The March 22 deadline for applying to the IRS Voluntary Disclosure Program (VDP) to repay improperly claimed Employee Retention Credits (ERC) at a discount is just around the corner. The VDP requires businesses to repay only 80% of the improper credits they received while avoiding penalties and interest. It is part of a larger federal
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July 2019
Latest from Tax Controversy & Financial Crimes Report - Page 2
IRS to Focus on High-Income Earners Who Have Not Filed Tax Returns Since 2017
The IRS is sending out over 125,000 collection letters to high-income taxpayers who did not file one or more federal income tax returns between 2017 and 2021. The IRS will send approximately 25,000 letters to taxpayers with annual incomes of more than $1 million and the rest to taxpayers with annual incomes between $400,000 and
IRS Identifies Seven Employee Retention Credit Red Flags (and Other ERC Updates)
The IRS recently issued a news release identifying seven signs that a business’s Employee Retention Tax Credit (the “ERC”) may be incorrect. The IRS Commissioner also testified before the House Ways and Means Committee that the IRS is still receiving thousands more ERC claims per week than it is processing. The IRS Office of Chief
IRS and Congress Expand Efforts to Address ERC Fraud
There are several new developments in the Internal Revenue Service’s ongoing campaign to combat false and fraudulent Employee Retention Credit (ERC) claims.
They include an indefinite extension of the agency’s moratorium on processing claims (which also impacts the ERC withdrawal program) and the emergence of a legislative deal to end the ERC as soon as
New IRS Voluntary Disclosure Program Lets Businesses Repay Questionable Employee Retention Credits at a Discount
The IRS has announced a new Voluntary Disclosure Program (VDP) offering businesses a limited-time opportunity to repay improperly claimed Employee Retention Credits at a discount while avoiding penalties and interest. The VDP requires businesses to repay only 80% of the improper credits they received and has an application deadline of March 22, 2024.
IRS Rejects 20,000 Employee Retention Tax Credit Claims, Plans to Offer New Voluntary Disclosure Program
In its most recent effort to fight fraudulent and improper Employee Retention Tax Credit (ERC) claims, on December 6, 2023, the IRS announced it will be notifying an initial group of 20,000 taxpayers that it is rejecting their claims. The IRS is issuing these disallowance letters to taxpayers who did not exist or who did
One Appraiser Goes to Prison, Another Goes Home: What to Expect from the IRS
This post is authored by Nicholas Lyskin (foxrothschild.com), Kristy Caron (foxrothschild.com) and Brian C. Bernhardt (foxrothschild.com)
Most appraisers don’t go to prison, and those that do, don’t go for appraising. So it’s no wonder why much has been made of the one-year prison sentence recently handed down to Walter Roberts II, an appraiser who
Matthew D. Lee Authors 2024 Update to FATCA Answer Book
Fox Rothschild LLP Partner Matthew D. Lee authored an updated version of the Foreign Account Tax Compliance Act Answer Book, which provides a detailed analysis of FATCA and the requirements it imposes on foreign financial institutions (FFIs) to disclose annually information about accounts held by U.S. citizens and residents, or foreign companies in which U.S. individuals
Amid Fraud Investigations, IRS Offers Employers an Opportunity to Withdraw Inaccurate Employee Retention Credit Claims
The IRS recently announced that it will offer certain employers an opportunity to withdraw Employee Retention Credit (ERC) claims if they are concerned about their accuracy. Qualifying employers may be able to avoid future repayment, interest and penalties, but there are caveats, including that the program will not allow employers who knowingly engaged in submitting
IRS Provides Extensions for Taxpayers Impacted by Hamas Terrorism in Israel
In Notice 2023-71, the IRS provided tax relief for individuals affected by Hamas’ terroristic action in the State of Israel beginning on October 7, 2023. Notably, this relief is not limited to eligible taxpayers in Israel, but also extends to eligible taxpayers in the Gaza Strip and the West Bank.
Pursuant to Notice 2023-71, the