e-News for Tax Professionals 2023-40

The IRS issued proposed regulations, Revenue Procedure 2023-33 and answers to frequently asked questions for the transfer of new and previously owned clean vehicle credits from the taxpayer to an eligible entity for vehicles placed in service after Dec. 31, 2023. The guidance clarifies how taxpayers can elect to transfer new and previously owned clean vehicle credits to dealers who are eligible to receive advance payments of either credit. The proposed regulations and revenue procedure also provide guidance for dealers to become eligible entities to receive advance payments of new or previously owned clean vehicle credits.

2.??IRS: Beware of improper art donation deduction promotions

Tax pros: Watch for promotions involving exaggerated art donation deductions that can target high-income filers. The IRS is using a variety of compliance tools to combat abusive art donations through audits of tax returns and civil penalty investigations. Check out this news release for information about how the scheme works, the red flags to watch out for and how to properly claim an art donation.

3.??A Closer Look: Improving the taxpayer experience

In the latest executive column, A Closer Look, Courtney Kay-Decker, Deputy Chief Taxpayer Experience Officer, highlights the IRS?s efforts to improve the experience for taxpayers and everyone who interacts with the agency. ?During 2023, we are working hard to make improvements and make progress toward the IRS goal of delivering exceptional service every day,? said Kay-Decker. ?Thanks to the funding from the Inflation Reduction Act, we now have more capability to create better taxpayer experiences and outcomes for everyone.? This column is also available in Spanish.

4.??Know the benefits of the Work Opportunity Tax Credit

Giving someone a work opportunity may translate into a business tax credit for your client and greater stability for a family. The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers for hiring individuals from certain targeted groups who have consistently faced significant barriers to employment. The WOTC joins other workforce programs that incentivize workplace diversity and facilitate access to good jobs for American workers. The Consolidated Appropriation Act 2021 authorized the extension of the WOTC until Dec. 31, 2025.

5.??Technical Guidance

Revenue Procedure 2023-33 sets forth the procedures under sections 30D(g) and 25E(f) of the Internal Revenue Code for the transfer of the clean vehicle credit or previously owned clean vehicle credit from the taxpayer who elects to transfer such credit to an eligible entity. These procedures will apply to transfers of credits after Dec. 31, 2023.

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