IRS Updates and Taxpayer Alerts
The Internal Revenue Service (IRS) has been actively issuing guidance and warnings to taxpayers, highlighting the importance of staying informed on tax matters. In a recent release, Internal Revenue Bulletin 2024-14 was announced, which includes critical updates such as Notice 2024-29. This notice provides the latest figures on the corporate bond monthly yield curve, spot segment rates for February 2024, and the 24-month average segment rates for March 2024, all essential for pension plans and other related financial calculations.
Furthermore, the IRS has released Revenue Ruling 2024-7, which details the applicable federal rates for April 2024. These rates are vital for various tax provisions including loan calculations and investment considerations. Additionally, proposed regulations have been introduced to guide taxpayers on the Section 45V production tax credit, a result of the Inflation Reduction Act of 2022, and the election to treat qualified property as energy property under Section 48.
Amidst these updates, the IRS has issued several warnings to taxpayers. Scammers have been targeting individuals by offering assistance in setting up online IRS accounts to steal personal information. Taxpayers are also cautioned against promoters pushing improper Fuel Tax Credit claims and offer in compromise “mills” that falsely promise tax debt relief. The latter has been included in the IRS’s “Dirty Dozen” list of tax scams.
In light of recent events, the IRS has extended deadlines for taxpayers affected by terrorist attacks in Israel and severe storms in Maine and Rhode Island. These extensions allow additional time for filing federal individual and business tax returns and making payments.
With the April 15 deadline approaching, the IRS reminds taxpayers of free online tax preparation services for families, the availability of credits such as the $500 credit for other dependents, and the importance of meeting estimated tax payment obligations. Additionally, adoptive parents are reminded of the potential benefits available through the adoption credit.
Lastly, taxpayers should be wary of “ghost preparers” who may encourage ineligible claims for tax credits and benefits. The IRS also clarifies that amounts received from the US Department of Energy’s home energy rebate programs should not be reported as income but rather as a reduction in purchase price or cost.
The week concludes with the IRS issuing its weekly list of written determinations, which includes Private Letter Rulings and other authoritative advice, providing further insight into specific tax-related queries.
