e-News for Tax Professionals 2023-50

Tax pros: Encourage your clients to take important actions now to help them file their 2023 federal income tax return next year. Visit the Get Ready page to see what's new and what to consider before filing next year, such as IRS online account enhancements, compiling important 2023 tax documents, understanding refund timing, the delay of 1099-K reporting threshold, understanding energy-related credits and more.

2.??Final 2023 quarterly estimated tax payment due Jan. 16

Taxpayers who didn?t pay enough tax in 2023 should make a fourth quarter payment by Jan. 16 to avoid a possible penalty or tax bill when filing in 2024. This news release also includes information about who may need to make a payment, what income is taxable, how to make an estimated tax payment and more. Also, the Tax Withholding Estimator, available on IRS.gov, can often help taxpayers determine if they need to make an estimated tax payment. It also helps them calculate the correct amount of tax to withhold throughout the year.

3.??Reminder: Information returns filing threshold

Beginning Jan. 1, 2024, the electronic filing threshold for information returns will reduce from 250 to 10 for filing season 2024. Until now, only those who filed more than 250 information returns were required to file electronically and the 250-return threshold was applied separately to each type of information return. Now, filers need to combine all information return types they file to determine if they meet the 10-return threshold and the requirement to file electronically applies to them.

To make e-file easier for those who have traditionally filed paper information returns, the IRS recently launched the Information Returns Intake System (IRIS). If you are new to electronic filing and not an existing Filing Information Returns Electronically (FIRE) customer, consider using the new 1099 Taxpayer Portal located on IRS.gov/IRIS that provides a no-cost option for electronic filing information returns. A recorded webinar explains this change, how it affects you and additional ways to file information returns electronically.

4.??IRS to pilot new security self-mailer to deliver IP PINs

Tax pros: Taxpayers who typically receive a CP01A, We Assigned You an Identity Protection Personal Identification Number (IP PIN), may notice a change in the look of their mailed IP PINs in 2024. In addition to the traditional delivery of IP PINs in an envelope, the IRS is piloting the use of a security self-mailer for delivery of the IP PINs. Security self-mailers have perforated borders that recipients remove to open the correspondence. You may have received a security self-mailer in the form of your bank PIN or other private correspondence.

Approximately 70% of taxpayers who receive the IP PIN will receive them in the new format. With identify theft on the rise, the IRS is working to make correspondence safer and more secure, ensuring the protection of taxpayer data remains a top priority. Some of these notices will include a survey to help determine the effectiveness of the pilot. If pilot feedback is positive, future use will expand to all CP01As. The way taxpayers use the IP PIN to file their taxes will not change.

5.??New IRS leadership structure announcement

IRS Commissioner Danny Werfel this week announced plans for a new leadership structure at the agency, a step designed to reflect new transformation goals and update the top of the organization for the first time in two decades. The new organizational structure will feature a single IRS deputy commissioner and four new IRS chief positions to oversee taxpayer service, tax compliance, information technology and operations. The changes will streamline operational efficiencies and align with major transformation work underway at the agency through the Inflation Reduction Act funding.

6.??Visit Nationwide Tax Forum Online to complete year-end continuing education requirements

Tax pros: If you?re in need of continuing education (CE) credits before the end of the year, visit the IRS Nationwide Tax Forum Online website to receive tax law information and updates directly from the IRS. Tax Forum Online features 18 self-study seminars recorded last summer at the 2023 Nationwide Tax Forum, offering options for Ethics, Federal Tax Law and Federal Tax Law Update CE credits. The Nationwide Tax Forum Online is approved as a continuing education provider by the IRS and NASBA, the National Association of State Boards of Accountancy. To explore the available course options and register, visit irstaxforumonline.com.

7.??Upcoming webinars for tax practitioners

The IRS offers the upcoming live webinars to the tax practitioner community. For more information or to register for the webinars, visit the Webinars for Tax Practitioners webpage:

Circular 230: Professional Responsibility in Today?s Tax Practice on Dec. 19 at 2 p.m. Category: Ethics; 2 CE credits will be offered for this seminar.
Answering your Frequently Asked Questions about Due Diligence on Jan. 10, 2024, at 2 p.m. Category: Federal Tax; earn up to 1 CE credit.
Sailing Through the Rules of Refundable Tax Credits on Jan. 12, 2024, at 2 p.m. Certificates of completion are being offered. Category: Federal Tax; earn up to 1 CE credit.
2024 IRS/California Society of Enrolled Agents (CSEA) Practitioner Seminars on Jan. 17-18, 2024, from noon ? 5 p.m. ET. Earn up to 9 hours of IRS qualified CE credits, including 2 hours of Federal Ethics.

8.??Treasury, IRS issue guidance for the advanced manufacturing production credit

The Department of the Treasury and the IRS issued proposed regulations to provide guidance for the advanced manufacturing production credit established by the Inflation Reduction Act (IRA). The new section 45X provides a credit for the production (within the United States) and sale of certain eligible components including solar and wind energy components, inverters, qualifying battery components and applicable critical minerals.

9.??Employers should certify employees before claiming 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) encourages employers to hire workers certified as members of any of the 10 groups facing barriers to employment. When hiring, encourage your clients to review eligibility requirements for the WOTC:

Pre-screening and certification requirement. To claim the credit, an employer must first get certification that an individual is a member of one of the specified groups by submitting IRS Form 8850, Pre-screening Notice and Certification Request for the Work Opportunity Credit, to their state workforce agency within 28 days after the eligible worker begins work.
Figuring and claiming the credit. After the employer receives Form 8850 certification, they figure the credit on Form 5884, Work Opportunity Credit, and then claim the credit on Form 3800, General Business Credit.

For more information, visit the Work Opportunity Tax Credit webpage on IRS.gov.

10.? News from the Justice Department?s Tax Division

Erica Early, formerly of Robins and Richton Park, Ill., was sentenced to 14 months in prison for willfully preparing false tax returns on behalf of her clients. In addition to the term of imprisonment, Early has also been ordered to serve one year of supervised release and pay $515,990 in restitution to the United States.

The District Court for the Middle District of Florida permanently enjoined Tyrone Johnson and TJ Professional Services LLC from preparing federal income tax returns for others, from owning or operating any tax return business in the future and from transferring customer lists or other customer information.

Maryland tax return preparer Ronald Eugene Watson, also known as Sabir Muhammad, was sentenced to 27 months in prison for preparing and filing false tax returns on behalf of his clients following his conviction by a federal jury in Greenbelt. Watson has also been ordered to serve one year of supervised release and pay approximately $268,634 in restitution to the United States.

11.??Technical Guidance

Notice 2023-80 announces that Treasury and the IRS intend to issue proposed regulations to address the application of the foreign tax credit and related rules and the dual consolidated loss (DCL) rules to certain types of taxes described in the GloBE Model Rules.

Notice 2024-04 sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates for December 2023 used under section 417(e)(3)(D), the 24-month average segment rates applicable for December 2023, and the 30-year Treasury rates, as reflected by the application of section 430(h)(2)(C)(iv).

Notice 2024-06 provides safe harbors for a method that can be used to qualify for and calculate the SAF sustainable aviation fuel (SAF) credit, the Renewable Fuel Standard program method.

Notice 2024-08 provides the optional 2024 standard mileage rates for taxpayers to use in computing the deductible costs of operating an automobile for business, charitable, medical or moving expense purposes.

Notice 2024-10 provides additional interim guidance regarding the application of the new corporate alternative minimum tax (CAMT), as added to the Code by the Inflation Reduction Act of 2022.

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