Another reminder to taxpayers to avoid a potential surprise. In the height of the pandemic, the IRS temporarily suspended a multitude of automated tax notices, including reminders for past-due balances and collection notices. What may not have been clear to all taxpayers was the fact that failure to pay penalties continued to accrue for those… Read More

IR-2023-244, Dec. 19, 2023 WASHINGTON — In a major step to help people who owe back taxes, the Internal Revenue Service today announced new penalty relief for approximately 4.7 million individuals, businesses and tax-exempt organizations that were not sent automated collection reminder notices during the pandemic. The IRS will be providing about $1 billion in… Read More

IRS announces sweeping effort to restore fairness to tax system with Inflation Reduction Act funding; new compliance efforts focused on increasing scrutiny on high-income, partnerships, corporations and promoters abusing tax rules on the books Agency focus will shift attention to wealthy from working-class taxpayers; key changes coming to reduce burden on average taxpayers while using… Read More

IR-2023-170, Sept. 14, 2023 WASHINGTON — The Internal Revenue Service continues to warn businesses to watch out for aggressive marketing by nefarious actors involving the Employee Retention Credit (ERC) and urged people to watch out for red flags that can signal trouble. The credit, also called the Employee Retention Tax Credit or ERTC, is a legitimate pandemic-era… Read More

IR-2023-169, Sept. 14, 2023 Moratorium on processing of new claims through year’s end will allow IRS to add more safeguards to prevent future abuse, protect businesses from predatory tactics; IRS working with Justice Department to pursue fraud fueled by aggressive marketing WASHINGTON — Amid rising concerns about a flood of improper Employee Retention Credit claims, the… Read More

IR-2023-166, Sept. 8, 2023 WASHINGTON — Capitalizing on Inflation Reduction Act funding and following a top-to-bottom review of enforcement efforts, the Internal Revenue Service announced today the start of a sweeping, historic effort to restore fairness in tax compliance by shifting more attention onto high-income earners, partnerships, large corporations and promoters abusing the nation’s tax… Read More

Friday, September 1, 2023 A federal court in the Southern District of Texas has permanently enjoined a Galveston-area tax return preparer from preparing federal tax returns for others and, among other things, from owning, operating or franchising any tax return preparation business in the future. The amended complaint alleged that Johnathan Perry, individually and dba… Read More

IRS Practice & Procedure IRS Commissioner Charles Rettig told House members in a hearing Thursday that the Service will process its backlog of unprocessed work — some of it dating back to 2020 — by the end of 2022. Rettig appeared before the House Ways and Means Committee’s Subcommittee on Oversight to report on the current filing… Read More

IRS Practice & Procedure While the pandemic and law changes were primarily responsible for the IRS’s inability to meet timeliness standards for the majority of taxpayers’ cases last year, inefficiencies in staffing, equipment, and procedures also contributed to the lag, the Treasury Inspector General for Tax Administration (TIGTA) said in an audit report. The report,… Read More

An Iowa man was sentenced to 18 months in prison for tax evasion. According to court records, Scott Koritansky, 55, of Meridian, Iowa, earned income from 2004 through 2010 totaling more than $500,000 but did not pay any taxes for those years. The IRS notified Koritansky that he owed tax for calendar years 2004 through… Read More