Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of May 30, 2023 – June 2, 2023.

May 30, 2023: The IRS released Internal Revenue Bulletin 2023-22, which highlights the following:

• Notice 2023-39: This notice describes proposed amendments to Section 148 that the US Department of the Treasury (Treasury) and the IRS intend to issue regarding an exception to arbitrage investment restrictions applicable to bonds on which the interest is excludable from gross income under Section 103(a) (tax-exempt bonds). Specifically, the forthcoming proposed regulations will amend Section 1.148-11(d)(1)(i)(F) regarding whether certain perpetual trust funds created and controlled by states that are pledged as credit enhancements to guarantee tax-exempt bonds will be treated as replacement proceeds of the guaranteed bonds for purposes of the arbitrage investment restrictions on tax-exempt bonds under Section 148.

• Revenue Procedure 2023-23: This procedure provides the 2024 inflation-adjusted amounts for Health Savings Accounts as determined under Section 223, as well as the maximum amount that may be made newly available for excepted benefit health reimbursement arrangements provided under Section 54.9831-1(c)(3)(viii) of the Pension Excise Tax Regulations.

• Notice 2023-40: This notice sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates used under Sec. 417(e)(3)(D) and the 24-month average segment rates applicable for May 2023. This notice also provides the 30-year Treasury rates, as reflected by the application of Sec. 430(h)(2)(C)(iv).

• Notice 2023-38: This notice provides the general rules taxpayers must satisfy to qualify for the domestic content bonus credit amounts and the related recordkeeping and certification requirements. The guidance also describes a safe harbor regarding the classification of certain components in representative types of qualified facilities, energy projects or energy storage technologies.

May 30, 2023: The IRS released Tax Tip 2023-73, reminding taxpayers that the extended deadline to file their 2019 tax returns for unclaimed refunds is July 17, 2023. Taxpayers usually have three years to file; however, the deadline was postponed due to the COVID-19 pandemic.

May 30, 2023: The IRS requested comments on Form 1041, U.S. Income Tax Return for Estates and Trusts, related Schedules D, I, J and K-1, and Form 1041-V. Comments should be received on or before July 31, 2023.

May 30, 2023: The IRS reminded taxpayers living and working abroad to file their 2022 federal income tax return by the June 15 deadline. This applies to both US citizens and resident aliens abroad, including those with dual citizenship.

May 31, 2023: The Treasury and the IRS announced guidance for applicants investing in solar- and wind-powered electricity generation facilities. Notice 2023-17 established the Low-Income Communities Bonus Credit Program back in February 2023 and provided initial guidance for potential applicants. The proposed regulations request comments on certain definitions and requirements that the Treasury and the IRS are considering including.

May 31, 2023: The IRS released Tax Tip 2023-74, alerting taxpayers that the IRS will send a letter if it suspects a fraudulent tax return was filed. Scammers sometimes use stolen Social Security numbers to file fraudulent tax returns, but the IRS scans every tax return and flags any potentially fraudulent activity.

May 31, 2023: The IRS announced additional guidance for advanced energy projects. Notice 2023-44 provides more details for applicants seeking Section 48C credit allocations in the qualifying advanced energy project credit allocation program under the Inflation Reduction Act of 2022. Appendix C of the notice can be found here.

May 31, 2023: The IRS announced the 2023 IRS Nationwide Tax Forums seminar lineup, which will take place in person for the first time since 2019. The seminars will offer more than 40 programs, including a special focus on changes at the IRS. Registration information can be found below under Upcoming Events.

June 1, 2023: The IRS released Tax Tip 2023-75, notifying taxpayers that they will receive a CP2100 or CP2100A notice when banks and businesses file information returns with data that does not match the IRS’s records. The notices inform taxpayers that the information returns submitted by the business or bank have a missing or incorrect Taxpayer Identification Number, name or both.

June 1, 2023: The IRS requested comments on the Tip Reporting Alternative Commitment Agreement for Use in the Cosmetology and Barber Industry.

June 2, 2023: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).

Upcoming Events:

• The Electronic Tax Administration Advisory Committee announced a public meeting on June 28, 2023, which will be held in person and via telephone conference. For additional information, email publicliaison@irs.gov.

• Registration for the 2023 IRS Nationwide Tax Forums is now open, and the events are returning to an in-person format for the first time since 2019. The IRS Nationwide Tax Forums are designed specifically for tax professionals (e.g., enrolled agents, certified public accountants, certified financial planners and Annual Filing Season Program participants) as well as uncredentialed tax professionals. The dates and locations are as follows:

  • July 11-13: New Orleans, LA

  • July 25-27: Atlanta, GA

  • August 8-10: National Harbor, MD (Washington, DC area)

  • August 22-24: San Diego, CA

  • August 29-31: Orlando, FL

Special thanks to Grace Egan, a summer associate in our Chicago office, for this week’s roundup.