e-News for Tax Professionals 2023-35

Individuals and businesses affected by Hurricane Idalia in parts of Florida now have until Feb. 15, 2024, to file various federal individual and business tax returns and make tax payments. Individuals and households that reside or have a business in the affected counties qualify for tax relief, but any area added later to the disaster area will also qualify. The current list of eligible localities is always available on the disaster relief page on IRS.gov. This news release is also available in Spanish and Simplified Chinese.

2. Businesses must electronically file Form 8300, Report of Cash Payments Over $10,000, beginning Jan. 1, 2024

Tax pros: Starting Jan. 1, 2024, businesses are required to electronically file Form 8300, Report of Cash Payments Over $10,000, instead of filing a paper return. This new requirement follows final regulations amending e-filing rules for information returns, including Forms 8300. Visit IRS.gov for related information about waiver applications, exemptions and more. This news release is also available in Spanish and Simplified Chinese.

3. Administrative transition period for new Roth catch-up requirement; catch-up contributions still permitted after 2023

The IRS announced an administrative transition period that extends until 2026 the new requirement that any catch-up contributions made by higher income participants in 401(k) and similar retirement plans must be designated as after-tax Roth contributions. The administrative transition period will help taxpayers transition smoothly to the new Roth catch-up requirement and is designed to facilitate an orderly transition for compliance with that requirement. At the same time, the IRS also clarified that plan participants who are age 50 and older can continue to make catch up contributions after 2023, regardless of income. This news release is also available in Spanish and Simplified Chinese.

4. Form 1099-K informational video now available in Korean, Russian and Spanish

Taxpayers who sell items or provide a service and get paid by payment card or through a payment app, may get a Form 1099-K reporting those transactions. A new video instructs taxpayers to keep good records of these payments throughout the year. Learn more by watching a short IRS video, which is now also available in Korean, Russian and Spanish.

5. Treasury, IRS issue proposed regulations on reporting for sales, exchanges of digital assets

The Department of the Treasury and the IRS issued proposed regulations that would require brokers to report sales and exchanges of digital assets by customers. The proposed regulations cover a range of digital asset issues where there have been questions, including defining brokers and requiring proceeds to be reported to the IRS on new Form 1099-DA. Written comments regarding the proposed regulations must be submitted by Oct. 30, 2023. A public hearing has been scheduled for Nov. 7, 2023, with a second public hearing date for Nov. 8, 2023, if the number of requests to speak at the hearing exceed the number that can be accommodated in one day.

6. Treasury, IRS issue proposed regulations on prevailing wage and apprenticeship requirements for increased energy credit or deduction amounts

The Treasury Department and the IRS issued proposed regulations related to the increased tax credit or deduction amounts for clean energy facilities and projects if taxpayers satisfy certain prevailing wage and registered apprenticeship (PWA) requirements. Generally, these new proposed rules provide guidance on the PWA requirements, enacted as part of the Inflation Reduction Act, for certain green energy facilities or projects. This news release is also available in Spanish.

7. Technical Guidance

Notice 2023-56 describes rules the IRS applies in determining the federal income tax consequences of tax refunds and certain other payments made by states to individual taxpayers and includes examples illustrating the application of these rules.

Revenue Ruling 2023-17 provides interest rates on underpayments and overpayments for the fourth quarter 2023.

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