Tax Fraud

While most taxpayers strive to file honest tax returns, a few try to outsmart the IRS. One man was charged by the IRS with filing false returns for a fictitious company, listing himself as the sole owner. He obtained an employer tax ID number and claimed that the business paid him significant wages, but he […]

I.R.S. Stepping Up Efforts to Squash Fraud in Tax Credit Program

I.R.S. Stepping Up Efforts to Squash Fraud in Tax Credit Program – The New York Times https://bit.ly/4a6v60J

ERC Audit Flags

In advance of the March 22 deadline to apply for the IRS’s Voluntary Disclosure Program to correct improper Employee Retention Tax Credit (ERTC) claims, the agency has issued seven red flags of a bad claim. Indeed, to combat a wave of dubious ERTC claims, the IRS has sharply increased compliance action through audits and criminal […]

Offer in Compromise may help settle old tax debt

Taxpayers who can’t pay their full federal tax bill may seek an Offer in Compromise (OIC) with the IRS. An OIC allows a taxpayer to settle a debt for less than owed or to enter an agreement for more time to pay if paying the total would cause financial hardship. Applying for an OIC requires […]

Yes, you can receive your refund in US Savings Bonds

If you’re owed a tax refund this year, you might want to consider receiving it in U.S. Series I savings bonds. Under an IRS program, you’re allowed to use any amount of your refund divisible by $50, up to $5,000 per year to buy the bonds. These low-risk investments can accrue interest for up to […]

ERC Voluntary Disclosure Progam closing

The IRS is reminding certain businesses that a March 22, 2024, deadline is looming. The businesses must review guidelines for the Employer Retention Credit (ERC) and, if they’ve claimed it improperly, remedy their errors. The IRS has offered two fixes: 1) the Voluntary Disclosure Program (https://bit.ly/49g2Pnr), in which businesses can repay any incorrect ERC amount, […]

Budget deficit continues to grow

The federal budget deficit is slowly creeping toward $1 trillion, according to the Congressional Budget Office (CBO). In its February Monthly Budget Review, the CBO reports that for the first five months of fiscal year 2024, the federal budget deficit hit $830 billion. That amount is $108 billion more than the deficit recorded during the […]

IRS publications available in many languages

As the tax season rolls on, the IRS is reminding taxpayers that it continues to increase the amount of tax information available in multiple languages. Indeed, the IRS’s work in the multilingual area continues to expand. On the tax agency’s website, for example, much of the information has now been translated into seven languages other […]

Foreign Account reporting due soon

Do your assets include foreign bank and financial accounts? You may need to file an annual Report of Foreign Bank and Financial Accounts (FBAR) by April 15, depending on the details. Those who must file are taxpayers that have foreign financial accounts where the aggregate value of all such accounts exceeds $10,000 at any time […]

US Tax Court rules against taxpayer

To limit tax trouble, follow the rules. One taxpayer was the sole shareholder of a limited liability company (LLC) when the IRS assessed a harsh penalty for the LLC’s unpaid tax. She sought a refund, claiming that the penalty was assessed outside the statute of limitations. The IRS noted that the statute of limitations hadn’t […]