Item for Thursday, November 2, 2023
IRS Releases 2024 Qualified Retirement Plan Amounts: The IRS has released cost-of-living adjustments affecting pension plans and other retirement-related items for tax year 2024. Some of the limits applicable to pension and other retirement plans have increased. For instance, the elective deferral limit for employees participating in 401(k), 403(b), and most 457 plans increased from $22,500 to $23,000 and the limit on annual contributions to a SIMPLE plan has increased from $15,500 to $16,000. The catch-up contribution limit for employees aged 50 and over participating in 401(k), 403(b), and most 457 plans remains at $7,500 and the limit on annual contributions to an IRA increased from $6,500 to $7,000. The $1,000 IRA catch-up contribution for individuals aged 50 or over remains unchanged. The income ranges for determining eligibility to make deductible contributions to traditional IRAs, to contribute to Roth IRAs, and to claim the saver’s credit all increased for 2024. News Release IR 2023-203 and Notice 2023-75.
Item for Wednesday, November 1, 2023
IRS is Offering Free Webinar on 11/2/23 for Updates on Employee Retention Credit: The IRS is offering a webinar on Thursday, 11/2/23, at 2:00 p.m. (ET) on the latest updates to the Employee Retention Credit (ERC). For those who fulfill the requirements, this webinar can be worth up to one hour of continuing education credit. Topics that are expected to be covered include the moratorium on ERC claims and how it affects taxpayers, who can withdraw ERC claims and how, and other details on IRS resources. A live Q&A will take place at the end of the webinar. For more information and how to register, visit: www.irs.gov/businesses/small-businesses-self-employed/webinars-for-tax-practitioners .
Item for Tuesday, October 31, 2023
Treasury Extends Comment Period for Proposed Regulations on Crypto: The IRS and U.S. Treasury have extended the period for public comment on the digital asset reporting proposed regulations. The proposed regulations were published on 8/29/23 and provided guidance on basis determination, backup withholding, and gain or loss computations for sales and exchanges of certain digital assets. Due to strong public interest, the comment period was originally going to close on 10/30/23, but it has been extended until 11/13/23. Note, however, that the public hearing has not been extended and will be held on 11/7/23. Interested parties are encouraged to submit feedback via one of the submission methods outlined in this notice of extension. REG-122793-19 .
Item for Monday, October 30, 2023
IRS Releases Defined Benefit Pension Plan Mortality Tables: The IRS released final (TD 9983) and proposed regulations (REG-103525-23) with the mortality tables for determining present value under defined benefit pension plans. The final regulations are effective 10/20/23 and apply to valuation dates on or after 1/1/24. With a few modifications, these regulations finalize the mortality tables that were first published in a proposed regulation on 04/28/22. Some of these modifications to the tables are updated values that factor in the ongoing impact of COVID-19 and values that reflect the 0.78% annual cap required by the Secure Act 2.0. Additionally, the U.S. Treasury issued proposed regulations that update the requirements for plans that use substitute mortality tables. If these proposed regulations are approved, they will take effect for plan years starting on or after 1/1/25. Reg. 1.430(h)(3)-1 and Prop. Reg. 1.430(h)(3)-2 .
Item for Friday, October 27, 2023
IRS Incorporates E-Signature Rules into Internal Revenue Manual: The IRS has incorporated guidance on e-signatures into its updated Internal Revenue Manual (IRM), making the acceptance of those signatures permanent. During the COVID-19 pandemic, the IRS issued temporary relief allowing taxpayers to electronically sign and submit certain documents. This temporary relief was set to expire on 10/31/23. The IRS has partially incorporated NHQ-01-1121-0004 into the IRM, allowing taxpayers to use e-signatures on specified non-return documents, including extensions of the statute of limitations on assessment or collection, waivers of statutory notices of deficiency and consents to assessment, closing agreements, and any other statement or form needing the signature of a taxpayer or representative traditionally collected by the IRS personnel outside of standard filing procedures. Additionally, the IRS has fully incorporated NHQ-10-1121-0005 into the IRM, allowing e-signatures on certain forms and returns that cannot be filed electronically. IRM 10.10.1.
Document Title:November 14, 2023—No. 2023-22
Checkpoint Source:PPC’s Five-Minute Tax Briefing
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