IRS Sees Red Flags for ‘Vast Majority’ of ERC Claims
CPA Practice Advisor » Tax
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2h ago
By Erin Slowey, Bloomberg News (TNS) The IRS will deny tens of thousands more pandemic-era employee credit claims it deems potentially fraudulent in the coming weeks, as it remains in a holding pattern for processing new claims, the agency said Thursday. The update follows months of fraud surveillance at the agency on the employee retention tax credit, created to help struggling businesses keep their doors open and employees on the payroll during the Covid-19 pandemic. The credit became enmeshed in fraud, with third-party companies encouraging taxpayers to claim it when they didn’t qualify ..read more
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Unrealized Gains Tax Upheld by Supreme Court
CPA Practice Advisor » Tax
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14h ago
By Kelley R. Taylor, Kiplinger Consumer News Service (TNS) In a long-awaited ruling, the U.S. Supreme Court upheld a tax on unrealized gains, affirming the constitutionality of a mandatory repatriation tax introduced by the Tax Cuts and Jobs Act (TCJA).  In upholding the tax, Justice Brett Kavanaugh, writing for the majority stated, “The MRT—which attributes the realized and undistributed income of an American-controlled foreign corporation to the entity’s American shareholders, and then taxes the American shareholders on their portions of that income—does not exceed Congr ..read more
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IRS Releases FAQs on Sec. 127 Educational Assistance Programs
CPA Practice Advisor » Tax
by Jason Bramwell
2d ago
The Treasury Department and the IRS on June 17 released a fact sheet that provides answers to frequently asked questions related to educational assistance programs under Section 127 of the Internal Revenue Code. Taxpayers can exclude certain educational assistance benefits from their gross income if they are provided under an educational assistance program. Educational assistance benefits include payments for tuition, fees and similar expenses, books, supplies, and equipment, according to the IRS. They also include principal or interest payments on qualified education loans made by the employ ..read more
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Treasury Finalizes Rules on Clean Energy Prevailing Wage, Apprenticeships
CPA Practice Advisor » Tax
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2d ago
By David Jordan, CQ-Roll Call (TNS) The Biden administration on Tuesday announced final rules that codify the prevailing wage and apprenticeship requirements clean energy project managers must meet to receive increased tax credits. By meeting the Treasury Department’s labor requirements, developers can earn five times the baseline credit amount under the 2022 climate reconciliation law. The eligible credits include the renewable electricity production, clean electricity investment, and clean hydrogen production credits. While a version of these requirements was already in effect, Special Pr ..read more
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IRS Plans to Stop Basis Shifting Transactions
CPA Practice Advisor » Tax
by Jason Bramwell
3d ago
The Treasury Department and the IRS said on June 17 that a new initiative to shut down a major tax loophole used by wealthy individuals and large partnerships could raise more than $50 billion in revenue over 10 years. Treasury and the IRS issued three pieces of guidance on Monday focused on partnerships following discoveries by IRS audit teams. The IRS said it currently has tens of billions of dollars of deductions claimed in these transactions under audit. The new guidance is designed to stop the use of “basis shifting”—transactions where an individual or business moves asset ..read more
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IRS Updates Careers Site to Attract Job Seekers
CPA Practice Advisor » Tax
by Jason Bramwell
3d ago
The IRS Careers website has been updated and is now live, as the agency tries to fill job openings as part of an ongoing recruitment effort enabled by Inflation Reduction Act funding. Part of that effort was modernizing its primary vehicle to publicize job opportunities and hire new talent. The IRS Careers website now provides a comprehensive landing spot for candidates to find everything they need to pursue a career at the agency, including: Upcoming hiring events; Key job descriptions; Overview of the IRS and employee benefits; and Special emphasis hiring paths (veterans, Schedule A Except ..read more
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Didn’t Get Your Employee Retention Credit? You Can Sue the IRS
CPA Practice Advisor » Tax
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3d ago
By Melissa Angell, Inc. (TNS) Small businesses still vying for pandemic-era employee retention credits they haven’t received could have another course of action to nab their money sooner. A provision in the tax code allows taxpayers who have filed refund claims to sue the Internal Revenue Service if they have not heard from the agency within six months, or their claim was denied and they believe it to be legitimate. “A lot of small businesses are trying to decide: Should we keep waiting for the IRS or, since it’s been more than six months since we filed ou ..read more
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IRS Warns About Scams Targeting Seniors
CPA Practice Advisor » Tax
by Isaac M. O'Bannon
1w ago
The Internal Revenue Service has issued a renewed warning about the rising threat of impersonation scams, which often target older adults by pretending to be government officials, in an attempt to steal sensitive personal information and money. By posing as representatives from agencies such as the IRS, or other government agencies, these fraudsters use fear and deceit to exploit their victims. “Scammers often target seniors, attempting to steal personal information through phone calls, emails or text messages by pretending to be from the IRS or other agencies or businesses,” said IRS Commiss ..read more
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Trump Plan to End Taxes on Tips Garners Capitol Hill Interest
CPA Practice Advisor » Tax
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1w ago
By Caitlin Reilly and Aidan Quigley, CQ-Roll Call (TNS) In meetings with congressional Republicans on Thursday that were otherwise light on concrete policy details, former President Donald Trump again trotted out his desire to eliminate federal taxes on income from tips. Many Republicans said the idea had merit and should be part of the conversation as Congress weighs how to address the expiration of 2017 tax law provisions slated for the end of 2025. Even Democrats were reluctant to dismiss the idea outright, though many questioned Trump’s sincerity. “That should be on the table … when we ..read more
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Trump Tells CEOs He Would Cut Corporate Tax Rate to 20%
CPA Practice Advisor » Tax
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1w ago
By Nancy Cook and Justin Sink, Bloomberg News (TNS) Donald Trump promised to lower the corporate tax rate to 20%, further reducing the income levy on the largest U.S. companies that he already slashed while president, according to people familiar with the remarks. The presumptive Republican presidential nominee pitched his support for cutting the business tax rate during a private meeting in Washington Thursday with roughly 100 chief executive officers of some of the biggest American companies, including JPMorgan Chase & Co.’s Jamie Dimon and Tim Cook of Apple Inc. The current corporate ..read more
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