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By Gregory Twachtman, Washington News Editor The IRS, Department of Labor (DOL) and Department of Health and Human Services (HHS) jointly issued frequently asked questions (FAQs), Part 58 and Part 59 to clarify how the COVID-19 coverage and payment requirements under the Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief and Economic Security Act (CARES Act) will change when the Public Health Emergency (PHE) ends The HHS is planning for the federal PHE for COVID-19 to end on May 11, 2023 Once the PHE ends, the coverage and payment requirements will change

Further, under the FFCRA and the CARES Act, plans and issuers are not required to provide coverage for items and services related to diagnostic testing for COVID-19 that are furnished after the end of the PHE If they provide such coverage, they may impose cost-sharing requirements, prior authorization or other medical management requirements for the items and services

The IRS has released a new Audit Technique Guide (ATG) designed to provide assistance in auditing individuals in various roles in the entertainment industry The auditor must develop issues in relation to the taxpayer's trade or business To that end, it may be necessary to look beyond the job title and determine the actual duties and responsibilities of the taxpayer

The ATG provides an overview and examination of the music industry, looks at videos, songwriters, publishers and live performers and considers the interests and characteristics of producers and managers The ATG covers general background, income, capitalization and cost recovery, passive activity losses, travel and transportation, recordkeeping and personal expenses It also examines other issues, such as home office use, nonprofit activities, job searches, agents, and moving expenses The scope of this guide also includes employment tax, unions and guilds, reimbursements and copyright law

The IRS has released the applicable terminal charge and the Standard Industry Fare Level (SIFL) mileage rate for determining the value of noncommercial flights on employer-provided aircraft in effect for the second half of 2022 for purposes of the taxation of fringe benefits Further, in March 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P L 116-136) was enacted, directing the Treasury Department to allot up to $25 billion for domestic carriers to cover payroll expenses via grants and promissory notes, known as the Payroll Support Program (PSP) Therefore, the IRS has provided the SIFL Mileage Rate The value of a flight is determined under the base aircraft valuation formula by multiplying the SIFL cents-per-mile rates applicable for the period during which the flight was taken by the appropriate aircraft multiple provided in Reg §1 61-21(g)(7) and then adding the applicable terminal charge

The IRS today informed taxpayers and practitioners that it has revised Form 3115, Application for Change in Accounting Method, and its instructions

Announcement 2023-12 [PDF 78 KB] states that the Form 3115 (Rev December 2022) is the current Form 3115 (December 2022 Form 3115) and replaces the December 2018 version of the Form 3115 (December 2018 Form 3115)

Announcement 2023-12 also provides guidance to allow for a reasonable period for taxpayers to transition to the December 2022 Form 3115

• The IRS will accept either the December 2022 Form 3115 or the December 2018 Form 3115 if filed by a taxpayer on or before April 18, 2023, unless the use of the December 2022 Form 3115 is specifically required by guidance published in the Internal Revenue Bulletin
• Taxpayers filing Forms 3115 after April 18, 2023, must use the December 2022 Form 3115

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The IRS has issued frequently asked questions (FAQs) to provide guidance for victims who have received state compensation payments for forced, involuntary, or coerced sterilization Some states have enacted legislation to compensate victims of forced sterilization under state programs These states have made payments to those victims pursuant to the legislation The FAQs address the Federal income tax consequences of these payments

Enacted as part of New York's 2023-24 budget package, S B 4008 (Part Q) increases the rate of the Metropolitan Commuter Transportation Mobility Tax (MCTMT) for certain taxpayers For employers in the counties of Bronx, Kings, New York, Queens, and Richmond, the top rate is increased from 0 34% to 0 6%, applicable to tax quarters beginning on or after July 1, 2023

For individuals subject to the tax with net earnings from self-employment attributable to the Metropolitan Commuter Transportation District in the counties of Bronx, Kings, New York, Queens, and Richmond, the rate is increased from 0 34% to 0 47% for tax year 2023 and to 0 6% for taxable years beginning on or after January 1, 2024 Ch 58; (S B 4008), Laws 2023, effective May 3, 2023, applicable as noted