The IRS proposes regulations regarding excise tax on share buybacks

Read our summary of key IRS guidance and relevant tax issues for the week of May 13, 2024 through May 17, 2024.

May 13, 2024: The IRS has published Revenue Bulletin 2024-20, which includes proposed regulations regarding the excise tax on stock repurchases under Internal Revenue Code § 4501. The proposed regulations are generally consistent with the guidance previously included in Notice 2023-2. The proposed regulations also include guidance on the reporting and payment of Code § 4501 of the excise tax.

May 14, 2024: The IRS has announced that, contrary to recent reports, there will be no changes to Native American tribes’ access to federal tax credits under state arrangements.

May 14, 2024: The IRS reminded U.S. citizens and foreigners living abroad to file and pay their taxes.

May 14, 2024: The IRS has warned taxpayers not to be fooled by inaccurate social media advice and tax scams related to the Gas Tax Credit, Sick and Family Leave Credit and household employment taxes that have led taxpayers to submit inflated tax refund claims 2023 tax season.

May 14, 2024: The IRS has published geographic identifiers for census tracts that qualify under Code § 30C using the 2015 and 2020 census tract boundary delineations, which can be accessed on Schedule A and Schedule B, respectively.

May 15, 2024: The IRS reminded businesses to check their tax returns for incorrect Worker Retention Credit (ERC) claims and listed signs that an ERC claim may be invalid.

May 15, 2024: The IRS has published Notice 2024-42, which sets out updated static mortality tables for defined benefit retirement plans under the Employee Retirement Income Security Act of 1974 (ERISA) for measurement dates in calendar year 2025. The notice also includes a modified version bisex mortality tables for establishing minimum present values ​​under ERISA for distributions with annuity start dates falling during periods of stability beginning in calendar year 2025.

May 15, 2024: The IRS has issued a 2024-12 Tax Revenue Ruling that includes federal rates effective in June 2024.

May 15, 2024: The IRS published Notice 2024-40, which shows the corporate bond segment’s average 24-month interest rates for May 2024, the yield curve and segment rates for single-employer plans, and the 30-year Treasury interest rates.

May 16, 2024: The IRS has published Notice 2024-41, which modifies section 3.04 of Notice 2023-38 by changing the contents of the “Applicable Projects” list. The notice also provides a safe harbor under which taxpayers can elect to qualify for the domestic content bonus. Find out more here.

May 16, 2024: The IRS has extended the deadline to file federal individual and corporate income tax returns and make tax payments for certain individuals and businesses in Ohio that were affected by the series of tornadoes that began on March 14, 2024. The new deadline is September 3, 2024. extended the deadline is available to taxpayers in any area designated by the Federal Emergency Management Agency, including individuals and households residing or doing business in Auglaize, Crawford, Darke, Delaware, Hancock, Licking, Logan, Mercer, Miami, Richland and Union.

May 16, 2024: The IRS encouraged entities to list multiple clean energy professionals as authorized users of the online IRS Energy Credits tool to ensure continued access to their accounts.

May 17, 2024: The IRS has published Notice 2024-24 notifying taxpayers of the applicable benchmark 90.1 required under Code § 179D(c)(2) as part of the definition of “energy efficient commercial property,” effective May 17, 2024.

May 17, 2024: The IRS issued Notice 2024-25 reporting the total amount of unallocated environmental justice solar and wind capacity limitations for the Low-Income Communities Credit Bonus Program under Code § 48(e) and its regulations that was carried forward from the Program to 2023 year to program year 2024.

May 17, 2024: The IRS has released its weekly list of written findings (e.g.personal letter judgments, technical advice memorandums and general counsel advice).