This notice provides that calendar year 2022 will be regarded as a transition period for purposes of IRS enforcement and administration of the modified de minimis exception for third party settlement organizations (TPSO) and third party network transactions. With respect to calendar years beginning before January 1, 2023, a TPSO is not required to report payments in settlement of third party network transactions with respect to a participating payee unless the amount to be reported exceeds $20,000 and the number of such transactions with that participating payee exceeds 200.

This notice announces forthcoming proposed regulations addressing the application of the stock repurchase excise tax under section 4501 of the Internal Revenue Code, enacted as part of Public Law 117-169, 136 Stat. 1818 (August 16, 2022), commonly referred to as the Inflation Reduction Act of 2022. This notice describes certain rules and procedures (i) clarifying the application of the excise tax to M&A transactions and corporate liquidations, (ii) dictating when a corporation must take into account “accelerated stock repurchases” of its stock, (iii) addressing compensatory stock awards and stock contributions to employer-sponsored plans, (iv) preventing inappropriate avoidance of the excise tax by certain foreign corporations, and (v) on how to report and pay the excise tax.

This announcement notifies taxpayers of the applicable reference standard required to be used to determine the amount of the energy efficient commercial building property deduction allowed under § 179D of the Internal Revenue Code, as amended by § 13303 of Public Law 117-169, 136 Stat. 1818, 1947 (August 16, 2022), commonly known as the Inflation Reduction Act of 2022 (IRA). This announcement identifies the existing reference standard, affirms a new reference standard, and clarifies when each of the two reference standards will apply to taxpayers. The effective date of this announcement is January 1, 2023.

This notice informs taxpayers that the Department of the Treasury and the Internal Revenue Service (IRS) intend to propose regulations addressing the definitions of certain terms in respect of the credit available under section 30D of the Code, and lays out the expected content of those regulations. The proposed regulations will include definitions of the following terms, which are relevant for new clean vehicles placed in service after December 31, 2022:

1. Final Assembly;

2. North America;

3. Manufacturer’s Suggested Retail Price;

4. Classifications for categories of vehicles, including vans, sport utility vehicles, pickup trucks, and other vehicles; and

5. Placed in service.

This notice provides the optional 2023 standard mileage rates for taxpayers to use in computing the deductible costs of operating an automobile for business, charitable, medical, or moving expense purposes. This notice also provides the amount taxpayers must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that may be used in computing the allowance under a fixed and variable rate plan. Additionally, this notice provides the maximum fair market value of employer-provided automobiles first made available to employees for personal use in calendar year 2023 for which employers may use the fleet-average valuation rule in § 1.61-21(d)(5)(v) or the vehicle cents-per-mile valuation rule in § 1.61-21(e).

This notice announces the intention of the Department of the Treasury and the Internal Revenue Service to issue proposed regulations addressing the application of the corporate alternate minimum tax (CAMT), as added to the Code by the Inflation Reduction Act of 2022. This notice describes the rules intended to be included in the forthcoming proposed regulations, including rules relating to certain issues regarding subchapters C and K of the Code, troubled corporations, groups of corporations filing a consolidated Federal income tax return, the depreciation of section 168 property, and the treatment of certain Federal income tax credits under the CAMT. The notice also provides a simplified method for determining whether a corporation is an “applicable corporation” subject to the CAMT. Finally, the notice provides a request for comments and the procedure for submitting such comments.

This notice informs taxpayers that based on analysis by the Department of Energy of representative qualified commercial clean vehicles and comparable internal combustion engine vehicles, the Department of the Treasury and the Internal Revenue Service (IRS) have reviewed the incremental cost for all vehicles manufactured primarily for use on public streets (street vehicles) in calendar year 2023. This analysis shows that the incremental cost of all street vehicles that have a gross vehicle weight rating of less than 14,000 pounds will be greater than $7,500 in calendar year 2023. Accordingly, the incremental cost will not limit the available credit amount under § 45W for street vehicles that have a gross vehicle weight rating of less than 14,000 pounds and are placed in service in calendar year 2023. In addition, this analysis provides an incremental cost for several different classes of street vehicles with a gross vehicle weight rating of 14,000 pounds or more in calendar year 2023. The IRS will accept a taxpayer’s reliance on the incremental cost published by the Department of Energy for the appropriate class of street vehicle.

The Notice is intended to provide FATCA reporting relief to Model 1 FFIs who have been unable to obtain US TINs for their pre-existing accounts that are US reportable accounts; as part of the relief, the FFIs will also provide information that the IRS can analyze to determine why these TINs are missing. The publication has been coordinated with Treasury and the Service.

This Notice of Proposed Rule Making contains two parts. The first part concerns section 892, which provides foreign governments a limited exemption from taxation. These proposed regulations provide guidance regarding the treatment of certain foreign government entities, including qualified foreign pension funds, as controlled commercial entities for purposes of section 892. The second part concerns section 897, which generally taxes a foreign person’s gain on the sale of real property located in the United States (“United States Real Property Interest”). A United States Real Property Interest includes interests in certain domestic corporations when a large portion of their assets comprise United States Real Property Interests; however, interests in domestically controlled REITs and certain RICs (Qualified Investment Entities) are not United States Real Property Interests. These proposed regulations describe how to determine when a Qualified Investment Entity is domestically controlled, particularly when the foreign person indirectly owns shares of the underlying Qualified Investment Entity through partnerships or corporations, and when the Qualified Investment Entity’s shares are held by a qualified foreign pension fund.

The Department of the Treasury and the IRS are reopening the comment period for REG-146537-06, relating to the exemption from taxation afforded to foreign governments under section 892.

This revenue procedure modifies Rev. Proc. 2022-14, 2022-7 I.R.B. 502, to provide procedures under § 446 of the Internal Revenue Code and § 1.446-1(e) of the Income Tax Regulations to obtain automatic consent of the Commissioner of Internal Revenue to change methods of accounting for specified research or experimental expenditures to comply with § 174 of the Code, as amended by § 13206 of Public Law 115-97, 131 Stat. 2054 (December 22, 2017), commonly referred to as the Tax Cuts and Jobs Act.

Administrative, Procedural, and Miscellaneous

26 CFR 601.204: Changes in accounting periods and in methods of accounting.

(Also, Part 1, §§ 174, 446, 1.446-1.)

This revenue procedure prescribes the loss payment patterns for the 2022 determination year and the discount factors for the 2022 accident year for use by insurance companies in computing discounted unpaid losses under § 846 of the Internal Revenue Code and discounted estimated salvage recoverable under § 832.

26 CFR 601.201: Rulings and determination letters. (Also: Part I, Sections 832, 846; 1.832-4, 1.846-1.)

This revenue procedure modifies and supersedes Rev. Proc. 2023-8. This revenue procedure contains guidance similar to Rev. Proc. 2023-8, but modifies the audit protection terms to make clear that taxpayers do not receive audit protection with respect to the treatment of § 174 expenditures incurred prior to making the change in the method of accounting if the year of change is the year immediately subsequent to the first taxable year in which § 174 becomes effective.

Administrative, Procedural, and Miscellaneous

26 CFR 601.204: Changes in accounting periods and in methods of accounting.

(Also, Part 1, §§ 174, 446, 1.446-1.)

Generally, a foreign person is taxed on the gain on the sale of real property located in the United States (“United States Real Property Interests”). In addition, one who purchases a United States Real Property Interest from a foreign person is generally required to withhold on the proceeds of the sale, unless an exception applies. Certain foreign pension funds (“qualified foreign pension funds”) are not subject to tax on their sale of a United States Real Property Interest, and similarly, the purchaser of the real property from such a foreign pension fund is not subject to the withholding requirement. The final regulation describes which foreign pension funds are exempt from the tax on the sale of a United States Real Property Interest. The final regulation also describes how a purchaser of a United States Real Property Interest may ascertain that the seller is a qualified foreign pension fund, so that the purchaser is not required to withhold on the proceeds of the sale.

26 CFR 1.897(l)-1, 26 CFR 1.1441-3, 26 CFR 1.1445-2, 26 CFR 1.1445-5, 26 CFR 1.1445-8, 26 CFR 1.1446-7