The IRS has announced new measures to aid small businesses and curb improper payments in the Employee Retention Credit (ERC) program. Following concerns about a high rate of incorrect claims due to misleading marketing, the IRS has intensified audits and criminal investigations, resulting in 28,000 disallowance letters, potentially preventing $5 billion in improper payments. Concurrently,…… Read More

Starting on Monday, July 29th, qualifying back-to-school supplies in Florida will be exempt from tax thanks to the 2024 Back-to-School Sales Tax Holiday. Passed by the Florida Legislature and signed into law by Gov. Ron DeSantis, this sales tax holiday will extend through Sunday, August 11. Governor Ron DeSantis, highlighting the significance of the tax…… Read More

The IRS has issued a consumer alert advising taxpayers to disregard misleading information circulating on social media about a fictitious “Self-Employment Tax Credit.” Through this new fraudulent scheme, unscrupulous promoters falsely claim that self-employed individuals and gig workers can obtain substantial payments for the COVID-19 period. The purported credit is, in fact, the Credits for…… Read More

The IRS and the Treasury Department have announced the collection of over $1 billion in tax debts from high-income taxpayers within a year, following an initiative launched in September 2024. Targeting 1,600 individuals with incomes over $1 million and tax debts exceeding $250,000, this effort, supported by the Inflation Reduction Act, underscores the agency’s enhanced…… Read More

Last week, Florida started the “Freedom Month” sales tax holiday, allowing consumers to avoid sales taxes on various recreational items and event tickets. The initiative, running through the entire month of July, is part of a tax package signed by Governor Ron DeSantis and covers items like boating, fishing, and camping supplies, as well as…… Read More

The IRS has announced plans to deny tens of thousands of high-risk Employee Retention Credit (ERC) claims, entering the next stages of the detailed review they initiated last year to protect taxpayers and small businesses. The review of the first stage revealed widespread concerns about improper claims, with between 10% and 20% falling into the…… Read More

The IRS and Treasury Department issued guidance on educational assistance programs, addressing various questions, including definitions, eligibility, and exclusions related to educational assistance benefits. As a part of this guidance, the agency clarifies that under Section 127 of the Tax Code, taxpayers can exclude certain educational benefits from gross income if provided by their employer.…… Read More

As a part of the efforts leading up to World Elder Abuse Awareness Day on June 15, the IRS has issued a warning about the increasing threat of impersonation scams targeting seniors. These frauds involve scammers posing as government officials to steal personal information and money, often by manipulating caller IDs to appear legitimate. Scammers…… Read More

The IRS has announced tax relief for individuals and businesses in parts of Massachusetts affected by severe storms and flooding starting on September 11, 2023. Affected taxpayers now have until July 31, 2024, to file federal tax returns and make payments. This relief applies to areas designated by FEMA, currently including Bristol and Worcester counties,…… Read More

As of December 9, 2023, the IRS had 1,057,000 unprocessed Forms 941-X, primarily Employee Retention Credit (ERC) refund claims. This number likely understates the total, with recent weekly submissions potentially adding up to 1.5 million pending claims. With the moratorium on new ERC claims since September 15, 2023, processing has slowed significantly. Former IRS Commissioner…… Read More