News
Enforcement, voluntary programs yield over $1 billion from ERC claims
March 22, 2024
The IRS has identified about $1 billion in potential savings from erroneous employee retention credit (ERC) claims, with over half of that money coming from enforcement efforts and the rest from the ERC voluntary disclosure program (VDP) and claim withdrawal process, officials said Friday.
Seven warning signs of incorrect Employee Retention Credit claims for businesses to review as key March 22 deadline approaches
March 20, 2024
To counter promoters that marketed misleading information about the Employee Retention Credit (ERC), the Internal Revenue Service urged businesses to review seven suspicious signs of a bad claim and see if the agency’s special programs can help them avoid future compliance issues.
Senators introduce bill to curb GRAT tax break
March 19, 2024
A pair of lawmakers proposed a bill Wednesday to end the abuse of grantor-retained annuity trusts to avoid taxes.
Werfel says digital initiatives can transform ‘iconically unpopular’ IRS
March 19, 2024
Danny Werfel understands that the IRS has a perception problem. The IRS commissioner said in a speech Monday at American University that the Service is "iconically unpopular," even playing a clip from The Simpsons to illustrate the point.
Decision holding Corporate Transparency Act unconstitutional appealed
March 12, 2024
The U.S. Justice Department (DOJ) appealed a federal court decision that held the Corporate Transparency Act (CTA), P.L. 116-283, which requires the reporting of beneficial ownership information (BOI) by businesses, is unconstitutional.
CT to get $138M for local projects in first government funding bills
March 08, 2024
More than two-thirds of this batch will go toward infrastructure and transportation projects.
DOL Enacts New Independent Contractor Test
March 06, 2024
The Department of Labor has announced a six-factor test for determining whether a worker is an independent contractor or an employee under the Fair Labor Standards Act. This new rule takes effect on March 11, 2024.
SEC adopts climate-related disclosure rule
March 06, 2024
The SEC on Wednesday adopted a long-awaited rule for climate-related disclosures.
On Form 1099-K delays, Werfel says IRS must protect taxpayer rights
February 16, 2024
IRS Commissioner Danny Werfel defended his agency's delay of the implementation of a lower threshold for reporting income on Forms 1099-K, telling a House committee on Thursday that his office has the responsibility to protect taxpayer rights.
Special Alert: Connecticut, Other New England States Issue Tax Relief for Taxpayers Affected by Storms
February 07, 2024
A number of other states have followed the IRS' lead by issuing tax relief to taxpayers affected by recent storms.
Study: IRS could collect billions more with full funding
February 07, 2024
The IRS could collect $561 billion in tax revenue over 10 years if it maintains its funding from the Inflation Reduction Act of 2022, P.L. 117-169, the Service said in a study released Tuesday.
House OKs $78B tax bill with changes to ERC and child tax credits
February 01, 2024
The House on Wednesday passed a roughly $78 billion tax bill that contains provisions making changes to restrict the employee retention credit (ERC), expand eligibility for the child tax credit (CTC), and temporarily reinstate the expensing of research or experimental (R&E) expenditures. It also restores tax breaks for companies from the law known as the Tax Cuts and Jobs Act, P.L. 115-97, that have expired or would expire in the coming years.
Decreased Affordability Under the ACA – Will you be compliant in 2024?
January 30, 2024
In Rev. Proc. 2023-29, recently issued by the Internal Revenue Service, the affordability percentage for Affordable Care Act plans has been set at 8.39% beginning in 2024. This marks a significant decrease from the previous 9.12% applicable for 2023. This is the lowest percentage since the inception of the employer mandate which means these plans will cost employers more.
BOI reporting and unauthorized disclosure penalties increased
January 25, 2024
Inflation adjustments have significantly increased the civil monetary penalties for violating the beneficial ownership information (BOI) reporting rules and for the unauthorized disclosure or use of BOI. The rules requiring the reporting of BOI just went into effect this month.
IRS: Connecticut taxpayers impacted by storms qualify for tax relief; various deadlines postponed to June 17
January 23, 2024
New London county has received a FEMA disaster emergency declaration which allows for the postponement of certain due dates for specific tax filings and tax payments. It also allows for the deduction of casualty losses attributable to emergency declaration within the declared area.
Employee Retention Credit Update from Congressman Courtney's Office
January 08, 2024
On September 14th, 2023, the IRS announced a moratorium until at least the end of the year on the acceptance of new ERC claims. This moratorium was implemented due to the number of fraudulent claims being filed across the nation. In total, the IRS has received 3 million ERC claims, and nearly a fifth of all applications received were submitted in the 90 days before the declaration of the moratorium, indicating a large spike in fraudulent filings. Many businesses have been encouraged to apply by “Tax Promoters.” “Tax Promoters” encourage and pressure businesses across the nation to file, often improperly indicating that businesses are eligible to receive a refund. With this in mind, the IRS has implemented a withdrawal process for those who filed for the credit in err.
GASB issues guidance on disclosure of certain risks
January 08, 2024
The Governmental Accounting Standards Board (GASB) issued guidance today that requires governments to disclose information about certain risks.
Congressional leaders announce spending deal as shutdown threat looms
January 07, 2024
House and Senate leaders on Sunday announced a spending deal for government funding in 2024, the first step to averting a shutdown later this month even as that threat still looms.
DOL report points out deficiencies in employee benefit plan audits
December 15, 2023
A U.S. Department of Labor (DOL) report released earlier this month showed a need for improvement in audits of employee benefit plan financial statements.
CTCPA Supports Letter Asking for Bills to be Included in Year-End Legislative Package to Delay BOI Reporting Requirements
December 14, 2023
In a letter addressed to members of the House Financial Services Committee and Senate Banking Committee, the AICPA and all 54 state CPA societies, including the Connecticut Society of CPAs asked that H.R. 4035 and S. 2623, the Protecting Small Business Information Act of 2023, or similar legislation to delay, be included in any year-end legislative package. The bills would delay the Beneficial Ownership Information (BOI) reporting requirement until all three rules under the Corporate Transparency Act have been finalized to specify that all such rules would take effect on the same date.