The Internal Revenue Service (IRS) is conducting penalty audits to enforce the Affordable Care Act’s (ACA) health insurance mandates for employers. These audits can expose employers to substantial penalties, so a strategic defense is critical. As Virginia IRS attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, explains, building a strategic defense starts with understanding what (if anything) the IRS is likely to uncover during the audit process.

The Internal Revenue Service (IRS) recently announced that it is keeping the moratorium on new Employee Retention Credit (ERC) filings in place so that it can focus on fraud enforcement. The IRS has a substantial backlog of pre-moratorium ERC claims to review, and while it anticipates restarting payments on valid claims “later this summer,” its primary focus is on uncovering and prosecuting ERC-related fraud. Virginia IRS tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, explains what this means for those who have concerns about their ERC filings.

The IRS had a backlog of approximately 1.4 million Employee Retention Credit (ERC) claims as of May 2024. This was one of several revelations that came to light when the IRS was forced to respond to a lawsuit challenging its moratorium on new ERC filings earlier this year. In its response, the IRS also made clear that it is processing pending claims “slowly and judiciously” in order to identify potentially fraudulent claims that require further scrutiny.

When facing IRS criminal tax audits, taxpayers need to be very careful to avoid making false statements to the IRS. Knowingly and willfully making false statements to the IRS is a federal crime, and taxpayers convicted of making false statements to the IRS can face both fines and prison time. With this in mind, how can taxpayers protect themselves, and what can they do if it’s already too late to avoid making a mistake? Virginia criminal tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, explains.

Paycheck protection program (PPP) and employee retention credit (ERC) fraud remain top law enforcement priorities for the federal government in 2024. The Internal Revenue Service (IRS) and U.S. Department of Justice (DOJ) are actively targeting PPP applicants and ERC claimants, and the DOJ is pursuing serious criminal charges in many cases. With this in mind, business owners and other taxpayers who have concerns about their PPP or ERC filings should consult with an experienced Virginia tax attorney as soon as possible.