Document Summaries for the week of Oct. 31, 2022

Tax document summaries for the week of Oct. 31–Nov. 4, 2022, covering employee benefits, IRS procedure, and more.

EMPLOYEE BENEFITS

SIFL cents-per-mile rates issued

The IRS issued three standard industry fare level (SIFL) cents-per-mile rates and terminal charges in effect for the second half of 2022 for purposes of Regs. Sec. 1.61-21(g), relating to the rule for valuing noncommercial flights provided as an employee fringe benefit on employer-provided aircraft: the unadjusted SIFL rate, the SIFL rate adjusted for payroll support program (PSP) grants, and the SIFL rate adjusted for PSP grants and promissory notes. Taxpayers may use any of the three rates. Rev. Rul. 2022-19 (10/31/22).

 

INDIVIDUALS

Appeals court rejects deductions and credits from solar lens tax shelter

The Tenth Circuit affirmed a Tax Court decision that investors in a solar power tax shelter scheme were not entitled to depreciation deductions and tax credits attributable to light-concentrating Fresnel lenses, which were supposedly going to be used as components of a system to generate electricity, because the taxpayer lacked a profit motive. Olsen, No. 21-9005 (10th Cir. 11/4/22).

 

IRS PROCEDURE

Final regs. increase enrolled agent and enrolled retirement plan agent fees

The IRS issued final regulations increasing the renewal user fee for enrolled retirement plan agents from $67 to $140. In addition, the final regulations increased both the enrollment and renewal of enrollment user fees for enrolled agents from $67 to $140. T.D. 9966 (10/31/22).

Petition for certiorari tolls statute of limitation

The Third Circuit held that petitions for writs of certiorari are "appeals therein" under Sec. 6330(e)(1), so the 10-year limitation period for collecting assessed taxes is tolled while a petition for writ of certiorari is pending with the Supreme Court and remains tolled until the time to file such a petition expires. Due to that tolling of the statute of limitation, the IRS's collection action in this case was timely. Weiss, No. 21-1592 (3d Cir. 11/2/22).

IRS requests comments on clean vehicle credits

The IRS issued a notice announcing its intention to issue guidance under Sec. 45W and Sec. 30C, as amended by the Inflation Reduction Act of 2022, P.L. 117-169.  The notice requests general comments on the new qualified commercial clean vehicles credit under Sec. 45W and the amendments to the alternative fuel vehicle refueling property credit under Sec. 30C, as well as specific comments described in Section 3 of the notice. Notice 2022-56 (11/3/22) (see related news story).

IRS requests comments on the carbon sequestration credit

The IRS issued a notice announcing its intention to issue guidance on the Sec. 45Q credit for the sequestration of carbon dioxide, as amended by the Inflation Reduction Act of 2022, P.L. 117-169. The notice requests general comments on the amendments to the credit, as well as specific questions described in Section 3 of the notice. Notice 2022-57 (11/3/22) (see related news story).

IRS requests comments on the credit for clean hydrogen production and the clean fuel production credit

The IRS issued a notice announcing its intention to issue guidance on new Sec. 45V and new Sec. 45Z, as enacted by the 2022 Inflation Reduction Act, P. L. 117-169. The notice requests general comments on the clean hydrogen production credit under Sec. 45V and the clean fuel production credit under Sec. 45Z, as well as specific comments described in Section 3 of the notice. Notice 2022-58 (11/3/22) (see related news story).

Disclosure of noneconomic substance transactions on Form 8886 is adequate

The IRS Office of Chief Counsel advised that a taxpayer has adequately disclosed noneconomic substance transactions for purposes of Sec. 6662(i)(2) where the material facts of the transactions are disclosed as reportable transactions on Forms 8886, Reportable Transaction Disclosure Statement, but are not separately disclosed on Forms 8275, Disclosure Statement. The Chief Counsel's Office noted that, while Notice 2010-62 requires the disclosure of such information on Form 8275, a March 5, 2019, Treasury Department Policy Statement on the Tax Regulatory Process prevents the IRS from arguing that Notice 2010-62 has the force and effect of law.  CCA 202244010 (11/4/22)

Tax Insider Articles

DEDUCTIONS

Business meal deductions after the TCJA

This article discusses the history of the deduction of business meal expenses and the new rules under the TCJA and the regulations and provides a framework for documenting and substantiating the deduction.

TAX RELIEF

Quirks spurred by COVID-19 tax relief

This article discusses some procedural and administrative quirks that have emerged with the new tax legislative, regulatory, and procedural guidance related to COVID-19.