While the Internal Revenue Service (IRS) has several enforcement priorities, it has recently made clear that one of its top priorities is ensuring compliance among high-income and high-wealth taxpayers. With additional funding under the Inflation Reduction Act, the IRS is able to pursue enforcement initiatives that it was unable to pursue previously, and these initiatives have led to the recovery of $1.3 billion from these taxpayers in the 12 months alone. Learn more from New Jersey tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group.

The Internal Revenue Service (IRS) isn’t just targeting businesses suspected of submitting fraudulent Employee Retention Credit (ERC) claims. Through its Office of Promoter Investigations, it is also targeting individuals and firms suspected of facilitating fraudulent filings. Learn more From New Jersey IRS lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group.

The Internal Revenue Service (IRS) has reopened the Employee Retention Credit (ERC) Voluntary Disclosure Program that closed in March of this year. The reopened ERC Voluntary Disclosure Program runs through November 22, 2024, and eligible businesses can submit applications under the program to avoid the risk of facing an ERC-related audit or investigation. However, as New Jersey tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, explains, not all businesses are eligible to file, and filing doesn’t necessarily guarantee that the IRS will look the other way.

In an August 8, 2024 News Release, the Internal Revenue Service (IRS) stated that it is “moving methodically and deliberately on both . . . disallowances as well as additional payments” under the Employee Retention Credit (ERC) program. This includes “intensifying audits and pursuing civil and criminal investigations of potential fraud and abuse.” The IRS has now been prioritizing ERC fraud enforcement for several years; and, as New Jersey tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, explains, ERC fraud is likely to remain an IRS enforcement priority well into the future.

As the Internal Revenue Service (IRS) continues to prioritize ERC fraud enforcement, it has recently identified several specific issues that are likely to lead to penalties during audits and investigations. By publicly identifying these “warning signs,” the IRS is hoping to encourage business owners to voluntarily address noncompliant filings before they lead to scrutiny. Learn more from New Jersey tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group: