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Tax Protestors. Don’t Get Caught Up in Their False Claims

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Did you hire someone who is giving you pushback on submitting a W-4 form, or maybe they even presented you with a little-known tax form stating that they do not pay taxes? If so, you may have hired a tax protestor. No need to panic; you may be able to talk some sense into them. Tax protestors could simply be misinformed individuals, and with social media exposure, that is easy to come by. I have seen TikTok videos, X posts, YouTube and the like, falsely leading people down this path. They claim that taxation is voluntary, does not apply to…

Labor Pains: Making Maternity Leave a Smooth Delivery

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I am surprised that I have not covered maternity leave in the past nine years, as it is a relevant topic that can impact every employer from the beginning of time.  In fact, at PayMaster we have had about a dozen employees take time off for maternity or paternity leave over our past 30 years; there were even twins once. The term maternity leave covers an employee who is away from work to care for the addition of a child to their family through birth, adoption or foster care placement, but what does it entail?  Eligibility, including whether one is…

ERC Processing Update

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There is a fair amount of activity with the IRS-processing Employee Retention (Tax) Credit (ERC) refunds with two announcements this past month.  I would call it good news for those who have legitimate claims and bad news for those who filed a not-so-legitimate claim.  Actually, not all bad news for the not-so-legitimate claim group. The IRS has reopened the Voluntary Disclosure Program (VDP), which will run through November 22, 2024.  As you may recall, this was started earlier this year whereby the IRS allowed you to revoke your claim and return any funds you believe were improperly claimed, keeping 20%…

Beneficial Ownership Information Reporting. Oh BOI! More Compliance.

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There has been a significant amount of confusion regarding the new and mostly unknown Beneficial Ownership Information (BOI) reporting requirements, so let’s get to the bottom of what it is and what you need to do to keep your business out of trouble. In 2021, Congress passed the Corporate Transparency Act (CTA), a law to help prevent financial crimes like money laundering, corruption and tax fraud. Among other things, the law requires certain business entities to disclose information about their owners, and those who control the business, to the Financial Crimes Enforcement Network (FinCEN), a division of the U.S. Treasury.…

IRS Communicates a Strategy for Clearing Their ERC Backlog

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Multiple lawsuits have been filed against the IRS, alleging that their lengthy processing time for ERC claims is violating their rights, including one to stop the moratorium that was imposed on new filings made after September 14, 2023.  In recent IRS responses to these lawsuits, we have learned new information on how they intend to clear their backlog of 1.4+ million returns they have had as of May 18, 2024.  880,000 of those returns were filed before the moratorium on September 14, 2023, so in essence, the fact there is a moratorium at all, those returns received after that date…