Page 2 – Tax, Estate Planning & Probate Law Center

Fantastic Recommendations for Form 3520

15 Jan 24

The American Institute of CPAs (AICPA) recently sent excellent recommendations to the Internal Revenue Service (IRS) against the IRS’ systemic assessment of penalties for late-filed Forms 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign

The New IRS ERC Voluntary Disclosure Program

10 Jan 24

The IRS ERC Voluntary Disclosure Program provides a special resolution opportunity for employers with erroneous or excessive ERC claims. The IRS recognizes that many erroneous or excessive ERC claims are partly due to aggressive marketing around ERC and promotors who

AICPA Makes Useful Recommendations For International Forms 3520/3520

02 Jan 24

The American Institute of CPAs (AICPA) submitted comment letters to the IRS requesting improvements be made to two international tax returns pertaining to foreign trusts. The AICPA requested that the IRS update, add to, and clarify Form 3520 and Form

New IRS Voluntary Disclosure Program lets employers who received questionable Employee Retention Credits pay them back

24 Dec 23

This week, the IRS announced a new ERC voluntary disclosure program (ERCVDP) that has many distinctive features: Our firm has filed hundreds of IRS voluntary disclosure submissions over the years, and there are numerous similarities to other voluntary disclosure programs.

Parag Patel Esq. Speaks at NJCPA Seminar on”Employee Retention Credit Audit Issues: Surviving IRS Scrutiny”

20 Dec 23

Parag Patel Esq. was a featured speaker at a New Jersey Society of Certified Public Accountants (NJCPA) Seminar entitled “Employee Retention Credit Audit Issues: Surviving IRS Scrutiny”. You may email our office to receive the seminar materials. Seminar descriptions is

The IRS’s First-Time Abatement (FTA) Penalty Waiver

19 Dec 23

There are currently more than 160 penalties contained in the US tax code. There is a penalty for nearly every possible reporting, filing, and payment requirement failure. While penalties have long been a component of Federal tax laws, the number of

Parag Patel Esq. Speaks at NJCPA Seminar on”The Corporate Transparency Act: What You Need To Know”

16 Dec 23

Parag Patel Esq. was a featured speaker at a New Jersey Society of Certified Public Accountants (NJCPA) Seminar entitled “The Corporate Transparency Act: What You Need To Know”. You may email our office to receive the seminar materials. Seminar descriptions

ERC Disallowance Letters 105C Sent to Taxpayers

07 Dec 23

The IRS has notified over 20,000 taxpayers via IRS Letter 105C (Disallowance of Claim) that their claims for the employee retention credit are being disallowed because entities either did not exist or did not have paid employees during the period

Corporate Transparency Act (CTA) Reporting Company Analysis and FAQs

06 Dec 23

The first step in Corporate Transparency Act (CTA) analysis is determining whether an entity is a Reporting Company. A “Reporting Company” means any entity (whether a corporation, limited liability company, or other entity types) that is (a) created by the

“Beneficial Owner” Analysis under the new Corporate Transparency Act

06 Dec 23

Starting January 1, 2024, the Corporate Transparency Act (CTA) will require most U.S. corporations, LLCs, and other legal entities formed through state filings or foreign entities registered to do business in the U.S. to file a Beneficial Ownership Information (BOI)

What Client Tax Advisors Should Do About the New Corporate Transparency Act

01 Dec 23

The Corporate Transparency Act (CTA), introduced as part of the 2021 National Defense Authorization Act and amending the Bank Secrecy Act, aims to enhance transparency in business ownership structures to combat financial crimes like money laundering and tax fraud. This

What to Expect if the IRS Audits Your Employee Retention Credit

29 Nov 23

The Employee Retention Credit (ERC) was a valuable tax credit available to businesses during the COVID-19 pandemic. However, the IRS has recently ramped up its audits of ERC claims, due to concerns about fraud and abuse. If you claimed the

Foreign Gifts and the Uncommon Form 3520: A Trap for the Unwary

09 Nov 23

We have had several clients recently subject to Form 3520 penalties, so we thought we would remind everyone of the need to timely file these forms when receiving a foreign gift. When a U.S. person receives a gift from a

Parag Patel Esq. Speaks at NJCPA Seminar on”Criminal Tax: What Tax Professionals Need to Know to Help Clients and Themselves”

09 Nov 23

Parag Patel Esq. will be a featured speaker this month at a New Jersey Society of Certified Public Accountants (NJCPA) Seminar entitled “Criminal Tax: What Tax Professionals Need to Know to Help Clients and Themselves” Seminar descriptions is below: “Criminal

Parag Patel Esq. speaks at NJCPA Seminar ” Federal Tax Update and Latest Tax Controversy Hot Topics”

08 Nov 23

Parag Patel Esq. will be a featured speaker this month at a New Jersey Society of Certified Public Accountants (NJCPA) Seminar entitled ” Federal Tax Update and Latest Tax Controversy Hot Topics“. Seminar descriptions is below: Federal Tax Update and

Parag Patel Esq. speaks at the National Association of Enrolled Agents

06 Nov 23

Parag Patel Esq. is a featured speaker at the National Association of Enrolled Agents (NAEA) Estate and Gifts Certificate Program on November 7, 2023. Mr. Patel will speak on Estate Planning strategies and developments. The seminar description is below: Course

IRS Investigating Employee Retention Credit (ERC) claims

06 Nov 23

The IRS continues to warn businesses not to fall for aggressive marketing or scams related to the ERC. Businesses should first check with their trusted tax professional before submitting an ERC claim. As part of a larger effort to protect

Owner of Iberia Restaurants in Newark Found Guilty of Tax Crimes

31 Oct 23

The failure to file and pay payroll taxes has been a major focus of IRS investigations in the past few years. Sometimes the cases are civilly examined, but occasionally the government criminally prosecutes more willfull taxpayers. A New Jersey man

IRS Has Ended Unannounced Visits to Collect

17 Oct 23

The IRS is drastically cutting back on its decades-long practice of surprising taxpayers at their homes or businesses because of concerns about the safety of employees and confusion caused by scam artists who also knock on doors. The duties of

The Unknown Tax: New Jersey Inheritance Tax

17 Oct 23

While the New Jersey Estate Tax was abolished 5 years ago and the Federal Estate Tax applies to taxpayers with estates over $12 million, the NJ Inheritance tax is relatively unknown and impacts thousands of modest taxpayers every year. The

Parag Patel Esq. speaks at NJCPA Tax Seminar: “Under the IRS Microscope: International Tax Reporting Update” and “What Tax Professionals Should Know About Trusts and Estates”

13 Oct 23

Parag Patel Esq. will be a featured speaker at a virtual New Jersey Society of Certified Public Accountants (NJCPA) Webinar panel entitled “Under the IRS Microscope: International Tax Reporting Update” and “What Tax Professionals Should Know About Trusts and Estates”.

Watch Out: IRS Audits of ERC Claims Expected

12 Oct 23

The IRS has begun to audit ERC refund claims filed for 2020 and 2021. While the audit process is just starting, it is expected to increase over time as the IRS has indicated it is interested in auditing ERC claims.

New Mandatory E-filing Form 8300 for Reporting of Large Cash Currency Transactions

31 Aug 23

The IRS announced yesterday that certain businesses that receive payments of over $10,000 in cash must file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, electronically starting in 2024, the IRS said in a news release (IR-2023-157).

IRS Uses New Funding to Target US Persons with Malta Accounts

25 Aug 23

The US Treasury and US Internal Revenue Service are to leverage more resources to detect Americans using Malta personal pension accounts to claim tax exempt income, it said in a statement last week. The additional resources to investigate the Malta

NJ Contractor Charged with Criminal Tax Evasion for Unreported Checks

18 Aug 23

A Union County NJ contractor was arrested last week for tax evasion for not reporting cashed check income. Joel Konopka, 45, of Elizabeth, New Jersey, is charged by indictment with four counts of corporate tax evasion, two counts of filing

Beware the New 2023 Form 1099-K

11 Aug 23

Beginning in 2023, third-party payment networks must file Form 1099-K with the IRS and provide a copy to the taxpayer when the gross payment amount exceeds $600. However, not all payments from third parties are taxable. Taxpayers can take steps to prevent non-taxable items

IRS FBAR Penalties Are Now Unmitigated

02 Aug 23

The Internal Revenue Service will no longer reduce the penalty for taxpayers who non willfully fail to file Reports of Foreign Bank and Financial Accounts (FBAR or FinCen 114), according to recent Internal Revenue Service (IRS) internal guidance. The IRS

IRS Targets Puerto Rican Residency Transactions

21 Jul 23

In a July 14, 2023, release, the IRS stated that “[t]hanks to Inflation Reduction Act resources,” it has begun a criminal crackdown on Act 20/22/60 participants engaging in a ”[h]igh-dollar scheme in Puerto Rico.” The IRS has “identified about 100

IRS Aggressively Starts New Criminal Investigations

15 Jul 23

The IRS announced last week in a press release that it is taking “swift and aggressive action” to strengthen enforcement efforts against high-income individuals as it uses the new budget funding it recently received. Recent enforcement efforts include closing about

Malta Pension Plan Being Investigated by IRS Criminal Investigation Division

02 Jul 23

The Malta Pension Plan is a tax-favorable pension plan that has been used by U.S. taxpayers in Malta. The plan allows for significant tax savings, as gains on assets contributed to the plan are not subject to tax in Malta

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