Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of May 6, 2024 – May 10, 2024.

May 6, 2024: The IRS released Internal Revenue Bulletin 2024-19, which includes the following:

• Revenue Ruling 2024-09, which provides the May 2024 applicable federal rates.
• Notice 2024-35, which provides guidance related to certain specified required minimum distributions for certain stock bonus, pension and profit-sharing plans described in Internal Revenue Code (Code) § 401(a). The notice also announces that the IRS intends to issue related final regulations that will apply for calendar years beginning on or after January 1, 2025.
• Revenue Procedure 2024-20, which provides the domestic asset and liability percentages and domestic investment yields needed by foreign life insurance companies, foreign property and liability insurance companies to compute their minimum effectively connected net investment income under Code § 842(b). The revenue procedure also provides instructions for computing foreign insurance companies’ estimated tax liabilities.
• Treasury Decision 9990, which amends the definition of short-term, limited-duration insurance for purposes of exclusion from the definition of “individual health insurance coverage” under the Public Health Service Act and provides regulations regarding requirements for hospital indemnity or other fixed indemnity insurance to be considered an excepted benefit in the group and individual health insurance markets.
• Revenue Procedure 2024-21, which provides issuers of qualified mortgage bonds (as defined in § 143(a)) and issuers of mortgage credit certificates (as defined in § 25(c)) with the nationwide average purchase price for residences located in the United States and the average area purchase price safe harbors for residences located in statistical areas in each state, the District of Columbia and US territories.
• Announcement 2024-20, which revokes the § 501(c)(3) determination for specified organizations and stipulates that contributions made to said organizations by individual donors are no longer deductible under Code § 170(b)(1)(A).

May 6, 2024: The IRS recognized two of its teams that reached the finals for the Samuel J. Heyman Service to America Medals as part of the 2024 Public Service Recognition Week. These teams included the Paperless Processing Initiative Team for its efforts to digitize IRS correspondence and two CI special agents for spearheading an investigation that led to a $3.4 billion cryptocurrency seizure and forfeiture.

May 6, 2024: The IRS reminded one million taxpayers who did not file their 2020 tax returns that they may still be eligible for a refund if they file by the May 17, 2024, deadline. The IRS estimates that more than $1 billion in refunds remain unclaimed as a result.

May 6, 2024: The IRS provided general tips for taxpayers upon receipt of mail from the IRS. In particular, taxpayers should remember to carefully read all IRS letters, save copies for their records and timely dispute notices where applicable.

May 6, 2024: The IRS reminded taxpayers of their right to challenge the IRS’s position and be heard under the Taxpayer Bill of Rights.

May 6, 2024: The IRS encouraged calendar year tax-exempt organizations to file their taxes ahead of the May 15, 2024, deadline. The IRS also provides online access to a series of pre-recorded workshops to help tax-exempt organizations comply with filing requirements.

May 8, 2024: The IRS highlighted additional protections for tax professionals to increase security when using the Centralized Authorization File program and placed new guidelines for requesting client transcripts by phone to protect against identity theft and return fraud.

May 8, 2024: The IRS announced the release of proposed regulations as guidance for Code §§ 643(i), 679, 6039F, 6048 and 6677 regarding information reporting on transactions with foreign trusts and receipt of large foreign gifts and regarding loans from, and uses of property of, foreign trusts. The proposed regulations also amend the regulations related to foreign trusts having one or more US beneficiaries.

May 8, 2024: the IRS provided an overview of the appeals procedure for taxpayers who want to appeal an IRS decision.

May 9, 2024: The IRS reminded taxpayers that making certain energy efficient updates to their homes could qualify them for home energy credits, including the Energy Efficient Home Improvement Credit and the Residential Clean Energy Credit.

May 9, 2024: The IRS released Revenue Ruling 2024-11, which provides the interest rates for tax underpayments and overpayments for the calendar quarter beginning July 1, 2024.

May 9, 2024: The IRS issued Revenue Procedure 2024-25, which provides the 2025 inflation adjusted amounts for Health Savings Accounts (as determined under § 223) and the maximum amount that may be made newly available for excepted benefit health reimbursement arrangements provided under § 54.9831-1(c)(3)(viii) of the Pension Excise Tax Regulations.

May 10, 2024: The IRS announced the steps it took to strengthen its internal systems, protocols, security controls and procedures to reduce risks for taxpayers and the tax system.

May 10, 2024: The IRS released a statement to taxpayers who received Letter 6613, pertaining to the unauthorized disclosure of tax return information by former IRS Contractor Charles Littlejohn. The statement criticizes the unauthorized disclosure and outlines steps the IRS has taken to enhance data security.

May 10, 2024: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).

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