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William Byrnes (Texas A&M) tax & compliance articles

TaxFacts Intelligence: Nov 14, 2022

Posted by William Byrnes on November 14, 2022

The Texas A&M Master and LL.M. programs (e.g. international tax, transfer pricing, wealth management, or risk management) are accepting applications from financial professionals and from lawyers. Over 850 enrolled, the enrollment for a course’s section is kept to between 20 and a maximum of 30 so that each student receives meaningful feedback throughout the course from the full-time academic faculty and renowned professional case study leaders, and each other via teamwork and peer review. https://law.tamu.edu/distance-education

Prof. William H. Byrnes         Robert Bloink, J.D., LL.M.

The IRS announced in October that taxpayers who were impacted by the federally-declared disaster Hurricane Ian would be offered extended filing and payment deadlines.  The IRS has also expanded the CARES Act extensions to cover additional plan amendments and offered relief for victims of Hurricane Ian. We repeat some of the information that we provided our subscribers below.

IRS Provides Relief for Victims of Hurricane Ian. The IRS has provided relief for victims of Hurricane Ian by extending many different tax filing and payment deadlines that fall after September 23, 2022. Victims will have until until February 15, 2023, to file various individual and business tax returns and make tax payments. The extension applies to the six-month relief applies to individuals who had a valid extension for filing their 2021 taxes, but not to their payment obligation (tax payments for the 2021 tax year were due by the regulation April deadline). The February 15, 2023, deadline does apply to the quarterly estimated tax payments, normally due on January 17, 2023 and to the quarterly payroll and excise tax returns normally due on October 31, 2022, and January 31, 2023. Taxpayers in a federally declared disaster area also have the option of claiming disaster-related casualty losses on their federal tax return for either the year in which the event occurred or the prior year (which could offer relief earlier). Taxpayers claiming the disaster loss on their return should put the “FL Hurricane Ian” in bold letters at the top of the form and  include the FEMA disaster declaration number, DR-4673-FL- on all returns.  For more information on claiming the casualty loss deduction, visit Tax Facts Online. Read more

IRS Releases Additional CARES Act Extensions. The IRS recently granted extensions for plans to make amendments required (or made optional) under the SECURE Act and the CARES Act. As a follow up to Notice 2022-33, the IRS released Notice 2022-45 to extend amendment deadlines for the rest of the CARES Act provisions. Non-governmental qualified plans, 403(b) plans and IRAS will now have until December 31, 2025 to amend plans to adopt provisions related to coronavirus-related distributions and loans (i.e., increased loan limits and suspension of repayment obligations).  Governmental qualified plans and 403(b) plans have until 90 days after the close of the third regular legislative session (that begins after December 31, 2023) where authority to amend the plan lies.  Anti-cutback relief is also extended for CARES Act amendments before the deadline as long as the plan is operated as though the amendment applied retroactively to the original effective date.  For more information on the relief provided under the CARES Act, visit Tax Facts Online. Read more 

IRS Clarifies SECURE Act RMD Penalty Application for 2021 and 2022. The IRS’s SECURE Act regulations created confusion for taxpayers who inherited retirement accounts post-SECURE Act and were required to empty the account under the new 10-year rule. Under the proposed regulations, the IRS decided that if the account was inherited from someone who was already taking RMDs, the beneficiary was required to take an annual RMD during years one-nine after the account owner’s death. Many taxpayers expected the IRS to decide otherwise, so failed to take RMDs for 2021 and 2022. Under the Notice 2022-53, the IRS offered relief and said that the otherwise applicable 50% penalty for missed RMDs would not apply to those beneficiaries for 2021 and 2022. The relief applies only to beneficiaries who inherited accounts and were subject to the 10-year rule in 2021 and 2022. For more information on the post-SECURE Act rules on inherited retirement accounts, visit Tax Facts Online. Read more 

Look in your Tax Facts Online app for our continuing analysis of 2022 and 2023 legislative and regulatory updates, weekly intelligence, and the impact on planning for a client’s wealth preservation and growth.

Texas A&M, operating budget of $9.6 billion (FY2022) and capital budget of $1.9 billion, is #1 for U.S. public universities, one of only 60 accredited U.S. universities of the American Association of Universities (R1: Doctoral Universities – Highest Research Activity) and one of only 17 U.S. universities that hold the triple U.S. federal grant of Land, Sea, and Space! The law school, ranked in the 1st tier of law schools and is ranked in the top 10 for the employment of its graduating law students among U.S. law schools.

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