IRS Tax News

  • 09 Jun 2023 6:47 PM | Anonymous

    Remind your clients about the upcoming 2023 second quarter estimated tax payment deadline. Taxpayers who pay estimated taxes should consider the June 15 deadline to stay current with their taxes. Visit for more information about who must pay estimated tax, how to avoid an underpayment penalty, understanding Form 1099-K and more. 

  • 07 Jun 2023 10:22 AM | Anonymous

    IRS grants penalty relief for corporations that did not pay estimated tax related to the new corporate alternative minimum tax

    WASHINGTON — The Department of Treasury and the Internal Revenue Service today issued Notice 2023-42, which will grant penalty relief for corporations that did not pay estimated tax in connection with the new corporate alternative minimum tax (CAMT).

    The Inflation Reduction Act created the CAMT, which imposes a 15% minimum tax on the adjusted financial statement income of large corporations for taxable years beginning after Dec. 31, 2022. CAMT generally applies to large corporations with average annual adjusted financial statement income exceeding $1 billion.

    Considering the challenges associated with determining the amount of a corporation’s CAMT liability and whether a corporation is an applicable corporation subject to the CAMT, the IRS will waive the penalty for a corporation’s failure to pay estimated income tax with respect to its CAMT for a taxable year that begins after Dec. 31, 2022, and before Jan. 1, 2024.

  • 05 Jun 2023 12:40 PM | Anonymous

    Procedural updates affecting Form 4506-C have been implemented. Form 4506-C is used to request return transcripts, account transcripts, record of account transcripts, and wage & income transcripts for the primary taxpayer listed on line 1a. The taxpayer listed on line 2a will only receive wage and income transcripts (W-2, 1098-E, 1099-G, etc.).

    IVES participants will need to ensure their customers fill out Form 4506-C as they intend it to be processed. Only list a spouse on line 2a if the spouse is requesting a wage and income transcript and will be signing the request. Taxpayers listed are required to complete their assigned signature section. Forms with missing signature(s), unchecked signatory attestation box, or missing date(s) will be rejected.

    For further guidance, please see attached links for Form 4506-C criteria and requirements which can be found on

    Internal Revenue Manual Processing IVES Requests in TDS (

    Internal Revenue Manual 3.5.20 Processing Requests for Tax Return/Return Information | Internal Revenue Service (

    Form 4506-C instructions. Form 4506-C Published Version (


    Any questions about Form 4506-C updates should be directed to the IVES Participant Assistance email at

  • 02 Jun 2023 6:10 PM | Anonymous

    From IRS e-News for Tax Professionals 2023-22

    Tax pros, if you have American clients living and working outside of the U.S., remind them that they must file their 2022 federal income tax return by June 15. This deadline applies to both U.S. citizens and resident aliens abroad, including those with dual citizenship. Taxpayers who can't meet the June 15 due date can request an automatic six-month extension by filing Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. This news release is also available in Spanish and Simplified Chinese.

  • 31 May 2023 5:02 PM | Anonymous

    IRS provides additional guidance for advanced energy projects

    WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued Notice 2023-44 to provide more details for applicants seeking section 48C credit allocations in the qualifying advanced energy project credit allocation program under the Inflation Reduction Act.

    On Feb. 13, 2023, the Treasury Department and the IRS issued Notice 2023-18 to establish the section 48C(e) program to allocate $10 billion in credits not less than $4 billion of which will be allocated to projects located in certain energy communities census tracts. The notice also provided initial program guidance and announced that the Treasury Department and the IRS would issue additional program guidance by May 31, 2023. The guidance is primarily of interest to owners of clean energy manufacturing and recycling projects, greenhouse gas emission reduction projects, and critical material projects.

    Notice 2023-44 updates the earlier version of Appendix A, defining qualifying advance energy projects, with clearer definitions and examples, and updates the earlier version of Appendix B, providing the Department of Energy application process, by adding technical review criteria and application content requirements. This notice also provides the process for submitting concept papers and joint applications for DOE recommendations and for IRS § 48C(e) certifications and clarifies the selection criteria used to evaluate whether a project merits a DOE recommendation.

    Additionally, Notice 2023-44 defines the term “facility” for purposes of sections 45X and 48C, provides the procedure for informing DOE and IRS of a significant change to the project plan, includes information regarding the disclosure of certain information, and clarifies that eligible property that is placed in service before being awarded an allocation of section § 48C credits is ineligible for the § 48C(e) program. Finally, the guidance provides information regarding section 48C(e) energy communities census tracts, including new Appendix C, which contains a list of those census tracts.

    More information about IRA guidance may be found on the Inflation Reduction Act of 2022 page on

  • 30 May 2023 4:03 PM | Anonymous

    WASHINGTON – The Internal Revenue Service today reminded American taxpayers living and working outside the U.S. to file their 2022 federal income tax return by Thursday, June 15. This deadline applies to both U.S. citizens and resident aliens abroad, including those with dual citizenship.

    Qualifying for the June 15 extension
    A taxpayer qualifies for the June 15 filing deadline if:

    • Both their tax home and abode are outside the United States or Puerto Rico, or
    • They are serving in the military outside the U.S. and Puerto Rico on the regular due date of their tax return.

    Qualifying taxpayers should attach a statement to the return indicating which of these two situations applies.

    File to claim benefits
    Many taxpayers living outside the U.S. qualify for tax benefits, such as the Foreign Earned Income Exclusion and the Foreign Tax Credit, but they are available only if a U.S. return is filed.

    In addition, the IRS encourages families to check out expanded tax benefits, such as the Child Tax Credit, Credit for Other Dependents and Credit for Child and Dependent Care Expenses, and claim them if they qualify. Though taxpayers abroad often qualify, the calculation of these credits differs depending upon whether they lived in the U.S. for more than half of 2022. For more information, see the instructions to Schedule 8812, Credits for Qualifying Children and Other Dependents, and the instructions to Form 2441, Child and Dependent Care Expenses.

    Reporting required for foreign accounts and assets
    Federal law requires U.S. citizens and resident aliens to report any worldwide income, including income from foreign trusts and foreign bank and securities accounts. In most cases, affected taxpayers need to complete and attach Schedule B, Interest and Ordinary Dividends, to their Form 1040 series tax return. Part III of Schedule B asks about the existence of foreign accounts such as bank and securities accounts and usually requires U.S. citizens to report the country in which each account is located.

    In addition, certain taxpayers may also have to complete and attach to their return Form 8938, Statement of Specified Foreign Financial Assets. Generally, U.S. citizens, resident aliens and certain nonresident aliens must report specified foreign financial assets on this form if the aggregate value of those assets exceeds certain thresholds. For details, see the instructions for this form.

    Reporting foreign financial accounts to Treasury
    Certain foreign financial accounts, such as bank accounts or brokerage accounts, must be reported by electronically filing Form 114, Report of Foreign Bank and Financial Accounts (FBAR), with the Treasury Department’s Financial Crimes Enforcement Network (FinCEN).The FBAR requirement applies to anyone with an interest in, or signature or other authority over foreign financial accounts whose aggregate value exceeded $10,000 at any time during 2022.

    The IRS encourages taxpayers with foreign assets, even relatively small ones, to check if this filing requirement applies to them. The form is available only through the Bank Secrecy Act E-Filing System. The deadline for filing the annual FBAR was April 15, 2023. However, FinCEN grants those who missed the April deadline an automatic extension until Oct. 15, 2023. There’s no need to request this extension. See FinCEN’s website for further information.

    Report in U.S. dollars
    Any income received or deductible expenses paid in foreign currency must be reported on a U.S. tax return in U.S. dollars. Likewise, any tax payments must be made in U.S. dollars.

    Both FINCEN Form 114 and IRS Form 8938 require the use of a Dec. 31 exchange rate for all transactions, regardless of the actual exchange rate on the date of the transaction. Generally, the IRS accepts any posted exchange rate that is used consistently. For more information on exchange rates, see Foreign Currency and Currency Exchange Rates.

    Making tax payments
    To ensure tax payments are credited promptly, the IRS urges taxpayers to consider the speed and convenience of paying their U.S. tax obligation electronically. The fastest and easiest way to do that is via their IRS Online Account, IRS Direct Pay and the Electronic Federal Tax Payment System (EFTPS). These and other electronic payment options are available at

    Reporting for expatriates
    Taxpayers who relinquished their U.S. citizenship or ceased to be lawful permanent residents of the U.S. during 2022 must file a dual-status alien tax return and attach Form 8854, Initial and Annual Expatriation Statement. A copy of Form 8854 must also be filed with the IRS by the due date of the tax return (including extensions). See the instructions for this form and Notice 2009-85, Guidance for Expatriates Under Section 877A, for further details.

    Extensions beyond June 15
    Taxpayers who can’t meet the June 15 due date can request an automatic six-month extension by filing Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. The IRS encourages anyone needing the additional time to make their request electronically. Several electronic options are available at

    Businesses that need more time must file Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information and Other Returns.

    Extensions for military personnel
    Members of the military stationed abroad or in a combat zone during tax filing season may qualify for an additional extension of at least 180 days to file and pay taxes. More information, like who qualifies, can be found by reading Extension of Deadline – Combat Zone Service Q&As.

    Spouses of individuals who served in a combat zone or contingency operation are generally entitled to the same deadline extensions with some exceptions. Extension details and more military tax information is available in IRS Publication 3, Armed Forces’ Tax Guide.

    Other resources:

  • 26 May 2023 9:28 AM | Anonymous

    Notice 2023-43 provides guidance on section 305 of the SECURE 2.0 Act of 2022 with respect to the expansion of the Employee Plans Compliance Resolution System (EPCRS). Section 305 expands the Self-Correction Program under EPCRS and requires that Rev. Proc. 2021-30 be revised to take into account the provisions of section 305 no later than two years after the date of enactment of the SECURE 2.0 Act. This notice is intended to assist taxpayers by providing interim guidance in advance of the update to Rev. Proc. 2021-30.

    Notice 2023-43 will be in IRB 2023-24, dated June 12, 2023.

  • 23 May 2023 9:56 AM | Anonymous

    Revenue Ruling 2023-11 provides the third quarter interest rates for 2023, including the rates for underpayments and overpayments. The rates for interest determined under Section 6621 of the code for the calendar quarter beginning July 1, 2023, will be 7% for overpayments (6% in the case of a corporation), 7% for underpayments, and 9% for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 4.5%.

    Revenue Ruling 2023-11 will be in IRB 2023-23 dated June 5, 2023.

  • 22 May 2023 1:50 PM | Anonymous

    The IRS is accepting applications for the 2024 Internal Revenue Service Advisory Council (IRSAC) through May 31. The IRSAC serves as an advisory body to the IRS commissioner and provides an organized public forum for discussion of relevant tax administration issues between IRS officials and representatives of the public. IRSAC members are appointed to three-year terms by the IRS commissioner and submit a report to the commissioner annually at a public meeting. The IRS is accepting applications for terms that begin in January 2024. More information, including the application form, is available on the IRSAC webpage.

  • 04 May 2023 4:55 PM | Anonymous

    Tax Tip 2023-62

    Finding work can be a hard for anybody and certain groups face even bigger challenges. The Work Opportunity Tax Credit is extended through the end of 2025 to help employers that hire workers certified as members of these groups that face barriers to employment:

    • People who receive:
      • Long-term family assistance
      • Long-term unemployment
      • Supplemental Nutrition Assistance Program benefits
      • Supplemental Security Income
      • Temporary Assistance for Needy Families
    • Formerly incarcerated individuals
    • Qualified unemployed veterans, including disabled veterans
    • Designated community residents living in Empowerment Zones or Rural Renewal Counties
    • People referred to vocational rehabilitation programs
    • Summer youth employees living in Empowerment Zones

    Certification requirement
    To claim the credit, an employer must first get certification that an individual is eligible. To do this, the employer submits IRS Form 8850, Pre-screening Notice and Certification Request for the Work Opportunity Credit, to their state workforce agency within 28 days after the eligible worker begins work. Employers should not submit this form to the IRS. They should contact their state workforce agency with questions about processing Form 8850.

    Figuring and claiming the credit
    Eligible businesses claim the Work Opportunity Tax Credit on their federal income tax return. It’s generally based on wages paid to eligible workers during the first year of employment. After the employer receives the Form 8850 certification from the state workforce agency, they can:

    Special rule for tax-exempt organizations
    A special rule allows tax-exempt organizations to claim the credit only for hiring qualified veterans who began work for the organization before 2026. After the employer receives the Form 8850 certification from the state workforce agency, these organizations claim the credit against payroll taxes on Form 5884-C, Work Opportunity Credit for Qualified Tax Exempt Organizations. IRS recommends that qualified tax-exempt employers don’t reduce their required deposits as they wait for the tax credit.

    Limitations on the credits
    For a taxable business, the credit is limited to the business' income tax liability. Unused credit is subject to the normal carry-back and carry forward rules. For qualified tax-exempt organizations, the credit is limited to the amount of the employer’s share of Social Security tax it owes on wages it paid to qualifying employees.

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