IRS Updates

IRS Recovers $400 Million in Employee Retention Tax Credit Claims

May 29, 2024

Recent developments from the IRS shed light on the agency’s efforts to manage pandemic-related tax credits. In addition to addressing employee retention tax credit claims, the IRS is also working on building a new e-filing pilot program. Here’s a summary of the latest actions concerning these initiatives.  Significant Recovery in Employee Retention Tax Credit Claims …

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Protecting Your Business: IRS’s Efforts Against COVID Tax Fraud

April 3, 2024

As we navigate through the complexities of tax season, businesses need to stay informed about recent developments in tax policies and enforcement. The Internal Revenue Service (IRS) has recently announced significant strides in combating fraudulent claims related to pandemic-era tax refunds, mainly focusing on the Employee Retention Credit (ERC) program. Understanding the Issue The ERC…

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The IRS Proposed Changes to Monetized Installment Sales Transactions

March 18, 2024

Monetized installment sale transactions are a strategy used in the sale of assets, such as property or businesses, in which the sale proceeds are almost immediately returned to the seller through a series of transactions designed to avoid immediate tax recognition.   The IRS has proposed regulations to address what it views as abusive practices within…

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IRS Oversight and Modernization: Navigating 1099-K Reporting and Direct File Challenges

March 12, 2024

On February 15, IRS Commissioner Danny Werfel testified before the House Ways and Means Committee. The GOP-controlled Committee has previously expressed its disapproval of the $80 billion allocated to the IRS, later negotiated down to $60 billion during debt ceiling talks. The hearing is part of an ongoing Republican effort to reduce that amount even…

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What Is the IRS Voluntary Disclosure Program?

February 19, 2024

Getting away without paying your taxes may not be as easy as it used to be—and the penalties could be steep.  We’ve written about the IRS’s new budget and how the Service has pledged to use part of those funds to increase its enforcement efforts, particularly with regard to partnerships, corporations, and individuals making over…

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The IRS’s New Strategies in Enforcement

February 5, 2024

As of the beginning of 2024, the IRS had identified over 1,600 millionaires and billionaires who owed back taxes. In the words of Commissioner Danny Werfel, the Service is now putting in “a laser-focused effort to collect that money.” We’ve previously written about the new funding allocated to the IRS by the Inflation Reduction Act…

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Closing the Tax Gap: How the IRS is Cracking Down on Tax Evasion

January 31, 2024

Flush with a cash infusion from the Inflation Reduction Act of 2022, the IRS is using its new funds to provide better service to taxpayers, implement new technology, and intensify its enforcement efforts. As part of its enforcement efforts, the Service is closely scrutinizing partnerships, corporations, and high-wealth individuals to enhance tax compliance and crack…

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IRS Proposes Tax Deduction Change for Partnerships that Deal with Related Entities

December 4, 2023

On November 24, The Internal Revenue Service (IRS) announced a set of proposed regulatory amendments intended to refine and modernize the tax code’s approach to transactions between partnerships and related entities. This proposal aims to align regulations, some of which date back to the 1950s, with legislative intent and ensure consistency with the statutory provisions.…

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IRS & Treasury Clarify Guidance around Supporting Organizations

November 8, 2023

The IRS and the US Department of the Treasury recently introduced final regulations clarifying the definition of a controlling donor and prohibitions on giving to Type I and Type III supporting organizations, and providing guidance around certain requirements for Type III supporting organizations. What is a Supporting Organization? A supporting organization is a tax-exempt entity…

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Electronic Signatures Become a Permanent Feature of the IRS

November 1, 2023

The Internal Revenue Service (IRS) recently updated its guidelines to permanently extend the option for taxpayers and their representatives to use e-signatures on select forms, returns, and documents. This change should make filing a little faster and easier for taxpayers, cut down on the necessity for in-person interaction, and help reduce unnecessary use of paper.…

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