In the Black: August 2024
Where the hell is my ERTC check????
If you are one of many business owners that applied for the pandemic era Employee Retention Tax Credit, you may be still waiting on receiving that check. You are not alone.
So, what’s the hold up???? It should not surprise you to learn that there has been massive fraud, with taxpayers trying to claim credits/checks that they aren’t entitled to receive. In September of 2023, the IRS placed a moratorium on processing new claims as they spent time looking more closely at the huge number of claims received. If you submitted a claim AFTER September 2023, they are not yet processing your paperwork.
Here’s the official advice to taxpayers who submitted a claim before the moratorium who haven’t heard back:
For those currently awaiting an ERC claim. For those who currently have an ERC claim on file, the IRS will continue processing these claims during the moratorium period but at a greatly reduced speed due to the complex nature of these filings and the need to protect businesses from being improperly paid. Normal processing times could easily stretch to 180 days or longer. The IRS cautions that many applications will be facing additional compliance scrutiny, which means the payments could take even longer to be processed. While the IRS works on compliance measures during this period, the agency cautions businesses to expect extended wait times due to the large volume of claims and the complexity of the applications.
1099-DA, and an end to the tax time crypto scramble.
If you have crypto, then you are familiar with the end of year headache where we try to round up the paperwork needed to file your taxes. Why is it such a mess? Until now there has been no requirement for platforms/wallets like Coinbase, etc. to supply consumers with any kind of paperwork at year end to help prepare their taxes. There are often paid services that you can opt into to get that information but, for most people, it’s meant that reporting their crypto trades means sorting through massive spreadsheets and hoping that you’ve found the right numbers.
The IRS is stepping in to help clean up this wild west. Starting in 2024 we’ll start seeing 1099-DA forms issued by folks like Coinbase. It should make tax time MUCH less painful for those who trade/hold crypto to do their taxes, so that’s a win! A warning though, to those of you who may not have been as scrupulous with your tax crypto tax reporting, the IRS is now watching.
Liz is All Babies
The LIAB team would like to give a special welcome to Ace, the newest addition of senior Bookkeeper Nikole’s family. So cute, right?
