Below is our summary of important Internal Revenue Service (IRS) guidance and relevant tax matters for the week of September 12, 2022 through September 16, 2022.
September 12, 2022: The IRS released Internal revenue bulletin 2022-37which highlights the following:
- Treasury Decision 9965: These regulations establish certain requirements regarding the implementation of the balance billing protections provided by the No Surprise Act.
- Notice 2022-37: These tips help taxpayers comply with the final regulations under section 871(m). The United States Department of the Treasury (Treasury) and the IRS intend to amend the regulations in Section 871(m), which will delay the effective date of certain rules in the final regulations and extend the transition period provided for in Notice 2020-2 during two years.
September 12, 2022: The IRS released COVID Tax Advice 2022-139reminding taxpayers of the recent issuance Notice 2022-36, which provides penalty relief for certain failure to file penalties in the 2019 and 2020 tax years. The corresponding penalties will be waived, reduced, refunded or credited. The relief is designed to help struggling taxpayers impacted by the COVID-19 pandemic and to allow the IRS to focus its resources on processing pending tax returns and taxpayer correspondence.
September 12, 2022: The General Inspectorate of the Treasury of the Tax Administration (TIGTA) has made public the Fiscal Year 2022 Statutory Review of Compliance with Due Process Procedures for Filing Notice of Federal Tax Lien. TIGTA is required to determine annually whether lien notices issued by the IRS comply with the legal requirements set forth in the Internal Revenue Code. TIGTA recommended that the Director of Collections Policy for the Small Business/Self-Employed Division (1) reinforce the Internal Revenue Manual (IRM) guidelines to ensure taxpayer representatives are informed of notice filings federal tax lien and (2) correct an IRM reference on Written Communication to a Taxpayer’s Authorized Representative. The IRS agreed.
September 12, 2022: TIGTA released its report titled, The reliance on self-certifications has led federal agencies to award contracts and grants to entities with outstanding federal taxes; However, the IRS is making progress in setting up the federal contractor tax audit system. TIGTA conducted this audit because in calendar years 2015 and 2016, federal contracts were awarded to thousands of contractors whose unpaid taxes were most likely in arrears. Between October 2018 and December 2019, the federal government awarded 2.1 million federal contracts to more than 83,000 winners. More than 3,000 contractors who received contracts had $621.8 million in federal taxes owing, and 938 recipients received $22.7 billion in federal grants while possessing $269.2 million in federal taxes owing. suffering.
September 12, 2022: Theirs Published minor fixes to Treasury Decision 9964originally published August 16, 2022. The regulations provide guidance for states regarding the process by which they may obtain or inspect certain statements and return information for the purpose of administering state laws governing certain exempt organizations. tax and their activities.
September 13, 2022: The IRS issued Notice 2022-39providing rules related to the Cut Inflation Act 2022. Applicants must follow these guidelines in order to make a single application for the authorized credit and payment for alternative fuels sold or used during the first, second and third calendar quarters of 2022.
September 13, 2022: Theirs reminded taxpayers who have not yet filed a 2021 tax return to file them electronically and avoid common errors.
September 13, 2022: TIGTA released the Fiscal Year 2022 Statutory Review of Potential Violations of Fair Tax Collection Practices. TIGTA has identified 25 potential violations of the Fair Debt Collection Practices Act and one potential violation of Fair Tax Collection Practices (FTCP) by employees of private collection agencies. TIGTA recommended that the IRS (1) review miscoded cases to ensure that proper analysis of the FTCP violation is performed and the correct problem code is applied; (2) issue a memorandum to collection managers reinforcing the procedures to be used when handling taxpayer complaints regarding IRS employee misconduct; and (3) reminding group managers of their annual compliance review obligation. IRS management accepted all three recommendations.
September 13, 2022: Theirs offers regulations that would expand access to its Independent Appeals Office (IRS Appeals). The proposed rules would set out how to handle cases that don’t require litigation, as well as guidance for requesting a referral to IRS appeals after a notice of insufficiency is issued. Comments must be received no later than November 14, 2022.
September 14, 2022: The IRS released Tax procedure 2022-36providing the domestic asset/liability percentages and domestic investment returns needed by foreign life insurers and foreign property and casualty insurers to calculate their minimum effectively tied net investment income under Section 842 (b) for taxation years beginning in 2021.
September 14, 2022: The IRS released Tax Advice 2022-151advising taxpayers of next steps if they receive a notice or letter from the IRS.
September 15, 2022: Theirs announcement the opening of the application period of the Compliance Assurance Process (CAP) program for 2023. The objective of the CAP is to use real-time problem solving with transparent and cooperative interaction between taxpayers and the IRS, resolving issues before a tax return is filed. Applicants must have assets of $10 million or more and be a publicly traded US company. The IRS will notify applicants in February 2023 if they are accepted into the program.
September 15, 2022: US Treasury Secretary Janet Yellen spoke at the IRS facility in New Carrollton, Maryland. Secretary Yellen toured the technology facility and called it “a model of IT modernization that the IRS has long needed.” She also added that new IRS funding from the Cut Inflation Act will make these types of investments possible.
September 15, 2022: Theirs reminded taxpayers that IRS Free File is available until the tax filing extension deadline of October 17, 2022, but don’t wait until the last minute.
September 16, 2022: The IRS issued Notice 2022-42, proposing to amend the regulations under Section 901, with respect to the application of the non-compulsory payment regulations to certain amended Puerto Rico tax orders. Comments must be received no later than January 9, 2023.
September 16, 2022: The IRS has released its weekly list of written determinations (for examplePrivate Letter Rules, Technical Advice Memorandums and Chief Counsel Advice).
Events to come:
- A webinar to discuss Help for innocent spouses is scheduled for September 20, 2022 at 12:30 p.m. (CDT). The program will discuss the Innocent Spouse Redress Provision, Deficit Allocation (also known as Separation of Liabilities) and Equitable Redress.
- The IRS will hold a closed Meet of the Art Advisory Committee on September 22, 2022. The agenda for the meeting includes reviewing and evaluating the acceptability of fair market value assessments involved in federal income, estate and of donation. The meeting is not open to the public.
- The following Taxpayer Defense Panel committees are scheduled to meet in October:
Special thanks to Sarah Raben from our Chicago office for this week’s roundup.