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

As the bookkeeper, she allegedly paid “ghost employees” to hide compensation. The former payroll manager for a home healthcare company has been charged with a federal tax offense. According to court records, Innis Frederick, 61, of Saint Cloud, Florida, worked for Equinox Home Care, which was originally established as a partnership between Frederick’s sister, Theresa… Read More

The lead defendant was involved in an illegal sports-betting operation for at least 10 years. Two men from Georgia and a third from South Carolina have been sentenced for participating in an illegal gambling operation. Grady Brandon Mobley, 44, of Waynesboro, Georgia, was sentenced to five years of probation and forfeited $340,084. Mobley also must… Read More

A Delaware woman pleaded guilty to failing to pay employment taxes on behalf of a local business. According to court records, Sara Collins, 49, served as the corporate secretary of a plumbing, heating and air conditioning business for over 20 years. Collins was responsible for overseeing payroll disbursement and filing tax documents on behalf of… Read More