Employers can pay back questionable Employee Retention Credits at discounted rate

As part of an ongoing initiative to combat questionable Employee Retention Credit (ERC) claims, the IRS has launched a voluntary disclosure program. It allows eligible businesses to pay back money they received after filing ERC claims in error. The disclosure program runs through March 22, 2024, and allows repayment of 80% of the claim received. […]

IRS collects record amount of revenue

In a recent report, the Treasury Inspector General for Tax Administration (TIGTA) stated that the IRS collected a record-setting amount of revenue in fiscal year 2022. It took in $4.9 trillion, $790 billion more than collected in fiscal year 2021. TIGTA’s Trends in Compliance Activities Through Fiscal Year 2022 also reports an estimated “tax gap” […]

GAO reports on IRS efforts to enhance tax compliance

The Government Accountability Office (GAO) recently reported that the IRS can improve its use of information returns to enhance tax compliance. The IRS received more than five billion such returns in 2022, including Form W-2, Form 1099-NEC, Form 1099-INT and Form 1099-K. It uses these forms to verify self-reported income and tax on taxpayers’ returns. […]

Accuracy related penalty imposed for unreported income

Federal tax law defines gross income as income from all sources, unless excluded by law. In one case, a married couple was assessed an accuracy-related penalty for unreported income from illegal marijuana manufacturing and sales. The couple argued that the IRS lacked direct evidence linking them to any income-producing activity related to marijuana. However, if […]

Make these 5 New Year’s resolutions to avoid scams this year

Make these 5 New Year’s resolutions to avoid scams this year – USA TODAY https://bit.ly/3NQcmtw

IRS ‘Pay Up’ Letters Start Arriving in Millions of Mailboxes

IRS ‘Pay Up’ Letters Start Arriving in Millions of Mailboxes Next Week – The Messenger https://bit.ly/3vo8XLV

Regulations proposed for energy efficient home improvement credit

The IRS announced that it will propose regulations to implement the product identification number (PIN) requirement with respect to the energy efficient home improvement credit. Beginning Jan. 1, 2023, the credit (subject to certain limits and caps) is equal to 30% of the total amount paid for certain qualified expenses. These include qualified energy efficiency […]

Bill Introduced to revoke tax-exempt status of large sports leagues

A bipartisan bill has been introduced in the U.S. House of Representatives that would revoke the tax-exempt status of certain sports leagues. The bill is aimed at the reported merger of the PGA and LIV Golf, a venture backed by Saudi Arabia. Introduced by Rep. Mike Thompson (D-CA) and Rep. Vern Buchanan (R-FL), the bill […]

GAO reports on Sole Proprietor Compliance

The IRS attributes approximately $80 billion in unpaid taxes to sole proprietors underreporting their incomes each year. That’s according to a recent Government Accountability Office (GAO) report. The $80 billion comprises 16% of the estimated annual $496 billion “tax gap.” It is generally defined as the difference between federal income tax owed and the amount […]

Is my Home Office deductible?

With so many people working from home, they may refer to their workspaces as “home offices.” But do those spaces qualify them for home office tax deductions? Indeed, there are specific requirements workspaces must meet to qualify for deductions. Employees currently don’t qualify for home office deductions if they’re required, or want, to work remotely. […]