UPDATE: SECURE 2.0: What You Need to Know... [ read ]
*UPDATE* President Biden has signed into law the 2023 Consolidated Appropriations Act.
To Rule or Not to Rule: IRS Updates for 2023 its No-Ruling Lists for Private Letter Rulings... [ read ]
Should you need either 100% tax certainty or the IRS to fix a past mistake, a private letter ruling may be the answer for you. There are areas, however, where the IRS will not issue a ruling. And for 2023, those areas have now been defined.
SECURE 2.0: What You Need to Know... [ read ]
Just three short years after the passage of some of the most significant changes to the U.S. retirement saving and funding system in the form of the SECURE Act, Congress has passed "SECURE 2.0" as part of the recent spending package, the 2023 Consolidated Appropriations Act, with Division T covering SECURE 2.0, a Senate Finance Committee summary. The Omnibus Bill is expected to be signed into law by President Biden ahead of the December 30th government funding deadline.
The Hidden Dangers of Filing a Tax Court Petition, Part III... [ read ]
I've previously written two blog posts regarding the "hidden" dangers of filing a Tax Court petition. In both blog posts, I discussed taxpayers who received Notices of Deficiency, filed Tax Court petitions and were surprised by the IRS answer, wherein the IRS increased the stakes by proposing a 75% fraud penalty for the first time.
IRS Exam Training Materials on Employee Retention Credit... [ read ]
In a prior blog post, I discussed the IRS warnings about Employee Retention Credit (ERC) abuse and the IRS training more than 300 auditors and criminal investigators to examine claims involving the ERC. According to IRS officials, the auditors and criminal investigators have now all completed a 56-hour training course on ERCs.
Want the Employee Retention Credit? The IRS Says Be Careful.... [ read ]
These days you can't throw a rock without hitting someone offering to assist an employer with the Employee Retention Credit(ERC). I have heard multiple reports of "tax specialists" making dubious claims about their ability to assist with ERC, some even claiming that they have received "special IRS training" for the ERC. Of course, they charge a substantial fee for this "specialized" help they will provide.
The IRS is About to Go Public with Many Criminal Crypto Cases... [ read ]
According to a Bloomberg news update, the head of the IRS's Criminal Investigation division, Jim Lee, announced yesterday that the IRS is building "hundreds" of criminal digital asset cases. The IRS is about to make many of them public.
Go, Hedgie, Go: Hedge Fund challenges IRS' Position on Limited Partner Exception to Self-Employment (SE) Tax... [ read ]
The tax community has been searching for a mighty torch bearer to challenge the IRS' position that a limited partner cannot wear two hats: one, as a service provider that receives guaranteed payments subject to self-employment (SE) tax, and another, as an investor that receives his or her share of partnership income exempt from SE tax. And it appears we now have one.
Stacking ‘Em Deep: IRS Struggles to Respond to FOIA Requests... [ read ]
Still waiting on the IRS to respond to your FOIA request? Well, according to a recent Government update, you may be waiting a while longer.
New Tax Court Decision Brings Much-Needed Accountability to IRS Settlement Programs... [ read ]
When it comes to settlement programs, the IRS is reminiscent of the South Park character Cartman, who demands that everyone "Respect my Authoritah!" Historically taxpayers participating in IRS settlement programs were at the whim of the IRS' authority, which at times was exercised arbitrarily with no recourse to the taxpayer. Well, not anymore. I'm talking about the Tax Court's decision in Treece Financial Services Group v. Commissioner, 158 T.C. No. 6 (2022).
