The U.S. Supreme Court today overruled the longstanding Chevron doctrine that for 40 years largely deferred to federal agency regulations in interpreting ambiguities in the law. The landmark decision in Loper Bright Enterprises et al. v. Raimondo, Secretary of Commerce, et al. addressed appeals in Loper Bright Enterprises v. Raimondo and in
Low Risk Claims to Be Paid Beginning This Month The Internal Revenue Service (IRS) announced today that it would resume processing “low risk” Employee Retention Credit (ERC) claims, ending a moratorium on processing ERC claims that has been in place since last September. The announcement came as part of a
On the heels of a significant boost in funding brought by the August 2022 passage of the Inflation Reduction Act (“IRA”), the IRS this week announced new efforts to combat what it sees as abusive transactions and strategies utilized by businesses that are taxed as partnerships. This is another IRS
Christopher M. Ferguson was quoted in a Tax Notes article titled “Employee Retention Credit Adviser Urges Court to Lift Moratorium,” on May 16th. The article discusses the potential implications of an injunction filed on May 14th with the U.S. District Court for the District of Arizona that could require the
Proposed Bill Would Bar ERC Claims After January 31 and Increase Promoter Penalties Today, House Ways and Means Committee Chairman Jason Smith (R-Mo.) and Senate Finance Committee Chairman Ron Wyden (D-Ore.) proposed a bipartisan bill that would bar the filing of Employee Retention Credit (“ERC”) claims after January 31, 2024. The proposed
On December 21, 2023, the IRS announced a much-anticipated Voluntary Disclosure Program (“the Program”) that allows businesses to repay funds received as a result of filing erroneous Employment Retention Credit (ERC) claims. Program participants are required to pay back 80 percent of improper ERC refunds and will avoid penalties and
ERC Voluntary Disclosure Program Coming Later This Month The IRS announced today that it is sending an initial round of more than 20,000 letters disallowing questionable ERC claims. The IRS also advised that it will open a voluntary disclosure program later this month establishing procedures for those who received payments
On November 22, 2023, the U.S. Treasury Department Financial Crimes Enforcement Network (FinCEN) issued an alert urging financial institutions to be vigilant about identifying and reporting possible fraud schemes related to the COVID-19 Employee Retention Credit (ERC). FinCEN issued the alert “in close coordination” with IRS Criminal Investigation (CI). FinCEN
The Internal Revenue Service has announced the much-anticipated procedures by which employers that applied for the Employee Retention Credit (“ERC”) can withdraw their claims. According to the IRS, many of the 3.6 million ERC claims filed are improper, due in part to misleading claims about the ERC program. Through the
By Christopher M. Ferguson CCH Journal of Tax Practice & Procedure Fall 2023, Volume 25, Issue 3 Over the past three and a half years, countless businesses have availed themselves of the Employee Retention Credit (“ERC”), a tax credit intended to incentivize businesses to retain employees during the height of
