Making a List and Checking it Twice: IRS Identifies Monetized Installment Sales as Listed Transactions... [ read ]
In proposed regulations released today, the IRS has identified monetized installment sales as listed transactions. You probably have questions – herein you will find some answers.
IRS Counsel Releases Legal Memorandum Regarding Suspension of Operations for the Employee Retention Credit... [ read ]
On July 21, IRS Chief Counsel released a Generic Legal Advice Memorandum (GLAM) regarding "Whether an Employer Experienced a Full or Partial Suspension of the Operation of a Trade or Business under Section 2301 of the Coronavirus Aid, Relief, and Economic Security Act or Section 3134 of the Internal Revenue Code due to a Supply Chain Disruption."
IRS Agents Getting Too Big For Their Britches... [ read ]
It appears Republicans on the Senate Finance Committee think that IRS agents are "getting too big for their britches." In a July 18 letter to IRS Commissioner Daniel Werfel the lawmakers asked for information about three separate allegations of IRS agent misconduct.
IRS Criminal Investigation Targeting Puerto Rico Act 20/22/60 Participants... [ read ]
On July 14th, the IRS released a thank you to the Inflation Reduction Act highlighting its improved service, plans for updating its technology and enforcement initiatives. The enforcement initiatives in the announcement focus on high-income filers including millionaires who don't pay their tax or have unfiled tax returns, and millionaires who are attempting to evade paying their taxes.
Chat GPT: IRS Friend, Foe, or Both?... [ read ]
Undoubtedly one of the hottest topics of 2023 has been ChatGPT and what role it can play, or should it play, in the workforce. Whatever your thoughts, precaution is an absolute necessity as it relates to tax and IRS matters.
IRS Criminal Investigation of Malta Pension Plan... [ read ]
Last week the IRS' interest in the Malta Pension Plan (MPP) took a very serious turn as IRS Criminal Investigators started contacting professionals and taxpayers who participated in MPPs. The first indication of IRS interest in MPPs was when MPPs were included on the 2021 IRS Dirty Dozen list.
IRS Badges of Fraud... [ read ]
On June 22nd, the U.S. Tax Court released a memorandum decision in Kamal v. Commissioner, T.C. Memo 2023-80, which is a helpful reminder of what evidence a court will consider when the IRS has proposed a 75% civil fraud penalty. In addition, Kamal is another example of the potential risks of filing a Tax Court petition.
How Long Does the IRS Have to Challenge an ERC Refund?... [ read ]
For employers who have either filed for or have received payment for Employee Retention Credit (ERC) claims, the significant surge in IRS examinations of ERC claims is similar to the shark in the movie Jaws. You know he is out there, but you don't know where he will bite and when.
The Employee Retention Credit: Some Guidance Exists But Uncertainty Remains... [ read ]
If you follow the Meadows Collier blog, you are likely already aware that the IRS is focused on improper Employee Retention Credit ("ERC") transactions. My colleagues' previous blog posts described how the IRS has added Employee Retention Credit transactions to its annual "Dirty Dozen" list. We are now seeing the IRS begin new examinations related to the ERC and, in other cases, pursue criminal indictments. My colleagues have also described how the IRS is focusing on tax preparers and promoters involved in improper claims of the ERC. In sum, the IRS is serious about improper ERC claims.
California Introduces Settlement Proposal for Micro-Captive Insurance Transactions and Syndicated Conservation Easement Transactions. What's the IRS' Plan?... [ read ]
On May 31, 2023, the California Franchise Tax Board (FTB) issued Notice 2023-02 providing a limited time settlement opportunity to taxpayers who participated in potentially abusive Micro-Captive Insurance (MCI) and Syndicated Conservation Easement (SCE) transactions.
