Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of June 5, 2023 – June 9, 2023.
June 5, 2023: The IRS released Internal Revenue Bulletin 2023-23, which highlights the following:
- Revenue Ruling 2023-11: This revenue ruling establishes that the following interest rates will remain the same for the calendar quarter beginning July 1, 2023:
- Overpayments: 7%
- Overpayments for corporations: 6%
- Corporate overpayments for portions exceeding $10,000: 4.5%
- Underpayments: 7%
- Large corporate underpayments: 9%
- Notice 2023-41: This notice provides the applicable reference price for qualified natural gas production from qualified marginal wells during taxable years beginning in calendar year 2022 for the purpose of determining the marginal well production credit under Section 45I.
- REG-108054-21: These proposed regulations provide guidance on the application of the transfer for valuable consideration rules under Section 101 and associated information reporting requirements for reportable policy sales of interests in life insurance contracts under Section 6050Y. The proposed regulations would amend the rules for exchanges of life insurance contracts qualifying for nonrecognition of gain or loss, as well as for certain acquisitions of interests in life insurance contracts in transactions that qualify as corporate reorganizations.
- Revenue Ruling 2023-10: This revenue ruling provides the applicable federal rates for federal income tax purposes for June 2023. The short-term federal interest rate is 4.43%, the mid-term rate will drop to 3.56% and the long-term rate is 3.79%.
June 6, 2023: The IRS released Tax Tip 2023-76, providing business taxpayers with tips for income tax deductions before they travel on work trips.
June 7, 2023: The IRS issued a statement reassuring California taxpayers covered by disaster declarations that they’ll continue to have an automatic extension to file and pay taxes. The IRS is legally required to send a Notice CP14 to taxpayers with a balance due. While the notice says they need to pay in 21 days, California taxpayers under the disaster declaration have until later this year to pay.
June 7, 2023: The IRS released Tax Tip 2023-77, reminding tax professionals to register for the 2023 IRS Nationwide Tax Forums. Early registration expires June 15. See additional information below under Upcoming Events.
June 7, 2023: The IRS announced it was granting penalty relief for corporations that did not pay estimated tax related to the new corporate alternative minimum tax (CAMT). Notice 2023-42 provides that the IRS will waive the penalty for failure to pay estimated income tax for a taxable year that begins after December 31, 2022, and before January 1, 2024, because of the challenges associated with determining the amount of a corporation’s CAMT liability and whether a corporation is subject to the CAMT.
June 7, 2023: The IRS reminded taxpayers of the 2023 mid-June second quarter estimated tax deadline. Estimated tax is the method used to pay tax on income that is not subject to withholding. Payments are normally made by self-employed individuals, retirees, investors, businesses, corporations and others that do not have taxes withheld.
June 7, 2023: The IRS issued proposed regulations that would identify transactions that are the same as or substantially similar to certain Malta personal retirement scheme transactions as listed transactions, a type of reportable transaction. Material advisors and participants in these listed transactions would be required to file disclosures with the IRS and be subject to penalties for failure to disclose. These proposed regulations would affect participants in these transactions as well as material advisors.
June 8, 2023: The IRS encouraged taxpayers to submit a tax return by July 17, 2023, in order to claim their refunds for tax year 2019. Under the law, taxpayers have three years to file and claim their tax refunds. The IRS estimates that almost $1.5 billion in refunds are still unclaimed. More information is available here.
June 8, 2023: The IRS released Tax Tip 2023-78, reminding taxpayers that they have the right to appeal an IRS decision in an independent forum.
June 9, 2023: The IRS encouraged taxpayers who owe unpaid taxes and missed the April 18 filing deadline to file their 2022 tax return by June 14 to avoid a larger penalty. The late-filing penalty for each month is 5% of the unpaid tax, up to a maximum of 25%. If a return is more than 60 days late, the minimum late-filing penalty, also known as a Failure to File penalty, is either $435 or 100% of the unpaid tax, whichever is less.
June 9, 2023: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).
Upcoming Events: Registration for the 2023 IRS Nationwide Tax Forums is now open, and the events are returning to an in-person format for the first time since 2019. The IRS Nationwide Tax Forums are designed specifically for tax professionals (e.g., enrolled agents, certified public accountants, certified financial planners and Annual Filing Season Program participants) as well as uncredentialed tax professionals. The dates and locations are as follows:
- July 11-13: New Orleans, LA
- July 25-27: Atlanta, GA
- August 8-10: National Harbor, MD (Washington, DC area)
- August 22-24: San Diego, CA
- August 29-31: Orlando, FL