Can the U.S. Tax Court Hear ERC Lawsuits?... [ read ]
As more and more taxpayers consider filing lawsuits to receive an ERC refund, it is important to understand where the lawsuits can be filed. Before a taxpayer is legally allowed to file a refund lawsuit in court, taxpayers must first file a claim for refund with the IRS.
Return Preparer Fraud Results in Harsh Outcome for Innocent Taxpayer... [ read ]
the IRS generally has three years to assess additional tax, pursuant to IRC Section 6501. The three years can be extended by agreement, the taxpayer filing for bankruptcy, the IRS issuing a Notice of Deficiency, or taxpayer involvement in a third party summons enforcement action.
IRS Announces New Audit Initiative Focused on Private Jet Usage... [ read ]
According to the IRS, private jet usage by certain taxpayers just doesn't fly. Today the IRS announced plans to initiate dozens of audits on business aircraft involving personal use. The audits will focus on aircraft usage by large corporations, large partnerships and high-income taxpayers and whether use of aircrafts is being properly allocated between business and personal reasons.
No Chocolate/Flowers: IRS Dishes Out the Threat of ERC Penalties as its Valentines Gift to Taxpayers... [ read ]
The IRS was not feeling the love this past Valentine's Day, releasing a new FAQ to its Employee Retention Credit Voluntary Disclosure Program that identifies the multitude of criminal and civil penalties that could apply to non-compliant taxpayers that choose not to participate in the program.
IRS Taps into its Inner ‘Letterman' in releasing Top 7 Signs of Improper ERC... [ read ]
For those of you who missed it, the IRS launched a voluntary disclosure program for taxpayers that may have improperly claimed employee retentions credits (ERCs). With the March 22nd program deadline looming, the IRS announced yesterday its "Top 7" list highlighting warning signs that an ERC claim may be questionable.
ERC Refund Litigation: The Role of Local Counsel... [ read ]
Given that the IRS Employee Retention Credit ("ERC" or "ERTC") moratorium is still in effect, and ERC claims not subject to the moratorium are being processed slowly, there are possibly many ERC refund lawsuits that may be filed soon. The rules of civil procedure generally provide that cases against the U.S. government can be filed only in the judicial district where the plaintiff resides or where a corporation has its principal place of business. So needless to say, if there are in fact many ERC lawsuits filed, they will likely be filed in many different courts.
The IRS ERC Webinar Has Come and Gone. What Did the IRS Say?... [ read ]
On February 8, 2024, the IRS held a public webinar primarily about the Employee Retention Credit ("ERC" or "ERTC") Voluntary Disclosure Program.
ERTC Clarity Coming This Week? IRS Webinar May Shed Light On IRS Plans... [ read ]
There are still many questions about how the IRS is handling ERTC (also known as "ERC") claims after its moratorium deadline of December 31, 2023 expired. This Thursday, February 8 at 1pm Central Time (2pm Eastern Time), the IRS is hosting a free webinar to provide updates on the ERTC Voluntary Disclosure Program and the moratorium. Tax professionals can earn one continuing education (CE) credit for participation.
What Happens if ERTC Advisors are Treated as "Material Advisors?" A Lot.... [ read ]
As mentioned in an earlier article, there is bipartisan support for pending legislation that, if passed, would upend much of the existing law surrounding the Employee Retention Tax Credit ("ERTC" or "ERC"). I previously wrote about the "listed transaction" provisions of the proposed legislation. There are numerous other ways the IRS is taking enforcement actions surrounding the ERTC. One of those ways is the IRS's expansion of the term "Material Advisors" to specifically include "COVID-ERTC promoters" who provide aid, assistance, or advice with respect to a "COVID-ERTC document."
What Happens If Your ERTC Claim is Treated as a Listed Transaction? It's Complex.... [ read ]
Yesterday, I wrote about some legislative proposals that could cause major changes to existing Employee Retention Tax Credit ("ERTC" or "ERC") laws. One of the provisions in the proposed legislation includes treating certain ERTC claims as "listed transactions."
