IRS Updates

  • IRS Imposes Moratorium on Improper Employee Retention Credit Claims Amid Rising Fraud Concerns

    As of last week, the Internal Revenue Service (IRS) has taken decisive action to address concerns regarding the improper filing of Employee Retention Credit (ERC) claims, announcing a moratorium on new claims through at least the end of the year. This decision is aimed at protecting unsuspecting tax businesses from falling prey to scams that…

  • IRS Shifting Audit Focus Toward More High-Income Taxpayers

    The Internal Revenue Service says it’s about to move its main audit spotlight from the everyday working-class individual taxpayer to those engaged in high-income activities. Now on the audit radar: high-income earners, partnerships and large corporations, and promoters pushing schemes that abuse the tax laws.   This turn of focus comes after a comprehensive review of…

  • Contactless Tax Preparation – Here to Stay

    By Matt Jagst, Drake Software Head of Product     For many tax and accounting firms, methods of client interaction changed dramatically in the spring of 2020. Firms accustomed to having their clients visit the office to serve them face-to-face had to switch to a completely contactless and often remote working environment. This shift has become…

  • Form 8300 to Shift to Electronic Filing Platform

    The push toward an all-electronic filing future continues at the IRS. The agency’s latest move has Form 8300, Report of Cash Payments Over $10,000, e-filed starting in 2024, in an effort to avoid backlogs that the old paper forms presented while speeding up processing times.   The shift is included in final regulations amending e-filing rules…

  • Hawaii Wildfire Victims Get Tax Relief from IRS

    As recovery efforts are underway for victims of the devastating wildfires in Hawaii, the Internal Revenue Service is moving to give survivors one less thing to worry about.  The agency has launched its tax relief package for victims in Maui and Hawaii counties that basically delays an array of federal individual and business tax deadlines…

  • Drake Software Hits the Road This Summer: Join Us at IRS Tax Forums and Trade shows!

    Summer events for the tax industry are in full swing as professionals from around the country gather to share resources, insight, software, and tools for the 2024 filing season. The Drake Software team has enjoyed the time on the road and the opportunities to meet users, demonstrate our tax prep solutions, and share industry expertise.…

  • IRS Announces Direct Deposit for Amended Returns

    Filing an amended return used to mean completing a paper form, regardless of how taxpayers submitted the original return to the Internal Revenue Service. During the pandemic, paper-filed returns presented processing challenges that contributed to a historic backlog at the Internal Revenue Service. Nearly two years after the IRS first began allowing electronic filing for…

  • IRS Pushes for More Phone Support, Hires 4,000 Customer Service Reps

    After the 2022 tax season found the Internal Revenue Service spread thinner than ever before, the agency is taking steps to ensure that the first few months of 2023 go far more smoothly. How is the IRS working to get ahead of staffing issues in the upcoming tax season? In addition to creating job openings…

  • IRS Disaster Relief in 2022

    Victims receive extended deadlines, deferred taxes, and more When disaster strikes, the government’s disaster-declaration process can help victims recover from financial losses. Governors in affected states submit a major disaster area request to the president through the Federal Emergency Management Agency (FEMA); if granted, one benefit victims receive is tax relief. Generally, this relief allows…

  • Storm Victims in North Carolina and South Carolina Get Tax Relief

    New filing deadlines for more Hurricane Ian victims The Internal Revenue Service this week announced tax relief for victims of Hurricane Ian who reside or operate a business anywhere in North Carolina and South Carolina. Like relief granted to storm victims in Florida, the agency is delaying several federal filing and payment deadlines. Each state…