‘Tsunami’ of claims filed for employee retention credit almost 2 years after it ended caught the attention of the IRS. Experts say that required the IRS to take action to halt fraud.
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Tax
ERC suspended: What happens next
The IRS has suspended the processing of new employee retention credit (ERC) claims to focus on about 600,000 pending claims. Listen to this special Tax Section Odyssey podcast for details on how this may affect you and how to best proceed.
Moratorium imposed on new ERC claim processing to curb abuse
The IRS issues a moratorium on new ERC claims processing through at least the end of the year and allows taxpayers to withdraw claims that have been filed but not processed.
Guidance issued on applicability and calculation of new corporate AMT
In advance of proposed regulations, the IRS provided interim guidance to help corporations determine whether they are subject to the new corporate alternative minimum tax and how to calculate the tax, including how to determine financial statement income and applicable financial statement income.
Long-awaited guidance provided for amortization of R&E expenditures
The IRS says taxpayers and tax professionals can rely on interim guidance under Sec. 174 for the amortization of research and experimental expenditures released on Friday in Notice 2023-63 until it issues proposed regulations based on the guidance, effective for tax years beginning in 2022.
IRS vows new enforcement efforts aided by AI
Commissioner Danny Werfel describes an IRS that focuses on the wealthy and uses artificial intelligence to find discrepancies in large partnership filings.
Most NIL collectives likely ineligible for tax-exempt status, IRS advises
A Chief Counsel legal memo concludes that organizations supporting compensation to college student-athletes for their name, image, and likeness (NIL) generally have a substantial nonexempt purpose.
Passive loss limitations on rental real estate
Taxpayers can recognize losses, but only in the circumstances discussed.
Line items
Prop. regs. clarify tax treatment of certain health insurance payments … Update on states moving ahead with PTETs … Study: Deterrence a major factor in bringing in more money from IRS audits … Stock repurchase excise tax reporting and payment delayed by IRS … Research finds algorithms, unscrupulous preparers behind audit bias
Surplus from home’s tax forfeiture sale must be returned to owner, Supreme Court holds
A Minnesota county’s retention of proceeds above the real property tax debt violated the Fifth Amendment’s Takings Clause.
Life After Little Sandy
Lindsey Modlich, J.D., LL.M., Director of Tax Controversy, Source Advisors, discusses the effects of the Little Sandy Coal Company, Inc. v. Commissioner decison in which the court held that the taxpayer failed the “substantially all” and process-of-experimentation tests of Sec. 41, denying them the federal income tax credit for increasing research activities.
Petition was 11 seconds too late, Tax Court holds
The statutory period to electronically file a petition may be extended for system outages or general inaccessibility but not for errors or problems unique to the filer, the court explains.
IRS is time-barred from assessing gift tax
The Tax Court holds the taxpayer substantially complied with adequate-disclosure requirements via returns and documents submitted with an OVDP offer.
Guidance issued on consequences of certain state payments after 2022
The IRS issued guidance on the treatment of refunds of state or local taxes and certain other payments made by states made to individuals in 2023 and future years, including spillover payments made in 2023 under 2022 programs covered by IRS News Release IR-2023-23.
Businesses must e-file Form 8300 for $10,000+ cash payments in 2024
The new e-filing requirement, beginning in 2024, applies to businesses mandated to e-file certain other information returns, such as Forms 1099 series and Forms W-2.
Prevailing wage and apprenticeship requirements guidance issued
The IRS issued proposed regulations related to the increased tax credit or deduction amounts for clean energy facilities and projects if taxpayers satisfy certain prevailing wage and registered apprenticeship requirements.
Two-year reprieve granted from Roth catch-up requirement
Employees who participate in a Sec. 401(k) or similar retirement plan and whose prior-year Social Security wages were over $145,000 have been given a two-year reprieve from the new requirement that any catch-up contributions they make to the plan must be designated as after-tax Roth IRA contributions.
Prop. regs. require brokers to report digital asset sales and exchanges
Long-awaited proposed regulations, part of a broader effort by Treasury to close the tax gap and address tax evasion risks posed by digital assets, require brokers to report sales and exchanges of digital assets by customers.
Tax pros give mixed reviews to wait times, service on PPS line
Wait times increased about the same time as the IRS ended program that thwarted line-jumping services, say tax practitioners, who also questioned the training of new hires.
Guidance provided for electronic filing exemptions and waivers
In a notice issued Friday, the IRS provided guidance to persons filing certain returns on how to seek religious exemptions, hardship waivers, and other administrative exemptions provided by the IRS, from electronic filing requirements.
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SPONSORED REPORT
Preparing clients for new provisions next tax season
As the 2025 filing season approaches, H.R. 1 introduces significant tax reforms that CPAs must be prepared to navigate. These legislative changes represent some of the most comprehensive tax updates in recent years, affecting both individual and corporate taxpayers. This report provides in-depth analysis and guidance on H.R. 1.
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