What Happens if ERTC Advisors are Treated as "Material Advisors?" A Lot.... [ read ]
As mentioned in an earlier article, there is bipartisan support for pending legislation that, if passed, would upend much of the existing law surrounding the Employee Retention Tax Credit ("ERTC" or "ERC"). I previously wrote about the "listed transaction" provisions of the proposed legislation. There are numerous other ways the IRS is taking enforcement actions surrounding the ERTC. One of those ways is the IRS's expansion of the term "Material Advisors" to specifically include "COVID-ERTC promoters" who provide aid, assistance, or advice with respect to a "COVID-ERTC document."
What Happens If Your ERTC Claim is Treated as a Listed Transaction? It's Complex.... [ read ]
Yesterday, I wrote about some legislative proposals that could cause major changes to existing Employee Retention Tax Credit ("ERTC" or "ERC") laws. One of the provisions in the proposed legislation includes treating certain ERTC claims as "listed transactions."
Employee Retention Tax Credit Laws Could be Getting a Massive Overhaul... [ read ]
Tax practitioners and employers should be aware that just last week leaders of the House Ways and Means and Senate Finance Committees announced their bipartisan agreement on proposed legislation (read: not yet a law) that could have major implications for the Employee Retention Tax Credit ("ERTC" or "ERC").
More Top 10 Tax Lists From the Taxpayer Advocate and David Letterman... [ read ]
About this time last year, I compared the National Taxpayer Advocate's 2022 Top 10 list of most serious problems taxpayers encountered with some of my favorite David Letterman Top 10 lists, see What Do The National Taxpayer Advocate and David Letterman Have In Common?
Taxpayer Advocate Says the IRS Processing of ERC Claims has Slowed to a Dribble... [ read ]
Readers will recall that in response to growing concerns of the IRS, tax professionals and others regarding the number of fraudulent ERC claims, on September 14, 2023 the IRS announced a moratorium on processing ERC claims filed after September 14th until at least December 31, 2023. Although the announcement also said the time to process pending claims would increase from 90 days to 180 days, we all assumed the IRS would continue processing claims filed before September 14, 2023. According to the National Taxpayer Advocate's January 10th Annual Report to Congress, that assumption was incorrect.
New IRS Voluntary Disclosure for Questionable ERC Refunds Gives Taxpayers 20% "Cut" of the Monies Received... [ read ]
Yesterday the IRS launched a new voluntary disclosure program that allows employers who received questionable Employee Retention Credit (ERC) refunds to keep 20% of the monies they received.
Money Well Spent: IRS Expands Online Account Services for Businesses... [ read ]
Yesterday the IRS launched a new tool for businesses that expands online access to certain business tax account information. Available at IRS.gov/businessaccount, the new service is a key part of the agency's continuing service improvement initiative funded by the Inflation Reduction Act.
IRS Issues Not-So-Soft Letters to 20,000 Taxpayers Disallowing ERC Claims... [ read ]
On Wednesday, the IRS announced the mailing of more than 20,000 letters to taxpayers notifying them of disallowed ERC claims. According to the announcement, the IRS is disallowing claims to entities that did not exist or did not have paid employees during the period of eligibility. This will be the first round of presumptively several rounds of letters, as the IRS continues to aggressively pursue ERC claims.On Wednesday, the IRS announced the mailing of more than 20,000 letters to taxpayers notifying them of disallowed ERC claims. According to the announcement, the IRS is disallowing claims to entities that did not exist or did not have paid employees during the period of eligibility. This will be the first round of presumptively several rounds of letters, as the IRS continues to aggressively pursue ERC claims.
Tax Court Decides What is Adequate Disclosure for Gift Tax... [ read ]
Anyone who makes a taxable gift (more than $17,000 in 2023, $18,000 in 2024) in a taxable year must file a Form 709, United States Gift Tax Return, reporting the gift to the IRS. Generally, the IRS then has three years to assess any tax due. However, if no Form 709 is filed or the gift is not adequately disclosed on the Form 709, the IRS has an indefinite time to assess any tax due.
Soroban v. Commissioner: Some Limited Partners May Be Subject to Self-Employment Tax... [ read ]
The Tax Court recently called into question whether a partner designated as a limited partner is truly a limited partner. In Soroban Capital Partners, LP v. Commissioner, the court analyzed whether a partner was truly a limited partner in the context of Section 1402(a)(13) of the Tax Code.
