Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of August 1, 2022 – August 5, 2022. 

August 1, 2022: The IRS released Internal Revenue Bulletin 2022-31, which highlights the following:

• Administrative: Revenue Procedure 2022-30 provides specifications for the private printing of red ink substitutes for the 2022 Forms W-2 and W-3.

• Income Tax: Revenue Ruling 2022-14 provides the applicable federal rates for federal income tax purposes for August 2022.

August 1, 2022: The IRS released Tax Tip 2022-116, explaining the basics of excise tax and what businesses should know.

August 1, 2022: The IRS announced Revenue Procedure 2022-29, which modifies and supersedes Revenue Procedure 2006-36, 2006-38 I.R.B 498. The Procedure updates how government agencies and members of the public should request the creation of special statistical studies and compilations involving return information. It also sets forth the criteria for determining reasonable fees for the costs associated with the creation of the special statistical studies and compilations.

August 2, 2022: The IRS released IR-2022-144, urging tax professionals to learn the signs of data theft so that they can react quickly to protect clients. This topic is the third of a five-part series from the Security Summit, including the IRS, state tax agencies and others from the tax community. Tax professionals or firms that are the victim of data theft should immediately report it to the local IRS Stakeholder Liaison.

August 2, 2022: The IRS announced that Kentucky storm and flooding victims now have until November 15, 2022, to file individual and business tax returns and make tax payments if they had a valid extension to file their 2021 returns. The relief is available to anyone in an area designated by the Federal Emergency Management Agency as qualifying for individual or public assistance. The current list of eligible localities is available here.

August 2, 2022: The IRS released Tax Tip 2022-117, providing the legal distinctions between an employee and an independent contractor.

August 3, 2022: The IRS released Notice 2022-33, extending the deadlines for amending a retirement plan or individual retirement arrangement to reflect certain provisions of Division O of the Further Consolidated Appropriations Act, also known as the Setting Every Community Up for Retirement Enhancement Act of 2019, and section 104 of Division M of the Further Consolidated Appropriations Act, 2020, also known as the Bipartisan American Miners Act of 2019.

August 3, 2022: The IRS released COVID Tax Tip 2022-118, explaining the educator expense deduction, which allows eligible teachers and administrators to deduct part of their cost for technology, supplies and training from their personal taxes. This applies only to expenses that were not reimbursed by their employer, grant or other source.

August 4, 2022: IRS Commissioner Charles Rettig sent a letter to the US House of Representatives and a letter to the US Senate explaining the importance of the Budget Reconciliation legislation. Our summary of the Inflation Reduction Act of 2022 as it relates to IRS funding can be found here.

August 4, 2022: The IRS provided Tax Tip 2022-119, cautioning people to donate carefully after a disaster to avoid scams.

August 4, 2022: The IRS released its latest executive column, “A Closer Look.” The article, “Don’t Wait to File Your 2021 Tax Return,” features Doug O’ Donnell, IRS Deputy Commissioner, Services & Enforcement, and urges taxpayers to file their taxes early and electronically to avoid delays. Taxpayers who filed for an extension by the April due date have until October 17, 2022, to file their 2021 tax return.

August 4, 2022: The IRS asked for comments on rules for the Affordable Care Act related to internal claims and appeals and the external review process.

August 4, 2022: The IRS released final regulations related to the Section 754 Election Statement, removing the signature requirement for electing to change the basis of partnership property in cases of a distribution of property by the partnership or a transfer of an interest in the partnership.

August 5, 2022: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).

Special thanks to Sarah Raben in our Chicago office for this week’s roundup.

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