Clarifying what types of digital assets are securities
Addressing how to issue and list digital securities
Determining what disclosures are necessary for investors to be properly informed
Establishing a registration regime for digital asset security trading platforms
Setting rules on how trading and custody of digital assets should be carried out
The IRS issued Rev. Proc. 2022-19 with guidance on how taxpayers can resolve certain issues involving S corporations and their shareholders without requesting a private letter ruling.
Here are the six issues covered in this guidance:
Agreements and arrangements with no principal purpose to circumvent one class of stock requirement
Governing provisions that provide for identical distribution and liquidation rights
Procedures for addressing missing shareholder consents, errors regarding a permitted year, missing officer's signature, and other inadvertent errors and omissions
Procedures for verifying S elections or QSub elections
Procedures for addressing a federal income tax return filing inconsistent with an S election or a QSub election
Procedures for retroactively correcting one or more non-identical governing provisions
Note, the IRS has confirmed that the guidance also applies for retroactively fixing an invalid S corp election for an LLC that failed to update its operating agreement before filing the election.
Fixing the “family glitch” in the Affordable Care Act (ACA) has been a priority for the Biden administration, with President Biden instructing federal agencies to do “everything in their power to expand affordable, quality health coverage.” Last week, the U.S. Department of the Treasury (Treasury) issued final regulations fixing the “family glitch.”
The regulations provide that affordability of employer-sponsored minimum essential coverage for family members of an employee should be determined based on the employee's share of the cost of covering the employee and those family members, not the cost of covering only the employee
This guidance affects taxpayers who enroll, or enroll a family member, in individual health insurance coverage through a Health Insurance Exchange and who may be allowed a premium tax credit for the coverage
These regulations are effective December 12, 2022
Also, in Notice 2022-41, the IRS expanded the “change in status” rules for health coverage under a cafeteria plan, allowing employees to prospectively opt out of family coverage and enroll in self-only coverage under the same health plan
IN CASE YOU MISSED IT
The Organisation for Economic Co-operation and Development issued a Crypto-Asset Reporting Framework outlining a new system of information exchanges between national governments regarding crypto assets.
The IRS will be sending letters to more than 9 million individuals and families who appear to qualify for a variety of key tax benefits, like the 2021 Recovery Rebate Credit, the Child Tax Credit, the Earned Income Tax Credit, etc., but did not claim the credits by filing a 2021 federal income tax return.
The IRS is expanding dyed diesel penalty relief because of Hurricane Ian. The IRS will not impose a penalty when dyed diesel fuel with a sulfur content that does not exceed 15 parts-per-million is sold for use or used on the highway in the state of Florida. Previously, this penalty relief only applied to emergency vehicles.
This newsletter features developing content that is subject to change at any time. It does not constitute legal or tax advice. Consult your professional advisors prior to acting on the information set forth herein.