Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of January 9, 2023 – January 13, 2023.

January 9, 2023: The IRS released Internal Revenue Bulletin 2023-2, which highlights the following:

• Announcement 2023-2: This announcement provides transitional guidance with respect to the reporting of information on digital assets. Specifically, brokers are not required to report additional information on the disposition of digital assets until final regulations under Sections 6045 and 6045A are issued.

• Notice 2023-8: This notice provides guidance for brokers to comply with the provisions of the final regulations under Section 1446(f) and certain provisions of the final regulations that apply to Section 1446(a) that relate to withholding on the transfer of an interest in a publicly traded partnership.

• Revenue Rule 2023-1: This revenue ruling provides the applicable federal rates for federal income tax purposes for January 2023. The short-term federal interest rate will decrease to 4.50%, the mid-term rate will drop to 3.85% and the long-term rate will fall to 3.84%.

• Treasury Decision 9970: This document includes final regulations that provide an automatic extension for providers of minimum essential coverage (including health insurance issuers, self-insured employers and government agencies) to furnish individual statements regarding such coverage and an alternative method for furnishing individual statements when the individual shared responsibility payment amount is zero. The final regulations also provide an automatic extension for applicable large employers to furnish statements relating to health insurance that they offer to their full-time employees.

• Notice 2023-5: This notice provides updates on the corporate bond monthly yield curve, the corresponding spot segment rates and the 24-month average segment rates under Section 430(h)(2). This notice also provides guidance on the interest rate for 30-year Treasury securities as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate.

• Notice 2023-4: This notice provides the percentage increase for calculating the qualifying payment amounts for items and services furnished during 2023 with respect to Sections 9816 and 9817 of the Internal Revenue Code, Sections 716 and 717 of the Employee Retirement Income Security Act of 1974 and Sections 2799A-1 and 2799A-2 of the Public Health Service Act.

• Notice 2023-06: This notice explains the requirements for fuel to be eligible for the sustainable aviation fuel (SAF) credit, how to claim the credit and who must be registered. The SAF credit was created by the Inflation Reduction Act of 2022 and applies to a qualified fuel mixture containing SAF for certain uses or sales in the 2023 and 2024 calendar years.

January 9, 2023: The IRS released Tax Tip 2023-02, advising people to hang up if scammers call during tax season. The IRS says it will never (1) call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer; (2) threaten to immediately bring in local police or other law enforcement groups to have the taxpayer arrested for not paying; (3) demand that taxes be paid without giving taxpayers the opportunity to question or appeal the amount owed; or (4) call unexpectedly about a tax refund.

January 9, 2023: The IRS Office of Indian Tribal Governments announced three new videos to assist tribes. They are as follows:

• Here’s How Tribal Governments Can Avoid Employment Tax Penalties

• Resources for Tribal Governments Are Available from the IRS

• Here’s the IRS Contact Information for Tribal Governments

January 10, 2023: The IRS released Tax Tip 2023-03, explaining the difference between standard and itemized deductions. Taxpayers who choose to itemize deductions may do so by filing Schedule A (Form 1040), Itemized Deductions.

January 10, 2023: The IRS announced that California storm victims now have until May 15, 2023, to file various federal individual and business tax returns and make tax payments. The relief is available to anyone in an area designated by the Federal Emergency Management Agency as qualifying for individual or public assistance. The current list of eligible localities is available here.

January 11, 2023: The IRS is requesting comments concerning regulations that govern practice before the IRS. The Director of Practice will use certain information to ensure that (1) enrolled agents properly complete continuing education requirements to obtain renewal; (2) practitioners properly obtain consent of taxpayers before representing conflicting interests; and (3) practitioners do not use e-commerce to make misleading solicitations. Written comments are due by March 13, 2023.

January 11, 2023: The IRS is requesting comments concerning Form 14693, Application for Reduced Rate of Withholding on Whistleblower Award Payment. The form will be used by a whistleblower to apply for a reduction in withholding to minimize the likelihood of the IRS overwithholding tax from award payments, providing whistleblowers with a pre-award payment opportunity to substantiate their relevant attorney fees and court costs.

January 11, 2023: The IRS announced that National Taxpayer Advocate Erin M. Collins delivered her Annual Report to Congress 2022. The report identified the 10 most serious problems taxpayers are experiencing, including:

• Processing delays

• Complexity of the Tax Code

• IRS hiring and training

• Telephone and in-person service

• Online access for taxpayers and tax professionals

• E-File and Free File

• IRS transparency

• Return preparer oversight

• Appeals

• Overseas taxpayers

January 11, 2023: The IRS released Tax Tip 2023-04, which reminds taxpayers that final 2022 quarterly estimated tax payments are due January 17. The IRS recommends taxpayers who earn or receive income not subject to tax withholding, such as self-employed individuals or independent contractors, pay their taxes quarterly.

January 12, 2023: The IRS is seeking comments concerning application for an extension to file certain employee plan returns. Form 5558 is used by employers to request an extension to file the employee plan annual information return/report (Form 5500 series) or the employee plan excise tax return (Form 5330). Comments should be received by March 13, 2023.

January 12, 2023: The IRS released Tax Tip 2023-05, which reminded gig economy workers that they must report their money earned, whether through a part-time, temporary or side gig, on a tax return. The gig economy is activity where people earn income by providing on-demand work, services or goods. The IRS Gig Economy Tax Center provides information and resources to help this group of workers understand their federal tax obligations.

January 12, 2023: The IRS is seeking comments related to information reporting for Nonrecognition Exchanges under Section 897. Notice 99-43 announced the modification of the current rules regarding transfers, exchanges and other dispositions of US real property interests in nonrecognition transactions occurring after June 18, 1980. Comments should be received by March 13, 2023.

January 12, 2023: The IRS announced that January 23, 2023, is the beginning of the 2023 tax season and when the agency will begin accepting and processing 2022 tax year returns. The IRS expects more than 168 million individual tax returns will be filed.

January 13, 2023: The IRS is extending the deadline for submitting comments concerning information reporting for hedging transactions and third-party network transactions. This relates to Treasury Decision 8985, which contains final regulations relating to the character of gain or loss from hedge transactions. Comments should be received by March 14, 2023.

January 13, 2023: The IRS is accepting comments concerning Form 1099-H, Health Coverage Tax Credit Advance Payments. Form 1099-H is used to report advance payments of health insurance premiums to qualified recipients for their use in computing the allowable health insurance credit on Form 8885. Comments should be received by March 14, 2023.

January 13, 2023: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).

Upcoming Webinars for Tax Practitioners:

• January 18-19, 2023: 2023 IRS/CSEA Practitioner Seminars

• January 19, 2023; 2:00 pm (EST): Looking to Tax Year 2022: American Rescue Plan Tax Changes to Earned Income Tax Credit and Other Child-Related Credits

• January 31, 2023; 2:00 pm (EST): Estate and Gift Tax

• February 1, 2023; 10:00 am (EST): Streamlined Filing Procedures for U.S. Citizens Abroad

• February 7, 2023; 2:00 pm (EST): Practical Considerations – Foreign Tax Credit

• February 9, 2023; 2:00 pm (EST): K2/K3 with a Focus on the Foreign Tax Credit – Individuals

Special thanks to Sarah Raben in our Chicago office for this week’s roundup.