Tax Alerts

ERC Compliance Efforts Top $1 Billion in Six Months, IR-2024-78

The IRS announced that compliance efforts around erroneous Employee Retention Credit (ERC) claims have topped more than $1 billion within six months. “We are encouraged by the results so far of our initiatives designed to help misled businesses, and the IRS will continue our broader compliance work given the aggressive marketing we’ve seen with this credit,” said IRS Commissioner Danny Werfel. The special ERC Voluntary Disclosure Program (VDP) has yielded more than $225 million from over 500 taxpayers, while the ongoing claim withdrawal process for those with unprocessed claims has led to 1,800 entities withdrawing $251 million. Additionally. $3 billion claims are being reviewed by the IRS criminal investigation team. Although the ERC program began as a critical effort to help businesses during the COVID 19 pandemic, the program has been misused and become the target of aggressive marketing well after the end of the pandemic. Keeping this in mind, the IRS will continue its moratorium on processing ERC claims submitted after September 14, 2023. This moratorium helps the agency review the ERC inventory with stringent measures of scrutiny.

The IRS also announced that the VDP will be suspended after March 22, 2024. The reopening of the program at a later stage depends on whether Congress extends the statute of limitations for ERC claims. The VDP is for employers who need to repay ERCs they received through December 21, 2023, either as a refund or as a credit on a tax return. Meanwhile the agency guarantees that the ERC claim recapture will continue to expand. The IRS has other compliance actions underway, with thousands of claims being audited; promoter investigations and criminal investigations.

IR-2024-78

FL - Storm Extensions Offered

The Florida Department of Revenue is offering corporate income tax return filing extensions for businesses in counties affected by severe […]

Read More
FL - Storm Extensions Offered

FL - Credit for employing individuals with unique abilities discussed

Florida issued guidance that discusses the new corporate income tax credit for employing individuals with unique abilities. The guidance includes […]

Read More
FL - Credit for employing individuals with unique abilities discussed

FL - Indexed tax rate on asphalt for 2024-2025 announced

Florida issued guidance that discusses the new corporate income tax credit for employing individuals with unique abilities. The guidance includes […]

Read More
FL - Indexed tax rate on asphalt for 2024-2025 announced

Inflation Adjusted Credit Rate for Carbon Dioxide Sequestration Released, Notice 2024-39

The IRS has released the inflation adjustment factor for the credit for carbn dioxide (CO2) sequestration under Code Sec. 45Q for 2024. The inflation adjustment factor is 1.3877, and the credit is $27.75 per metric ton […]

Read More
Inflation Adjusted Credit Rate for Carbon Dioxide Sequestration Released, Notice 2024-39

IRS Tightens Scrutiny on Employee Retention Credit Claims, IR-2024-169

The IRS has announced plans to deny tens of thousands of high-risk Employee Retention Credit (ERC) claims while beginning to process lower-risk claims. The agency’s review has […]

Read More
IRS Tightens Scrutiny on Employee Retention Credit Claims, IR-2024-169

Seniors Warned of Rising Impersonation Scams, IR-2024-164

The IRS has issued a warning about the increasing threat of impersonation scams targeting seniors. These scams involve fraudsters posing as government officials, including IRS agents, […]

Read More
Seniors Warned of Rising Impersonation Scams, IR-2024-164

Clean Hydrogen Credit Inflation Factors and Applicable Amounts for 2023 and 2024 Released, Notice 2024-45

The IRS released the inflation adjustment factors and the resulting applicable amounts for the clean hydrogen production credit for 2023 and 2024. For 2023, the inflation adjustment factor is one, so the inflation adjusted applicable amounts are the same as those in Code Sec. 45V(b). Thus, the applicable amounts for a […]

Read More
Clean Hydrogen Credit Inflation Factors and Applicable Amounts for 2023 and 2024 Released, Notice 2024-45

United States-Russia Tax Treaty To Be Suspended, Announcement 2024-26

The United States has provided formal notice to the Russian Federation on June 17, 2024, to confirm the suspension of the operation […]

Read More
United States-Russia Tax Treaty To Be Suspended, Announcement 2024-26

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 […]

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

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 […]

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