Internal Revenue Service Alerts (IRS)
New IRS Guidelines: Employer Matching Contributions for Student Loan Payments Explained
AAFCPAs would like to make clients aware that the Internal Revenue Service has issued important interim guidance for employers offering retirement plans, which presents a new opportunity to enhance employee benefits. This guidance, detailed in Notice 2024-63, explains how employers may provide matching contributions to retirement plans based on employee student loan payments, as outlined […]
IRS Launches Second Employee Retention Credit Voluntary Disclosure Program
AAFCPAs would like to make clients aware that the Internal Revenue Service introduced its second Employee Retention Credit (ERC) Voluntary Disclosure Program, which runs until November 22, 2024. This initiative allows businesses to correct improper ERC payments at a 15 percent discount and avoid future audits, penalties, and interest. Under this program, businesses will need […]
IRS Shares Five New Warning Signs of Incorrect ERC Claims
The IRS has released five new warning signs to help businesses prepare for upcoming actions against improper Employee Retention Credit (ERC) claims, urging businesses to act proactively to resolve those to avoid penalties, interest, and audit. The agency advises that businesses consult with trusted tax professionals to review and correct any claims initially filed by […]
IRS Provides Update on Employee Retention Credit (ERC)
AAFCPAs would like to make clients aware that, on June 20, 2024, the IRS announced its plans to deny tens of thousands of improper, high-risk Employee Retention Credit (ERC) claims. Concurrently, the agency is processing a new round of lower-risk claims using insight gleaned from its initial review to expedite payments to taxpayers who filed […]
U.S. Department of Labor Issues Final Rule on Employee vs. Independent Contractor Classification
AAFCPAs would like to make clients aware that the U.S. Department of Labor issued its final rule on employee versus independent contractor classification under the Fair Labor Standards Act. Effective March 11, 2024, this final rule provides guidance on how employers determine employee versus independent contractor status. Relying on a multifactor economic reality test, the […]
Best Practices for Foreign Companies Establishing a U.S. Presence and Hiring U.S. Employees
Foreign companies entering the U.S. have a lot to consider from a tax, accounting, and legal perspective prior to commencing operations in the U.S. Because establishing a legal entity can take time to complete, with multiple steps and potential bottlenecks to accommodate, AAFCPAs advises that clients understand the timeline and plan accordingly. The first step […]
IRS Launches ERC Voluntary Disclosure Program
Last year, the IRS managed fallout resulting from deceptive third-party promoters, known as ERC mills, who used aggressive tactics, such as unsolicited cold calls and emails, to mislead well-intentioned businesses into filing Employee Retention Credit (ERC) claims. To assist businesses who were pressured into submitting inappropriate claims, the IRS announced several special initiatives. These initiatives […]
IRS Maintains Existing 1099-K TPSO Reporting Threshold for 2023
AAFCPAs would like to make clients aware that the IRS has announced a delay in implementing its new $600 1099-K reporting threshold for third-party settlement organizations (TPSOs), which include payment apps and online marketplaces like PayPal and Venmo, for calendar year 2023. This postpones the start of a 2021 law requiring that third-party settlement organizations […]
IRS Launches New ERC Withdrawal Process to Combat Fraud
AAFCPAs would like to make clients aware that the IRS has released details of its special Employee Retention Credit (ERC) withdrawal process. This initiative is designed to assist employers who filed an ERC claim but have concerns about its accuracy due to pressure or misleading advice from ERC marketers or promoters. The new withdrawal option […]