Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of December 4, 2023 – December 8, 2023.

December 4, 2023: The IRS released Internal Revenue Bulletin 2023-49, which includes the following:

• Revenue Ruling 2023-22, which establishes certain interest rates pursuant to § 6621 of the Internal Revenue Code (Code) for the calendar quarter beginning January 1, 2024.
• Notice 2023-76, which updates the corporate bond monthly yield curve and corresponding spot segment rates for November 2023 used under § 417(e)(3)(D), the 24-month average segment rates for November 2023 and the 30-year Treasury rates, as reflected by the application of § 430(h)(2)(C)(iv).
• Proposed regulations regarding excise taxes on taxable distributions made by a sponsoring organization from a donor advised fund. Comments and requests for a public hearing must be received by January 16, 2024.
• Announcement 2023-34, which revokes § 501(c)(3) determinations for certain organizations and stipulates that contributions made to the organizations by individual donors are no longer deductible under § 170(b)(1)(A).
• Proposed regulations that provide guidance on the statutory disallowance of qualified conservation contributions made by partnerships and S corporations if the amount of the charitable contribution exceeds 2.5 times the sum of each partner’s or S corporation shareholder’s relevant basis. Comments must be received by December 20, 2023.
• A Notice of Proposed Rulemaking that reopens the comment period for proposed regulations relating to the determination and recognition of taxable income or loss and foreign currency gain or loss with respect to a qualified business unit pursuant to § 987. Comments and requests for a public hearing must be received by February 12, 2024.
• Revenue Ruling 2023-21, which provides the applicable federal rates for December 2023.

December 6, 2023: The IRS announced that it sent more than 20,000 letters to taxpayers disallowing Employee Retention Credit (ERC) claims. These letters are part of the ongoing IRS initiative against dubious ERC claims involving entities that did not exist or did not pay wages during the eligibility period.

December 7, 2023: The IRS requested applications for nomination to the Electronic Tax Administration Advisory Committee through January 31, 2024.

December 7, 2023: The IRS released Revenue Procedure 2023-41, which prescribes discount factors for the 2023 accident year for use by insurance companies in computing discounted unpaid losses pursuant to § 846 and discounted estimated salvage recoverable pursuant to § 832.

December 8, 2023: The IRS released Notice 2023-79, which sets forth the 2023 Required Amendments List that applies to § 401(a) and § 403(b) individually designated plans.

December 8, 2023: The IRS released Revenue Procedure 2024-8, which provides a list of qualified census tracts for each state, the District of Columbia and Puerto Rico for issuers of qualified mortgage bonds defined in § 143(a) and issuers of mortgage credit certificates defined in § 25(c).    

December 8, 2023: The IRS recently received the Enterprise Risk Management Luminary Award at the Annual ERM Summit.

December 8, 2023: The IRS Independent Office of Appeals (Appeals) released its Focus Guide for fiscal year 2024—highlighting where Appeals will be improving taxpayer service in its mission to resolve tax disputes in a fair and impartial manner without the need for litigation.

December 8, 2023: The IRS reminded taxpayers that they may be eligible to use tax-free dollars to pay medical expenses not covered by other health plans through their Flexible Spending Arrangements (FSAs). For tax year 2024, there is a $150 increase to the contribution limit for FSAs.

December 8, 2023: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).

Special thanks to John Zhang in our New York office for this week’s roundup.

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