Adequate Disclosure Using the Form 8275-R in a Post-Loper Bright World... [ read ]
With the recent Supreme Court case in Loper Bright, tax practitioners are starting to consider whether certain interpretive Treasury regulations are still valid in a world without Chevron deference. As practitioners weigh whether to advise clients to take reporting positions that are contrary to Treasury regulations, it is important to keep in mind potentially applicable statutory penalties and ethical rules such as Circular 230.
ERC Income Tax Return Amendments Present Tough Choices for Employers... [ read ]
According to IRS published guidance, when an employer claims the employee retention credit ("ERC"), the employer is supposed to make a corresponding amendment to its income tax return to reduce its wage expense deduction by the amount of the employee retention credit.
Supreme Court Limits IRS Authority... [ read ]
In Loper Bright Enterprises v. Raimondo, the U.S. Supreme Court overturned a 40-year-old legal precedent which granted judicial deference to federal regulators' interpretation of ambiguous laws. That level of deference was commonly known as Chevron deference.
The Time For ERC Recipients to Get Comfortable Just Got a Little Longer... [ read ]
The IRS has been extremely vocal about the number of erroneous and/or fraudulent Employee Retention Credit (ERC) filings and its intent to seek repayment of these improper ERC payments. On June 26th, the 9th Circuit Court of Appeals reversed a district court dismissal of a government suit to recover an erroneous refund which could impact ERC recipients.
Recent IRS ERC Update May Increase Necessity of Refund Lawsuits... [ read ]
Employers are facing a pivotal moment with the Internal Revenue Service's (IRS) latest announcement regarding the Employee Retention Credit (ERC). In a news release dated June 20, 2024 the IRS acknowledged that it is about to deny a material amount ("tens of thousands") of ERC claims based on the IRS's identification of "risky… and improper claims."
ERC 2021 Recapture Letters on the Horizon... [ read ]
The IRS has been actively issuing notices regarding the recapture of excess employee retention credits (ERC). And, based on IRS public comments, it is anticipated that they will soon begin sending out recapture letters for the year 2021.
Thinking about Selling your Business? Now May be the Time to Make a Voluntary Disclosure to the IRS.... [ read ]
Prior blog posts have discussed making voluntary disclosures to the IRS generally and for specific issues, such as offshore bank accounts, virtual currency and most recently the Employee Retention Credit. One thing we have never discussed is making a voluntary disclosure in the context of the sale or transfer of a business.
IRS Announces Plan to Increase Audit Coverage of Large Corporations, Complex Partnerships, and Wealthy Taxpayers... [ read ]
Yesterday the IRS announced updates to its strategic operating plan, which details how the IRS is spending billions of dollars from the Inflation Reduction Act (IRA). Spoiler alert – read the title of this Blog post.
D.C. Circuit Reverses Farhy... [ read ]
In a blog post last year, Any Taxpayer Who Paid An International Information Return Penalty Should Consider Requesting a Refund, we discussed the Tax Court holding in Farhy v. Commissioner that the IRS does not have authority to assess certain international information return reporting. However, the blog post referenced a possible IRS appeal on the Farhy decision,
The Trust Fund Recovery Penalty... [ read ]
A business that has employees is required by the Internal Revenue Code to withhold payroll taxes and income taxes from the wages of its employees and to pay those withheld amounts, called trust fund taxes, to the IRS.
