Document Summaries for the week of Sept. 19, 2022

Tax document summaries for the week of Sept. 19–23, 2022, covering employee benefits, IRS procedure, and more.

EMPLOYEE BENEFITS

IRS updates weighted average interest rates, yield curves, and segment rates

The IRS issued a notice that provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates used under Sec. 417(e)(3), and the 24-month average segment rates under Sec. 430(h)(2). In addition, the notice provides guidance as to the interest rate on 30-year Treasury securities under Sec. 417(e)(3)(A)(ii)(II), as in effect for plan years beginning before 2008, and the 30-year Treasury weighted average rate under Sec. 431(c)(6)(E)(ii)(I). Notice 2022-40 (9/19/22)).

 

IRS PROCEDURE

Tax relief for Puerto Rico victims of Hurricane Fiona

The IRS announced that individuals and businesses in Puerto Rico that are victims of Hurricane Fiona beginning Sept. 17, 2022, now have until Feb. 15, 2023, to file various individual and business tax returns and make tax payments. PR-2022-10 (9/19/22).

Appeals procedural guidance issued on penalty relief for 2019 and 2020 returns

The IRS issued a memorandum to IRS Independent Office of Appeals employees with guidance on procedures for considering administrative relief from certain failure-to-file penalties with respect to certain tax and international information returns for tax years 2019 and 2020 that are filed on or before Sept. 30, 2022, pursuant to Notice 2022-36. AP-08-0922-0012 (9/19/22).

IRS updates work opportunity tax credit prescreening and certification process

The IRS issued updated information on the prescreening and certification process for the work opportunity tax credit, which is available to employers that hire designated categories of workers who face significant barriers to employment. IR-2022-159 (9/19/22).

 

PARTNERSHIPS

Law firm and former partner failed to register tax shelters; Sec. 6707 penalties apply

The Tax Court held that a law firm and its former partner were liable for Sec. 6707 penalties for failing to register tax shelters offered to clients in 1999 and 2000. The court also concluded that the IRS had established that the written supervisory approval requirement under Sec. 6751(b) was satisfied. Goddard, T.C. Memo. 2022-96 (9/19/22).

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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.