IRS Announces More ERC Refunds, But Should Taxpayers Cash the Checks?... [ read ]
Yesterday the IRS announced the processing of 400,000 ERC claims, with the vast majority being approved and totaling $10 billion. The question is: should taxpayers cash the check or assess their options?
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Anthony P. Daddino
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ERC Update: More Time For Appeals to be Filed... [ read ]
On September 19, 2024, the IRS published a page to its website with new and potentially helpful information about Employee Retention Credit (ERC) denial letters.
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Jeffrey M. Glassman
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The IRS Has Changed the Rules for a Voluntary Disclosure. Will Anyone File One?... [ read ]
Starting in 2009, the IRS Offshore Voluntary Disclosure Program started changing how a voluntary disclosure is made, and more recent changes are threatening to kill the practice of voluntary disclosures.
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Joel N. Crouch
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Appeals Court Rules: IRS Must Follow the Constitution Regarding FBAR Penalties... [ read ]
The Eighth Amendment of the U.S. Constitution provides that excessive bail shall not be required, nor excessive fines imposed, nor cruel and unusual punishments inflicted. The IRS has for many years calculated penalties related to foreign bank and financial accounts that many rational thinkers would view as excessive. Yet, courts have generally not ruled that the IRS's FBAR penalties violated the Eight Amendment's Excessive Fines Clause. No more.
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Jeffrey M. Glassman
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Beware the ERC Clawback: IRS May Recapture Tens of Thousands of ERC Refunds... [ read ]
On August 15, 2024, the IRS not only announced a second ERC Voluntary Disclosure Program (VDP), they also announced that this fall they would be mailing a large volume of letters ("up to 30,000") reversing previously-paid ERC refunds. The IRS anticipates that the clawback notices—commonly referred to as "recapture letters"—could represent more than $1 billion in claims. Businesses receiving such IRS recapture letters will be ineligible for the new ERC VDP, which provides an incentive for businesses to move quickly if they wish to participate in the ERC VDP.
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Jeffrey M. Glassman
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ERC Voluntary Disclosure Program Revived... [ read ]
On August 15, 2024, the IRS announced that they are opening a new ERC Voluntary Disclosure Program (VDP). The new program is similar to the first iteration of the program.
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Jeffrey M. Glassman
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ERC Denial Letters: What To Do?... [ read ]
Having been involved in ERC matters for some time now, we have been waiting for the IRS to finally act—and act in a material manner—with respect to its massive inventory of pending ERC claims. The IRS is finally acting. To that end, the IRS has begun issuing large batches of ERC denial letters. Of the denial letters that we are seeing, there are several recurring issues:
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Jeffrey M. Glassman
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ERC All the Time: Another Update from IRS on Enforcement... [ read ]
On August 8, 2024, the IRS released another update on its ERC efforts – the second update in two weeks. Beyond confirming the IRS' commitment to ferreting out abuse and reminding taxpayers of various options to remediate questionable ERC claims, the IRS offered a few interesting data points and meaningful developments.
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Anthony P. Daddino
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IRS and Jeopardy Assessment... [ read ]
It has been almost four years since we lost the great Alex Trebek, the host of Jeopardy, one of the greatest game shows in television history. Trebek was the host of Jeopardy for 37 years and Jeopardy has not been the same since he died.
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Joel N. Crouch
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IRS Releases Additional ERC Red Flags, Foreshadowing Improved Enforcement... [ read ]
ERC audit results are flowing in, with the IRS adding five "warning signs" to its previously identified seven. Beyond the mild amusement of the IRS identifying 12 warning signs for ERC – a transaction on the IRS' Dirty Dozen list – the announcement points to improved future enforcement and teases of a new ERC voluntary disclosure program.
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Anthony P. Daddino
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