by Leif Jensen | Jan 6, 2025 | Taxes |
IRS has finalized regulations on broker tax reporting rules for digital assets. A 2021 law requires brokers to report the sales price, tax basis and other data on digital asset trades. The rules were scheduled to first take effect for digital assets acquired on or...
by Leif Jensen | Dec 18, 2024 | Taxes |
The potential penalties for mistakes or fraud related to Employee Retention Credit (ERC) claims can be severe. For unintentional errors or negligence, the IRS may impose a 20% penalty on the understated tax amount. If the IRS believes the taxpayer deliberately tried...
by Leif Jensen | Dec 16, 2024 | Taxes |
The IRS is slowly addressing its backlog of employee retention credit (ERC) claims. In September 2023, the agency halted processing of ERC refund claims filed on Form 941-X. It has since sent out 28,000 letters denying refunds to employers whose claims, according to...
by Leif Jensen | Dec 11, 2024 | Tax Court |
The defrauded shareholder, who owned 40% of the S corporation he co-founded, was required to report his share of the company’s income on his personal tax return, even though the other owners had stolen funds and made unauthorized, disproportionate distributions...
by Leif Jensen | Dec 9, 2024 | Taxes |
The IRS is closely scrutinizing taxpayers who report large, recurring losses from hobby-like activities on their Schedule C forms to offset wages, business earnings, or other income. Reporting these “hobby losses” is considered a red flag that can trigger...
