IRS Tax Law and Taxes Legal News September 19-23, 2022
Below is our summary of important Internal Revenue Service (IRS) guidance and relevant tax matters for the week of September 19, 2022 through September 23, 2022.
September 19, 2022: The IRS has updated information about the Work Opportunity Tax Credit (WOTC), including information about the screening and certification process. The WOTC is available to employers who hire designated categories of workers facing significant barriers to employment. Form 8850, Notice of Screening and Application for Certification for Work Opportunity Credit, must be completed by the job applicant and the employer no later than the day of the offer of employment to satisfy the screening requirement.
September 19, 2022: The IRS issued Tax Advice 2022-143, reminding people that every taxpayer has the right to retain representation when working with the IRS, including the right to seek assistance from the Low Taxpayer Clinic. revenue.
September 20, 2022: The IRS announced that it has selected eight new members for the Advisory Committee on Electronic Tax Administration. The main objective of the committee is to promote paperless filing of income tax and information returns. The following people have been appointed for a three-year term on the committee, starting in September:
Austin Emeagwai, CPA, Ph.D.; Collierville, TN
Jerry Gaddis, EA, MBA; Winter Haven, Florida
Nikia Gainey; Orlando Florida
Robert Getmy; Marion, Iowa
Argi O’Leary; Voorheesville, NY
Hallie Parchman; Austin, TX
Rae Ann Pilarsky; Tucson, Arizona
Keith Richardson; Philadelphia, Pennsylvania
September 20, 2022: The IRS has announced that victims of Hurricane Fiona in Puerto Rico now have until February 15, 2023 to file various federal personal and business income tax returns and make tax payments. Help is available in all 78 Puerto Rican municipalities, which are designated by the Federal Emergency Management Agency.
September 20, 2022: The IRS has issued Notice 2022-40, which provides updates to the monthly corporate bond yield curve and corresponding spot segment rates and 24-month average segment rates for September 2022. The notice also provides guidance on interest rates on 30-year Treasury securities. and 30-year weighted average Treasury rates.
September 20, 2022: The IRS issued Tax Advice 2022-144, recommending that people exercise caution when choosing a tax preparer because tax preparers have different levels of skill, education, and expertise.
September 21, 2022: The IRS has issued Tax Advice 2022-145, outlining the different types of authorizations for third-party representatives. Options include:
Proxy: This allows someone to represent a taxpayer in tax matters before the IRS. The representative must be a person licensed to practice before the IRS.
Authorization of tax information: This allows a taxpayer to appoint someone to review or receive a taxpayer’s confidential tax information for a specific type of tax for a specified period.
Designated third party: This designates a person on a taxpayer’s tax form to discuss this tax return and this year with the IRS.
Oral disclosure: This authorizes the IRS to release a taxpayer’s tax information to anyone the taxpayer brings to a phone call or meeting with the IRS about a specific tax matter.
September 21, 2022: The IRS has indicated that improperly forgiven Paycheck Protection Program loans are taxable. The guidance issued confirms that where a taxpayer’s loan is canceled due to omissions and misrepresentation, the income from the cancellation cannot be excluded from income.
September 22, 2022: The IRS reminded taxpayers to file their 2019 and 2020 returns by September 30, 2022, in order to be eligible for COVID-19 penalty relief. The IRS is seeking to provide relief to individuals and businesses impacted by the pandemic and afford to focus its resources on processing late tax returns and taxpayer correspondence.
September 22, 2022: The IRS released Tax Tip 2022-146, highlighting the agency’s Alternative Media Center, which offers a variety of resources available in multiple formats for visually impaired taxpayers.
September 22, 2022: The IRS has issued Tax Procedure 2022-35, adding Turkey to the list of jurisdictions with which the US Department of the Treasury (Treasury) and the IRS have a relevant information exchange agreement. The agreement relates to the information collected under Treas. Reg. §§ 1.6049-8 and 1.6049-4(b)(5), with respect to certain depositary interest paid to residents of the jurisdictions. The Recipes Procedure updates and replaces Recipes Procedure 2021-32.
September 23, 2022: The IRS has released its weekly list of written determinations (for examplePrivate Letter Rules, Technical Advice Memorandums and Chief Counsel Advice).
Events to come:
The following Taxpayer Defense Panel committees are scheduled to meet in October:
Special thanks to Sarah Raben from our Chicago office for this week’s roundup.