e-News for Tax Professionals 2024-39

The IRS is opening a supplemental claim process to help third-party payers and their clients resolve incorrect claims for the Employee Retention Credit (ERC). Third-party payers report and pay clients’ federal employment taxes under the third-party payer’s Employer Identification Number. They handle clients’ payroll and tax reporting duties. Some of these TPPs filed ERC claims for multiple employers. If a third-party payer’s client has since determined it is ineligible for the ERC and wants to resolve their claim, it is the third-party payer that needs to correct it. This supplemental claim process lets a third-party payer that filed a prior claim with multiple clients “withdraw” only some clients while maintaining the claims of the qualifying clients.

2. Chief of IRS Independent Office of Appeals selected

The IRS announced that Elizabeth Askey has been selected to serve as the Chief of the IRS Independent Office of Appeals. Askey will set strategy and oversee the operations of Appeals, which resolves tax controversies between taxpayers and the IRS without litigation. Askey has served as the Deputy Chief of Appeals since December 2022 and has been acting as the Appeals Chief since April, responsible for approximately 1,750 Appeals employees nationwide. Appeals is independent of the IRS compliance functions, including the examination and collection areas that make tax assessments and initiate collection actions.

3. Technical Guidance

Revenue Ruling 2024-22 holds that Bourse de Montréal (MX) is a “qualified board or exchange” within the meaning of section 1256(g)(7)(C). MX is a regulated exchange of Québec, Canada that offers electronic trading. Revenue Ruling 2024-22 will be published in IRB: 2024-43 DATED: October 21, 2024

Revenue Procedure 2024-38 provides guidance on the effect on the income requirements under sections 142(d) and 42 of the alternative income eligibility requirements for the Department of Housing and Urban Development–Veterans Affairs Supportive Housing (HUD–VASH) program. Revenue Procedure 2024-38 will be in IRB-2024-43, dated October 21, 2024.

Notice 2024-68 announces the special per diem rates effective October 1, 2024, which taxpayers may use to substantiate the amount of expenses for lodging, meals, and incidental expenses when traveling away from home. This notice provides the special transportation industry rate, the rate for the incidental expenses only deduction, and the rates and list of high-cost localities for purposes of the high-low substantiation method. Use of a per diem substantiation method is not mandatory.

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