance staff has resulted in collection of $482 million to date, agency Commissioner Daniel Werfel reported.

Department of the Treasury Secretary Janet Yellen touted the corporate transparency that will come with the new beneficial ownership reporting requirements, which went into effect at the start of 2024.

The Supreme Court of the United States on December 5, 2023, heard arguments in the case of Charles G. Moore v. United States, which is looking at whether the government has the right to tax unrealized income.

The Financial Crimes Enforcement Network (FinCEN) of the U.S. Treasury Department today released for publication in the Federal Register final regulations [PDF 276 KB] extending the filing deadline for initial beneficial ownership information (BOIreports under regulations becoming effective January 1, 2024, that require certain corporations, limited liability companies, and other similar entities created in or registered to do business in the United States to report beneficial ownership information to FinCEN (i.e., information on the persons who ultimately own or control the company). Read TaxNewsFlash

The IRS released the optional standard mileage rates for 2024. Most taxpayers may use these rates to compute deductible costs of operating vehicles for:

  • business,
  • medical, and
  • charitable purposes

Some members of the military may also use these rates to compute their moving expense deductions.

The American Institute of CPAs is calling on the Internal Revenue Service to establish a more streamlined and rapid procedure for processing extension requests filed by taxpayers in areas with a disaster declaration.

The IRS has intensified its efforts to address questionable dubious Employee Retention Credit (ERC) claims, sending over 20,000 letters to taxpayers about disallowed claims targeting entities without a valid existence or paid employees during the eligibility period. This move aims to curb improper payments to ineligible entities, responding to misleading marketing campaigns targeting small businesses. The IRS has also offered a special withdrawal program for those with pending claims and plans to launch a voluntary disclosure program later this month for recipients of questionable payments to avoid future IRS actions.

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network has issued an alert to financial institutions on fraud schemes related to the Employee Retention Credit as part of the CARES Act.

The IRS issued two items of guidance on the excluded entity restriction of the Code Sec. 30D clean vehicle credit, proposed regulations and a revenue procedure. Under the excluded entity restriction, vehicles are not eligible for the clean vehicle credit if the battery contains components manufactured or assembled, or applicable critical minerals extracted, processed, or recycled by a foreign entity of concern (FEOC). Taxpayers may rely on the proposed regulations for vehicles placed in service prior to the date final regulations are published in the Federal Register, provided the taxpayer follows the proposed regulations in their entirety, and in a consistent manner.

The IRS Independent Office of Appeals has released its Focus Guide for 2024, emphasizing enhancements to taxpayer service for fair and impartial resolution of tax disputes without litigation.

The Treasury and IRS in partnership with the Department of Energy (DOEreported remarkable demand in the initial application period for solar and wind facilities. Within the first 30-day window, the Inflation Reduction Act’s Low-income communities Bonus Credit Program received over 46,000 applications for new energy facilities. The applications were either as part of affordable housing or directly benefiting low-income household across the country.guidance, The program allocates 1.8 gigawatts of capacity available through competitive application for the 2023 program across four categories of qualified solar or wind facilities with maximum output of less than five megawatts. The applications for 2024 represent more than four times the total capacity available for the 2023 program.