Tax & AccountingApril 25, 2023

With Tax Day 2023 behind us the focus shifts to IRS improvements and green energy credits


Wolters Kluwer Tax & Accounting has released its “2023 Post-Filing Season Update,” The briefing analyzes key developments during the filing season that will impact future filings for taxpayers of all types.

After years of pandemic-related issues plaguing the Internal Revenue Service (with some backlog issues still lingering), the 2023 tax filing season was a relatively quiet one, with the biggest news coming as the season drew to a close – the release of the Strategic Operating Plan that reveals how the agency will spend the nearly $80 billion allocated to it by the Inflation Reduction Act of 2022. Green energy tax-related guidance was also released, both for buildings and vehicles, as well as a new program for service industry workers to report tips and guidance on excise taxes for corporate stock buybacks.

Key Insights
The briefing provides detailed analysis on the following tax-related topics. The full briefing is available here.

IRS Strategic Operating Plan. An overview of the plan's five key objective, including targeted efforts to ensure tax law enforcement and compliance through increases audits, and initiatives to modernize the agency's technology infrastructure. Wolters Kluwer experts are available to comment on the long-term impacts and future implications of the SOP, including how the improvements will impact different stakeholders moving forward and considerations for next year's tax season.

Expectations for future tax legislation. Significant tax legislation is not expected over the next two years due to the new House rules for passing tax legislation – tax rate increases require a supermajority to pass and the implementation of a “cut as you go rule” requiring equal cuts for any increases in spending.

Guidance on green energy credits. Several green energy programs go into effect allocating credits for qualifying construction projects, solar and wind facilities, and the purchase of clean vehicles.

Voluntary tip reporting program for service industry. The proposed program would leverage advancements to time and sales tracking systems to reduce administrative burdens and increase transparency for both taxpayers and the IRS.

Proposed regulations for the Corporate Stock Repurchase Excise Tax. Analysis of proposed regulations addressing the new one-percent stock repurchase excise tax, including clarification for calculating the tax and interim reporting rules.

Who: The federal and state tax experts at Wolters Kluwer Tax & Accounting, including Mark Luscombe, JD, LL.M, CPA, Principal Federal Tax Analyst, are available for interviews and analysis to discuss the implications of these development to future tax filings.

The Whole Ball of Tax media resource center from Wolters Kluwer Tax & Accounting is regularly updated with resources curated by our tax experts to explain the nuances of tax developments impacting business and individual taxpayers.

The 2023 Post-Filing Season Update is prepared by the tax experts at Wolters Kluwer CCH® AnswerConnect, the most comprehensive and current tax research authority in the industry.
PLEASE NOTE: These materials are designed to provide accurate and authoritative information in regard to the subject matter covered. The information is provided with the understanding that Wolters Kluwer Tax & Accounting is not engaged in rendering legal, accounting, or other professional service.

Contact: To arrange interviews with federal and state tax experts from Wolters Kluwer Tax & Accounting, including Mark Luscombe, about this tax filing season or any other tax-related topics, please contact:

[email protected]

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