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IRS Targets High-Income Individuals Illegally Claiming Puerto Rico's Tax Benefits
By on August 30, 2023
The Internal Revenue Service ("IRS") Commissioner Danny Werfel stated that the Agency is taking "swift and aggressive action" to strengthen enforcement efforts against high-income individuals. As part of these enforcement efforts, the IRS identified approximately 100 individuals, including crypto traders and fund managers suspected of illegally claiming Puerto Rico's tax benefits. According to the IRS, the enforcement efforts will include both civil audits and criminal investigations.
Auspicious or Ominous: IRS Increases Workforce by 14% in One Year
By on August 16, 2023
Within one year of its funding boost through the Inflation Reduction Act, the IRS has increased its workforce by nearly 11,000 workers, a 14% increase over 2022 staffing levels. Too fast too soon or just in time?
Another New IRS Audit Target: Employee Stock Ownership Plans (ESOPs)
By on August 14, 2023
In an August 9th announcement, the IRS said it has identified compliance issues for Employee Stock Ownership Plans (ESOPs). This is on the heels of recent IRS announcements regarding Malta Pension Plans, Puerto Rico Act 20/22/60 participants, Monetized Installment Sales, Cost of Goods Sold, and of course, Employee Retention Credits. According to IRS Commissioner Danny Werfel, "The IRS is focusing on this transaction as part of the effort to ensure our tax laws are applied fairly and high-income filers pay the taxes they owe.
Anecdotal Evidence that the IRS' Commitment to Auditing ERC is Not Mere Rhetoric
By on August 10, 2023
The IRS has been extremely vocal about its intensifying scrutiny of ERC claims, with IRS Commissioner Werfel declaring at yesterday's IRS Nationwide Tax Forum that the IRS is "increasing audit and investigative activities against…businesses filing dubious [ERC] claims." But is the Commissioner, as we like to question in Texas, "all hat and no cattle"? Anecdotally, the answer is definitely not.
An Unexpected IRS Enforcement Initiative: IRS Adds "Cost of Goods Sold" to Audit Compliance Campaign
By on August 9, 2023
The IRS is seemingly moving from the exotic back to plain vanilla, announcing a compliance campaign focused on taxpayers that may have inflated their reported cost of goods sold to reduce their taxable income.
By on August 3, 2023
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.