The holidays – and the Internal Revenue Service (IRS) – brought businesses that claimed the Employee Retention Credit (ERC) some very good news. It was not that long ago that the IRS was claiming that the ERC program was rife with fraud. IRS Commissioner Danny Werfel was quoted as recently as March 2024 as estimating that “19 out of every 20 claims is suspect.” Thankfully, the environment has improved quite a lot over the last several months. In June, the agency reported that 10-20% of the ERC refund claims that it had held up for further review were actually “low…

As President-elect Trump approaches the second half of his discontinuous presidency, Americans seem cool to his signature economic proposal: steep new tariffs on America’s most important trading partners. During the campaign, Trump suggested that his tariffs would be truly universal, levied on all countries and applied to almost every product. More recently, however, his advisers have signaled a more targeted approach. “Rather than apply tariffs to all imports, the current discussions center on imposing them only on certain sectors deemed critical to national or economic security,” The Washington Post reported last week. “The potential change reflects a recognition that Trump’s…

Congress acted swiftly during COVID-19 in enacting legislation aimed at incentivizing employers to retain their workforce during the pandemic. Under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), eligible employers who maintained their payroll could qualify for a refundable credit known as the employee retention credit (ERC). To qualify, employers had to meet either a gross-receipts test or a government-order test. Out of these two tests, the government-order test has proven the most difficult to interpret. The CARES Act provides that an employer meets this test if the company’s business operations were fully or partially suspended due to…

The IRS has announced tax relief for individuals and businesses in southern California affected by the wildfires that began on January 7, 2025. Governor Gavin Newsom announced that California’s Franchise Tax Board is providing similar tax relief. Under the IRS announcement, impacted taxpayers now have until Oct. 15, 2025, to file various individual and business tax returns and make tax payments. The IRS relief applies to any area designated by the Federal Emergency Management Agency (FEMA), so individuals and households that reside or have a business in Los Angeles County qualify for tax relief. The relief will be available to…

The European Union is progressively moving towards the adoption of mandatory e-invoicing, but the implementation approaches vary widely among member states. Some countries have opted for centralized models, requiring businesses to process invoices through national platforms. Others depend on certified service providers to facilitate invoice exchange, while a few leave the method of invoice transmission entirely unregulated. Similarly, the pace of implementation differs: certain countries enforce the mandate in a single phase, whereas others take a gradual, step-by-step approach. My earlier articles examined the diverse strategies for implementing mandatory e-invoicing in Poland, Belgium, France and Germany. This article turns the…

This is a published version of our weekly Forbes Tax Breaks newsletter. You can sign-up to get Tax Breaks in your inbox here. The big news this week is that the IRS has announced that tax season will open on Monday, January 27, 2025. As a tax pro, this is kind of my run-up to the Super Bowl playoffs (perhaps it’s not a coincidence that they happen around the same time). I assumed that everyone got this excited until one of my editors asked me exactly what opening the season meant. That got me thinking that perhaps I should explain…

Albany’s grand idea: tackle the climate crisis by extracting cash from other parts of the globe. By William Baldwin, Senior Contributor State budgets are strained and tax hikes might make voters angry or businesses inclined to leave. Solution: Send the bills for climate control, such as flood control projects, out of state. In December New York Governor Kathy Hochul signed a bill imposing a collective $75 billion assessment on Big Oil, the money to be paid in mostly equal annual installments over 24 years. The money is to go into a “superfund” pot for environmental remediation. Contributions are to come…

The IRS has announced that tax season will open on Monday, January 27, 2025. According to IRS Commissioner Danny Werfel, the entire IRS has been working to get ready for this day. The date marks when IRS will begin accepting paper and electronic tax returns. The agency expects more than 140 million individual tax returns to be filed by Tax Day, April 15, 2025. More than half of all tax returns are expected to be filed this year with the help of a tax professional. Many software companies and tax preparers will accept tax returns before opening day. For clarity,…

The Federal Trade Commission (FTC) has finalized an order requiring tax return preparation company H&R Block to make changes for the 2025 tax filing season—and to pay $7 million to compensate consumers. The Charges The order came in response to a nearly year-long investigation. Last February, the FTC filed an administrative lawsuit against the tax prep company, alleging that H&R Block unfairly advertised its online tax filing products as free when many consumers could not file for free. Among the allegations were charges that H&R Block failed to explain what its various tax products covered, such as which forms and…

The considerations for your spousal inherited 401(k) are extensive and can be overwhelming, especially during a time of grieving. The inherited 401(k) rules vary significantly depending on whether you’re a spouse or a non-spouse beneficiary. In this multi-part series, I will address the peculiarities of each. This article focuses on the spousal inherited 401(k). Inheriting a 401(k) from a spouse can provide a crucial financial lifeline. However, navigating the rules and making the right decisions are vital to maximizing the benefits and minimizing taxes. The SECURE Act 2.0 introduced changes that make understanding your options as a surviving spouse more…