On February 24, 2023, the IRS released new proposed regulations regarding the use of forfeitures in qualified retirement plans. The new regulations say that forfeitures arising in any defined contribution plan (including in a money purchase pension plan) may be used for three purposes: to pay plan administrative expenses, to reduce employer contributions under the … Continue reading REG- 122286-18: IRS Releases New Proposed Regulations on Use of Forfeitures in Qualified Retirement Plans (February 25, 2023)

On February 21, 2023, the IRTS released the final regulations that amend the rules for filing electronic tax returns in specific cases. These new rules affect those filing partnership returns, corporate income tax returns, unrelated business income tax returns, withholding tax returns, certain information returns, registration statements, disclosure statements, notifications, actuarial reports, and certain excise … Continue reading T.D. 9972: IRS Releases New Regulations on Electronic Filing of Tax Returns (February 22, 2023)

In Bulletin No. 2023-1, the IRS released the 2023 Annual Revenue Procedures. The Bulletin provides a wealth of information on rulings and letters as well as their scope for the next tax year. See Internal Revenue Bulletin No. 2023-1

On January 11, 2023, National Taxpayer Advocate Erin M. Collins delivered the 2022 Annual Report to Congress. The report assesses overall taxpayer service by the IRS throughout 2022 independently, with no prior oversight by the IRS. Additionally, the report identifies the ten most serious problems faced by taxpayers interacting with the IRS and makes specific … Continue reading National Taxpayer Advocate Annual Report to Congress Delivered (January 11, 2023)

As with many assets, cryptocurrency and other digital assets had a terrible year in 2022. Some investors have begun using their deflated digital assets in order to offset capital gains from other assets, including stocks. The IRS does treat digital assets as property (per Notice 2014-21) and so this can work, but investing losses can … Continue reading Digital Asset Tax Loss Harvesting This Season (January 10, 2023)

In Notice 2023-1, the IRS provides temporary relief to certain foreign financial institutions that are required to report U.S. tax identification numbers. This relief is intended for IRS information collection and for increasing tax compliance. See Notice 2023-11

On January 9, 2023, the U.S. Tax Court held that taxpayers engaged in a ranching activity were doing so for profit and thus they were eligible for tax deductions due to losses incurred during such activity. The taxpayers had engaged in a ranching activity for several years, sustaining a net loss during each one. The … Continue reading Wondries v. Comissioner: Tax Court Holds That Taxpayers Are Entitled to Deductions on Ranching Activity (January 10, 2022)

On December 23, 2022, the IRS announced that third-party settlement organizations will not have to report 2022 tax year transactions in accordance with the new $600 threshold established by the American Rescue Plan of 2021. 2022 will be regarded as a "transition year" for these reporting requirements, but the old threshold of reporting ($20,000 in … Continue reading Reporting Requirement for Online Payments Delayed (January 10, 2022)

On December 27, 2022, the IRS released new proposed regulations concerning the corporate alternative minimum tax established in the Inflation Reduction Act applicable after December 31, 2022. The Notice contains interim guidance on regarding specific issues related to the existing Internal Revenue Code. See Notice 2023-7 See also KPMG Report on Notice 2023-7

On December 27, 2022, the IRS issued new proposed regulations concerning the new excise tax on corporate stock repurchases enacted as part of the Inflation Reduction Act of 2022. The proposed regulations include a list of transactions that are newly taxable as well as rules for reporting and liability under this excise tax. See Notice … Continue reading Notice 2023-2: IRS Releases Proposed New Excise Tax on Corporate Stock Buyback Regulations (December 30, 2022)

This Tuesday, the Senate Appropriations Committee released the text of the latest omnibus spending bill which includes various new provisions for increasing retirement savings. New provisions include a new federal matching contribution of up to $1000 per person, expand required enrollment in IRA plans by employers, and changes to withdrawals in certain cases. See SECURE … Continue reading SECURE Act 2.0 of 2022: New Retirement Savings Provisions in New Omnibus Spending Bill (December 20, 2022)

This Thursday, December 15, the Financial Crimes Enforcement Network (FinCEN) proposed new regulations on beneficial ownership information access by authorized recipients. These new regulations would implement the existing security protocols for personally identifiable information reported to FinCEN as required by the Corporate Transparency Act for beneficial ownership information. See RIN-1506-AB59

The IRS Tax Exempt and Government Entities has provided three new technical guides: TG 0, TG 3-4, and TG-17. TG 0 is an updated overview of all technical guides. TG-3-4 is an updated guide to tax law regarding scientific organizations exempt under Section 501(c)(3). TG-17 is an updated guide to tax law regarding trusts that … Continue reading IRS Releases New Technical Guides (December 13, 2022)

The U.S. Tax Court in Ismail v. Commissioner of Internal Revenue held that two individuals did not have ownership in a foreign corporation and so were not entitled to deduct business expenses from their tax liabilities. The court held that the taxpayers had failed to establish ownership interest in the corporation and so could not … Continue reading Ismail v. Commissioner of Internal Revenue: Tax Court Holds Individuals Not Entitled to Deduct Business Expenses from Foreign Corporation (November 29, 2022)

In REG-106134-22, the IRS announces proposed regulations that classify certain syndicated conservation easement transactions and some similar transactions as listed transactions. These regulations affect both some participants in these transactions as well as any material advisors involved. The proposed regulations do not allow qualified organizations to be treated as participants or parties to a prohibited … Continue reading REG-106134-22: IRS Releases New Proposed Regulations for Listed Transactions (December 7, 2022)

The December draft partnership instructions for the 2022 Schedule K-2 and K-3, released on December 2nd, add two new categories of partnerships that can take advantage of the domestic filing exception introduced in October 2022. To qualify for the domestic filing exception, a partnership must fulfill four requirements detailed in the draft partnership instructions. The … Continue reading 2022 Revised Partnership Instructions for Schedules K-2 and K-3: IRS Expands Eligibility for Domestic Filing Exception

This Thanksgiving season, it may be useful to remember some of the tax benefits of charitable donations as you contribute to your favorite cause. For a charitable donation to be tax-deductible, it must be made to a qualified charitable organization (a 501 (c)(3) organization). Not all charitable donations are deductible, but taxpayers can deduct up … Continue reading A Basic Overview of the Tax Benefits of Charitable Contributions

The U.S. Department of the Treasury and the IRS have released proposed new regulations relating to the foreign tax credit. The proposed regulations include guidance on the reattribution asset rule for purposes of allocating and apportioning foreign taxes, the application of the cost recovery requirement, and the application of attribution rule for withholding tax on … Continue reading REG-112096-22: IRS Announces Proposed Foreign Tax Credit Regulations(November 18, 2022)

Bloomberg Tax, using the September 2021 to August 2022 Chained Consumer Price Index for all Urban Consumers (C-CPI-U) data from the Bureau of Labor Statistics, has estimated the projected amounts of many items of the Code. It is estimated that the Qualified Disability Trust Deduction in Lieu of Personal Exemption will be $4750. For any … Continue reading Projected 2023 U.S. Tax Rates Bloomberg Report (September 13, 2022)