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 […]

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 […]

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 […]

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 […]

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 […]

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 […]