Archive for Covid-19 Updates

IRS Announces New ERC Withdrawal Process

In the last Bottom Line newsletter, we explained the effective hold by the Internal Revenue Service (IRS) on processing new ERC claims until the end of the 2023 year. Recently, the IRS announced details of a special withdrawal process made to help those who filed a claim and…

IRS Puts Hold on ERC Claim Processing

In last month’s Bottom Line newsletter, we explained how the IRS has slowed the processing of any new Employee Retention Credit claims, in order to guard against fraudulent or incorrect submissions. The ERC is a pandemic-era relief program made up of refundable tax credits designed for businesses that…

Still Waiting for your ERC Refund? Check Might Not Yet be in the Mail

In the last month, the IRS announced that due to “deep concerns about dubious Employee Retention Credit claims being submitted, they have slowed the processing of these claims to guard against fraudulent or incorrect submissions.”   In 2020, Congress created the Employee Retention Tax Credit as a response…

What Happened With the Debt Limit?

Were you concerned that Congress was not going to raise the debt limit? Well, you can relax now that we know the government will not default on its debts.   Since 1960, Congress has acted 78 separate times to raise, extend or revise the government’s debt limit. Once…

Internal Revenue Service to Go Completely Paperless by 2025

So many of our clients have been frustrated by the length of time it can take to get a response from the IRS when submitting paper documentation. Last Wednesday, Treasury Secretary Janet Yellen and IRS Commissioner Daniel Werfel announced the Paperless Processing Initiative to try and reduce the…

New Form I-9 To Be Released

United States Citizenship and Immigration Services has announced a new Form I-9, that went into effect on August 1st, 2023. The Form I-9 is used to verify the identity and employment authorization of individuals hired for employment.   The Basics   All employers must use Form I-9 to…

Watch Out for Fake Employee Retention Credit Promotions

Since the beginning of 2020, LMC has made significant efforts to reach out to every client about the Employee Retention Credit (ERC) program and, based on eligibility, the significant financial benefits it can provide. Recently, there have been a proliferation of companies promoting ERC credits that appear too…

IRS Clarifies Federal Taxes and State Payments

The IRS has recently announced that “in the interest of sound tax administration and other factors,” taxpayers in many states will not need to report various payments on their 2022 tax returns. In short, the IRS has determined it will not challenge the taxability of payments related to…

2020 Social Security Tax Deferral Payments Due December 31st

By David Neuman, JD    The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, enacted in response to the COVID-19 pandemic, allowed employers to defer the payment and deposit of the employer’s share of Social Security tax.   Employers were able to take advantage of the deferral by…

IRS Provides Penalty Relief for Certain Late Filed Returns

By David Neuman, JD    The Internal Revenue Service (“IRS”) has provided penalty relief in Notice 2022-36 for certain taxpayers from failure to file penalties and certain international information return penalties with respect to tax returns for the taxable years 2019 and 2020. In order to be eligible…