What Is the Voluntary Compliance Program (VCI)?
The IRS has introduced the Voluntary Compliance Program (VCI) for businesses that filed for the Employee Retention Credit (ERC) and believe their claim was inaccurate. This program allows companies to correct mistakes, whether due to their own errors or because they relied on a professional who provided incorrect
The Employee Retention Credit (ERC) was designed to support businesses affected by government and business closures during COVID-19. To qualify, businesses must meet three main requirements: being a qualified business, having qualified wages, and experiencing a partial or full suspension of operations that impacted revenue.
What Is a Qualified Business?
To qualify for the ERC,
As a Certified Public Accountant (CPA), you know that the end of tax season doesn’t mean a break from the action. Just as the dust settles from tax filings, audit season kicks off. At this important time, having a robust strategy and support system in place can make all the difference.
Here’s how you can
The IRS is intensifying audits of Employer Retention Credit (ERC) claims. With over a million ERC applications received, totaling $86 billion in credits, the IRS is carefully scrutinizing each claim. Here are nine red flags that could trigger an audit of your ERC claim and what to watch out for.
John Milikowsky, Founder of Milikowsky
If you are a CPA, here are 5 things to help your client reduce the risk of an EDD, IRS, or SBA audit:
If you are a CPA, here are 5 things to help your client reduce the risk of an EDD, IRS, or SBA audit:
1: Confirm that your client’s 1099-K (provided by a
As a business owner the best way to prepare for, or avoid entirely, an audit from the Employment Development Department (EDD), is to make sure that you’re correctly classifying your employees. Whether your employees W-2 or 1099 employees or a combination of both, it’s important to ensure that they are correctly classified as such. The
As part of its annual Dirty Dozen campaign, the Internal Revenue Service (IRS) is warning businesses and individuals to steer clear of aggressive promoters offering questionable claims for the Employee Retention Credit (ERC).
These dubious claims not only put businesses at risk of penalties and interest but also potentially criminal prosecution. Let’s take a look
In some cases, it may be difficult to distinguish what your CPA is capable of helping you with and which tasks are better suited for a tax attorney. Both are experts when it comes to tax matters but in different ways.
While your CPA is an expert at preparing and submitting your taxes correctly, you’ll
The law imposes significant tax evasion penalties to deter activities that could lead to a conviction for evasion or fraud. In addition to financial penalties, a tax fraud conviction can result in several years of jail time, depriving you of your liberty.
While these penalties may seem harsh, the IRS is committed to seeking custody
Any company that utilizes both W-2 employees and 1099 independent contractors must be vigilant in classifying them correctly for tax purposes; as an employer, you are responsible for withholding and remitting employment taxes for the former group, but not the latter.
Failure to properly classify your workers into their correct groups may result in penalties
