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 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...
by Leif Jensen | Nov 13, 2024 | Taxes |
The upcoming November election will have high stakes when it comes to taxes. Many of the tax provisions in the 2017 reform law are set to expire in 2025, reverting to the pre-2017 rules unless Congress acts. This means the next president will have to confront this...
by Leif Jensen | Oct 16, 2024 | Taxes |
The primary purpose of estimated taxes is to provide the government with a steady stream of revenue throughout the year. This system helps taxpayers avoid large bills at the end of the year by requiring them to contribute as they earn income. By making regular...
by Leif Jensen | Oct 14, 2024 | Taxes |
To calculate estimated taxes, individuals must estimate their total tax liability for the year, including self-employment tax and individual income tax. They then divide this amount by four to determine the quarterly payment amounts. The IRS provides Form 1040-ES for...
