As we discussed in September, the Internal Revenue Service (IRS) and its criminal Investigations division (IRS CI) are continuing to target fraud under the federal Paycheck Protection Program (PPP). The IRS issued guidance in August clarifying that taxpayers who improperly claim loan forgiveness cannot exclude their PPP loans from their gross income, and IRS CI announced multiple criminal cases targeting PPP loan recipients in August and September.Read More

The federal government has struggled with Paycheck Protection Program (PPP) loan fraud since launching the program at the height of the pandemic in 2020. In addition to fraudulently obtaining loans, federal authorities—including the Internal Revenue Service (IRS) and IRS Criminal Investigations (IRS CI)—are also targeting businesses and individuals for fraudulently obtaining loan forgiveness. The PPP allows loan recipients to self-certify that they meet the program’s forgiveness requirements and avoid repaying their federal funds.Read More

The Internal Revenue Service (IRS) recently extended the federal work opportunity tax credit through 2025. This credit allows businesses to reduce or eliminate their federal income tax liability by hiring workers in 10 “targeted groups.” For businesses that qualify, claiming the work opportunity tax credit can offer substantial financial benefits. However, qualifying businesses must be careful to claim the credit correctly, as the IRS has recently enhanced its scrutiny of businesses (and individuals) claiming tax benefits under these types of federal relief programs.Read More

United States taxpayers who own “specified foreign financial assets” must disclose these assets to the Internal Revenue Service (IRS) annually. This potentially involves two separate filings—IRS Form 8938 and the Report of Foreign Bank and Financial Accounts (FBAR).Read More

Between the lingering economic impacts of the COVID-19 pandemic and the unprecedented inflation we have experienced in 2022, many businesses in Boston are being forced to shut their doors for good. When closing up shop, business owners need to take several steps, and they need to be careful to avoid problems with the Internal Revenue Service (IRS).Read More