payrolltaxes: 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)
payrolltaxes: 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)
payrolltaxes: 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)
payrolltaxes: 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)
payrolltaxes: 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)
payrolltaxes: 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)
payrolltaxes: PAYROLL LIABILITY ASSESSMENT PROCESS
- 04/09/23 09:14 AM
Salt Lake City, Utah - I started talking about Payroll Taxes several weeks ago and I want to return to this subject today. When a business owes payroll taxes, the following is the process the IRS will pursue and expect the taxpayer to follow: Payroll returns are to be filed – by the taxpayer - the taxpayer has to be in tax compliance before the IRS will negotiate with the taxpayer; Payroll taxes are assessed; Demand for payment is made by the IRS; If the taxpayer cannot make payment within a short time, the IRS will attempt to determine who the … (0 comments)
payrolltaxes: IRS PAYROLL TAX INITIATIVES
- 04/06/23 08:45 AM
Salt Lake City, Utah – I hope everyone is doing well after the historic April snowstorm we just had. Even though we are in a drought, I am happy to see the sunshine and the temperature starting to rise. With the sun now shining, let’s get back to payroll taxes and the initiatives that the IRS has to stay on top of payroll taxes. In 2015 the IRS began a new payroll tax initiative. The initiative was designed for the IRS to get ahead of a business’s payroll tax problem before it mushroomed into something much larger. This tax initiative tests … (0 comments)
payrolltaxes: THE IRS CONSIDERS THE EMERGENCY USE OF PAYROLL TAXES AS THEFT
- 03/31/23 06:41 AM
Salt Lake City, Utah – I was recently asked why I am spending so much time on payroll tax issues. Here is why, a business owner wears a lot of hats. A business owner can be a manager, salesperson, accountant, office staff, HR, etc. Unfortunately, wearing all these hats means that the business owner is forced to make difficult daily decisions. When business owners have had to come to me, one of these difficult decisions is usually the business owner has dipped into the payroll tax account that was set aside to pay payroll taxes to keep the business’s doors open. When … (0 comments)
payrolltaxes: A TAXPAYER NIGHTMARE-PAYROLL TAXES & PERSONAL LIABILITY
- 03/18/23 03:27 PM
Salt Lake City, Utah - Payroll taxes are the number one reason why businesses and their owners end up in our office. Here is why, in my experience most companies and individuals with payroll tax issues are good people or a good company that has faced a difficult challenge like COVID (in all my years of practice if you had told me something like COVID would shut down the world, I never would have believed you), supply chain issues that have affected payments from customers or clients, the bankruptcy of a customer or client, personal bankruptcy of a business owner due … (1 comments)
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. 
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