IRS Puts Brakes on ERC Processing

  According to the IRS, a moratorium on processing of new ERC claims through year's end will allow IRS to add more safeguards to prevent future abuse, to protect businesses from predatory tactics. The pandemic-era relief program is a refundable tax credit designed for businesses that continued paying employees during the COVID-19 crisis. In a recent release, the IRS said there has been growing concerns inside the tax agency and tax professionals that many new claims are ineligible and increasingly putting businesses at financial risk, thanks to scams by aggressive promoters.   Already in the system? If you've already filed, you're okay. The IRS emphasizes that payouts for these claims will continue during the moratorium period but at a slower pace due to the detailed compliance reviews. With the stricter compliance reviews in place during this period, existing ERC claims will go from a standard processing goal of 90 days…read more...

Prepare for the TCJA Sunset — If You Can

The Tax Cuts and Jobs Act largely winds down at the end of 2025. Maybe. Many of its provisions are political, so much depends on who's in the White House and who has control of the House and Senate at that time. Before you start planning, glean some understanding of what the TCJA does and what may change at the end of 2025. This is not a complete accounting, but it will give you an idea of some of the most major changes.     Income tax rates Rate changes are likely to have the most impact. Consider, for example, the tax rate for a married couple earning between $274,401 and $364,200. Their tax rate in 2023 is 24%. But on Jan. 1, 2026, it becomes 33%, if the government doesn't make any adjustments. In a few brackets, however, the rate may actually go down, or not change at all.…read more...

Form I-9 and the IDs You Can Accept

The I-9 is an important part of the hiring process, but even the most seasoned professionals can be confused about how to process it. Having a mistake on file can become a nightmare if you find yourself and your company under the scrutiny of an audit. Here are the ways to interpret the ID requirements for the current I-9 to make sure you stay compliant.   You cannot require a certain form of ID. By law, an employer is not allowed to demand that an employee provide only certain forms of ID. Some companies aren't familiar enough with this process and require that a new employee provide only a driver's license and Social Security card. This is not permitted. You must accept any forms of ID listed on the Form I-9.   Just one from list A. On the final page of the I-9 document is a list of acceptable…read more...

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