IRS shares 7 warning signs Employee Retention Credit claims may be incorrect

2024-02-16 IR-2024-39, Feb. 13, 2024 The IRS urges businesses to revisit eligibility for the ERC and resolve issues now before the March 22 deadline for the ERC Voluntary Disclosure Program for anyone that filed a claim in error and received a payment; the disclosure program allows businesses to repay just 80% of the claim. 7 suspicious signs that are common red flags that an ERC claim could be incorrect Too…

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IRS revises and updates frequently asked questions about Form 1099-K

2024-02-09 IR-2024-33, Feb. 6, 2024 The Internal Revenue Service today revised frequently asked questions (FAQs) for Form 1099-K, Payment Card and Third Party Network Transactions, in Fact Sheet 2024-03. The revised FAQs provide more general information for taxpayers, including common situations, along with more clarity for industry and what organizations should send Forms 1099-K. The FAQs are in addition to a recently updated Understanding your Form 1099-K on IRS.gov page…

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IRS continues compliance activity for the Employee Retention Credit (ERC) & calls on employers to review their ERC qualifications

2024-02-06 Employee Retention Credit (ERC) page at IRS.gov. Businesses that meet certain requirements may be able to participate in the IRS Voluntary Disclosure Program. The deadline is March 22, 2024. The IRS is having a Free VDP webinar - Thursday, Feb. 8 at 2 p.m. EST. It’s primarily aimed at tax professionals, however; the webinar may also be useful to others interested in this topic. Those who want to attend…

Continue ReadingIRS continues compliance activity for the Employee Retention Credit (ERC) & calls on employers to review their ERC qualifications

Treasury & IRS announce that businesses do not have to report certain transactions involving digital assets until regulations are issued

2024-01-31 IR-2024-12, Jan. 16, 2024 The Treasury Department and Internal Revenue Service announced that businesses that they do not have to report the receipt of digital assets the same way as they must report the receipt of cash until Treasury and IRS issue regulations. The Infrastructure Investment and Jobs Act revised the rules that require taxpayers that are engaged in a trade or business to report receiving cash of more…

Continue ReadingTreasury & IRS announce that businesses do not have to report certain transactions involving digital assets until regulations are issued

IRS expands work on aggressive Employee Retention Credit claims

2024-01-31 IR-2023-230, Dec. 6, 2023 The IRS warns taxpayers to use extreme caution before applying for the ERC as aggressive maneuvers continue by marketers and scammers, and urges taxpayers who submitted claims to review the ERC requirements and talk to a trusted tax professional about their eligibility amid misleading marketing around the credit. When properly claimed, the ERC is a refundable tax credit designed for businesses that continued paying employees…

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IRS Launches Direct File Landing Page

2024-01-31 The Internal Revenue Service has taken the first step to initiating its Direct File pilot, and on January 29, 2024, launched the Direct File landing page (https://directfile.irs.gov), providing taxpayers a resource to learn more about the program, assess their eligibility to participate in the Direct File pilot, and to receive notification when the pilot goes live. The site indicates that if you lived in a state that is not…

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The IRS will resume sending collection notices begining in 2024

2024-01-30 IR-2023-244, Dec. 19, 2023 In January 2024, the IRS will begin sending automated collection notices and letters to individuals with tax debts prior to tax year 2022, and businesses, tax exempt organizations, trusts and estates with tax debts prior to 2023, with exceptions for those with existing debt in multiple years. These notices and letters were previously paused due to the pandemic and high inventories at the IRS, but…

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IRS is providing penalty relief on nearly 5 million 2020 and 2021 tax returns

2024-01-30 IR-2023-244, Dec. 19, 2023 The Internal Revenue Service is providing about $1 billion (about $206 per return) in new penalty relief for approximately 4.7 million individuals, businesses and tax-exempt organizations that were not sent automated collection reminder notices during the pandemic. Most of those receiving the penalty relief make under $400,000 a year, with nearly 70 percent of the individual taxpayers receiving penalty relief have income under $100,000 per…

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IRS Form 944 vs. Form 941

2024-01-26 Every employer who pays compensation for services performed by employees must report to the IRS the wages paid, and related employment taxes including income tax withholding, social security tax, Medicare tax and, if applicable, Additional Medicare Tax. Generally, employers must report wages, tips and other compensation paid to an employee by filing Form 941, Employer’s Quarterly Federal Tax Return. But, small employers (those with annual employment tax liabilities of…

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Federal payroll tax deposits

2024-01-25 Federal law requires you, as an employer, to withhold, or take out of your employees’ pay, certain amounts for federal income tax, social security tax, and Medicare tax. Under the withholding system, taxes withheld from your employees are credited to your employees in payment of their tax liabilities. Federal law also requires you to pay the employer’s share of social security tax and Medicare tax; it is not withheld…

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