News

There have been many changes and initiatives at the IRS with respect to the Employee Retention Credit, all targeted at addressing improper ERC claims.  Here are a few changes and initiatives to be aware of currently:

• The IRS placed the ERC on its “Dirty Dozen” list of top tax scams.
• The IRS announced an increased focus on enforcement and audit to address fraudulent ERC claims.
• The IRS issued a moratorium on processing new ERC claims for an indefinite period. The IRS Commissioner has recently noted that there is no definitive timeline as to when the moratorium may be lifted. Claims filed prior to September 14, 2023, are still being processed.
• An increase in audits and criminal investigations should be expected.
• The IRS has an ERC claim withdrawal process for businesses who filed for Employee Retention Credits but have not yet received a refund that enables these businesses to withdraw their submission and avoid civil penalties as a result. There is no official end-date for this withdrawal program currently.
• The IRS also has an ERC Voluntary Disclosure Program (VDP) for businesses who received erroneous ERC refunds and have not yet been notified of an audit or criminal investigation. There is a deadline of March 22, 2024, to apply. If accepted, the business agrees to repay 80% of the refund amount to the IRS and will not be subject to any civil penalties or interest.  Part of the participation in this program requires the business to identify the third-party that assisted them in evaluating and filing the claims.  Criminal investigations may still occur, even after acceptance into the VDP. 
• Congress has proposed legislation that would:
  • End the ERC program early – January 31, 2024 (deadlines are currently 4/15/24 for 2020 claims and 4/15/25 for 2021 claims).
  • Increase penalties for third-party persons or companies who marketed ERC schemes by exaggerating ERC benefits, misrepresenting eligibility criteria, and overstating potential tax savings which resulted in fraudulent or erroneous tax return filings.
  • Increase the paid tax return preparer penalty for failure to comply with due diligence requirements on ERC filings.
  • Allow the IRS to adjust the Statute of Limitations on audits and assessment periods.

Bryson Law Firm, LLC recommends that businesses who claimed the IRS Employee Retention Credit ensure that a qualified Tax Professional re-evaluates these claims and, if necessary, withdraw the claims or apply for the VDP in the event the business was not eligible.  Need help?  Contact Bryson Law Firm, LLC today to schedule a free, initial consultation with one of our Attorneys to learn more. 

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The Internal Revenue Service has plans to ramp up enforcement efforts against Taxpayers that have abused the United States Tax Code by deducting millions of dollars on their taxes for corporate jet expenses that were sometimes used for personal travel through audits. 

The tax code allows a business to deduct the cost of maintaining a corporate jet so long as it is used for business purposes.  2017 legislation also allowed for a deduction of the full cost of an airplane in the first year of ownership. 

The IRS has allocated some of its $80 billion provided to them under the Inflation Reduction Act to develop new data analytics tools.  These tools will be used to determine when company officials might have used corporate planes for private trips.  The audits will likely extend to both corporations that own the planes and passengers. 

“These aircraft audits will help ensure high-income groups aren’t flying under the radar with their tax responsibilities,” says IRS Commissioner Daniel Werfel.  The IRS plans to focus their audit efforts on large corporations, partnerships, and wealthy Taxpayers, which is in line with their pledge to help close the “tax gap” of approximately $700 billion per year by proceeding with more audits of companies and high-income Taxpayers. 

Important Message: The House Ways and Means Committee has advanced the Tax Relief for American Families and Workers Act of 2024. If this legislation passes, the deadline to submit a claim for the IRS Employee Retention Credit deadline would be January 31, 2024.

The IRS has recently alerted Tax Professionals to a new email scam where cybercriminals pose as potential clients. These criminals are impersonating real Taxpayers by pretending to look for assistance in preparing and filing their taxes.  The email contains a malicious link or presented as tax information that the Tax Professional would need to prepare the tax return.  Their objective is to steal personal information that allows the criminals to prepare fraudulent tax returns to collect a tax refund or use it to commit other types of identity theft and fraud.  The IRS anticipates that the number of these emails sent likely runs in the thousands to tens of thousands. 

In 2023, we saved our Clients an estimated:

$3,238.634.45 through Audit Representation Efforts

$5,012,916.72 through Collection Statute Expiration Date (CSED) Monitoring Efforts

$592,166.92 through Penalty Abatement Efforts

$7,240,288.1 through Offer in Compromise Efforts

$16,084,006.19 in estimated 2023 Tax Savings!

Congratulations to Attorneys Angela S. Bryson, Jessica Byrd Thibodeaux, and Tabitha C. Valverde for being named "Super Lawyers" in 2024!

Angie was listed on the 2024 Louisiana Super Lawyers List. Jessica was listed on the 2024 Louisiana Rising Stars List. Tabitha was listed on the 2024 Texas Rising Stars List.

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The annual selections are made using a patented multiphase process that includes a statewide survey of lawyers, an independent research evaluation of candidates and peer reviews by practice area. The result is a credible, comprehensive and diverse listing of exceptional attorneys.

The Super Lawyers lists are published nationwide in Super Lawyers Magazines and in leading city and regional magazines and newspapers across the country. Super Lawyers Magazines also feature editorial profiles of attorneys who embody excellence in the practice of law. For more information about Super Lawyers, visit SuperLawyers.com.

The IRS has been taking several measures to combat frivolous and fraudulent Employee Retention Credit Claims.  As part of these measures, the IRS has now released a Voluntary Disclosure Program to help businesses who want to pay back money they received in error. 

The IRS has made several announcements in the last few weeks regarding some changes and actions they plan to take in 2024.  These mark the end of COVID-19 related slowdowns and the beginning of their efforts in action through Inflation Reduction Act funding.