11 Aug 2024
0

IRS Shares Additional Warning Signs of Incorrect Claims for ERTC

Roger Rossmeisl, CPA
Automotive, Current Events, Small Business Tax Briefs
IRS Shares Additional Warning Signs of Incorrect Claims for ERTC

As appearing in IR-2024-198 Businesses urged to proactively resolve erroneous claims to avoid penalties, interest, audits As the Internal Revenue Service intensifies work on the Employee Retention Tax Credit (ERTC), the agency today shared five new warning signs being seen on incorrect claims by businesses.   The new list comes from common issues the IRS compliance teams have seen while analyzing and processing ERTC claims. The new items are in addition to seven problem areas the IRS previously highlighted.  The IRS urged businesses with pending claims to carefully review their filings to confirm their eligibility and ensure credits claimed don’t include any of these 12 warning signs or other mistakes. Businesses with these indicators should talk to a trusted tax professional and consider using special ERTC Withdrawal Program that remains available. Business considering...

11 Aug 2024
0

IRS Resumes Processing of ERTC Claims

Roger Rossmeisl, CPA
Automotive, Current Events, Small Business Tax Briefs
IRS Resumes Processing of ERTC Claims

As appearing in IR-2024-203 Agency accelerates work on complex credit as more payments move into processing.  Vigilance, monitoring continues on potentially improper claims On 8/8/24, the Internal Revenue Service announced additional actions to help small businesses and prevent improper payments in the Employee Retention Tax Credit (ERTC) program, including accelerating more payments and continuing compliance work on the complex pandemic-era credit that was flooded with claims following misleading marketing.  The IRS is continuing to work denials of improper ERTC claims, intensifying audits and pursuing civil and criminal investigations of potential fraud and abuse. The findings of the IRS review, announced in June, confirmed concerns raised by tax professionals and others that there was an extremely high rate of improper ERTC claims in the current inventory of ERTC claims.  In...

22 Jul 2024
0

IRS Reminds Car Dealers to be Aware of Phishing Scams

Roger Rossmeisl, CPA
Automotive, Fraud Briefs, Small Business Tax Briefs
IRS Reminds Car Dealers to be Aware of Phishing Scams

(As appearing in IR 2024-186) IRS reminds car dealers and sellers to be aware of phishing scams In light of the CDK ransomware attack, the Internal Revenue Service would like to remind car dealers and sellers to be aware of evolving phishing and smishing scams that could impact day-to-day operations of the business. In light of the recent ransomware attack against CDK, the IRS is warning individuals and businesses to remain vigilant against these attacks. Fraudsters and identity thieves attempt to trick the recipient into clicking a suspicious link, filling out personal and financial information or downloading a malware file onto their computer. Scammers are relentless in their attempts to obtain sensitive financial and personal information, and impersonating the IRS remains a favorite tactic. The IRS urges car dealerships...

22 Jul 2024
0

If Your Business Has Co-Owners, Your Probably Need a Buy-Sell Agreement

Roger Rossmeisl, CPA
Automotive, Small Business Tax Briefs
If Your Business has Co-Owners, You Probably Need a Buy-Sell Agreement

Are you buying a business that will have one or more co-owners? Or do you already own one fitting that description? If so, consider installing a buy-sell agreement. A well-drafted agreement can do these valuable things: Transform your business ownership interest into a more liquid asset, Prevent unwanted ownership changes, and Avoid hassles with the IRS. Agreement basics There are two basic types of buy-sell agreements: Cross-purchase agreements and redemption agreements (sometimes called liquidation agreements). A cross-purchase agreement is a contract between you and the other co-owners. Under the agreement, a withdrawing co-owner’s ownership interest must be purchased by the remaining co-owners if a triggering event, such as a death or disability, occurs. A redemption agreement is a contract between the business entity and its co-owners (including you). Under...

17 Jul 2024
0

Consider Borrowing From your Corporation but Structure the Deal Carefully

Roger Rossmeisl, CPA
Automotive, Small Business Tax Briefs
Considering Borrowing from your Corporation But Structure the Deal Carefully

If you own a closely held corporation, you can borrow funds from your business at rates that are lower than those charged by a bank. But it’s important to avoid certain risks and charge an adequate interest rate. Basics of this strategy Interest rates have increased over the last couple years. As a result, shareholders may decide to take loans from their corporations rather than pay higher interest rates on bank loans. In general, the IRS expects closely held corporations to charge interest on related-party loans, including loans to shareholders, at rates that at least equal applicable federal rates (AFRs). Otherwise, adverse tax results can be triggered. Fortunately, the AFRs are lower than the rates charged by commercial lenders. It can be advantageous to borrow money from your...

26 Jun 2024
0

Recent FTC Rule Could Affect the Value of Noncompete Agreements

Roger Rossmeisl, CPA
Automotive, Valuation Briefs
Recent FTC Rule Could Affect the Value of Noncompete Agreements

Noncompete agreements can be valuable to a business, especially after a merger or acquisition. Estimating the value of these agreements has become more complicated in light of a controversial new final rule issued by the Federal Trade Commission (FTC) that will ban noncompetes for most employees and independent contractors, starting in September 2024. Types of noncompetes Noncompete agreements have been a standard business practice for decades. Some are required as a condition of employment or upon termination of employment. Here, the employer requires an employee to sign a noncompete agreement to protect the employer’s business interests, guard against disclosure of trade secrets, and prevent the employee from poaching customers or clients. These agreements generally limit employment activities in the same field for a specified period. Noncompetes also may...

25 Jun 2024
0

IRS Resumes Processing of Employee Retention Tax Credit Claims

Roger Rossmeisl, CPA
Automotive, Current Events, Small Business Tax Briefs
IRS Resumes Processing of Employee Retention Tax Credit Claims

As reported in IR-2024-169 IRS enters next stage of Employee Retention Tax Credit work; review indicates vast majority show risk of being improper Highest-risk claims being denied, additional processing to begin on low-risk claims; heightened scrutiny and review continues as compliance work tops $2 billion; IRS will consult with Congress on potential legislative action before making decision on future of moratorium Following a detailed review to protect taxpayers and small businesses, the Internal Revenue Service on June 20, 2024 announced plans to deny tens of thousands of improper high-risk Employee Retention Tax Credit claims while starting a new round of processing lower-risk claims to help eligible taxpayers.  “The completion of this review provided the IRS with new insight into risky Employee Retention Tax Credit activity and confirmed widespread concerns...

30 Apr 2024
0

How Tesla Cybertruck’s Steer-by-Wire System Works

Roger Rossmeisl, CPA
Automotive, Technology
How Tesla Cybertruck's Steer-by-Wire System Works

As posted to the Munro Live YouTube Channel on 4/24/2024 (Run Time 18 min, 42 sec) Sandy Munro and Armin von Czarnowski demonstrate how steer-by-wire works and examine the components that make it possible in the Cybertruck. Steer-by-wire differs significantly from a normal steering system in that there is no mechanical linkage between the steering wheel and the front wheels. While it may appear perilous to you, it is worth noting that Tesla vehicles are equipped with numerous redundancies. (This is Blog Post #1575) Sandy Munro is an automotive engineer who specializes in machine tools and manufacturing. He joined the Ford Motor Company in 1978 and then started his own consulting company, Munro & Associates, which specializes in lean design, tearing down automotive products to study and suggest improvements and...

30 Apr 2024
0

Treasury Has Issued Auto Dealers >$580 Million in Advance EV Tax Rebates This Year

Roger Rossmeisl, CPA
Automotive, Individual Tax Briefs
Treasury Has Issued Auto Dealers >$580 Million in Advance EV Tax Rebates This Year

According to the Treasury, the US government has provided auto dealers with >$580 million in advance payments for consumer electric vehicle (EV) tax credits since 1/1/2024. Before 2024, American car purchasers were only eligible for the new electric vehicle (EV) credit of up to $7,500 or the $4,000 credit for used EVs when they submitted their tax returns in the subsequent year. Commencing on January 1, consumers have the ability to transfer the credits to a car dealer during the transaction, so reducing the purchase price. This year, the IRS has received almost 100,000 reports on the sale of electric vehicles. A total of 85,000 time of sale tax reports were filed for new electric vehicles (EVs), and more than 90% of these reports included requests for advance...

24 Apr 2024
0

What the IRS is Looking for in Corporate Jet Audits

Roger Rossmeisl, CPA
Automotive, Small Business Tax Briefs
What the IRS is Looking for in Corporate Jet Audits

The IRS' recent declaration of a rigorous enforcement against the utilization of corporate jets has attracted widespread attention, as the Biden administration persists in intensifying its examination of affluent individuals and major corporations with intricate tax arrangements. Zeinat Zughayer, a tax controversy manager at Baker Tilly, provided information on the driving force behind the recent wave of audits and the extent of their coverage. The IRS recently declared its intention to commence several audits targeting the apportionment of corporate aircraft usage between business and personal purposes by executives, partners, shareholders, and other individuals for tax-related matters. According to the IRS, the level of personal usage has an effect on the eligibility for specific company deductions. "Utilizing the company jet for personal travel usually leads to the...

ROGER ROSSMEISL, CPA

Kho & Patel CPAs
160 E. Arrow Highway
San Dimas, CA 91773

(714) 325-0442
roger@khopatel.com

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