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Tax News Update | September 2023

  • 2023 Seminar / Webinar Topics 
  • IRS Rules Crypto Staking Rewards is Income
  • IRS Issues Proposed Regs on Broker Reporting for Digital Asset Sales
  • Businesses Must Electronically File Form 8300
  • Educator Expense Deduction is $300 in 2023
  • Premium Tax Credit Percentage Table for 2024
  • Q4 Interest Rates Increase
  • September Applicable Federal Rates
  • Area Stakeholder Liaison Teams
  • 2023 Seminar Dates and Locations
  • 2023 BTB Brochure
  • The Tax Book – Promo Code 544
  • CFS Tax Tools – Coupon Code BTB57143
  • $50 Referral Bonus 

“Taxation with representation ain’t so hot either.”

~ Gerald Barzan

Instructors 

James Hockenberry, EA – Jim is the President of Back to Basics Income Tax Seminars and has over 31 years of experience in income tax and financial planning. He is an Enrolled Agent and holds a Bachelor of Business Administration (BBA) degree from the University of Wisconsin- Eau Claire. He has worked as a tax researcher / technical writer and has served as an instructor for several tax and financial organizations. Jim has also written several texts regarding income tax, estate tax, and financial planning matters. 

Steve O’Rourke, EA – Steve is an Enrolled Agent with a successful tax practice in Oshkosh, Wisconsin. His firm, which was established in 1989, prepares over 2,500 individual and business tax returns. Steve has a Bachelor of Business Administration (BBA) degree from the University of Wisconsin – Oshkosh. He has over 40 years of experience as a tax professional and is a nationally known speaker, having taught tax seminars for the National Association of Enrolled Agents, the National Association of Tax Professionals, and several other professional organizations nationwide.

2023 Seminar / Webinar Topics 

Business Issues Update and Review

SECURE 2.0 Act – Business Provisions 

The Corporate Transparency Act (CTA) 

Court Cases 

Partnerships 

Partnership Agreements

Inside / Outside Basis

At-Risk Rules 

Passive Loss Rules 

Pass-through Items 

Hot Assets 

Pass-through Entity Taxes (PTE Taxes)  

§754 Election

Schedules K-2 and K-3

Termination – Final Form 1065 Return 

Part I Update and Review

SECURE 2.0 Act – Business Provisions 

Form 1099- K Requirements 

Taxing Topics 

Court Cases 

Ethics (1 CPE/CE Credit)

Rental Property – Schedule E 

Divorce 

Part II Update and Review

Federal Forms Update

Form 7205, Energy Efficient Commercial Building Deduction

Form 8936, Clean Vehicle Credits

Form 5695, Residential Energy Credits

Form 4684, Casualties and Thefts

New 2023 Tax Legislation

Proposed Regulations for Reporting Digital Asset Sales 

Tax Treatment of Cryptocurrency Staking Rewards

Student Loan Debt Update  

Ethics (1 CPE/CE Credit)

State Updates – All BTB Part II participants will have the opportunity to view the Wisconsin and Arizona state updates for FREE. As soon as each recording is available, we will send a link to the recorded webinar sessions. Note: The state updates are not available for CPE/CE credits.

IRS Rules Crypto Staking Rewards is Income

The IRS has issued Rev Rul 2023-14 stating that cash method taxpayers who stake cryptocurrency native to a proof-of-stake blockchain, and receive additional units of cryptocurrency as rewards when validation occurs, must include the fair market value of the validation rewards in gross income. The value is included in the tax year in which the taxpayer gains dominion and control over the validation rewards. This applies even when the staking is done through a cryptocurrency exchange. Fair market value is determined at the time the taxpayer gains dominion and control over the awarded cryptocurrency. The taxpayer is considered to have dominion and control when they have the ability to sell, exchange, or otherwise dispose of the validation reward. This ruling does not apply to any issue or transaction other than cryptocurrency staking validation rewards.

IRS Issues Proposed Regs on Broker Reporting for Digital Asset Sales

The IRS issued proposed regulations that would require brokers to report sales and exchanges of digital assets by customers. 

For sales or exchanges of digital assets that take place on or after Jan. 1, 2025, the proposed regulations would require brokers, including digital asset trading platforms, digital asset payment processors and certain digital asset hosted wallet providers, to report gross proceeds on a newly developed Form 1099-DA and to provide payee statements to customers. Brokers, in certain circumstances, would also be required to include gain or loss and basis information for sales that take place on or after Jan. 1, 2026, on these information returns and statements, so that customers have the information they need to prepare their tax returns.

The proposed regulations would also require real estate reporting persons, such as title companies, closing attorneys, mortgage lenders and real estate brokers, who are treated as brokers for dispositions of digital assets, to report the disposition of digital assets paid as consideration by real estate purchasers to acquire real estate in real estate transactions that close on or after Jan. 1, 2025. These real estate reporting persons would also be required to include on Form 1099-S the fair market value of digital assets paid to sellers of real estate in real estate transactions that close on or after Jan. 1, 2025.

Finally, the proposed regulations set forth gain (or loss) computation rules, basis determination rules and backup withholding rules applicable to digital asset sale and exchange transactions and propose many useful definitions.

Businesses Must Electronically File Form 8300

Starting January 1, 2024, businesses are required to e-file Form 8300, Report of Cash Payments Over $10,000, instead of filing a paper return. This new requirement follows final regulations amending e-filing rules for information returns, including Forms 8300.

The new requirement for e-filing Forms 8300 applies to businesses mandated to e-file certain other information returns, such as Forms 1099 series and Forms W-2. Electronic filing and communication options will be simpler and will make it easier to interact with the IRS. Beginning with calendar year 2024, businesses must e-file all Forms 8300 if they’re required to file at least 10 information returns other than Form 8300.

For example, if a business files five Forms W-2 and five Forms 1099-INT, then the business must e-file all their information returns during the year, including any Forms 8300. However, if the business files fewer than 10 information returns of any type, other than Forms 8300, then that business does not have to e-file the information returns and is not required to e-file any Forms 8300. However, businesses not required to e-file may still choose to do so.

IR-2023-157

Educator Expense Deduction is $300 in 2023

As the new school year begins, remind your clients who are teachers or other educators that they’ll be able to deduct up to $300 of out-of-pocket classroom expenses for 2023 when they file their federal income tax return next year. If they’re married and file a joint return with another eligible educator, the limit rises to $600. But in this situation, not more than $300 for each spouse. 

Educators can deduct the unreimbursed cost of:

  • Books, supplies and other materials used in the classroom.
  • Equipment, including computer equipment, software and services.
  • COVID-19 protective items to stop the spread of the disease in the classroom. This includes face masks, disinfectant for use against COVID-19, hand soap, hand sanitizer, disposable gloves, tape, paint or chalk to guide social distancing, physical barriers, such as clear plexiglass, air purifiers and other items recommended by the Centers for Disease Control and Prevention.
  • Professional development courses related to the curriculum they teach or the students they teach. But the IRS cautions that, for these expenses, it may be more beneficial to claim another educational tax benefit, especially the lifetime learning credit. 

Qualified expenses don’t include the cost of home schooling or for nonathletic supplies for courses in health or physical education.

Premium Tax Credit Percentage Table for 2024 

Revenue Procedure 2023-29 provides the applicable percentage table in § 36B(b)(3)(A) of the Internal Revenue Code for taxable years beginning in calendar year 2024.  This table is used to calculate an individual’s premium tax credit under § 36B.  This revenue procedure also provides the indexing adjustment for the required contribution percentage in § 36B(c)(2)(C)(i)(II) for plan years beginning in calendar year 2024.  This percentage is used to determine whether an individual is eligible for affordable employer-sponsored minimum essential coverage under § 36B.

For taxable years beginning in calendar year 2024, the Applicable Percentage Table for purposes of §36B(b)(3)(A) and §1.36B-3(g) is:

Household income percentage of Federal poverty line:Initial percentageFinal percentage
Less than 150%0.00%0.00%
At least 150% but less than 200%0.00%2.00%
At least 200% but less than 250%2.00%4.00%
At least 250% but less than 300%4.00%6.00%
At least 300% but less than 400%6.00%8.50%
At least 400% and higher8.50%8.50%

Q4 Interest Rates Increase

The overpayment and underpayment interest rates increase for the calendar quarter beginning October 1, 2023. The IRS computed the new interest rates using the federal short-term rate determined during July 2023.

For noncorporate taxpayers the third quarter 2023 interest rates will be:

  • 8% for overpayments (i.e., payments made in excess of the amount owed), and 
  • 8% for underpayments (i.e., the portion of a tax liability that hasn’t been fully paid).

For corporate taxpayers the third quarter 2023 interest rates will be: 

  • 7% for corporate overpayments up to $10,000. 
  • 5.5% for the portion of a corporate overpayment that is more than $10,000.
  • 10% for large corporate underpayments.

Rev Rul 2023-17

September Applicable Federal Rates

AnnualSemiannualQuarterlyMonthly
Short-term (≤ 3 years)5.12%5.06%5.03%5.01%
Mid-term (> 3 years but ≤ 9 years)4.19%4.15%4.13%4.11%
Long-term (> 9 years)4.19%4.15%4.13%4.11%

Sec. 7520 rate – 5.00%

Rev Rul 2023-16

Area Stakeholder Liaison Teams

Stakeholder
Email
States
LiaisonCovering
Alan Gregersonalan.j.gregerson@irs.govMN, ND
Ann Burtonann.burton@irs.govCO
Jody Stambackjody.k.stamback@irs.govUT
Lelah Martinezlelah.l.martinez@irs.govNM
Lisa Novacklisa.a.novack@irs.govAZ
Michael Smithmichael.smith6@irs.govWI
Mercean Lammercean.lam@irs.govOK
Neki Coxneki.m.cox@irs.govNE, SD
Krista Sullivan
Krista.M.Sullivan@irs.govMO, KS

2023 Seminar Dates and Locations

Please note that we have moved two locations (Brookfield and Mesa) for the 2023 seminars. Note that each location has a link to Google maps. 

Clicking on any date below will take you to the registration page. 

Click here for the registration page.

WISCONSIN

Location                                                      Seminar                                             Date

Superior

Barkers Island Inn                          

300 Marina Drive                           Part I Update & Review                             Nov. 27

Superior, WI 54880                        Part II Update & Review                            Nov. 28

Eau Claire  

Holiday Inn                                     Business Issues Update and Review        Sept. 25

4751 Owen Ayres Ct.                     Part I Update & Review                             Sept. 26

Eau Claire, WI 54701                     Part II Update & Review                            Nov. 29

Rothschild   

Holiday Inn                                     Business Issues Update and Review        Sept. 27

1000 Imperial Ave.                          Part I Update & Review                             Sept. 28

Rothschild, WI 54474                     Part II Update & Review                            Dec. 13

Onalaska

Stoney Creek Hotel

3060 S. Kinney Coulee Rd.            Part I Update & Review                             Nov. 30

Onalaska, WI 54650                       Part II Update & Review                         Dec. 1

Janesville 

Holiday Inn                        

3100 Wellington Place                    Part I Update & Review                             Sept. 18

Janesville, WI 53546                      Part II Update & Review                            Dec. 11

Sun Prairie

Hilton Garden Inn                           Business Issues Update and Review        Sept. 19

1220 S. Grand Ave.                         Part I Update & Review                             Sept. 20

Sun Prairie, WI 53590                    Part II Update & Review                            Dec. 12

Green Bay  

Radisson Hotel                                Business Issues Update and Review           Oct. 30**

2040 Airport Drive                          Part I Update & Review                             Oct. 31**

Green Bay, WI 54313                     Part II Update & Review                            Dec. 15**

Oshkosh     

Hilton Garden Inn                           Business Issues Update and Review        Sept. 12

1355 W. 20th Ave.                            Part I Update & Review                             Sept. 13

Oshkosh, WI 54902                        Part II Update & Review                            Dec. 7**

Racine     

Delta Hotel by Marriott                  Business Issues Update and Review      Oct. 23

7111 Washington Ave.                    Part I Update & Review                             Oct. 24

Racine, WI 53406                           Part II Update & Review                            Dec. 4

Milwaukee     

Hilton Garden Inn                          

5890 S. Howell Ave.                       Part I Update & Review                             Sept. 11

Milwaukee, WI 53207                    Part II Update & Review                            Dec. 5

Brookfield

Sheraton*                                        Business Issues Update and Review           Oct. 25**

375 S. Moorland Road                   Part I Update & Review                             Oct. 26**

Brookfield, WI 53005                     Part II Update & Review                            Dec. 6**

*New Location  

** Available online Live-Stream Webinar (Part I will also Live-Stream on Thur. Dec. 14)

Click here for the registration page.

ARIZONA

Flagstaff     

DoubleTree by Hilton                                

1175 W. Route 66                            Part I Update & Review                          Nov. 6

Flagstaff, AZ 86001                        Part II Update & Review                            Nov. 7

Mesa     

DoubleTree by Hilton*                   Business Issues Update and Review        Nov. 10

1101 W. Holmes Ave.                     Part I Update & Review                             Nov. 16

Mesa, AZ 85210                             Part II Update & Review                            Nov. 17

Tucson     

DoubleTree by Hilton                            

445 S. Alvernon Way                      Part I Update & Review                             Nov. 13

Tucson, AZ 85711                          Part II Update & Review                            Nov. 14

Phoenix     

DoubleTree by Hilton*                   Business Issues Update and Review        Nov. 8

10220 N Metro Pkwy E                   Part I Update & Review                             Nov. 9

Phoenix, AZ 85051                     Part II Update & Review                            Nov. 15

*New Location 

Note: Due to a fire at the Phoenix Sheraton, the Phoenix seminars are now at the Phoenix DoubleTree located at 10220 N Metro Pkwy E.

LIVE-STREAM WEBINARS

Business Issues Update and Review     Oct. 25, Oct. 30

Part I Update & Review                       Oct. 26, Oct. 31, Dec. 14

Part II Update & Review                      Dec. 6, Dec. 7, Dec. 15

Click here for the registration page.

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Speaking Engagements 

If your professional group is looking for outside speakers for an upcoming event – we can help. For additional information, please email jhockenberry@dbcllc.com

The Tax Book – Promo Code: 544

Use Promo Code 544 for additional discounts and take advantage of The Tax Book’s award-winning tax research solutions. 

Order at: www.thetaxbook.com/order
Promo Code: 544

CFS Tax Tools – Coupon Code: BTB57143

CFS Tax Software, Inc.

Tax Tools is a collection of over 300 worksheets, calculators, flowcharts, and forms that tackle a variety of tough tax topics (many of which aren’t included in your 1040 software), including:

  • Individual Tax Planner 
  • ACA modules 
  • Penalty and Interest Calculator 
  • Social Security Optimization 
  • Updated for latest tax law changes

You can order online at www.taxtools.com, or call 1-800-343-1157. Either way, be sure to use Coupon Code BTB57143 for additional savings.

$50 Referral Bonus

Refer a new attendee to a Back to Basics Income Tax Full Day Seminar and receive a $50 referral fee. Upon receipt of the new attendee registration(s), BTB Income Tax Seminars will mail you a check of $50 for each new attendee. Click Here to get a copy of the referral coupon.

(NOTE: Not valid with any other special offers or discounts)

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Back to Basics Income Tax Seminars® is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org. Sponsor ID # 108520

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