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Federal Tax

IRS Offers Office Hours to Answer Prefiling Registration Questions

Checkpoint Federal Tax Update Staff  

· 1 minute read

Checkpoint Federal Tax Update Staff  

· 1 minute read

In an EO Update newsletter, the IRS announced that it will hold office hours to help entities with the prefiling registration process required to monetize certain clean energy credits.

Elective pay.

An eligible entity that qualifies for a clean-energy investment tax credit may choose to claim that credit as a refund. To make the credit refundable, the entity must notify the IRS of their intent to claim the credit and file an annual tax return to claim elective pay for the full value of the credit. The IRS would then pay the entity the value of the credit.

Transferability.

Transferability allows entities that qualify for a tax credit — but are not eligible to use elective pay — to transfer all or a portion of the credit to a third-party buyer in exchange for cash. The buyer and seller would negotiate and agree to the terms and pricing.

Entities and other taxpayers will need to use the IRA/CHIPS Pre-filing Registration Tool to complete the prefiling registration process required to claim an elective payment or make a credit transfer.

During office hours, IRS representatives will be available to answer prefiling registration questions. Interested persons should register for office hours by clicking here to find the dates and times available.

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