e-News for Tax Professionals 2023-02

The IRS set Monday, Jan. 23, as the beginning of the nation?s 2023 tax season, when the agency will begin accepting and processing 2022 tax year returns. With the three previous tax seasons dramatically impacted by the pandemic, the IRS has taken additional steps for 2023 to improve service for taxpayers. As part of the August passage of the Inflation Reduction Act, the IRS has hired more than 5,000 new telephone assistors and added more in-person staff to help support taxpayers. This news release is also available in Spanish and Simplified Chinese.

2.??Taxpayer Advocate delivers 2022 Annual Report to Congress

National Taxpayer Advocate Erin Collins released her 2022 Annual Report to Congress, saying taxpayers and tax professionals "experienced more misery in 2022" due to paper processing delays and poor customer service. But the report also says the IRS made considerable progress in reducing the volume of unprocessed tax returns and correspondence and is poised to start the 2023 filing season in a stronger position. The Advocate's report assesses taxpayer service during 2022, identifies the 10 most serious problems taxpayers are experiencing in their dealings with the IRS and makes administrative and legislative recommendations to address those problems.

3.??California storm victims qualify for tax relief

California storm victims now have until May 15 to file various federal individual and business tax returns and make tax payments. Individuals and households that reside or have a business in any area designated by the Federal Emergency Management Agency (FEMA) qualify for tax relief. The tax relief postpones various tax filing and payment deadlines that occurred starting on Jan. 8. This news release is also available in Spanish and Simplified Chinese.

4.??Electronic Tax Administration Advisory Committee is accepting membership applications through Jan. 31

The IRS is seeking qualified applicants for nomination to the Electronic Tax Administration Advisory Committee (ETAAC). Individuals chosen for membership will serve three-year terms beginning in September 2023. Applications will be accepted through Jan. 31. For more information about ETAAC, the application process and qualification criteria, visit IRS.gov/etaac.

5.? Form 1099-K issued in error? Visit IRS.gov for answers to FAQs

Tax pros: Think a Form 1099-K has been issued in error? Contact the filer whose name and contact information appears in the upper-left corner on the front of the form, or the payment settlement entity shown in the lower-left side of the form. Visit IRS.gov for additional answers to frequently asked questions about the Form 1099-K. As a reminder, the IRS announced a delay in reporting thresholds for third-party settlement organizations. As a result, third-party settlement organizations will not be required to report tax year 2022 transactions on a Form 1099-K to the IRS or the payee for the lower, $600 threshold amount enacted as part of the American Rescue Plan of 2021.

6.??Webinars for tax practitioners

The IRS is offering the following webinars for the tax practitioner community. For more information or to register, visit IRS.gov.

2023 IRS/CSEA Practitioner Seminars on Jan. 18-19. Earn up to 9 hours of IRS qualified CPE (includes 2 hours of federal Ethics). Plus, an additional 1 hour of California CE (no IRS credit).
Looking to Tax Year 2022: American Rescue Plan Tax Changes to Earned Income Tax Credit and Other Child-Related Credits on Jan. 19 at 2 p.m. EST. Earn up to 1 continuing education (CE) credit.
Estate and Gift Tax on Jan. 31 at 2 p.m. EST. Earn up to 1 CE credit.
Streamlined Filing Procedures for U.S. Citizens Abroad on Feb. 1 at 10 p.m. EST. Earn up to 2 CE credits.
Practical Considerations ? Foreign Tax Credit on Feb. 7 at 2 p.m. EST. Earn up to 2 CE credits.
K2/K3 with a Focus on the Foreign Tax Credit ? Individuals on Feb. 9 at 2 p.m. EST. Earn up to 2 CE credits.

Tax professionals are also encouraged to visit the IRS Nationwide Tax Forums Online for additional continuing education opportunities.

7.??Basic questions, answers about the limitation on the deduction for business interest expense

Visit IRS.gov for updated answers to some basic questions about the limitation on the deduction for business interest expense, also known as the "section 163(j) limitation." Prior to the 2017 Tax Cuts and Jobs Act (TCJA), section 163(j) of the Internal Revenue Code applied only to certain interest paid or accrued by corporations. However, the TCJA significantly changed the section 163(j) limitation. On March 27, 2020, section 163(j) was further amended by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. These questions and answers address the section 163(j) limitation after amendments by the TCJA and the CARES Act.

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

Sergio Sosa, a Utah professional tax preparer, was sentenced to 37 months in prison for tax evasion, conspiring to defraud the United States and obstructing the IRS?s efforts to collect his tax debt. In addition to the term of imprisonment, Sosa was ordered to serve 36 months of supervised release and to pay more than $1.1 million in restitution to the United States.

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