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Clean energy credits: what you need to know about eligibility

Clean energy credits: what you need to know about eligibility Tax-exempt and governmental entities can benefit from clean energy tax credits using new options enabled by the Inflation Reduction Act of 2022 (IRA). This newsletter is part of a series from the IRS to provide information to Indian tribal governments about clean energy tax credits and how to make elective payment elections. The IRA allows Indian tribal governments and Alaskan Native Corporations to benefit from certain clean energy tax credits through elective pay. For tax years beginning after December 31, 2022, an applicable entity that qualifies for a clean energy tax credit can make an elective payment election. This election will treat certain credits as a payment against their federal income tax liabilities rather than as a nonrefundable credit. The amount of the credit will first offset any tax liability of the entity and any excess will be refundable. Eligibility Information Applicable entities generally include certain tax-exempt organizations, state and local governments, Indian tribal governments, Alaska Native Corporations, the Tennessee Valley Authority and rural electric cooperatives. An Indian tribal government, political subdivision thereof, or any agency or instrumentality of a Tribal government or political subdivision is eligible for elective pay. The term, "Indian tribal government", means: the recognized governing body of any Indian or Alaska Native tribe, band, nation, pueblo, village, community, component band, or component reservation, individually identified (including parenthetically) in the most recent list published in the Federal Register by the Department of the Interior under the Federally Recognized Indian Tribe List Act of 1994. Tribal entities are also eligible to the extent they are exempt from tax under section 501(a). Alaska Native Corporations (as defined in section 3 of the Alaska Native Claims Settlement Act (43 U.S.C. 1602(m)) are also applicable entities that are eligible for the elective payment election. Settlement Trusts are not eligible based on affiliation with an Alaska Native corporation, but do qualify if the Settlement Trust qualified for exempt status under section 501(a) and applied for and received a determination letter from the IRS recognizing any such tax-exempt status. The applicable entity generally must own the property that generates the eligible credit (or otherwise conduct the activities giving rise to the underlying eligible credit). That ownership can occur through various structures. For example, an applicable entity could directly own the property, or could own it through a disregarded entity, or could own an undivided interest in an ownership arrangement treated as a tenancy-in-common or pursuant to a joint operating arrangement that has properly elected out of subchapter K of chapter 1 of the Code (subchapter K) under section 761. See Publication 5817-F (Indian Tribal Governments) and Publication 5817-C (Alaska Native Corporations) for more information about elective pay. Additional information about clean energy tax credits can be found at irs.gov/tribes and irs.gov/cleanenergy.

Understanding Clean Energy Credits and Their Eligibility The Inflation Reduction Act of 2022 (IRA) has opened up new avenues for tax-exempt and governmental entities to leverage clean energy tax credits. This includes Indian tribal governments and Alaskan Native Corporations, who can use these credits to offset their federal income tax liabilities. This article aims to […]

Existing Non-U.S. Filing Information Returns Electronically (FIRE) Customers

Audience: Payroll Industry, Tax Professionals, Small Business and Self Employed, Tax Exempt and Government Entities, Financial Institutions If you are a non-U.S. customer and have not been able to complete an Information Returns (IR) Application for Transmitter Control Code (TCC) for access to the FIRE System: * Your FIRE TCC for filing Form 1042-S and Form 1099 will remain available for filing. No additional actions are required. * The IRS is aware that some foreign individuals who are acting on behalf of their foreign employer (e.g., Foreign Entities, Foreign Financial Institutions, Qualified Intermediaries, etc.) may not be able to obtain an individual taxpayer identification number (ITIN) or Social Security number (SSN) to complete the IR Application for TCC. We continue to explore other ways for taxpayers to authenticate their identities, including a government-sponsored option. *Reminder:* Starting tax year 2023 (calendar year 2024), if you have 10 or more information returns, you must file them electronically. Find details on final e-file regulations on IRS.gov. Visit Filing Information Returns Electronically (FIRE), for more information.

Guidelines for Non-U.S. Customers Using the FIRE System This article is intended for a broad audience, including the payroll industry, tax professionals, small businesses, self-employed individuals, tax-exempt and government entities, and financial institutions. It specifically addresses non-U.S. customers who have been facing difficulties with the Information Returns (IR) Application for Transmitter Control Code (TCC) required […]

Statistics of Income Data Releases

IRS Tax Stats Dispatch October 17, 2023 Useful Links: Tax Statistics Home Statistics Business Tax Charitable Compliance Individual Tax By Form Products & Publications IRS Resources Contact My Local Office Filing Options Forms & Pubs Frequently Asked Questions News Taxpayer Advocate Where to File Issue Number: 2023 - 12 Inside This Issue 2023 Calendar Year Projections of Information and Withholding Documents for the United States and IRS Campuses (Publication 6961) Update Heavy Highway Vehicle Use Tax Returns, Calendar Years 2014-2023, Q2 Release Fiscal Year Return Projections for the United States: 2023-2030, Publication 6292 (Spring 2023) 2022 Program Documentation: Data Items by Forms and Schedules (Publication 5384) Foreign-Controlled Domestic Corporations, Tax Year 2020 2020 Corporation Income Tax Returns Complete Report (Publication 16) U.S. Corporation Returns with a Foreign Tax Credit, Tax Year 2020 2020 Corporation Income Tax Returns Line Item Estimates (Publication 5108) For more information on Federal Taxes please visit IRS.gov. Thank you for subscribing to Tax Stats Dispatch Mailing List, an IRS e-mail service.

Unveiling the Latest Statistics of Income Data Releases Delve into the most recent data releases from the Internal Revenue Service (IRS) Tax Stats Dispatch as of October 17, 2023. This comprehensive guide will walk you through the key points and provide you with all the essential links for further exploration. Key Resources Whether you’re looking […]

#ICYMI Top CI Stories from the Past Week

ICYMI: Top IRS Criminal Investigation (CI) Stories From The Past Week Oct. 16, 2023 Useful Links About CI What do we investigate? How investigations are initiated J5 international partnership IRS.gov/CI Tax Schemes and Fraud Tax Fraud Alerts Report Suspected Tax Fraud Voluntary Disclosure CI Newsroom CI News Releases CI Resources CI Annual Reports Week of Oct. 9 - 15 #ICYMI Top CI Stories from the Past Week 1. Federal grand jury indicts Buffalo man for fraudulently receiving COVID-19 funds The funds were allegedly used for personal expenditures at hotels and restaurants, and for cash withdrawals, among other non-Covid related expenses. 2. J5 cyber experts talk smart contracts and NFTs with Citibank investigators The discussion centered on combating crime arising from emerging financial technology 3. We honor the contributions of our employees of Hispanic heritage and prioritize diversity in recruiting efforts We're spreading the word to communities throughout America: We're hiring! 4. We #FollowTheMoney You may know us for combating tax crimes, but following the money trail uncovers a wide range of illicit activity critical to our partner investigations. 5. Former chairman of 1 Global pleads guilty to running $250 million securities fraud scheme Our Miami Field Office is investigating this major case with partner law enforcement agencies. CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a more than a 90 percent federal conviction rate. The agency has 20 field offices located across the U.S. and 12 attaché posts abroad.

A Weekly Roundup of Top Stories from IRS Criminal Investigation In case you missed it, we’re bringing you a recap of the most important stories from the IRS Criminal Investigation (CI) division for the week of October 9th to 15th, 2023. Buffalo Man Indicted for COVID-19 Funds Fraud In our first story, a federal grand […]

FINAL REMINDER ALERT: QI (including QDD), WP, WT Application Deadline for 2023

FINAL REMINDER ALERT: QI (including QDD), WP, WT Application Deadline for 2023 This Alert provides the deadline for all Qualified Intermediary (QI) (including Qualified Derivatives Dealer), Withholding Foreign Partnership (WP) and Withholding Foreign Trust (WT) applications for the 2023 year. All applicants that want to have an agreement in effect for 2023 must submit their applications through the "Qualified Intermediary, Withholding Foreign Partnership, Withholding Foreign Trust Application & Account Management System (QAAMS)" no later than October 27, 2023 to allow sufficient time for processing by year end. If required for chapter 4 purposes, applicants must have obtained a GIIN prior to submitting their applications. See" section 2.22 of the QI Agreement in Rev. Proc. 2022-43, or section 12.01(a) of the WP or WT Agreement in Rev. Proc. 2017-21 for the effective date of an agreement" for a new applicant. Please note that applications submitted after October 27, 2023 will not be processed. Prospective applicants, unable to submit an application before the October 27, 2023 deadline, should wait until January 1, 2024 to submit the application for the 2024 year.

Final Call: 2023 Application Deadline for QI (including QDD), WP, and WT This is your final reminder regarding the upcoming deadline for all Qualified Intermediary (QI) (including Qualified Derivatives Dealer), Withholding Foreign Partnership (WP), and Withholding Foreign Trust (WT) applications for the year 2023. If you’re an applicant wishing to have an agreement in effect […]

e-News for Tax Professionsals Issue 2023-41

e-News for Tax Professionals October 13, 2023 Upcoming Events Seminars, Workshops, Conferences, and Other Practitioner Activities By State: Nationwide Webinars Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming Issue Number: 2023-41 Inside This Issue Taxpayers impacted by the terrorist attacks in Israel qualify for tax relief IRS updates tax gap projections for 2020, 2021 A Closer Look: Get to know the IRS, its people, the issues affecting taxpayers News from the Justice Department’s Tax Division Technical Guidance 1. Taxpayers impacted by the terrorist attacks in Israel qualify for tax relief The Internal Revenue Service today announced tax relief for individuals and businesses affected by the terrorist attacks in the State of Israel. These taxpayers now have until Oct. 7, 2024, to file various federal returns, make tax payments and perform other time-sensitive tax-related actions. See more in Notice 2023-71. 2. IRS updates tax gap projections for 2020, 2021 The IRS released new tax gap projections for tax years 2020 and 2021 showing the projected gross tax gap increased to $688 billion in tax year 2021, a significant jump from previous estimates. “This increase in the tax gap underscores the importance of increased IRS compliance efforts on key areas," said IRS Commissioner Danny Werfel. "With the help of Inflation Reduction Act funding, we are adding focus and resources to areas of compliance concern, including high-income and high-wealth individuals, partnerships and corporations.” 3. A Closer Look: Get to know the IRS, its people, the issues affecting taxpayers The executive column “A Closer Look” covers a variety of timely issues of interest to taxpayers and the tax community. It also provides a detailed look at key issues affecting everything from IRS operations and employees to issues involving taxpayers, tax and payroll professionals. Take a closer look. 4. News from the Justice Department’s Tax Division Jessica Avras of Nevada pleaded guilty to assisting in the preparation of false income tax returns. Avras, who admitted that her conduct caused a tax loss to the IRS of approximately $525,000, faces a maximum penalty of three years in prison, a period of supervised release and monetary penalties. 5. Technical Guidance Revenue Procedure 2023-33 sets forth the procedures under sections 30D(g) and 25E(f) of the Internal Revenue Code for the transfer of the clean vehicle credit or previously owned clean vehicle credit from the taxpayer who elects to transfer such credit to an eligible entity. These procedures will apply to transfers of credits after Dec. 31, 2023.

e-News for Tax Professionals Edition 2023-41 In this edition of e-News for Tax Professionals, we’re covering a variety of important topics and updates as of October 13, 2023. From upcoming events to critical tax updates, we’ve got you covered! Upcoming Events We’re excited to announce a series of nationwide webinars, seminars, workshops, conferences, and other […]

The IRS Updates FAQ on the QI/WP/WT’s FAQs Page

The IRS updates FAQ Q20 to provide guidance on WP/WT agreement renewals. This FAQ is under the section New Applications/2017 Renewals of the QI/WP/WT’s FAQs page.

The Latest IRS Update on QI/WP/WT’s FAQs Page The Internal Revenue Service (IRS) has recently made a significant update to their Frequently Asked Questions (FAQs) page. Specifically, they have revised FAQ Q20, which now provides new guidance on WP/WT agreement renewals. Understanding the WP/WT Agreement Renewals The updated FAQ Q20 is located under the section […]

Scheduled Maintenance for the Affordable Care Act Information Returns (AIR) System

The AIR Production and ACA Assurance Testing System (AATS) systems will be unavailable due to scheduled maintenance from Saturday, October 14, 2023, from 12:00 a.m. Eastern time until 2:00 p.m. Eastern time. Please do not attempt to access the Application to Application (A2A) and User Interface (UI) Channels during the maintenance period. Please monitor the AIR System Operational Status page for any updates. We apologize for any inconvenience this may cause.

Upcoming Maintenance for the Affordable Care Act Information Returns (AIR) System An important announcement for all users of the Affordable Care Act Information Returns (AIR) System: there will be a scheduled maintenance period that will affect system availability. When is the Maintenance Scheduled? The maintenance period is set to begin on Saturday, October 14, 2023. […]