On December 6, 2023, the Internal Revenue Service (IRS) announced that it is mailing letters to more than 20,000 taxpayers disallowing their Employee Retention Credit (ERC) claims. The IRS notes that this “initial round” of disallowance letters is part of its “continuing efforts to combat dubious Employee Retention Credit (ERC) claims” and that the recipients are entities that either “did not exist or did not have paid employees during the period of eligibility.”Read More

Swiss private bank Banque Pictet et Cie SA (Banque Pictet) has entered into a deferred prosecution agreement with the U.S. Department of Justice (DOJ) after admitting to conspiring with U.S. taxpayers and others to hide more than $5.6 billion in assets. According to a DOJ press release, Banque Pictet held these assets in “secret bank accounts in Switzerland and elsewhere” for the specific purpose of concealing taxpayers’ income from the IRS. As Boston tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, explains, the taxpayers involved could now face scrutiny from the Internal Revenue Service—and potentially criminal prosecution by the DOJ.Read More

The Pandemic Response Accountability Committee (PRAC), a federal watchdog assigned to examine fraud under the government’s COVID-19 relief programs, has estimated that fraud under the Employee Retention Credit (ERC) could cost U.S. taxpayers in excess of $2 trillion. The PRAC’s report issued late last year has largely flown under the radar, but is now gaining renewed attention as the Internal Revenue Service (IRS) prioritizes ERC fraud enforcement heading into 2024. Boston tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, explains:Read More

The Employee Retention Credit (ERC) was a pandemic-era program designed to help businesses that were struggling due to the economic impacts of COVID-19. Under the program, eligible businesses could claim a refundable credit for “qualified wages,” effectively subsidizing their payroll as long as they kept their employees onboard.Read More