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By on June 27, 2023
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?
By on June 21, 2023
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
By on June 15, 2023
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.
By on June 9, 2023
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.
Sometimes "The Truth" is Reasonable Cause for IRS Penalties
By on June 5, 2023
I was reminded of a Seinfeld episode when I read the summary opinion by the Tax Court in Tracy v. Commissioner, T.C. Summ. Op. 2023-30, where the judge held that the taxpayer had reasonable cause for his failure to file employment tax returns and pay employment taxes because he had a good story to tell.
