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 activities for practitioners. These events are designed to keep you updated and informed, and they’re happening across the country. From Alabama to Wyoming, there’s something for everyone.

Inside This Edition

In this issue, we’re covering a range of important topics:

1. Tax relief for taxpayers affected by terrorist attacks in Israel
2. IRS’s updated tax gap projections for 2020 and 2021
3. An in-depth look at the IRS, its staff, and the issues affecting taxpayers
4. News from the Justice Department’s Tax Division
5. Technical guidance on the transfer of clean vehicle credits

Tax Relief for Those Impacted by Terrorist Attacks in Israel

The Internal Revenue Service has announced tax relief for individuals and businesses affected by the terrorist attacks in Israel. These taxpayers now have until October 7, 2024, to file various federal returns, make tax payments, and perform other time-sensitive tax-related actions. For more information, see Notice 2023-71.

IRS Updates Tax Gap Projections for 2020, 2021

The IRS has released new tax gap projections for tax years 2020 and 2021. The projected gross tax gap increased to $688 billion in tax year 2021, a significant increase from previous estimates. IRS Commissioner Danny Werfel emphasized that this increase underscores the importance of increased IRS compliance efforts on key areas. With the help of Inflation Reduction Act funding, the IRS is adding focus and resources to areas of compliance concern, including high-income and high-wealth individuals, partnerships, and corporations.

A Closer Look: Understanding the IRS and 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 provides a detailed look at key issues affecting everything from IRS operations and employees to issues involving taxpayers, tax, and payroll professionals. We invite you to take a closer look.

News from the Justice Department’s Tax Division

Jessica Avras of Nevada has pleaded guilty to assisting in the preparation of false income tax returns. Avras admitted that her conduct caused a tax loss to the IRS of approximately $525,000. She faces a maximum penalty of three years in prison, a period of supervised release, and monetary penalties.

Technical Guidance

Revenue Procedure 2023-33 outlines 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 December 31, 2023.