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e-News for Tax ProfessionalsApril 19, 2024

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Issue Number:  2024-16

Inside This Issue

  1. IRS delivers a strong filing season; work continues
  2. Virtual information session on BOI reporting requirements April 30
  3. IRS seeks IRSAC membership nominations; new subcommittee created on Fairness in Tax Administration
  4. Continuing education at the IRS Nationwide Tax Forum
  5. IRS issues 2023 Data Book
  6. IRS to update Allowable Living Expense standards for 2024
  7. Updated FAQs for clean vehicle, energy efficient home improvement and residential clean energy property credits
  8. Upcoming webinars for tax practitioners
  9. News from the Justice Department’s Tax Division
  10. Technical Guidance

1.  IRS delivers a strong filing season; work continues


With the filing season deadline earlier this week, the IRS emphasized a number of enhancements that dramatically expanded service for taxpayers during the 2024 filing season. Through Inflation Reduction Act funding, the IRS increased taxpayer service levels not seen in more than a decade. Compared to a year ago, the IRS answered more than 1 million more taxpayer phone calls this tax season, helped more than 170,000 people in-person and saw 75 million more IRS.gov visits fueled by a new and expanded Where’s My Refund? tool. “With the help of more funding and added resources, service for taxpayers this filing season eclipsed levels seen during the past decade,” said IRS Commissioner Danny Werfel.

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2.  Virtual information session on BOI reporting requirements April 30


A new law requires many companies doing business in the United States to report information to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) about who ultimately owns or controls them. Join a FinCEN representative on April 30 at 2 p.m. ET for a virtual information session on beneficial ownership information reporting requirements and how to comply with the law. Learn more about beneficial ownership information reporting at https://www.fincen.gov/boi.

Companies created or registered in early 2024 may have an approaching deadline for a new federal government filing requirement. The Corporate Transparency Act, a bipartisan law that was passed to combat and stop illicit finance, requires many companies doing business in the United States to report information to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) about who ultimately owns or controls them.

Federal regulations require certain companies (“reporting companies”) to file their initial reports by the following deadlines:

  • Existing companies: Reporting companies created or registered to do business in the United States before Jan. 1, 2024, must file by Jan. 1, 2025.
  • Newly created or registered companies: Reporting companies created or registered to do business in the United States in 2024 have 90 calendar days to file after receiving actual or public notice that their company’s creation or registration is effective.

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3.  IRS seeks IRSAC membership nominations; new subcommittee created on Fairness in Tax Administration


The IRS is accepting applications for the 2025 Internal Revenue Service Advisory Council (IRSAC), including nominees for a new subcommittee centered on fairness issues. The new IRSAC Subcommittee on Fairness in Tax Administration will review and issue specific recommendations related to fairness in tax administration for low-income communities, communities of color and other historically underserved populations. Deadline to submit your application is May 31. The IRSAC serves as an advisory body to the IRS commissioner and agency leadership. The group is organized under the Federal Advisory Committee Act and includes volunteer members with a diverse set of interests in tax issues. Qualified individuals who are selected will serve three-year terms on the IRSAC beginning January 2025.

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4.  Continuing education at the IRS Nationwide Tax Forum


Tax pros: The IRS Nationwide Tax Forum provides continuing education (CE) credits for enrolled agents, certified public accountants, Annual Filing Season Program participants and California Tax Education Council (CTEC) participants. Tax professionals can earn up to 19 credits at the three-day forum, which is coming this summer to Chicago, Orlando, Baltimore, Dallas and San Diego.

The IRS Nationwide Tax Forum is an IRS-approved CE provider for enrolled agents, as well as those participating in the Annual Filing Season Program. For more information on requirements, visit www.irs.gov/Tax-Professionals/Annual-Filing-Season-Program.

The Tax Forum is also registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. For more information, visit the IRS Nationwide Tax Forum: Continuing Education (CE).

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5.  IRS issues 2023 Data Book


The IRS this week released its 2023 Data Book outlining the agency’s activities during fiscal year 2023, which includes collected revenue and tax returns processed. The 2023 Data Book reflects the initial impacts of the historic long-term funding provided under the Inflation Reduction Act (IRA) of 2022 to transform the IRS and modernize how the agency serves the American people.

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6.  IRS to update Allowable Living Expense standards for 2024


Allowable Living Expense (ALE) standards for 2024 will be available April 22. The ALE standards reduce subjectivity when determining what a taxpayer may claim as basic living expenses to avoid undue hardship when the taxpayer must delay full payment of a delinquent tax. The standard allowances provide consistency and fairness in collection determinations by incorporating average expenditures for necessities for citizens in similar geographic areas.

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7.  Updated FAQs for clean vehicle, energy efficient home improvement and residential clean energy property credits


The IRS revised frequently asked questions (FAQ) to provide guidance related to the New, Previously Owned and Qualified Commercial Clean Vehicle Credits. These FAQ revisions include updates to the eligibility rules for the Clean Vehicle Credit; income and price limitations for the new Clean Vehicle Credit; and transfer of the new Clean Vehicle Credit and the Previously Owned Clean Vehicle Credit. The agency also updated FAQs to address the federal income tax treatment of amounts paid for the purchase of energy efficient property and improvements.

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8.  Upcoming webinars for tax practitioners


The IRS offers the upcoming live webinar to the tax practitioner community. For more information or to register, visit the Webinars for Tax Practitioners webpage:

  • Tax Implications of Chapter 11 Bankruptcy Filing for Individuals on May 1, at 1 p.m. ET. Earn up to 2 CE credits (Federal Tax). Certificates of completion are being offered.

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9.  News from the Justice Department’s Tax Division


Jonathan Barefoot, a Mississippi tax return preparer, was sentenced to 30 months in prison for preparing false tax returns. Barefoot and co-conspirators prepared thousands of fraudulent returns, causing more than $3.5 million in tax loss to the IRS. In addition to the term of imprisonment, Barefoot was ordered to serve one year of supervised release. IRS Criminal Investigation investigated the case.

Gary Sandiego, an Illinois tax preparation business owner, pleaded guilty to preparing false tax returns. The complaint alleges Sandiego exaggerated or fabricated expenses to deceitfully claim on the returns Residential Energy Credits and employment-related expense deductions. As a result, Sandiego caused a tax loss to the IRS of approximately $4.58 million. Sandiego faces a maximum penalty of three years in prison for each count and a period of supervised release, restitution and monetary penalties. IRS Criminal Investigation is investigating the case.

Bryon Taylor, an Illinois tax preparation business owner, is accused of 21 counts of tax return fraud. For tax years 2017 through 2020, Taylor allegedly prepared returns for clients that contained false information resulting in the clients claiming refunds to which they were not entitled. Taylor faces a maximum penalty of three years in prison for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. IRS Criminal Investigation is investigating the case.

Awett Tedla, a former Washington, D.C. area tax return preparation business owner and now of Indianapolis, was sentenced to 21 months in prison for conspiring to file false tax returns, wire fraud and tax evasion. The complaint alleges that from 2012 through 2016, Tedla and co-conspirators prepared fraudulent returns for clients that reported fictitious businesses and claimed certain tax credits, including the Earned Income Tax Credit, to generate inflated tax refunds. Tedla’s conduct caused a tax loss to the IRS of approximately $171,534. In addition to the term of imprisonment, Tedla was ordered to serve three years of supervised release and to pay restitution to the United States. IRS Criminal Investigation and the Treasury Inspector General for Tax Administration investigated the case.

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10. Technical Guidance


Notice 2024-33 provides limited relief to CAMT taxpayers from the addition to tax under section 6655 of the Internal Revenue Code] for failure to pay estimated income tax with respect to its CAMT liability under section 55 of the Code for the 2024 first quarterly installment of estimated income tax due on or before April 15, 2024 (or on or before May 15, 2024, for taxpayers with taxable years beginning in February 2024).

Notice 2024-35 provides relief with respect to certain required minimum distributions (RMDs) that are not made in 2024.

Revenue Procedure 2024-20 provides the domestic asset/liability percentages and domestic investment yields needed by foreign life insurance companies and foreign property and liability insurance companies to compute their minimum effectively connected net investment income under section 842(b) of the Internal Revenue Code for taxable years beginning after December 31, 2022. This revenue procedure applies to foreign insurance companies.

Revenue Procedure 2024-21 provides issuers of qualified mortgage bonds and mortgage credit certificates with (1) the nationwide average purchase price for residences located in the United States, and (2) the average area purchase price safe harbors for residences located in statistical areas in each state, the District of Columbia, Puerto Rico, the Northern Mariana Islands, American Samoa, the Virgin Islands and Guam.

Revenue Ruling 2024-09 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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