This revenue procedure modifies the effective date of additions to the list of taxable substances under § 4672(a) of the Internal Revenue Code (List). Specifically, this revenue procedure modifies paragraphs (1) and (3) of section 11.02 of Rev. Proc. 2022-26 , 2022-29 I.R.B. 90, to change the date on which substances are added to the List for purposes of refund claims under § 4662(e). This revenue procedure also modifies section 11.03 of Rev. Proc. 2022-26 for petitions received by the IRS between July 1, 2022, and December 31, 2022, but not accepted by the IRS until after December 31, 2022. In addition, this revenue procedure adds a new section 11.04 to Rev. Proc. 2022-26 for petitions received by the IRS after December 31, 2022.

26 CFR 601.601: Rules and Regulations.

(Also Part I, §§ 4672; 52.0-1.)

The notice announces that the Treasury Department and the IRS intend to issue guidance related to the treatment of certain nonfungible tokens (NFTs) as section 408(m) collectibles. This treatment is also relevant for other purposes of the Internal Revenue Code, including the long-term capital gains tax rate under section 1(h). The notice also describes how the IRS intends to determine whether an NFT constitutes a section 408(m) collectible, pending the issuance of that guidance, and requests comments generally on the treatment of an NFT as a section 408(m) collectible, as well as comments on specific questions listed in the notice.

The Infrastructure Investment and Jobs Act reinstated the excise taxes imposed by sections 4661 and 4671 of the Internal Revenue Code (the Superfund chemical taxes), effective July 1, 2022. The Superfund chemical taxes are subject to the deposit rules set forth in § 40.6302(c)-1 of the Excise Tax Procedural Regulations. The IRS issued Notice 2022-15, which provides in section 3(a) temporary rules for the third and fourth calendar quarters of 2022, and the first calendar quarter of 2023, regarding the failure to deposit penalty imposed by section 6656 as that penalty relates to the Superfund chemical taxes. Notice 2022-15 also provides in section 3(b) that during the first, second, and third calendar quarters of 2023, the IRS will not withdraw the taxpayer’s right to use the deposit safe harbor rules of § 40.6302(c)-1(b)(2) if certain requirements are met. Notice 2023-28 extends this relief.

Revocation of IRC 501(c)(3) Organizations for failure to meet the code section requirements. Contributions made to the organizations by individual donors are no longer deductible under IRC 170(b)(1)(A).

These proposed regulations implement the advanced manufacturing investment credit, a new current year business tax credit under section 48D of the Internal Revenue Code established by the CHIPS Act of 2022 to incentivize the manufacture of semiconductors and semiconductor manufacturing equipment within the United States. The regulations address the credit’s eligibility requirements, an election that eligible taxpayers may make to be treated as making a payment of tax (including an overpayment of tax), or for an eligible partnership or S corporation to receive an elective payment, instead of claiming a credit, and a special 10-year credit recapture rule that applies if there is a significant transaction involving the material expansion of semiconductor manufacturing capacity in a foreign country of concern.

Fringe benefits aircraft valuation formula. For purposes of section 1.61-21(g) of the Income Tax Regulations, relating to the rule for valuing non-commercial flights on employer-provided aircraft, the Standard Industry Fare Level (SIFL) cents-per-mile rates and terminal charge in effect for the first half of 2023 are set forth.

26 CFR 1.61-21: Taxation of Fringe Benefits