Real estate blog entries tagged with irs by Kent Brown, Your IRS Tax Attorney (Strong & Hanni)

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irs: WHAT’S UP WITH S-CORPORATIONS AND REASONABLE COMP PART - 1 - 03/16/24 11:44 AM

SALT LAKE CITY, UTAH – When it comes to IRS priorities and enforcement, Subchapter S-Corps and their owners/shareholders are at the top of its list. In a Treasury Inspector General for Tax Administration Report in 2021, the IRS reported that it will begin to turn up the heat on S-Corp owners who take little to no compensation. Why, with the federal government running financial shortfalls, the IRS has been charged with going after compensation tax so that the government can work on filling its coffers.
It's obvious why S-Corp owners want to take as little income as wages as possible, and … (0 comments)

irs: ERC MORATORIUM – WHAT DOES THAT MEAN? - 10/22/23 08:52 AM

SALT LAKE CITY, UTAH – I previously wrote about the IRS’s announcement on September 14, 2023 of the processing moratorium the IRS was placing on the Employee Retention Credit (“ERC”) claims. The IRS announced that it will not be processing any newly filed ERC claims until it works through its backlog of more than 600,000 claims. The IRS stated it estimates it will not be processing claims until next year.
The moratorium does not mean that the IRS is shutting down the ERC program. The IRS does not have the power to do that; only Congress and the President can do that. … (1 comments)

irs: EMPLOYEE RETENTION CREDIT 5 MYTHS – MYTH NO. 1 - 09/10/23 08:54 PM

SALT LAKE CITY, UTAH – If you are a business owner applying for the ERC, you may have been guaranteed $26,000 per employee by a third-party ERC preparer. The IRS recently cautioned taxpayers applying for the ERC to do so with their eyes-wide-open as to those to-good-to-be-true promises. It is important to get it right as to whether your business is eligible for this tax credit. The IRS recently published a 72-page training guideline for its tax examiners. So, time to sharpen your pencil and understand the five new myths about the ERC.
MYTH NO. 1: If you were affected by COVID … (2 comments)

irs: IRS PROBLEMS WITH NEW FUNDING AND THE ERC - 08/18/23 04:33 PM

Great article published by the Wall Street Journal about the IRS, the IRS's current problems in processing the ERC and ERC audit issues. Enjoy.
https://www.wsj.com/articles/irs-new-funding-covid-pandemic-federal-policy-law-ppp-werfel-erc-employee-retention-credit-3eef45b2?reflink=desktopwebshare_permalinkhttps://www.wsj.com/articles/irs-new-funding-covid-pandemic-federal-policy-law-ppp-werfel-erc-employee-retention-credit-3eef45b2?reflink=desktopwebshare_permalink
Tax problems are legal problems, and we solve both. If you or someone you know has an issue with paying their federal or state taxes and needs help to end their IRS nightmare, please contact Kent Brown at Strong & Hanni by either phone at (801) 532-7080 or email at: kbrown@strongandhanni.com or go to https://activerain.com/profile/kbrowndad for additional information, or my personal Strong & Hanni webpage at: https://strongandhanni.com/attorneys/attorney-kent-brown/

… (1 comments)

irs: WHAT HAPPENS IF I AM AUDITED AND I HAVE RECEIVED THE ERC? - 08/13/23 08:39 PM

Salt Lake City, Utah – Over the last few months I have blogged about the ERC and ERC mills that have been aggressively targeting taxpaying business owners. I have also blogged about tax audits and what does that mean if a taxpaying business owner has received the ERC. Today, I want to talk about the tax audit process.

Our office has been contacted by various taxpayers recently about the taxpayer receiving a tax audit letter from the IRS. If the taxpayer has received the ERC, it has been amazing to me to see the taxpayer panic. The panic comes from concerns … (1 comments)

irs: CRIMINAL CONCERNS RELATED TO THE ERC - 07/30/23 07:30 PM

Salt Lake City, Utah – It has been a few weeks since I have posted about the ERC or any tax topic for that matter. Any free time that I have had over the last few weeks has been spent with my youngest son, Andrew. Last Wednesday, Salli and I dropped off our son, Andrew, at the Mission Training Center in Provo, Utah, where Andrew will prepare to serve a Mission for the Church of Jesus Christ of Latter-day Saints in Papeete Tahiti. So, while I am thrilled to see him go and live and serve among the people of Tahiti, … (1 comments)

irs: ERC CONTINUED – THE IRS CONTINUES TO WARN TAXPAYERS ABOUT THE ERC! - 07/06/23 06:03 PM

Salt Lake City, Utah - In my last Blog I provided an outline of what we are seeing when it comes to problematic ERC Claims. I had planned to finish up the outline I had prepared this evening, but I then viewed a post on LinkedIn by the IRS and thought that I should pass it along instead.
In its most recent LinkedIn Post the IRS informed all who care to listen that the “Employee Retention Credit encouraged employers to keep employees on the payroll despite COVID-related economic hardships.” It then advised taxpayers “Beware of ERC offers beyond IRS guidelines, as … (1 comments)

irs: ERC CONTINUED – ERC INSURANCE - 06/29/23 07:22 AM

Salt Lake City, Utah - In my last Blog I discussed what I call the “Holy Grail” that most ERC Companies use to achieve ERC eligibility. Most ERC Mills couple the Supplier-Based Partial Suspension with the OSHA Position. Today I want to discuss “ERC Insurance”.
There are certain insurance companies that are willing to underwrite what is called “Tax Insurance”. Not surprisingly, a taxpayer who makes a claim for the ERC can also obtain Tax Insurance so that if the taxpayer has a tax problem with the ERC, the insurance company will cover the tax risk. In a nutshell, Tax Insurance is:
Designed … (2 comments)

irs: ERC CONTINUED – THE HOLY GRAIL FOR ACHIEVING ERC ELIGIBILITY - 06/26/23 08:18 AM

Salt Lake City, Utah - In my last Blog I briefly discussed the “OSHA Position”. Today I want to look at what I call the “Holy Grail” that most ERC Companies use to achieve ERC eligibility. Most ERC Mills couple the Supplier-Based Partial Suspension with the OSHA Position.
Think back to when COVID restrictions started to subside. In nearly all states, including California and New York, social distancing requirements lapsed by July 1, 2021, which just so happens to coincide with the first day of the last potential ERC quarter for businesses (except for “recovery startup businesses”). Because of the lifting … (0 comments)

irs: IRSnews FOR A FATHERS DAY TAKEOVER - 06/16/23 05:28 PM

#FathersDay #IRS #TaxTips4Dads #FathersDayTakeover - Who are they trying to kid, the last thing I want to think about on Father's Day is any Tax Tips, the IRS Taking Over Father's Day, or the IRS. I just want to spend Father's Day with my Family, and to try and find some peace and relaxation. If you or someone you know has an issue with paying their federal or state taxes and needs help to end their IRS nightmare, please contact Kent Brown at Strong & Hanni by either phone at (801) 532-7080 or email at: kbrown@strongandhanni.com or go to my personal … (0 comments)

irs: ERC CONTINUED – SUPPLIER-BASED PARTIAL SUSPENSION - 06/05/23 08:34 PM

Salt Lake City, Utah - In my last Blog I briefly discussed that most companies that have claimed the ERC did so based on one of two concepts. The first is supply-chain disruption or impact and the second is CDC/OSHA restrictions or modifications. In the next few Blogs, I will discuss supply-chain disruption or impact and what the IRS is looking for in determining eligibility for the ERC based on supply-chain disruption.
In claiming the ERC, I have heard from many taxpayers that “we were eligible (or told we were eligible) because of a supply chain disruption.” Often, we see this eligibility … (0 comments)

irs: EMPLOYEE RETENTION CREDIT CLAIMS – IRS GUIDELINES??? - 06/04/23 01:33 PM

SALT LAKE CITY, UTAH – Starting last week, the IRS commenced sending out Audit and Exam Notices to Taxpayers. Most of the IRS notices given to me by potential clients have dealt specifically with payroll tax issues. With this increase in audit activity, one thing I have noticed is that most of the taxpayers receiving these audit or exam notices are businesses that received the ERC. In addition, the quarter or quarters being audited are the same quarters where the taxpayer qualified for the ERC.
Over the next few weeks, I will be blogging about and highlighting what the IRS is looking … (0 comments)

irs: WHEN WILL THE IRS STOP HOUNDING ME????? - 05/16/23 08:17 AM

Salt Lake City, Utah - As Benjamin Franklin said: “In this world nothing can be said to be certain, except death and taxes.” So, the simple answer about the IRS hounding you is that the IRS will not stop hounding you for tax revenue while you are alive – and maybe sometimes when you are dead. The real concern for most people is when will the IRS no longer be in the rear-view mirror for past taxes paid. Invariably, when I meet with a prospective client, I will eventually hear from them: “How much time does the IRS have to collect … (1 comments)

irs: UPDATE FROM WASHINGTON DC – IRS ENFORCEMENT RESTARTING - 05/08/23 09:05 AM

Salt Lake City, Utah – Over the last few months I have provided warnings/updates on IRS Enforcement issues. Many of the warnings had to deal with the increased funding for the IRS. Last Week, Commissioner Amalia Colbert and Deputy Commissioner Darren Guillot, with the Small Business and Self-Employed Division of the IRS, provided the following update on IRS Enforcement:
The backlog of mail is now caught up; The CP-14 Notices (Balance Due Letters) that have been paused will go out at the end of May to roughly 8 million taxpayers; The taxpayers who owed balances before and are due for enforcement … (0 comments)

irs: WHAT IS ALL THIS BALLYHOO ABOUT THE EMPLOYEE RETENTION CREDIT - 05/06/23 07:41 AM

Salt Lake City, Utah – By now we have all heard about the Employee Retention Credit (“ERC”) and how a business can receive tens of thousands of dollars in a refundable tax credit. In a recent news release by the IRS, the IRS spelled out which employers are eligible - https://www.irs.gov/coronavirus/employee-retention-credit
Employers who sustained a full or partial suspension of operations; or Employers who experienced a “decline in gross receipts”; or Employers who qualify in the third or fourth quarters of 2021 as a “recovery startup business.” It was interesting to me to see that the IRS, in this particular … (2 comments)

irs: TIME IS RUNNING OUT TO CLAIM $1.5 BILLION IN REFUNDS FOR TAX YEAR 2019 - 04/21/23 08:19 AM

Salt Lake City, Utah – July 17, 2023, is the deadline for claiming your 2019 tax refund. The IRS announced that 1.5 million people across the country have unclaimed refunds for tax year ending in 2019. IRS Commissioner Danny Werfel stated: “[t]he 2019 tax returns came due during the pandemic, and many people may have overlooked or forgotten about these refunds . . . . We want taxpayers to claim these refunds, but time is running out.” Here is a link to the IRS News Release webpage for more information: https://www.irs.gov/newsroom/time-running-out-to-claim-1-point-5-billion-in-refunds-for-tax-year-2019-taxpayers-face-july-17-deadline
To claim the 2019 refund, the taxpayer who has overpaid … (1 comments)

irs: DANGERS OF "PAY ON DEATH" ACCOUNTS - 04/20/23 09:04 AM

Salt Lake City, UT - Twice a week I try and post something about taxes and tax controversy issues. Today I am changing it up a little based on a recent experience that I had with one of my clients. When I meet with individuals and we start looking at their assets, we always discuss their bank accounts, credit union accounts, savings accounts, money market accounts, etc. After we look at these accounts, invariably a question will arise about what is called a “Pay on Death” account or “POD Account”. Based on my experience, you may have a POD account of your … (0 comments)

irs: ARE YOU BEHIND ON PAYROLL TAXES - 04/18/23 06:46 AM

Salt Lake City, Utah - You have a good business, but sometimes your cash flow gets a little low and the payroll tax deposit is not made on time. Or maybe you just were busy and missed your quarterly payroll tax return filings – surprisingly this is the excuse I hear the most.
Whatever the reason, you are now behind in your payroll tax filings or payments or both.
You might feel like you are temporarily borrowing the money from the IRS until your business gets back on track, but the IRS does not see it that way. The IRS needs … (1 comments)

irs: THE DIRTY DOZEN – IRS WARNINGS ABOUT THE EMPLOYEE RETENTION CREDIT - 04/14/23 11:59 AM

Salt Lake City, Utah - The IRS issued a news release about the Employee Retention Credit (the “ERC”). Go to this link for the release: https://www.irs.gov/newsroom/irs-opens-2023-dirty-dozen-with-warning-about-employee-retention-credit-claims-increased-scrutiny-follows-aggressive-promoters-making-offers-too-good-to-be-true
Every day we are inundated with advertisements and commercials about the ERC. You have heard the ads – “call us today about the little-known ERC – where you can get up to $26,000.00 for each employee.” You then hear that “we helped XYZ Corporation legally obtain $6,900,000. If we can successfully help XYZ Corporation we can help you.” I have had numerous people ask me if this credit is a real credit and how can they … (0 comments)

irs: THINGS ARE GETTING INTERESTING - THE IRS'S 10-YEAR PLAN - 04/13/23 01:07 PM

Salt Lake City, Utah – The IRS recently released its roadmap for the $80 billion funding boost that it received from the Inflation Reduction Act. The 10-year plan aims to increase audit rates on the wealthy, including businesses, while updating the IRS’s technology and data analytics capabilities.
Representative Richard Neal, with the Ways and Means Committee stated: “The Inflation Reduction Act is a transformational investment in regaining taxpayers’ trust, modernizing the IRS to provide world-class customer service, and eliminating the two-tiered tax system that has allowed the wealthy and well-connected to play by one set of rules and everyone else by another. … (1 comments)

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