Potential CPE

The Tax Court ruled in a separate proceeding in Aroeste that the Tax Court has no jurisdiction over international information reporting penalties under sections 6038(b) and 6677

Six Weeks, Three International Information Reporting Decisions | Tax Notes Patrick W. Martin, Sebastien N. Chain, and Luz Villegas-Banuelos examine three recent taxpayer victories in precedent-setting international information reporting cases: Aroeste, Bittner, and Farhy.

WASHINGTON — The Internal Revenue Service today announced that interest rates will increase for the calendar quarter beginning Oct.1, 2023.

For individuals, the rate for overpayments and underpayments will be 8% per year, compounded daily. Here is a complete list of the new rates:

-8% for overpayments (payments made in excess of the amount owed), 7% for corporations.
-5.5% for the portion of a corporate overpayment exceeding $10,000.
-8% for underpayments (taxes owed but not fully paid).
-10% for large corporate underpayments.

Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.

Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.

The interest rates announced today are computed from the federal short-term rate determined during July 2023. See the revenue ruling for details.

In this Taxes in Ten video we discuss Qualified Domestic Relations Orders AKA QDROs.

Qualified Domestic Relations Order or QDRO In this Taxes in Ten video we discuss Qualified Domestic Relations Orders also known as a QDRO.

ERC update
Did your client qualify for ERC based on "supply chain" issues. Well the IRS has now issued written legal guidance and they just might disagree with that flimsy position.

www.irs.gov

New CCA on crypto

If Taxpayer A is required to obtain a qualified appraisal under section 170(f)(11)(C) of the Code and fails to do so, does the reasonable cause exception provided in section 170(f)(11)(A)(ii)(II) apply if Taxpayer A determines the value of the cryptocurrency based on the value reported by a cryptocurrency exchange on which the cryptocurrency is traded?

If Taxpayer A determines the value of the donated cryptocurrency based on the value reported by a cryptocurrency exchange on which the cryptocurrency is traded rather than by obtaining a qualified appraisal, the reasonable cause exception provided in section 170(f)(11)(A)(ii)(II) will not excuse noncompliance with the
qualified appraisal requirement, and Taxpayer A will not be allowed the charitable contribution deduction under section 170(a).

www.irs.gov

1040 MeF Production Shutdown Schedule

Shutdown begins on Saturday, November 26, 2022, at 11:59 p.m. Eastern time, to prepare the system for the upcoming Tax Year 2022 Filing Season.

QuickAlerts - Technical - 1040 Modernized e-File (MeF) Production Shutdown and Cutover QuickAlerts - Technical - 1040 Modernized e-File (MeF) Production Shutdown and Cutover Internal Revenue Service (IRS) sent this bulletin at 10/18/2022 03:22 PM EDT Having trouble viewing this email? View it as a Web page. e-file Resources QuickAlerts Library QuickAlerts Article QuickAlerts Brochure....

I'm working on a split return right now. Called the client this morning to explain the process and how it could net them thousands of dollars.

Married Couples May Save Thousands By Filing Form 1040 Separately For 2021 Two married filing separately returns will almost never yield a lower total tax than a joint return - until recently that is. Apparently with 2021 returns it is happening a lot.

As you head into the final 1/3 of the year here are a few things to remember for tax year 2022:
1. The 1 year only increase in the child tax credit expired at the end of 2021. This credit reverted back to $2,000 from $3,000.
2. The age is reduced back to under 17 from under 18.
3. The credit is no longer fully refundable. A max of $1,400 is refundable.
4. The credit reverts back to the prior income limits of $200,000 / $400,000 and the step up threshold of $75,000 / $150,000 no longer applies.

Who doesn't love depreciation? But how exactly do you calculate it? Find out in the Taxes in Ten video.

Taxes in Ten: Depreciation In this Taxes in Ten video we discuss depreciation, section 168, section 179, 200% declining balance, half year and mid quarter convention.

The Internal Revenue Service today announced that interest rates will increase for the calendar quarter beginning July 1, 2022. The rates will be:

-5% for overpayments (4% in the case of a corporation).
-2.5% for the portion of a corporate overpayment exceeding $10,000.
-5% for underpayments.
-7% for large corporate underpayments.

IRS interest rates increase for the third quarter of 2022 | Internal Revenue Service IR-2022-107, May 20, 2022 — The Internal Revenue Service today announced that interest rates will increase for the calendar quarter beginning July 1, 2022.

Have you seen the new update at "Where's my refund"?

You can now lookup the current year and the prior two years.