IRS Congressional Update Newsletter
The IRS has collected over $1 billion in past due taxes from high-wealth groups as part of compliance efforts. They are intensifying work on the Employee Retention Credit and sharing warning signs of incorrect claims. The IRS has partnered with the Department of Education to simplify tax information for federal student aid applications. Final regulations require broker reporting of digital asset sales subject to tax. Misleading social media advice has led to false claims for various credits. The IRS is warning car dealers of phishing scams. Security Summit partners are urging vigilance against evolving tax scams. An indictment was unsealed for a former defense contractor evading taxes. Recent IRS Criminal Investigation cases are highlighted, along with tax tips and resources on IRS.gov.
Key Insights
- The IRS has collected significant past due taxes from high-wealth groups as part of compliance efforts.
- The agency is focusing on ensuring correct claims for the Employee Retention Credit and warning businesses of common errors.
- Partnerships with other agencies are aimed at simplifying processes, such as tax information for federal student aid applications.
- Final regulations require brokers to report digital asset sales subject to tax, reflecting the importance of accurate reporting.
- The IRS is actively addressing misleading social media advice, phishing scams, and evolving tax scams to protect taxpayers and businesses.
Frequently Asked Questions
How is the IRS addressing incorrect claims for the Employee Retention Credit?
The IRS is intensifying work on the Employee Retention Credit, sharing warning signs of incorrect claims, and urging businesses to proactively resolve errors to avoid penalties.
What are the final regulations requiring broker reporting of digital asset sales?
The U.S. Department of the Treasury and the IRS have issued final regulations requiring custodial brokers to report sales and exchanges of digital assets, including cryptocurrency, to help taxpayers file accurate tax returns.
How is the IRS combating misleading social media advice related to tax credits?
The IRS has issued alerts about misleading social media advice leading to false claims for credits like the Fuel Tax Credit, Sick and Family Leave Credit, and household employment taxes.
What recent cases has the IRS Criminal Investigation division been involved in?
Recent cases include sending a business tax cheat to prison, recovering funds linked to a scheme, and sentencing individuals for fraud schemes involving millions of dollars.