Newsletters

IRS Takes Action Against Dubious ERC Claims to Prevent Improper Payments, IR-2023-230

The IRS has intensified its efforts to address questionable dubious Employee Retention Credit (ERC) claims, sending over 20,000 letters to taxpayers about disallowed claims targeting entities without a valid existence or paid employees during the eligibility period. This move aims to curb improper payments to ineligible entities, responding to misleading marketing campaigns targeting small businesses. The IRS has also offered a special withdrawal program for those with pending claims and plans to launch a voluntary disclosure program later this month for recipients of questionable payments to avoid future IRS actions.

Due to concerns over aggressive ERC marketing, the IRS has placed a moratorium on processing new ERC claims until at least the end of 2023, starting from September 14. When properly claimed, the ERC, a refundable tax credit, designed for businesses that continued paying employees during the COVID-19 pandemic, which experienced either a full or partial suspension of operations due to a government order or a significant decline in gross receipts within the eligibility periods. Further, the IRS has issued 20,000 letters disallowing claims in two identified problem areas related to the ERC:

The IRS has further reminded that, it is currently accepting and processing requests to withdraw a taxpayer’s full ERC claim under the special withdrawal process, option is made available to certain employers to withdraw their ERC claim to avoid future repayment, interest, and penalties. This option is designed to assist those who, under pressure or misinformation from ERC marketers, filed ineligible claims. The IRS cautions taxpayers to exercise extreme caution due to ongoing aggressive tactics by marketers and scammers. Additionally, the IRS advises individuals who submitted claims to review ERC requirements and consult with a trusted tax professional regarding eligibility amid misleading marketing around the credit.

IRS Issues FAQs on Disaster Relief Related to Retirement Plans, FS-2024-19; IR-2024-132

The IRS issued frequently asked questions (FAQs) related to distributions from retirement plans and IRS for individuals impacted by federally declared disasters. These FAQs cover the ongoing disaster relief for certain distributions […]

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IRS Issues FAQs on Disaster Relief Related to Retirement Plans, FS-2024-19; IR-2024-132

2025 Inflation Adjustments for Health Savings Accounts Released, Rev. Proc. 2024-25

The IRS has released the 2025 inflation-adjusted amounts for health savings accounts under Code Sec. 223. For calendar year 2025, the annual limitation on deductions under Code Sec. 223(b)(2) for an […]

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2025 Inflation Adjustments for Health Savings Accounts Released, Rev. Proc. 2024-25

IRS Highlights Home Energy Credits for Taxpayers, IR-2024-137

The IRS has advised taxpayers that making specific energy-efficient updates to their homes could qualify them for home energy credits. This guidance comes under the expanded provisions of […]

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IRS Highlights Home Energy Credits for Taxpayers, IR-2024-137

FL - Eligibility for tax credit scholarship program expanded

The eligibility for the Florida Tax Credit Scholarship Program is expanded for sales and use tax purposes. The scholarship program […]

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FL - Eligibility for tax credit scholarship program expanded

FL - IRC conformity tie-in date updated, disaster extension established

Florida updated the IRC conformity tie-in date for computing corporate income tax liability from January 1, 2023 to January 1, […]

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FL - IRC conformity tie-in date updated, disaster extension established

FL - Gas and Sulfur production tax rates for 2024-2025 announced

Florida has issued the severance tax rates for the production of gas and sulfur effective July 1, 2024, through June […]

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FL - Gas and Sulfur production tax rates for 2024-2025 announced

No Further Funding Cuts For IRS In FY24

Other than a planned repurposing of Inflation Reduction Act supplemental funding, the Internal Revenue Service saw no other cuts as the President signed off on the resolution […]

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No Further Funding Cuts For IRS In FY24

IRS Criminal Investigation Releases COVID Fraud Conviction Statistics, IR-2024-83

The IRS released statistics that showed 1,644 tax and money-laundering cases related to COVID fraud, totaling $9 billion investigated by the Criminal Investigation (CI). CI is the law enforcement […]

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IRS Criminal Investigation Releases COVID Fraud Conviction Statistics, IR-2024-83

IRS Updates FAQ on Commercial Clean Vehicle Credits (FS-2024-14; IR-2024-111)

The IRS updated frequently asked questions (FAQ) on New, Previously Owned and Qualified Commercial Clean Vehicle Credits. These FAQs provide guidance on how the Inflation Reduction […]

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IRS Updates FAQ on Commercial Clean Vehicle Credits (FS-2024-14; IR-2024-111)

2024 Foreign Housing Expense Amounts Released, Notice 2024-31

KPMG TaxNewsFlash – United States March 20, 2024 The IRS today released Notice 2024-31 [PDF 156 KB] providing the adjustments to the limitation on housing expenses, under […]

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2024 Foreign Housing Expense Amounts Released, Notice 2024-31