IRS Updates | TaxConnections

02 Dec 2022

Treasury Guidance On Wage And Apprenticeship Requirements For Enhanced Credits/Deductions

Treasury And IRS Announce Guidance On Wage And Apprenticeship Requirements For Enhanced Credits/Deductions

WASHINGTON — The Treasury Department and Internal Revenue Service announced guidance providing taxpayers information on how to satisfy the prevailing wage and apprenticeship requirements for enhanced tax benefits under the Inflation Reduction Act. The guidance will be published in the Federal Register tomorrow.

Notice 2022-61 explains how taxpayers – generally builders, developers, and owners of clean energy facilities – receive the increased tax credits or deduction amounts by satisfying the wage and apprenticeship requirements as provided for in this notice. For instance, the notice provides guidance on what constitutes a prevailing wage and the determination of qualified apprenticeships with accompanying examples.

Written by TaxConnections Admin | Posted in IRS Updates

20 Sep 2022

IRS Updates On Tax Credit Helping Businesses To Hire

IRS updates Information on tax credit helping businesses to hire certain categories of workers.

WASHINGTON — The IRS updated information on the Work Opportunity Tax Credit (WOTC), available to employers that hire designated categories of workers who face significant barriers to employment. For employers facing a tight job market, the WOTC may be able to help.

Today’s updates include information on the pre-screening and certification process. To satisfy the requirement to pre-screen a job applicant, on or before the day a job offer is made, a pre-screening notice (Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit) must be completed by the job applicant and the employer.

Written by TaxConnections Admin | Posted in IRS Announcement • IRS Updates

17 Feb 2022

The IRS’s Voluntary Disclosure Practice (VDP): IRS Revises Form 14457

On February 15, 2022, the IRS announced that IRS Form 14457, Voluntary Disclosure Practice Preclearance Request and Application, and the accompanying instructions to the form had been revised. Because the revisions provide clarification on certain issues that caused confusion during the submission process, the revisions are welcome news to many tax professionals, including this writer. The revisions are discussed more fully below.

Introduction to the Voluntary Disclosure Practice

A full primer on the IRS’s Voluntary Disclosure Program (“VDP”) can be found here. In short, the VDP permits non-compliant taxpayers an opportunity to come forward, file missing or amended returns correcting prior year reporting, and pay the government taxes that are owed. In exchange, the taxpayer making the disclosure receives what is akin to amnesty, provided the taxpayer meets all of the eligibility requirements of the VDP. This can result in significant reduction of criminal risks and exposure for the non-compliance in addition to significant reductions in civil penalties associated with the non-compliance (in some cases).