Logging into Zoom at the beach could land you a tax bill
March 20, 2023
When does doing a little work on vacation turn into a stay that piques the interest of local tax authorities? And does a U.K. company, for example, face tax complications abroad if they have staff and key decision makers are dotted across Europe working remotely?
Taxpayer services should get more of that $80 billion, advocate says
March 17, 2023
The IRS should spend more of its $80 billion appropriation over 10 years on taxpayer services and business systems modernization and less on enforcement and operations, National Taxpayer Advocate Erin Collins said Thursday in a blog post.
FASB Seeks Public Comment on Proposed Enhancements to Income Tax Disclosures
March 15, 2023
The Financial Accounting Standards Board (FASB) today published a proposed Accounting Standards Update (ASU) that addresses requests for improved income tax disclosures from investors, lenders, creditors, and other allocators of capital (collectively, “investors”) that use the financial statements to make capital allocation decisions.
Tax pros need to give ERC claims the 'sniff test'
March 14, 2023
Since its inception, the Employee Retention Credit has been both a boon to employers and a cautionary risk for preparers.
Werfel begins work as 50th IRS Commissioner
March 09, 2023
Danny Werfel began work today as the 50th commissioner of the Internal Revenue Service.
IRS issues renewed warning on Employee Retention Credit claims; false claims generate compliance risk for people and businesses claiming credit improperly
March 07, 2023
The Internal Revenue Service today issued a renewed warning urging people to carefully review the Employee Retention Credit (ERC) guidelines before trying to claim the credit as promoters continue pushing ineligible people to file.
Tax season so far: ERC abuses and new frauds
March 07, 2023
The filing season is continuing its successful start, with just a small amount of carryover from last year. Third-party marketing of the Employee Retention Credit is causing concern, with the IRS reaching out to employers to be cautious in claiming a credit that they may not be eligible for, and to practitioners, reminding them of their Circular 230 due diligence responsibilities.
Aggressive Employee Retention Credit Calculations Can Create Professional Liability Risk
March 06, 2023
The Employee Retention Credit (“ERC”), originally enacted under the 2020 Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) and as subsequently amended, was designed to encourage businesses to keep employees on their payroll through a refundable tax credit based on qualified wages. Like many other credits, businesses claiming an ERC must reduce the deduction for salary and wages by the amount of the credit received.
Emerging Cannabis Markets: Cloudy Regulations, High Potential
March 06, 2023
CFOs have much to learn from the rapidly expanding, highly profitable industry.
IRS warns taxpayers of new filing season scams involving Form W-2 wages; those filing fake returns face potential penalties, investigation
March 03, 2023
The Internal Revenue Service issued a consumer alert today to warn taxpayers of new scams that urge people to use wage information on a tax return to claim false credits in hopes of getting a big refund.
How to handle state unclaimed property notices
March 02, 2023
C-suite individuals receive a plethora of important letters, many of which pertain to certain compliance requirements for their companies. Some of these letters come from states and deal with unclaimed property. Understanding and being familiar with the type of mailing received is important. If handled improperly, unclaimed property notices may result in increased risk for companies.
Lookback period extended for refunds related to pandemic postponements
March 01, 2023
On Monday, in Notice 2023-21, the IRS lengthened the lookback period for refund claims for returns with due dates that were deferred by Notice 2021-21 or Notice 2020-23, which postponed the due dates for filing certain tax returns and making certain tax payments during the COVID-19 pandemic.
District Court holds IRS owes tax preparers partial refund of PTIN fees
February 27, 2023
The IRS must determine the appropriate partial refund amount for tax return preparers who it overcharged for their preparer tax identification numbers (PTINs) from 2011 to 2017, a district court held in an opinion unsealed last week (Steele, No. 1:14-cv-1523-RCL (D.D.C. 1/23/23)).
The start of Tax Season 2023: By the numbers
February 27, 2023
By now the word has, hopefully, gotten out to clients: Refunds are smaller this year, thanks to reductions in various COVID-related relief programs.
Tax season so far: A mixed bag
February 24, 2023
Better phone service from the Internal Revenue Service, overly aggressive third-party-induced Employee Retention Credit claims, a talent shortage, and the sheer amount of updated tax knowledge necessary for preparers are among the big factors of this year's filing season for tax preparers.
Smaller refunds, and more from the IRS
February 22, 2023
By now, both the Internal Revenue Service and the media have made many taxpayers aware that they might receive smaller refunds this year than they have become accustomed to. There are a number of reasons for this, according to Stephen Mankowski, tax chair at the National Conference of CPA Practitioners.
IRS and Treasury issue final regulations on e-file for businesses
February 21, 2023
The Department of the Treasury and the Internal Revenue Service today issued final regulations amending the rules for filing returns and other documents electronically (e-file). These regulations will require certain filers to e-file beginning in 2024.
Too much work, too few warm bodies
February 20, 2023
Every filing season brings new and — all too often — bigger challenges. What's the big headache in this year's run to Tax Day?
IRS misses Friday deadline to turn over $80 billion spending plan
February 17, 2023
The IRS will not meet the Friday deadline imposed by Treasury Secretary Janet Yellen to turn over its spending plan for approximately $80 billion that Congress budgeted for it to spend over 10 years as part of the Inflation Reduction Act of 2022, P.L. 117-169.
Taxpayers can now upload more documents to IRS; new online option for 9 notices can help resolve issues faster
February 16, 2023
The Internal Revenue Service announced today that taxpayers who receive certain notices requiring them to send information to the IRS now have the option of submitting their documentation online through IRS.gov.