e-News for Tax Professionals 2023-31

As the next phase of its modernization, the IRS is accelerating paperless processing efforts. Taxpayers are now able to respond to more notices online, and the IRS has made significant progress adopting new technology that automates the scanning of millions of paper returns. Using Inflation Reduction Act resources, the IRS is launching an ambitious plan to ensure that by filing season 2024, taxpayers will be able to go paperless if they choose to do so, and by filing season 2025, the IRS will achieve paperless processing digitizing all paper-filed returns when received. This article is also available in Spanish?and Simplified Chinese.

2.??New requirement for most businesses beginning Jan. 1, 2024

Beginning on Jan. 1, 2024, many corporations, limited liability companies and other entities created or registered to do business in the United States must report information about their beneficial owners?the persons who ultimately own or control the company?to the U.S. Department of the Treasury?s Financial Crimes Enforcement Network (FinCEN).

FinCEN.gov/BOI provides guidance to help the small business community understand these requirements and includes:

Answers to frequently asked questions,
Infographics about key filing dates and key questions and
An introductory video and more detailed informational video.

Contact FinCEN for more information and answers to any questions.

3.??Tax pros: Remain vigilant against phishing emails; cloud-based attacks

In the third installment of the special series, Protect Your Client; Protect Yourself, Security Summit partners warn tax pros to be aware of evolving phishing scams and cloud-based schemes designed to steal sensitive taxpayer information. "Identity thieves and fraudsters continue to look for new and inventive ways into tricking tax pros,? said IRS Commissioner Danny Werfel. ?These scams can be subtle and sophisticated, and tax pros should not let down their guard to protect their clients and their businesses."

Visit IRS.gov for more information about these scams and resources to help safeguard your sensitive data. This release is also available in Spanish and Simplified Chinese.

4.??Three cities remain for this summer?s IRS Nationwide Tax Forums; register for Orlando forum by Aug. 15 to secure the standard rate

Tax pros: The last three IRS Nationwide Tax Forums of the summer return to the National Harbor near Washington, D.C., on Aug. 8-10, to the sold-out Town and Country in San Diego on Aug. 22-24 and finally to Orlando on Aug. 29-31. On-site registration remains available next week at the National Harbor. And attendees can still register for the Orlando program by Aug. 15 to secure the standard rate of $299 (a savings of $81).

Participants at all locations will have access to:

An agenda of more than 40 continuing education seminars,
A new series of special events, including sessions focused on practice management, the taxpayer experience, cybersecurity and a town hall meeting with the National Taxpayer Advocate.
The Case Resolution Program, where tax pros can bring one of their toughest, unresolved IRS cases and meet with an IRS representative with specialized expertise.
A two-day expo with representatives from tax, financial and business communities offering their products, services and expertise designed with the tax professional in mind. The expo also includes the IRS Zone, featuring various IRS subject matter experts and executives.

Visit the IRS Nationwide Tax Forums website for more information and to register.

5.??Treasury, IRS issue proposed regulations identifying certain monetized installment sales as listed transactions

The Department of the Treasury and the IRS issued proposed regulations identifying certain monetized installment sale transactions and substantially similar transactions as listed transactions ? abusive tax transactions that must be reported to the IRS. Material advisors and certain participants in these listed transactions are required to file disclosures with the IRS and are subject to penalties for failure to disclose these transactions. Monetized installment sales were part of the IRS's Dirty Dozen list of common tax scams and schemes.

6.??Webinar: Taxation of Nonresident Alien Individuals

The IRS webinar Taxation of Nonresident Alien Individuals takes place on Thursday, Aug. 17 at 2 p.m. ET. Participants will be eligible to earn up to 2 continuing education credits for this webinar. For more information about the webinar and to register, visit the Webinars for Tax Practitioners webpage.

7.?Home energy audits may qualify for an Energy Efficient Home Improvement Credit

The IRS issued Notice 2023-59 regarding the requirements for home energy audits for taxpayers that want to claim the Energy Efficient Home Improvement Credit. This guidance provides specific requirements to claim the Home Energy Improvement Credit and the process for conducting the home energy audit. The audit must identify the most significant and cost-effective energy efficiency improvements to the residence, including an estimate of the energy and cost savings for each improvement. See the Technical Guidance section below for additional information.

8.??Technical Guidance

Notice 2023-59 announces forthcoming proposed regulations and provides interim guidance regarding Home Energy Audits for purposes of the section 25C energy efficient home improvement credit, as well as a transition rule for certain Home Energy Audits conducted during taxable years ending in calendar year 2023.

Revenue Ruling 2023-14 provides that if a taxpayer stakes cryptocurrency native to a proof-of-stake blockchain and receives additional units of cryptocurrency as rewards when validation occurs, the fair market value of the rewards received is included in the taxpayer's gross income in the taxable year in which the taxpayer gains dominion and control over the rewards. The fair market value is determined as of the date and time the taxpayer gains dominion and control over the rewards.

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