Mediation – also known as Alternative Dispute Resolution – can help taxpayers resolve tax issues early and efficiently. The process provides taxpayers a faster, more collaborative and cost-effective approach to case resolution. The traditional appeal process is still available for taxpayers who choose it. Mediation might be right for a taxpayer if: • The taxpayer…… Read More

he IRS has several options to help businesses who have discovered they have questionable ERC claims.  Claim withdrawal: Given the large number of questionable claims identified in the recent review, the IRS continues to urge ineligible businesses with unprocessed claims to consider the ERC Withdrawal Program to avoid future compliance issues. The IRS will treat the claim as…… Read More

The IRS reminds businesses about these other common issues being seen. The agency has continued to issue warnings involving these seven areas: Too many quarters being claimed. Some promoters have urged employers to claim the ERC for all quarters that the credit was available. Qualifying for all quarters is uncommon, and this could be a sign…… Read More

The Department of the Treasury and the Internal Revenue Service today issued final regulations updating the required minimum distribution (RMD) rules. The final regulations reflect changes made by the SECURE Act and the SECURE 2.0 Act impacting retirement plan participants, IRA owners and their beneficiaries. At the same time, Treasury and IRS issued proposed regulations, addressing additional…… Read More

promoters, social media peddling inaccurate eligibility suggestions. Taxpayers urged to talk to a trusted tax professional, not rely on marketers or social media for tax advice IR-2024-187, July 15, 2024 WASHINGTON — The Internal Revenue Service issued a consumer alert today following bad advice circulating on social media about a non-existent “Self Employment Tax Credit”…… Read More

As part of continuing efforts to combat dubious Employee Retention Credit (ERC) claims, the IRS is sending letters to thousands of taxpayers notifying them of disallowed ERC claims. The IRS is rejecting claims to entities that did not exist or did not have paid employees during the period of eligibility. These letters are part of an…… Read More

A backdoor Roth contribution is used by taxpayers whose MAGI is too high for a direct Roth IRA contribution because the MAGI limit does not apply to Roth conversions. When this occurs, taxpayers can still make a nondeductible traditional IRA contribution by April 15 of the following tax year to be treated as a contribution…… Read More

Compliance efforts continue involving high-wealth groups, corporations, partnerships    WASHINGTON – As part of continuing compliance efforts under the Inflation Reduction Act, the Internal Revenue Service today announced the agency has surpassed the $1 billion mark in collections from high-wealth taxpayers with past-due taxes. As part of larger efforts taking place, the IRS has stepped…… Read More

New IRS teams being established; new guidance designed to stop partnerships from using sophisticated tax-free transactions that lack economic substance IR-2024-166, June 17, 2024 WASHINGTON — As part of ongoing efforts to focus more attention on high-income compliance issues, the Internal Revenue Service announced today a new series of steps to combat abusive partnership transactions…… Read More

The Internal Revenue Service today highlighted a number of options available to help taxpayers who missed the April deadline to file their 2023 federal income tax return. To help struggling taxpayers, the IRS has important payment programs that can help those who have trouble paying the amount owed and special first-time penalty relief for those…… Read More