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

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taxproblems: 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)

taxproblems: 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)

taxproblems: IRS ORDERS IMMEDIATE STOP TO ERC PROCESSING THROUGH YEAR’S END - 09/15/23 03:21 PM

SALT LAKE CITY, UTAH – When it comes to the Employee Retention Credit (the “ERC”), it seems like every time I start a multi-part analysis of the ERC something changes. Yesterday, the IRS published a notice informing taxpayers that the IRS has imposed a moratorium on processing new claims for the ERC through year’s end so that the IRS can add more safeguards to prevent future abuse and to protect businesses from predatory tactics. In addition, the IRS announced that it will be working with the Justice Department to pursue fraud fueled by aggressive marketing. Here is the link to the … (0 comments)

taxproblems: EMPLOYEE RETENTION TAX CREDIT RISKS - 08/26/23 02:46 PM

EMPLOYEE RETENTION TAX CREDIT (“ERC”) RISKS:
SALT LAKE CITY, UTAH – I have blogged a lot about the ERC and potential risks and problems associated with the ERC and unscrupulous third-party tax credit preparers. The IRS sent out a notice informing taxpayers that the IRS is entering into a new phase of ERC work and audits. See: https://www.irs.gov/newsroom/irs-commissioner-signals-new-phase-of-employee-retention-credit-work-with-backlog-eliminated-additional-procedures-will-be-put-in-place-to-deal-with-growing-fraud-risk
Ever since the ERC became widely available, there has been a boom in third-party preparers making overly promising claims about businesses’ eligibility for the ERC credit and leading taxpayers to claim credits that they may not have been eligible for. Starting in September of … (0 comments)

taxproblems: 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)

taxproblems: 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)

taxproblems: 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)

taxproblems: PROBLEMATIC ERC CLAIMS CAN MEAN PROBLEMS LATER - 07/08/23 02:09 PM

Salt Lake City, Utah - In my last Blog I discussed the steps that most taxpayers are taking to make an ERC Claim. The purpose of this post/blog is to finish up that outline. Currently if a taxpayer is making an ERC Claim, the taxpayer is amending its past payroll tax returns to claim the ERC. In my outline I left off with the Taxpayer receiving a percentage of the ERC after the ERC Mill received its share of the refund. Below is a continuation of what we are seeing when it comes to problematic amended payroll tax returns:
After the … (0 comments)

taxproblems: 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)

taxproblems: ERC CONTINUED – PROBLEMATIC ERC CLAIMS CAN MEAN PROBLEMS LATER - 07/02/23 09:34 AM

Salt Lake City, Utah - In my last Blog I discussed ERC Insurance options in protecting yourself in the event of a problem with an ERC Claim. Today, I want to discuss what could happen if you an ERC Claim problem.
Currently if a taxpayer is making an ERC Claim, the taxpayer is amending its past payroll tax returns to claim the ERC. What we are seeing is that some of the ERC Claims being made are valid claims, some of the ERC Claims are filed by and ERC Mill and would be considered abusive, and in certain situations, some ERC Claims … (0 comments)

taxproblems: 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)

taxproblems: 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)

taxproblems: 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)

taxproblems: ERC CONTINUED – THE OSHA POSITION - 06/16/23 04:21 PM

Salt Lake City, Utah - In my last Blog I briefly discussed three supply-chain disruption or impact questions. The purpose of this Blog is to discuss the “OSHA Position”. Under one of the IRS Notices, the following language was used to define “governmental orders”:
Orders, proclamations, or decrees from the Federal government or any State or local government may be taken into account by an employer as "orders from an appropriate governmental authority" only if they limit "commerce, travel, or group meetings (for commercial, social, religious, or other purposes) due to the coronavirus disease 2019 (COVID-19)" and relate to the suspension of … (0 comments)

taxproblems: ERC CONTINUED – SUPPLIER-BASED PARTIAL SUSPENSION – THREE AREAS OF EMPHASIS - 06/11/23 05:43 PM

Salt Lake City, Utah - In my last Blog I briefly discussed that most taxpayers who 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 speaking with prospective clients who have made a claim for the ERC based on supply-chain disruption, I have heard from the prospective clients that “I was told I was eligible because of supply chain disruption for all eligible quarters.” To be eligible based on supply-chain disruption, here are a few considerations:
Knowledge of the supplier's “full or … (0 comments)

taxproblems: 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)

taxproblems: 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)

taxproblems: TAX ALERT!!! - IRS ENFORCEMENT RESTARTING – UPDATE FROM WASHINGTON DC - 05/22/23 08:08 PM

Salt Lake City, Utah – I recently attended a Zoom Meeting with the past chair of the American Bar Association Tax Section’s Subcommittee for the Small Business/Self-Employed Division who had a one-on-one meeting with the IRS Commissioner of the Small Business/Self-Employed Division. The meeting was with Commissioner Amalia Colbert and Deputy Commissioner Darren Guillot. At that meeting Commissioner Colbert and Deputy Commissioner Guillot provided an updated on the status of IRS Enforcement and when a deluge of enforcement notices will begin again since being paused during the pandemic.
This is what we were told:
The backlog of mail is now caught up; … (1 comments)

taxproblems: 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)

taxproblems: 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)

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