Newsletters

IRS Provides Transitional Guidance on Stock Repurchase Excise Tax, Announcement 2023-18

The IRS has announced that taxpayers will not be required to report the new Code Sec. 4501 excise tax on stock repurchases during a covered corporation’s tax year on any returns filed with the IRS, or to make such tax payments, before the time specified in the forthcoming regulations previously announced in Notice 2023-2, I.R.B. 2023-3, 374.

Moreover, there will be no addition to tax under Code Sec. 6651(a) or any other provision for failure to file a return reporting the stock repurchase excise tax, or for failure to pay the tax, before the time specified in the forthcoming regulations.

The forthcoming regulations also will require covered corporations to keep complete and detailed records to establish accurately any amount of stock repurchases (including repurchases made after 2022, but before the forthcoming regulations are published) and to retain these records as long as their contents may become material.

Notice 2023-2

The stock repurchase excise tax applies to repurchases made after 2022. The IRS has provided initial guidance on the excise tax in Notice 2023-2, which announces that the Treasury Department and the IRS intend to issue forthcoming regulations on the application of the stock repurchase excise tax. The guidance also describes certain rules for determining the excise tax amount and for reporting and paying the tax that are expected to be included in the forthcoming regulations. Taxpayers may rely on these rules until the publication of the forthcoming regulations.

Specifically, Notice 2023-2 provides that the forthcoming regulations are expected to provide that (i) the excise tax will be reported once per tax year on the Form 720, Quarterly Federal Excise Tax Return, that is due for the first full quarter after the close of the taxpayer’s tax year, (ii) the deadline for payment of the excise tax will be the same as the filing deadline, and (iii) no extensions will be permitted for reporting or paying the excise tax.

For those taxpayers with a tax year ending after 2022, but prior to publication of the forthcoming regulations, the regulations are expected to provide that any liability for the excise tax for such tax year will be reported on the Form 720 that is due for the first full quarter after the date of publication of the forthcoming regulations, and that the deadline for payment of the excise tax is the same as the filing deadline.

FL - Gas and Sulfur production tax rates for 2024-2025 announced

Florida has issued the severance tax rates for the production of gas and sulfur effective July 1, 2024, through June […]

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FL - Gas and Sulfur production tax rates for 2024-2025 announced

No Further Funding Cuts For IRS In FY24

Other than a planned repurposing of Inflation Reduction Act supplemental funding, the Internal Revenue Service saw no other cuts as the President signed off on the resolution […]

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No Further Funding Cuts For IRS In FY24

IRS Criminal Investigation Releases COVID Fraud Conviction Statistics, IR-2024-83

The IRS released statistics that showed 1,644 tax and money-laundering cases related to COVID fraud, totaling $9 billion investigated by the Criminal Investigation (CI). CI is the law enforcement […]

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IRS Criminal Investigation Releases COVID Fraud Conviction Statistics, IR-2024-83

IRS Updates FAQ on Commercial Clean Vehicle Credits (FS-2024-14; IR-2024-111)

The IRS updated frequently asked questions (FAQ) on New, Previously Owned and Qualified Commercial Clean Vehicle Credits. These FAQs provide guidance on how the Inflation Reduction […]

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IRS Updates FAQ on Commercial Clean Vehicle Credits (FS-2024-14; IR-2024-111)

2024 Foreign Housing Expense Amounts Released, Notice 2024-31

KPMG TaxNewsFlash – United States March 20, 2024 The IRS today released Notice 2024-31 [PDF 156 KB] providing the adjustments to the limitation on housing expenses, under […]

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2024 Foreign Housing Expense Amounts Released, Notice 2024-31

Energy Efficient Property and Improvement Rebate Guidance Issued, Announcement 2024-19; IR-2024-97

The IRS has issued an announcement that addresses the federal income tax treatment of amounts paid for the purchase of energy efficient property and improvements. Taxpayers who […]

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Energy Efficient Property and Improvement Rebate Guidance Issued, Announcement 2024-19; IR-2024-97

IRS Releases Major Filing Numbers Showing Service Improvements, IR-2024-109

Reflecting on the 2024 tax filing season, the IRS released major filing numbers for the season. The agency highlighted a variety of improvements that dramatically expanded service for millions of taxpayers during […]

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IRS Releases Major Filing Numbers Showing Service Improvements, IR-2024-109

IRS Wraps Up Dirty Dozen, Warns of Bogus Tax Avoidance Strategies (IR-2024-105)

The IRS has wrapped up the 2024 Dirty Dozen campaign, with a warning to taxpayers to beware of promoters selling bogus tax avoidance strategies. Promoters have been peddling elaborate bogus schemes to […]

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IRS Wraps Up Dirty Dozen, Warns of Bogus Tax Avoidance Strategies (IR-2024-105)

FL - Tax rate on commercial rentals reduced from 4.5% to 2% effective june 1, 2024

Effective June 1, 2024, the Florida sales tax rate imposed on the total rent charged for renting, leasing, letting, or […]

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FL - Tax rate on commercial rentals reduced from 4.5% to 2% effective june 1, 2024

FL - Solid mineral tax rates for 2024 announced

Florida has released the severance tax rates on the production of heavy minerals and other solid minerals for 2024. From […]

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FL - Solid mineral tax rates for 2024 announced