Business Tax Alert – Improper Employee Retention Credit Claims

While the IRS continues its expansive efforts to deny of improper Employee Retention Credit (ERC) claims, intensifying audits and pursuing civil and criminal investigations of potential fraud and abuse, there are several options that may still be available for those businesses who wish to resolve these matters to avoid these possible consequences.  Recently, the IRS announced the details of a second employee retention credit Voluntary Disclosure program (ERC-VDP) for employers who claimed and received an ERC refund for a tax period in 2021 but were not eligible. Like the first ERC-VDP, the program will allow claimants to repay ERC at a reduced rate of 85% of the credit; this is slightly less favorable than the original ERC-VDP that allowed employers to repay 80% of their credits. Applications to participate in the second ERC-VDP will be accepted only until Nov. 22, 2024. The further benefits of the second program waive penalties and interest on the full amount, not just the 85% returned.  The 15% reduction is not taxable as income and the IRS won’t examine (audit) ERC on your employment tax return for tax period(s) resolved within the terms of the second ERC-VDP.  You also don’t need to repay any interest you received on your ERC refund.  To qualify accepted applicants must execute a closing agreement confirming that they are not entitled to ERC and will be required to provide the name and contact information for any preparer or advisor who assisted in claiming the ERC. Additionally, the IRS released five more red flag issues they are regularly seeing in newly processed ERC claims; the agency recommends that businesses whose claims fall into any of these warning sign categories consider participating in the second ERC-VDP or the ERC Withdrawal Program.

To find out more about how Wilson Tax Law Group, could help with your tax litigation and defense needs, we invite you to set up a  consultation with our firm.

Wilson Tax Law Group, APLC is a boutique Orange County tax controversy law firm that specializes in representation of individuals and businesses before federal and state tax authorities with audits, appeals, FBAR, offshore compliance, litigation and criminal defense.  Firm founder, Joseph P. Wilson, is a former Federal tax prosecutor and trial attorney for the IRS and California Franchise Tax Board.  Wilson Tax Law Group is comprised of former IRS litigators & Special Agents, and Assistant US Attorneys from the US Attorney’s Office, Central District of California, Tax Division, which at the time handled both civil tax lawsuits and criminal tax prosecutions on behalf of the United States of America.

For further information, or to arrange a consultation please contact: Wilson Tax Law Group, APLC

Tel: (949) 397-2292 (Newport Beach Office) 

Tel: (714) 463-4430 (Yorba Linda Office)

Business Tax Alert – Improper Employee Retention Credit Claims

While the IRS continues its expansive efforts to deny of improper Employee Retention Credit (ERC) claims, intensifying audits and pursuing civil and criminal investigations of potential fraud and abuse, there are several options that may still be available for those businesses who wish to resolve these matters to avoid these possible consequences.  Recently, the IRS announced the details of a second employee retention credit Voluntary Disclosure program (ERC-VDP) for employers who claimed and received an ERC refund for a tax period in 2021 but were not eligible. Like the first ERC-VDP, the program will allow claimants to repay ERC at a reduced rate of 85% of the credit; this is slightly less favorable than the original ERC-VDP that allowed employers to repay 80% of their credits. Applications to participate in the second ERC-VDP will be accepted only until Nov. 22, 2024. The further benefits of the second program waive penalties and interest on the full amount, not just the 85% returned.  The 15% reduction is not taxable as income and the IRS won’t examine (audit) ERC on your employment tax return for tax period(s) resolved within the terms of the second ERC-VDP.  You also don’t need to repay any interest you received on your ERC refund.  To qualify accepted applicants must execute a closing agreement confirming that they are not entitled to ERC and will be required to provide the name and contact information for any preparer or advisor who assisted in claiming the ERC. Additionally, the IRS released five more red flag issues they are regularly seeing in newly processed ERC claims; the agency recommends that businesses whose claims fall into any of these warning sign categories consider participating in the second ERC-VDP or the ERC Withdrawal Program.

To find out more about how Wilson Tax Law Group, could help with your tax litigation and defense needs, we invite you to set up a  consultation with our firm.

Wilson Tax Law Group, APLC is a boutique Orange County tax controversy law firm that specializes in representation of individuals and businesses before federal and state tax authorities with audits, appeals, FBAR, offshore compliance, litigation and criminal defense.  Firm founder, Joseph P. Wilson, is a former Federal tax prosecutor and trial attorney for the IRS and California Franchise Tax Board.  Wilson Tax Law Group is comprised of former IRS litigators & Special Agents, and Assistant US Attorneys from the US Attorney’s Office, Central District of California, Tax Division, which at the time handled both civil tax lawsuits and criminal tax prosecutions on behalf of the United States of America.

For further information, or to arrange a consultation please contact: Wilson Tax Law Group, APLC

Tel: (949) 397-2292 (Newport Beach Office) 

Tel: (714) 463-4430 (Yorba Linda Office)

Key Points for CA Employers After Southern California Wildfires

For employers directly affected by the Airport, Bridge or Land fires, you may be eligible for a two-month extension to complete state payroll reports and/or deposit payroll taxes without incurring penalties or interest, according to the Employment Development Department. Extensions are typically granted under section 1111.5 of the California Unemployment Insurance Code (CUIC) if the Governor declares a State of Emergency. As of September 7^th, and 11^th, 2024, Governor Newsom has proclaimed a state of emergency for Los Angeles, Orange, Riverside and San Bernardino counties. As wildfires persist throughout Southern California, we encourage you to stay alert to changes in tax deadlines and consult with your local tax attorney to learn more about how to be prepared should your business become affected.

To find out more about how Wilson Tax Law Group, could help with your tax litigation and defense needs, we invite you to set up a  consultation with our firm.

Wilson Tax Law Group, APLC is a boutique Orange County tax controversy law firm that specializes in representation of individuals and businesses before federal and state tax authorities with audits, appeals, FBAR, offshore compliance, litigation and criminal defense.  Firm founder, Joseph P. Wilson, is a former Federal tax prosecutor and trial attorney for the IRS and California Franchise Tax Board.  Wilson Tax Law Group is comprised of former IRS litigators & Special Agents, and Assistant US Attorneys from the US Attorney’s Office, Central District of California, Tax Division, which at the time handled both civil tax lawsuits and criminal tax prosecutions on behalf of the United States of America.

For further information, or to arrange a consultation please contact: Wilson Tax Law Group, APLC

Tel: (949) 397-2292 (Newport Beach Office) 

Tel: (714) 463-4430 (Yorba Linda Office)

The Newport Beach Tax Attorney Blog : “Jersey Shore’s” Mike ‘The Situation’ Sorrentino I...

The Newport Beach Tax Attorney Blog : “Jersey Shore’s” Mike ‘The Situation’ Sorrentino I...: For all those Jersey Shore fans, television personality Michael 'The Situation' Sorrentino and his brother Marc Sorrentino appeared ...

Tax Savings - Expanded Energy Tax Credits

Individuals who make energy improvements to their existing residence including solar, wind, geothermal, fuel cells or battery storage may be eligible for expanded home energy tax credits as stipulated by the Inflation Reduction Act of 2022. The Residential Clean Energy Credit equals 30-percent of the costs of new, qualified clean energy property for a home in the United States installed anytime from 2022 through 2033.  Individuals can claim their Energy Efficient Home Improvement Credit and the Residential Clean Energy Credit for the year the qualifying expenditures are made by filing Form 5695.  In claiming these credits, its impotent to keep good records of purchases and expenses during the time the improvements are made.  It is also important that individuals understand the requirements for claiming these credits and that they discuss them with their own tax and/or legal advisors before claiming the credits on their tax returns.  If you require assistance with the requirements and claiming these credits, the tax attorneys at Wilson Tax Law Group are available to assist.

Wilson Tax Law Group, APLC (www.wilsontaxlaw.com) is a boutique Orange County tax controversy law firm that specializes in representation of individuals and businesses before federal and state tax authorities with audits, appeals, FBAR, offshore compliance, litigation and criminal defense.  Firm founder, Joseph P. Wilson, is a former Federal tax prosecutor and trial attorney for the IRS and California Franchise Tax Board.  Wilson Tax Law Group is exclusively comprised of former IRS litigators and Assistant US Attorneys from the US Attorney’s Office, Central District of California, Tax Division and Criminal Division.

For further information, or to arrange a consultation please contact: Wilson Tax Law Group, APLC

Newport Beach and Yorba Linda, California

Tel: (949) 397-2292 (Newport Beach Office)

Tel: (714) 463-4430 (Yorba Linda Office)

 

2023 Tax Planning to Take Advantage of Tax Saving Opportunities

It’s never too early to start this year’s tax planning.  Entrepreneurs should begin planning to take advantage of tax-saving opportunities and get ready for reporting changes in 2023. With next year’s filing deadline nearly a year away, taxpayers still have time to identify possible tax benefits, take action to qualify for them and claim them when they file in 2024. They also have time to plan for reporting changes and even claim overlooked tax benefits from the recent past.

Tax Planning May Include Employee Retention Credits (ERC) and Energy Cost Savings

Taxpayers should review the provisions of the Inflation Reduction Act (IRA), which can save business owners money on energy costs. Additionally, eligible employers who overlooked the Employee Retention Credit (ERC) when they filed payroll tax returns for 2020 and 2021 can still claim it by filing the form 941-X.  Taxpayers should seek competent assistance from a reputable tax professional to determine eligibility requirements. Meanwhile, employers who provide educational assistance programs can use them to help pay student loan obligations for their employees. Employers should review the employment tax treatment of fringe benefits.

Wilson Tax Law Group, APLC (www.wilsontaxlaw.com) is a boutique Orange County tax controversy law firm that specializes in representation of individuals and businesses before federal and state tax authorities with audits, appeals, FBAR, offshore compliance, litigation and criminal defense.  Firm founder, Joseph P. Wilson, is a former Federal tax prosecutor and trial attorney for the IRS and California Franchise Tax Board.  Wilson Tax Law Group is exclusively comprised of former IRS litigators and Assistant US Attorneys from the US Attorney’s Office, Central District of California, Tax Division and Criminal Division.

For further information, or to arrange a consultation please contact: Wilson Tax Law Group, APLC

Newport Beach and Yorba Linda, California

Tel: (949) 397-2292 (Newport Beach Office)

Tel: (714) 463-4430 (Yorba Linda Office)

California Disaster IRS Tax Relief Notice Updated

Tax Alert-

A January 10, 2023 notice granting relief to victims of severe winter storms, flooding and mudslides that began on January 8, 2023, in parts of California was updated by the IRS on February 23, 2023, to clarify language in the fourth paragraph of the notice. The IRS clarified that the October 16, 2023, deadline also applies to the quarterly estimated tax payments, normally due on January 17, April 18, June 15 and September 15, 2023.  The notice was updated on 1/11/23, 2/23,23 and recently on 4/26/23.   Affected taxpayers who are contacted by the IRS on a collection or examination matter should contact a tax professional who can explain how the disaster impacts the taxpayer so that the IRS can provide appropriate consideration to their case.

Wilson Tax Law Group, APLC (www.wilsontaxlaw.com) is a boutique Orange County tax controversy law firm that specializes in representation of individuals and businesses before federal and state tax authorities with audits, appeals, FBAR, offshore compliance, litigation and criminal defense.  Firm founder, Joseph P. Wilson, is a former Federal tax prosecutor and trial attorney for the IRS and California Franchise Tax Board.  Wilson Tax Law Group is exclusively comprised of former IRS litigators and Assistant US Attorneys from the US Attorney’s Office, Central District of California, Tax Division and Criminal Division.

For further information, or to arrange a consultation please contact: Wilson Tax Law Group, APLC

Newport Beach and Yorba Linda, California

Tel: (949) 397-2292 (Newport Beach Office)

Tel: (714) 463-4430 (Yorba Linda Office)