Author: Frank Carnahan

2024-05-07 Every taxpayer has fundamental rights when working with the IRS, collectively known as the Taxpayer Bill of Rights. One of these rights is the right to challenge the IRS's position and be heard. Here’s what this right means for taxpayers. Taxpayers have the right to: Raise objections. Provide additional documentation in response to formal or proposed IRS actions. Expect the IRS to consider their timely objections. Have the IRS…

2024-05-06 If you make an S Election for an LLC, failure of the Operating Agreement to contain appropriate language to ensure that the entity operates according to the statutory requirements for being an S corporation causes an inadvertent termination of the S status. The current IRS filing fee for retroactively fixing the termination and getting Section 1362 (f) IRC relief is $30,000. In PLR 114424-23, 2024-04-19, all the members were…

2024-04-16 https://www.irs.gov/identity-theft-fraud-scams/identity-and-tax-return-verification-service The IRS proactively identifies and stops the processing of potential identity theft returns. You may receive a notice or letter asking you to verify your identity and tax return information with the IRS. This helps prevent an identity thief from getting your refund. Only taxpayers who have received a notice or a letter that included this website address will be able to use it. What to do if…

2024-03-27 The IRS Alternative Media Center (AMC) provides a variety of accessible products to help people who use assistive technology such as screen reading software, refreshable Braille displays and screen magnifying software. These products include tax forms, instructions and publications that can be downloaded or viewed online as Section 508 compliant PDF, HTML, eBraille, text and large print. Please note that every product is not available in all formats. For…

IR-2024-75, March 20, 2024 2024-03-21 The Internal Revenue Service urged businesses to review seven suspicious signs of a bad claim and see if the agency's special programs can help them avoid future compliance issues, and created special programs to help, including a limited-time offer through March 22 for employers to correct improper ERC claims at a sharp discount. Employers who improperly claimed ERC can avoid penalties and interest - and…

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…

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…

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…

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…

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…