MarylandSaves Has Launched Statewide
Calling all small businesses in Maryland! Did you know that in the state of Maryland there are nearly one million private-sector employees that do not have access to an employer-sponsored retirement savings program? Well, that is about to change as we have great news!
Key Points to Know:
ERC Fraud Alert
The Employee Retention Tax Credit (“ERC”) was introduced as part of the CARES Act, it was intended to encourage employers to keep employees on the payroll as they navigated the effects of COVID-19. Since its inception, the rules around eligibility have changed several times and have also been widely misinterpreted.
Some third-party firms performing calculations for taxpayers are taking very aggressive positions on ERC. They are charging a percentage of the credit for the fee and making claims about eligibility that could be incorrect. Due to the limited IRS guidance, they have a very liberal interpretation of the rules. For example, supply chain disruptions as a qualification of ERC. As a result, some taxpayers are claiming this refundable credit when they do not actually qualify because their business was not shut down due to a government order, or they did not have a significant decline in gross receipts (2020 - more than 50%; 2021 – more than 20%).
The IRS has stated ERC is a major area of focus for enforcement. The statute of limitation for the IRS to audit the ERC claims is 5 years.
WHS will evaluate your eligibility for the ERC and help you take advantage of it. We have partnered with Payroll Services, LLC to file the reports necessary to claim the credit.
Previously Shared Information
WASHINGTON — The Internal Revenue Service has awarded new contracts to three private-sector collection agencies for collection of overdue tax debts. The new contracts begin Thursday following today’s expiration of the old contracts.
Beginning Thursday, Sept. 23, 2021, taxpayers with unpaid tax bills may be contacted by one of the following three agencies:
The IRS will always notify a taxpayer before transferring their account to a private collection agency (PCA).
How it works
The private collectors will identify themselves as contractors collecting taxes on behalf of the IRS. Employees of these collection agencies must follow the provisions of the Fair Debt Collection Practices Act, and like IRS employees, must be courteous and must respect taxpayer rights.
Private firms are not authorized to take enforcement actions against taxpayers. Only IRS employees can take these actions, such as filing a notice of Federal Tax Lien or issuing a levy.
The private firms are authorized to discuss payment options, including setting up payment agreements with taxpayers. But as with cases assigned to IRS employees, any tax payment must be made directly to the IRS. A payment should never be sent to the private firm or anyone besides the IRS or the U.S. Treasury. Checks should only be made payable to the United States Treasury. To find out more about available payment options, visit IRS.gov/Payments.
The IRS established the Private Debt Collection program in 2016, as authorized under federal law, and contracted with several agencies to collect certain unpaid tax debts on the government’s behalf. To learn more about the private debt collection program, visit the Private Debt Collection page on IRS.gov. Additional information can be found at the following links:
Taxpayer Bill of Rights | Internal Revenue Service (irs.gov)
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