ERC compliance efforts; U.S. taxpayers living abroad; 2024 Tax Forum; and more

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e-News for Tax ProfessionalsMarch 22, 2024

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Issue Number:  2024-12

Inside This Issue

  1. ERC compliance efforts exceed $1 billion since last fall
  2. Reminder to U.S. taxpayers abroad: File tax return by June 17; those impacted by Israel attacks have until Oct. 7
  3. Registration open for IRS Nationwide Tax Forum
  4. IRS publishes guidelines for bonus credit and energy community
  5. Taxpayers should continue to report all cryptocurrency, digital asset income
  6. IRS shares more information in multiple languages
  7. News from the Justice Department’s Tax Division
  8. Technical Guidance

1.  ERC compliance efforts exceed $1 billion since last fall


The IRS today announced that compliance efforts around Employee Retention Credit (ERC) claims have exceeded more than $1 billion so far since last fall. “We are encouraged by the results so far of our initiatives designed to help misled businesses, and the IRS will continue our broader compliance work given the aggressive marketing we’ve seen with this credit,” said IRS Commissioner Danny Werfel.

The ERC voluntary disclosure program is suspended after March 22, and the IRS may reopen it depending on whether Congress extends the statute of limitations for ERC claims. The special withdrawal program remains open beyond March 22 for those with unprocessed ERC claims.

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2.  Reminder to U.S. taxpayers abroad: File tax return by June 17; those impacted by Israel attacks have until Oct. 7


U.S. taxpayers who work and live outside of the U.S. must file their 2023 federal income tax return by June 17. This deadline applies to both U.S. citizens and resident aliens abroad, including those with dual citizenship.

In addition, taxpayers who live or have a business in Israel, Gaza or the West Bank, and certain other taxpayers affected by the terrorist attacks in the State of Israel, have until Oct. 7, 2024, to both file and pay most taxes due.

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3.  Registration open for IRS Nationwide Tax Forum


Tax Pros: Registration is now open for the 2024 IRS Nationwide Tax Forum. Register today to ensure your space this summer in one of the five following cities:

  • Chicago: July 9 – 11
  • Orlando: July 30 – Aug. 1
  • Baltimore: Aug. 13 – 15
  • Dallas: Aug. 20 – 22
  • San Diego: Sep. 10 – 12

The IRS Nationwide Tax Forum offers continuing education and networking opportunities to enrolled agents, certified public accountants, attorneys and other tax professionals. Each forum offers more than 40 seminars and workshops on a wide variety of federal and state tax issues presented by experts from the IRS and its partner associations. Attendees may earn up to 18 continuing education credits.

Visit 2024 IRS Nationwide Tax Forum for information on the program, accommodations and registration.

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4.  IRS publishes guidelines for bonus credit and energy community


The IRS this week issued Notice 2024-30 which broadens the definition of an energy community for the production and investment tax credits under the Inflation Reduction Act. If specific conditions related to energy communities are met, the Inflation Reduction Act will allow increased credit amounts or rates.

The IRS also released Appendix 1, identifying additional Metropolitan Statistical Areas (MSAs) and non-MSAs that meet the Fossil Fuel Employment threshold, and Appendix 2, identifying additional MSAs and non-MSAs that qualify as energy communities in 2023 by meeting the Fossil Fuel Employment threshold and the unemployment rate requirement for calendar year 2022.

For more information, visit frequently asked questions for energy communities and the Inflation Reduction Act of 2022 page on IRS.gov.

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5.  Taxpayers should continue to report all cryptocurrency, digital asset income


Tax professionals are reminded that clients must answer a digital asset question and report all digital asset-related income when they file their 2023 federal income tax return. Everyone who files Forms 1040, 1040-SR, 1040-NR, 1041, 1065, 1120 and 1120S must check one box answering either “Yes” or “No” to the digital asset question. The question must be answered by all taxpayers, not just by those who engaged in a transaction involving digital assets in 2023. Taxpayers must report all income related to digital asset transactions. More information is available at Digital Assets | Internal Revenue Service on IRS.gov.

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6.  IRS shares more information in multiple languages


The IRS continues to increase the amount of information available in multiple languages. Providing information in more languages is part of the IRS transformation work under the Strategic Operating Plan, made possible by additional resources provided by the Inflation Reduction Act. On IRS.gov the Languages page gives taxpayers an overview of key topics related to information about federal taxes in 21 languages.

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7.  News from the Justice Department’s Tax Division


Christopher Randell, a Mississippi tax return preparer, was sentenced to 70 months in prison for preparing false returns. Randell and co-conspirators prepared thousands of fraudulent returns, causing over $3.5 million in tax loss to the IRS. In addition to the term of imprisonment, Randell was ordered to serve three years of supervised release, and to pay restitution to the United States, in an amount to be determined later by the Court. IRS Criminal Investigation investigated the case.

The United States filed two civil complaints in the U.S. District Court for the District of Nevada against tax return preparers Michael Moreno and Carlos Yero. The complaints allege the two prepared tax returns that claimed false credits, fake business income and improper itemized deductions. Moreno’s conduct caused a significant loss in tax revenue, estimated at over $2.7 million. Yero caused a tax loss of $2.64 million.

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8.  Technical Guidance


Notice 2024-29 sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates for February 2024 used under section 417(e)(3)(D), the 24-month average segment rates applicable for March 2024, and the 30-year Treasury rates, as reflected by the application of section 430(h)(2)(C)(iv).

Notice 2024-30 modifies Notice 2023-29 by expanding the Nameplate Capacity Attribution Rule under section 4.02(1)(b) to include additional attribution property and by adding two 2017 North American Industry Classification System (NAICS) industry codes to the table in section 3.03(2) for purposes of determining the Fossil Fuel Employment rate.

Notice 2024-31 provides for adjustments to the limitation on housing expenses for purposes of section 911 of the Internal Revenue Code for the 2024 tax year.

Revenue Procedure 2024-17 adds Ukraine, Belarus, Sudan, Haiti, Niger, and Iraq to the list of waiver countries for tax year 2023 for which the minimum time requirements are waived.

Revenue Ruling 2024-07 provides various prescribed rates for federal income tax purposes including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate, and the adjusted federal long-term tax-exempt rate.

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