Mindblown: a blog about philosophy.
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Caution Before Filing For Employee Retention Credit
The Internal Revenue Service today issued a renewed warning urging people to carefully review the Employee Retention Credit (ERC) guidelines before trying to claim the credit as promoters continue pushing ineligible people to file. The IRS continues to see third parties aggressively promoting these ERC schemes on radio and online. These promoters charge large upfront…
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IRS Targets Small Micro-captive Insurance Companies
So-called micro-captives, small captive insurance companies that elect to be taxed under section 831(b) of the Internal Revenue Code, which allows small insurance companies to be taxed only on their investment income, have been the target of IRS scrutiny in recent years. In 2020, the agency deployed 12 new micro-captive examination teams to substantially increase…
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IRS Audits: Records We Might Request
When conducting your audit, we will ask you to present certain documents that support the income, credits or deductions you claimed on your return. You would have used all of these documents to prepare your return. Therefore, the request should not require you to create something new. Your notice will instruct you on how and…
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Understanding Your CP87C Notice
What this notice is about We sent you this notice because you claimed a dependent on your tax return with reported gross income for more than the deduction amount for a dependent. Someone else also claimed this dependent with the same social security number on another tax return. You can’t claim someone whose gross income exceeds…
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EP Abusive Tax Transactions
The IRS is engaged in extensive efforts to curb abusive tax shelter schemes and transactions. The Tax Exempt and Government Entities Division of the IRS, including the office of Employee Plans, participates in this IRS-wide effort by devoting substantial resources to the identification, analysis, and examination of abusive tax shelter schemes and promotions. Listed Transactions…
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Abusive Tax Shelters and Transactions
Office of Tax Shelter Analysis The Office of Tax Shelter Analysis (OTSA) in the Large Business & International (LB&I) Division collects and analyzes information about abusive tax shelters and transactions, and coordinates LB&I’s tax shelter planning and operation. We are taking steps to combat abusive tax shelters and transactions. A comprehensive strategy is in place…
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