Item for Tuesday, October 3, 2023
Tax Relief for Louisiana Residents Affected by Seawater Intrusion: The IRS has announced tax relief for individuals and businesses affected by seawater intrusion in the following Louisiana parishes: Jefferson, Orleans, Plaquemines, and St. Bernard. These taxpayers now have until 2/15/24 to file various federal and business tax returns and make tax payments that were originally due during the relief period. This includes all returns normally due on or after 9/20/23 and before 2/15/24, including 2022 individual income tax returns due on 10/16/23. The IRS noted, however, that because tax payments related to these 2022 returns were due on 4/18/23, those payments are not eligible for relief. The 2/15/24 deadline also applies to third and fourth quarter estimated tax payments, quarterly payroll and excise tax returns, and business returns with extended due dates, which includes partnerships, S corporations, C corporations, and tax-exempt organizations. In addition, penalties on payroll and excise tax deposits due on or after 9/20/23 and before 10/5/23 will be abated, as long as the deposits are made by 10/5/23. News Release IR 2023-184 .
Item for Monday, October 2, 2023
IRS Issues Guidance on Tax Treatment of Employer-Leave Based Donations for Hawaii Wildfire Victims: The IRS has issued guidance for employers whose employees forgo sick, vacation, or personal leave to aid victims of the wildfires that began in parts of Hawaii on 8/8/23. Notice 2023-69 provides that cash payments employers make to charitable organizations during 2023 and 2024 providing relief to Hawaii wildfire victims will not be treated as compensation to the employees. Therefore, employees donating the leave will not receive the value of their donated leave as income and thus, will not be able to claim a deduction for the donated leave. Employers, however, may deduct these cash payments as a business expense or as a charitable contribution if they otherwise qualify. News Release IR 2023-181.
Item for Friday, September 29, 2023
IRS Issues Proposed Regulations on Designated Drug Excise Tax Reporting: The IRS has issued proposed regulations providing guidance to taxpayers on reporting the IRC Sec. 5000D excise tax imposed on manufacturers, producers, or importers of certain designated drugs. These proposed rules follow the IRS’s announcement in Notice 2023-52 that it would propose regulations to address substantive and procedural issues related to the IRC Sec. 5000D excise tax. The proposed regulations address how to report the tax liability and satisfy other procedural requirements related to the excise tax. The proposed regulations also provide an exception for the excise tax from semimonthly deposit requirements. The IRS has indicated it will address substantive issues related to the tax in a separate notice. The government is requesting written comments on the proposed regulations, which must be received by 12/2/23. The proposed regulations have an effective date of 10/1/23. REG-115559-23 .
