IRS Highlights New Business Tax Account Features, FS-2024-27
The IRS announced that it is continuing to expand the features within Business Tax Account (BTA), an online self-service tool […]
Read MoreThe IRS has intensified its efforts to address questionable dubious Employee Retention Credit (ERC) claims, sending over 20,000 letters to taxpayers about disallowed claims targeting entities without a valid existence or paid employees during the eligibility period. This move aims to curb improper payments to ineligible entities, responding to misleading marketing campaigns targeting small businesses. The IRS has also offered a special withdrawal program for those with pending claims and plans to launch a voluntary disclosure program later this month for recipients of questionable payments to avoid future IRS actions.
Due to concerns over aggressive ERC marketing, the IRS has placed a moratorium on processing new ERC claims until at least the end of 2023, starting from September 14. When properly claimed, the ERC, a refundable tax credit, designed for businesses that continued paying employees during the COVID-19 pandemic, which experienced either a full or partial suspension of operations due to a government order or a significant decline in gross receipts within the eligibility periods. Further, the IRS has issued 20,000 letters disallowing claims in two identified problem areas related to the ERC:
The IRS has further reminded that, it is currently accepting and processing requests to withdraw a taxpayer’s full ERC claim under the special withdrawal process, option is made available to certain employers to withdraw their ERC claim to avoid future repayment, interest, and penalties. This option is designed to assist those who, under pressure or misinformation from ERC marketers, filed ineligible claims. The IRS cautions taxpayers to exercise extreme caution due to ongoing aggressive tactics by marketers and scammers. Additionally, the IRS advises individuals who submitted claims to review ERC requirements and consult with a trusted tax professional regarding eligibility amid misleading marketing around the credit.
The IRS announced that it is continuing to expand the features within Business Tax Account (BTA), an online self-service tool […]
Read MoreThe IRS has issued a series of questions and answers for 401(k) and similar retirement plans that provide, or wish […]
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Read MoreThe IRS has issued a reminder that summer day camp expenses may be eligible for the Child and Dependent Care tax […]
Read MoreThe IRS has updated frequently asked questions (FAQs) to provide guidance related to the critical mineral and battery component requirements […]
Read MoreThe IRS has issued a cautionary alert to taxpayers about a new scam exploiting clean energy tax credits. This emerging […]
Read MoreThe IRS reminded taxpayers that marijuana will remains a Schedule I controlled substance till a federal rule is published. Businesses […]
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