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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.

  • coronavirus
  • practice management
  • state tax
  • federal tax

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The Employee Retention Credit (“ERC”), originally enacted under the 2020 Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) and as subsequently amended, was designed to encourage businesses to keep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.

  • business and industry
  • coronavirus
  • state tax
  • federal tax

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.

  • state tax
  • federal tax

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)).

  • state tax
  • federal tax

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.

  • state tax
  • federal tax

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?

  • practice management
  • state tax
  • federal tax

IRS Statement — Taxability of State Payments

February 02, 2023

The IRS is aware of questions involving special tax refunds or payments made by states in 2022; we are working with state tax officials as quickly as possible to provide additional information and clarity for taxpayers. There are a variety of state programs that distributed these payments in 2022 and the rules surrounding them are complex. We expect to provide additional clarity for as many states and taxpayers as possible next week.

  • state tax
  • federal tax

Tax season so far: More service, lower refunds

February 02, 2023

This year's tax season, the first post-COVID, began on Jan. 23 with anticipation of a return to normal.

  • state tax
  • federal tax

CT tax cuts are likely, but fierce debate expected over who benefits

January 26, 2023

Lamont expected to ignite the debate next month when he presents his budget proposal.

  • state tax
  • advocacy - state

Governor Lamont Announces 2023 Legislative Proposal: Save Money for Small Businesses by Restoring Pass-Through Entity Tax Credit

January 18, 2023

Governor Ned Lamont today held a news conference in Hartford to announce his first legislative proposal of 2023, which includes restoring Connecticut’s pass-through entity tax credit to its original, revenue-neutral level of 93.01% and enabling small business owners in the state to save money by claiming a larger credit on their personal returns.

  • business and industry
  • practice management
  • state tax
  • advocacy - state

Melancon looks ahead to tax season challenges

January 11, 2023

American Institute of CPAs president and CEO Barry Melancon spoke Wednesday about changes at the Internal Revenue Service and Congress, the prospects for the upcoming tax season, the evolving CPA licensing model, recruiting young people to the profession and more during a wide-ranging presentation to the Accountants Club of America.

  • accounting and auditing
  • practice management
  • state tax
  • technology and cybersecurity
  • advocacy - federal
  • federal tax

Treasury, IRS issue interim guidance on new corporate alternative minimum tax

December 27, 2022

The Treasury Department and the Internal Revenue Service today issued Notice 2023-07PDF, which provides interim guidance regarding the application of the new corporate alternative minimum tax (CAMT) until the issuance of proposed regulations.

  • state tax
  • federal tax

Treasury, IRS provide transitional guidance for broker reporting on digital assets

December 27, 2022

The Treasury Department and Internal Revenue Service announced today that brokers are not required to report additional information with respect to dispositions of digital assets until final regulations are issued under sections 6045 and 6045A.

  • state tax
  • technology and cybersecurity
  • federal tax

Lamont Ponders Income Tax Cut

December 13, 2022

An income tax reduction for residents making up to between $150,000 and $200,000 a year is among the proposals Gov. Ned Lamont said Tuesday he is weighing ahead of the legislative session that begins next month.

  • state tax
  • advocacy - state

Future Of Connecticut’s Child Tax Credit Is Uncertain

December 12, 2022

The General Assembly’s tax-writing committee heard positive feedback Monday on the impact of a temporary child tax rebate program, which will need to either be extended or shelved in the legislative session beginning next month.

  • state tax
  • advocacy - state

The demise of Maryland's digital advertising tax echoes around the world

December 02, 2022

The decision by a Maryland circuit court striking down the state's digital advertising tax, while a major victory for big tech, could have implications that spread beyond the state.

  • state tax
  • technology and cybersecurity
  • federal tax

Understand the tax consequences of remote work

October 17, 2022

In a post-pandemic world, 16% of companies have gone fully remote. Many workers have embraced and adapted to this new setup.

  • coronavirus
  • state tax
  • federal tax

CT leaders mull special session for essential worker relief, gas tax

September 29, 2022

Legislative leaders are considering calling a special session after the November election

  • business and industry
  • state tax
  • advocacy - state

IRS continued to delay business tax refunds from pandemic

September 06, 2022

The Internal Revenue Service has been slow in processing employer tax credits and tax refunds that businesses were supposed to receive to cope with the pandemic, according to a new report.

  • business and industry
  • state tax
  • federal tax

States Take Child Tax Credits Into Their Own Hands

August 31, 2022

The recently passed Inflation Reduction Act of 2022 did not include an extension of the expanded child tax credit provision, which was enacted under the Biden Administration’s American Rescue Plan for 2021 federal tax returns. However, all is not lost… the federal child tax credit is still available to families for tax year 2022 and thereafter, albeit, under the “old” tax law rules that existed prior to the enactment of the American Rescue Plan.

  • state tax
  • advocacy - state
  • advocacy - federal
  • federal tax