Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of March 18, 2024 – March 22, 2024.

March 18, 2024: The IRS released Internal Revenue Bulletin 2024-12, which includes the following:

• Notice 2024-26, which announces that withholding agents (both US and foreign persons) are administratively exempt from having to electronically file Forms 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons, which are required to be filed in calendar year 2024. Withholding agents who are foreign persons are administratively exempt in calendar year 2025 as well.
• Announcement 2024-14, which revokes the § 501(c)(3) determination for Uplifting Her Inc. and stipulates that contributions made to the organization by individual donors are no longer deductible under § 170(b)(1)(A) of the Internal Revenue Code (Code).
• Notice 2024-25, which provides population figures to use in calculating the 2024 calendar year population-based component of the state housing credit ceiling under § 42(h)(3)(C)(ii), the 2024 calendar year volume cap under § 146, and the 2024 volume limit under § 142(k)(5) of the Code.
• Notice 2024-27, which requests additional comments on any situation in which an election under § 6417(a) of the Code could be made for a credit that was purchased in a transfer for which an election under § 6418(a) is made.
• Revenue Procedure 2024-15, which modifies Revenue Procedure 2005-62 by expanding the definition of “public utility” to include all public utilities, not just investor-owned utilities, and changes the definition of a “qualifying securitization” to allow payments to be provided at least annually. The revenue procedure also sets forth the manner in which a public utility may treat certain legislatively authorized securitization transactions involving the issuance of debt instruments by a qualifying state financing entity, which is entered into by the public utility to recover specified costs through a non-bypassable surcharge to customers within the utility’s historic service area.

March 18, 2024: The IRS reminded taxpayers of the various ways to prevent typical errors on their federal tax returns to help speed up potential refunds, including using electronic filing, keeping copies of tax returns and ensuring the filing status is correct.

March 19, 2024: The IRS released Revenue Procedure 2024-17, which provides that war, civil unrest or similar adverse conditions precluded the normal conduct of business in Ukraine, Belarus, Sudan, Haiti, Niger and Iraq on or after various 2023 dates and, therefore, individuals with established residency or physical presence on or before the relevant dates are eligible for income exclusion under § 911(d)(1) of the Code.

March 19, 2024: The IRS released Notice 2024-29, which provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates used under § 417(e)(3), the 24-month average segment rates used under § 430(h)(2), the interest rate on 30-year Treasury securities under § 417I(3)(A)(ii)(II) as in effect for plan years beginning before 2008, and the 30-year Treasury weighted average rate under § 431(c)(6)(E)(ii)(I) of the Code.

March 20, 2024: The IRS urged businesses to review the seven suspicious signs of a bad Employee Retention Credit (ERC) claim and see if the agency’s special programs can help them avoid future compliance issues. Some suspicious signs include too many quarters being claimed, businesses citing supply chain issues and promoters saying there is nothing to lose.

March 20, 2024: The IRS released Notice 2024-31, which provides adjustments to the limitation on housing expenses for purposes of § 911 of the Code for specific locations for 2024. The adjustments are based on geographic differences in housing costs relative to housing costs in the United States.

March 20, 2024: The IRS reminded taxpayers of 10 fundamental rights granted to them by the Taxpayer Bill of Rights. Those rights include prompt, courteous and professional assistance from the IRS and the right to receive clear and easily understandable communications from the agency.

March 21, 2024: The IRS reminded taxpayers that its Free File program is one of the easiest ways to get a six-month tax filing extension.

March 21, 2024: The IRS reminded taxpayers that the Earned Income Tax Credit is the federal government’s largest refundable tax credit for low- to moderate-income workers and that almost a third of those who qualify became eligible for the first time this year because of changes in their marital, parental or financial status and may not realize they’re eligible.

March 22, 2024: The IRS issued Notice 2024-30, which expands certain rules for determining what an energy community is for production and investment tax credits. The IRS also released Appendix 1 and Appendix 2, which identify additional metropolitan statistical areas (MSAs) and non-MSAs that meet the fossil fuel employment (FFE) threshold, additional MSAs and non-MSAs that qualify as energy communities in 2023 by meeting the FFE threshold, and the unemployment rate requirement for calendar year 2022, respectfully.

March 22, 2024: The IRS announced that compliance efforts around erroneous ERC claims have topped more than $1 billion since last fall.

March 22, 2024: The IRS reminded taxpayers living and working outside the US to file their 2023 federal income tax return by June 17, 2024.

March 22, 2024: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).