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Payroll Co. Hid IRS Interest Money From Clients, Court Told

By Anna Scott Farrell

A payroll provider for a maintenance company never passed along interest payments from the Internal Revenue Service related to its clients' pandemic-era relief claims, the company alleged in a proposed class action filed in Washington federal court.

Boutique Firm Accuses IRS Of Illegally Enforcing Payroll Tax

By Kat Lucero

A consumer-protection boutique law firm accused the IRS of illegally enforcing payroll taxes while delaying the processing of pandemic-era employee retention tax credits, which the firm claimed would have helped with compliance, according to a complaint in Connecticut federal court.

Tax Trial Paused For Strip Club Boss Accused Of Hiding $5.7M

By Anna Scott Farrell

The trial of a strip club operator accused of hiding $5.7 million in income from the IRS and lying to get a pandemic relief grant was pushed back Thursday after he requested more time to allow a forensic accountant to review financial documents.

Pa. Justices Say Sales Tax Isn't Commerce Under State Law

By Ryan Harroff

Collecting sales tax is not part of a commercial transaction even if it occurs at the same time as that transaction, according to a Wednesday ruling from the Pennsylvania Supreme Court in a suit accusing American Eagle and other retailers of charging wrongful taxes on face masks.

IRS Defends Process For Denying Worker Credit Claims

By Anna Scott Farrell

The Internal Revenue Service defended its process for rejecting applications for pandemic-era worker tax credits that it deems too risky to pay out, telling an Arizona federal court that contrary to the claims of two companies suing the agency over denials, its response has been reasonable.

Seven Charged In $600 Million COVID Tax Credit Scheme

By Anna Scott Farrell

Seven people have been accused of trying to defraud the federal government of more than $600 million by filing more than 8,000 false tax returns in what the U.S. Department of Justice on Wednesday called "the nation's largest COVID-19 tax credit scheme."


Expert Analysis

What To Know About Employee Retention Credit Disclosures

Employers that filed potentially erroneous employee retention credit claims should take certain steps to determine whether the IRS’ voluntary disclosure program is a good fit and, if so, prepare a strong application before the window closes on March 22, say attorneys at Dentons.

Employee Retention Tax Credit: Gray Areas And Red Flags

The subjective nature of the pandemic-prompted employee retention credit, coupled with a lack of Internal Revenue Service guidance, have created fertile ground for opportunists, so businesses seeking this tax benefit should be mindful of tax advisers who would involve them in fraudulent ERC claims, say attorneys at Holland & Knight.

Tax Equity Requires Reinstating The Home Office Deduction

Congress should restore the home office deduction for W-2 workers in the interest of tax equity because permanently remote workers now bear the cost of creating quiet, dedicated work spaces, a pandemic-related shift unforeseen when the deduction was eliminated by 2017's Tax Cuts and Jobs Act, say James Mahon and Samantha Lesser at Becker.

MORE COVERAGE

January 7, 2025 06:05 PM

Cos. Seek Pause Of Retention Credit Processing In Litigation

January 1, 2025 08:01 AM

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December 20, 2024 03:03 PM

Top Federal Tax Decisions Of 2024

December 14, 2024 04:54 PM

IRS Criminal Probes On Worker Retention Cases Still Early

December 13, 2024 06:36 PM

IRS To Wrap Up Worker Retention Credits In 2025, Werfel Says

December 2, 2024 01:31 PM

5 Convicted In €14M COVID Test VAT Fraud Scheme

November 26, 2024 04:26 PM

Ariz. Reps. Urge Exemption Of State Rebates From Federal Tax

November 18, 2024 04:00 PM

Loan Provider Owed $34M In Retention Credits, Court Told

November 14, 2024 07:03 PM

Cos. Tell Court To Make IRS Process Worker Retention Credits

October 28, 2024 07:02 PM

No COVID Property Tax Break For Hotels, Wash. Court Told

October 16, 2024 03:38 PM

Construction Co., Gov't Drop $4M Retention Credit Suit

October 9, 2024 02:06 PM

Masonry Cos. Demand $2.3M In Worker Credit Refunds

October 3, 2024 01:43 PM

Ch. 7 Invalidates $4M Worker Retention Credit Suit, Gov't Says

October 2, 2024 06:29 PM

IRS Makes Progress On Retention Credit Fraud, TIGTA Says

September 24, 2024 05:00 PM

Defunct Cannabis Co. Says It's Owed $1.4M In Worker Credits

September 20, 2024 04:47 PM

NJ Resident Owes NY Tax For Remote Work During COVID

September 18, 2024 05:45 PM

Jury Finds Eatery Owner Guilty Of COVID Fraud, Tax Crimes

September 18, 2024 01:58 PM

Staffing Co. Owed $5M In Worker Retention Credits, Suit Says

September 13, 2024 04:17 PM

Mortgage Co. CEO Gets 11 Years In Prison For Ponzi Scams

September 9, 2024 01:09 PM

Security Contractor Says It's Owed $3.6M In Worker Credits