Internal Revenue Service Alerts (IRS)

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IRS Warns of Surge in Scams

IRS Warns of Surge in Scams

AAFCPAs and AAF Wealth Management would like to make clients aware of the IRS’ recent warning that a surge of scam reports has hit its phishing@nullirs.gov account. The bureau has also noted a significant increase since the July 4th holiday. The most common scams reported include: The Economic Impact Payment. An economic impact scam is […]

Nonprofits Can Transfer, Claim Direct Payments for Inflation Reduction Act Credits

Nonprofits Can Transfer, Claim Direct Payments for Inflation Reduction Act Credits

The Inflation Reduction Act (the “Act”), originally signed into law on August 16, 2022, outlined a proposal that allowed certain non-taxable entities to receive specific credits under the Act as direct payments. On June 14, 2023, the IRS issued proposed regulations that outline how these non-taxable organizations can file and make an election to either […]

What Plan Sponsors Need to Know About SECURE 2.0

What Plan Sponsors Need to Know About SECURE 2.0

During AAFCPAs’ recent Nonprofit Seminar (April 2023), Employee Benefit Plan Practice leaders Davide Villani, CPA, CGMA and Shawn P. Huxley, CPA, MSA updated more than 400 attendees on SECURE 2.0 and how it affects plan sponsors. Building on the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019, SECURE 2.0 is designed to […]

Meals & Entertainment Deduction Reverts to Pre-TCJA Law

Meals & Entertainment Deduction Reverts to Pre-TCJA Law

As of January 1, 2023, the meals and entertainment deduction has reverted to previous guidelines under the Tax Cuts and Jobs Act (TCJA). Put differently, the 100 percent deduction for food or beverages provided by a restaurant has officially expired. The IRS advises that a 50 percent limit on meal expenses applies if that expense […]

IRS Audit Risk Areas for Nonprofit Retirement Plan Sponsors

IRS Audit Risk Areas for Nonprofit Retirement Plan Sponsors

During AAFCPAs’ recent Nonprofit Educational Seminar (April 2023), Employee Benefit Plan Practice leaders Davide Villani, CPA, CGMA and Shawn P. Huxley, CPA, MSA updated  400+ CFO and Executive Director attendees on the IRS’ 2023 strategic focus areas for small exempt organizations that sponsor retirement plans. AAFCPAs audits  180+ plans annually including 401(k) and 403(b) plans, […]

Employee Retention Credit: Amend the Proper Return

Employee Retention Credit: Amend the Proper Return

The Employee Retention Credit (ERC) is a refundable pandemic-related tax credit for eligible employers who were fully or partially suspended due to a governmental order or who had a qualifying decline in gross receipts between March 2020 and September 2021 for comparable quarters. The credit may be claimed by filing an amended 941 for the […]

IRS Strategic Focus Area: Small Exempt Organizations that Sponsor Retirement Plans

IRS Strategic Focus Area: Small Exempt Organizations that Sponsor Retirement Plans

As part of its 2023 strategic goals, the IRS plans to review retirement plans of small exempt organizations to determine whether the plan investments are properly administered, whether there are any party-in-interest transactions in the plan trust, and whether any participant loans violate Internal Revenue Code (IRC) Section 72(p). In this webcast, recorded April 2023 […]

IRS Issues Renewed Warning on Employee Retention Credit Claims

IRS Issues Renewed Warning on Employee Retention Credit Claims

AAFCPAs reminds clients to remain vigilant of promoters providing misleading guidance as it relates to the Employee Retention Credit (ERC). The Internal Revenue Service recently issued a renewed warning urging people to carefully review ERC guidelines before claiming the credit. We continue to see third parties aggressively promoting ERC schemes on both the radio and […]

Cap Table Maintenance Streamlines Tax Compliance

Cap Table Maintenance Streamlines Tax Compliance

AAFCPAs advises clients to maintain their capitalization (cap) table throughout the year to avoid frustration, delays, and a compressed tax filing deadline. Accurate and up-to-date information: By maintaining the capitalization table throughout the year, businesses can ensure that the information is accurate and up-to-date, reflecting any changes in ownership, equity investments, and other capital transactions […]