Tax - Federal

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IRS Issues Guidance on Cash Payments Made by Employers Under Leave-Based Donation Programs Regarding Ukraine (Notice 2022-28)
May 20, 2022

The IRS issued guidance on the federal income and employment tax treatment of cash payments made by employers under leave-based donation programs to aid victims of the further Russian invasion of Ukraine. Employer leave-based donation payments made b...

Current Plan Liability Rates Set for May 2022 (Notice 2022-25)
May 20, 2022

For pension plan years beginning in May 2022, the IRS has released: the 30-year Treasury bond weighted average interest rate, the unadjusted segment rates, the adjusted rates, and the minimum present value segment rates Corporate Bond Rate The three ...

Proposed Regulations on Required Minimum Distributions Corrected (NPRM REG-105954-20)
May 20, 2022

The IRS issued corrections to proposed regulations and notice of public hearing relating to the required minimum distribution (RMD) changes made by the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act) (P.L.116-94 ), ( NP...

FPAA Notice in 2010 Was Untimely, Partnership Filed Tax Return in 2005 (Seaview Trading, LLC, CA-9)
May 20, 2022

A partnership’s tax year (TY) 2001 tax return was filed when an IRS agent requested said missing return. The taxpayer delivered it, and the IRS acknowledged receipt during the auditing process in connection with the final partnership administrative a...

GAO Issues Report on Security of Taxpayer Information (GAO-22-105872)
May 20, 2022

The Government Accountability Office (GAO) has issued a report on security of taxpayer information. The report describes IRS’s processes for safeguarding federal tax information and what is known about cases of willful unauthorized access, attempted ...

New Tax Treaty With Croatia Under Review
May 19, 2022

The United States and Croatia have completed negotiations on a new tax treaty, a Treasury Department official said. We are pleased to report that in March, we concluded substantial substantive negotiations with Croatia on a new tax treaty, Kevin Nich...

Disability Benefits Included in Gross Income; Additions to Tax Imposed (Caldwell, TCM)
May 19, 2022

An individual was required to include disability benefits received during the tax year at issue in his gross income. The taxpayer, through his employer, enrolled in two disability plans, the core plan and the buy up plan. These plans provided for pay...

Shared Responsibility Payment Was Tax Measured by Income; Entitled to Priority (Szczyporski, CA-3)
May 19, 2022

A shared responsibility payment (SRP) was a tax for bankruptcy purposes. As the Supreme Court observed in NFIB v. Sebelius , 567 U.S. 519 (2012), the SRP was calculated and administered like a tax. One of the conditions included if the SRP is paid in...

District Court Lacked Authority to Adjudicate Civil Tax Lien in Criminal Case (Makozy, CA-3)
May 19, 2022

A district court lacked authority, within the confines of a closed criminal case, to adjudicate an individual’s complaints regarding a civil tax lien imposed by the IRS. It lacked authority to order the IRS to remove said lien that was separate from ...

GAO Issues Report on Tax Equity (GAO-22-104553)
May 19, 2022

The Government Accountability Office (GAO) has issued a report on tax equity. The report: (1) examined approaches for analyzing the effect of tax policies on households by race, ethnicity and sex; and (2) estimated how households use selected tax pro...

This Week's CCH FEDERAL TAX WEEKLY, Issue No. 20, Now Available
May 19, 2022

The latest issue of CCH Federal Tax Weekly—printable/downloadable version now available —reports, prioritizes and analyzes the past week’s federal tax developments that include: IRS Independent Office of Appeals Working to Reduce Cycle Times Physical...

Victims of New Mexico Wildfires and Straight-Line Winds Granted Tax Relief (NM-2022-05)
May 18, 2022

The president has declared a federal disaster area in New Mexico. The disaster is due to wildfires and straight-line winds that began on April 5, 2022. The disaster area includes: Colfax, Lincoln, Mora, San Miguel, and Valencia Taxpayers who live or ...

Yellen Call For U.S., EU Leadership On Corporate Minimum Tax
May 18, 2022

Treasury Secretary Janet Yellen is calling on the United States and the European Union to get the global corporate minimum tax into law in their respective territories. The EU and the United States must show leadership by expeditiously implementing t...

GAO Issues Report on COVID-19 (GAO-22-104280)
May 18, 2022

The Government Accountability Office (GAO) has issued a report on COVID-19. The CARES Act includes a provision for GAO to report on the federal government’s response to the COVID-19 pandemic. The report describes the IRS’ efforts in implementing the ...

GAO Issues Report on Trends of IRS Audit Rates and Results for Individual Taxpayers by Income (GAO-22-104960)
May 18, 2022

The Government Accountability Office (GAO) has issued a report analyzing IRS audit rates and audit results and resources used by taxpayer income. GAO analyzed at least 10 years of data from audits of individual tax returns reporting various levels of...

JCT Issues Disclosure Report for Calendar Year 2021
May 18, 2022

JCT Disclosure Report for Public Inspection Pursuant to Internal Revenue Code Section 6103(p)(3)(C) for Calendar Year 2021. JCX-8-22

IRS Destroys Documents Amid Backlog as IG Calls For More E-Filing
May 17, 2022

A recent report by the Treasury Inspector General for Tax Administration primarily focused on the need for the Internal Revenue Service to expand its electronic filing capabilities also noted that the agency has destroyed some 30 million paper-filed ...

Applicable Federal Rates for June 2022 Released (Rev. Rul. 2022-10)
May 17, 2022

The IRS has released the applicable federal interest rates for June 2022. The AFRs are based on the average yield on outstanding marketable obligations of the United States government. Annual Federal Interest Rates for June 2022 The annual interest r...

IRS Independent Office Of Appeals Working To Reduce Cycle Times
May 16, 2022

WASHINGTON–The Internal Revenue Service’s Independent Office Of Appeals has seen its cycle times for handling appeals cases stretch to more than year during the COVID-19 pandemic, but the office is working to get it back to pre-pandemic levels. Speak...

IRS Releases I.R.B. 2022-20
May 16, 2022

The IRS has released I.R.B. 2022-20, dated May 16, 2022. The new I.R.B. contains the following items: Notice 2022-21 , I.R.B. 2022-20, 1057 (TAXDAY, 2022/04/27, I.2 ). Notice 2022-22 , I.R.B. 2022-20, 1057 (TAXDAY, 2022/04/28, I.2 ). Notice 2022-23 ,...

IRS Provides Extension of Temporary Relief in Response to Continuing COVID-19 (Notice 2022-27)
May 16, 2022

The IRS has provided a 6-month extension, through December 31, 2022, of the temporary relief provided in Notice 2021-40 , 2021-28 I.R.B. 15, from the requirement in Reg. §1.401(a)-21(d)(6)(i) that certain participant elections be witnessed in the phy...

IRS Issues Statement on 2020 Information Returns
May 16, 2022

The IRS issued a statement expressing that 99 percent of information returns used were matched to corresponding tax returns and processed. The remaining one percent of those documents were destroyed due to a software limitation and to make room for n...

Weekly Report from Washington, D.C.
May 16, 2022

During the week of May 9, the Treasury Department announced on May 8, 2022, that the exportation, reexportation, sale or supply, directly or indirectly, from the United States, or by a United States person, wherever located, of accounting, trust and ...

Code Sec. 30D: Taxpayer Did Not Acquire or Place Vehicles in Service; Ineligible for Plug-in Vehicle Credit (LTR 202219006-202219008)
May 16, 2022

In each of three cases, a limited liability company (LLC) (taxpayer) neither acquired the vehicles nor placed the vehicles in service, and therefore was ineligible for the new qualified plug-in electric drive motor vehicle credit under Code Sec. 30D ...

Code Sec. 172: Legislative Reenactment Doctrine Does Not Permit 10-Year Carryback of Losses Not Attributable to Product Liability Losses if Taxpayer Waived Right to Carry Back NOL (CCA 202219015)
May 16, 2022

The IRS Chief Counsel observed that the legislative reenactment doctrine did not permit a 10-year carryback of specified liability losses not attributable to product liability losses for a taxpayer that has waived its right to carry back its net oper...

Code Sec. 302: Taxpayer Qualified Substantively for Extension to File Election (LTR 202219011)
May 16, 2022

An individual qualified substantively for a 75-day extension to file an election. The taxpayer's corporation stock was redeemed in exchange for a promissory note. For various reasons, a valid election was not filed. The taxpayer represented they woul...

Code Sec. 446: Partnership Granted Extension to File Form 3115 (LTR 202219014)
May 16, 2022

A partnership was granted a 60-day extension to file the Ogden copy of the Form 3115, Application for Change in Accounting Method, for the tax year at issue. As a result of intervening circumstances, an entity that managed the taxpayer inadvertently ...

Code Sec. 754: Entities Granted Extension to Make Basis Adjustment Elections (LTR 202219004, 202219010)
May 16, 2022

In each of two cases, an entity was granted a 120-day extension to make a Code Sec. 754 election. In both cases, the taxpayers failed to make a valid Code Sec. 754 election. In both cases, the taxpayers acted reasonably and in good faith and, therefo...

Code Sec. 1362: Subsidiary's S Corporation Election Deemed Ineffective (LTR 202219005)
May 16, 2022

A corporation's subsidiary had its S corporation election deemed ineffective because the subsidiary had more than oneclass of stock due to the partnership provisions in an operating agreement. However,that the circumstances resulting in the terminati...

Code Sec. 1400Z-2: LLC Granted Relief for Failure to Timely File Form 8996 (LTR 202219001)
May 16, 2022

A limited liability company was granted an extension to file Form 8996, Qualified Opportunity Fund (QOF), to: (i) be certified as a QOF as defined in Code Sec. 1400Z-2(d) ; and (ii) be treated as a QOF under Code Sec. 1400Z-2 and Reg. §1.1400Z2(d)-1(...

Code Sec. 1502: Tax Consequences of Proposed Transaction Discussed (LTR 202219002, 202219012, 202219013)
May 16, 2022

In the first case, the IRS ruled on the tax consequences of a proposed transaction. The taxpayer was a publicly traded domestic corporation and the common parent of an affiliated group of corporations and it wholly owned OpCo. It was held that the Op...

Code Sec. 2010: Estate Granted Extension to Make Portability Election (LTR 202219009)
May 16, 2022

A decedent’s estate was granted a 120-day extension to make a portability election under Code Sec. 2010(c)(5)(A) to allow the surviving spouse to take into account the decedent’s deceased spousal unused exclusion (DSUE) amount. In this case, for vari...

Code Sec. 4945: Procedures for Awarding Scholarship Approved (LTR 202219016-202219019)
May 16, 2022

In each of four cases, a private foundations’ procedures for awarding scholarships were approved. In the first case, the taxpayer intended to operate a scholarship program for students pursuing a degree or certificate from a college or university or ...

Code Sec. 7701: Entity Granted Extension to Make Entity Classification Election (LTR 202219003)
May 16, 2022

An entity was granted a 120-day extension to make an entity classification election under Code Sec. 7701 . The taxpayer intended to be treated as a partnership. However, the taxpayer did not timely file Form 8832, Entity Classification Election. The ...