More partnerships, S-corporations, limited liability companies (LLCs) and trusts can expect to face scrutiny from the Internal Revenue Service (IRS) in 2025. The same is true for individuals who own these pass-through entities. The IRS recently announced the formation of a new pass-through field operations unit that will be “increase[ing] audit rates” in this area, with a specific focus on high-income taxpayer noncompliance. Learn more from Washington D.C. tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group.Read More

The IRS has reopened its Voluntary Disclosure Program (VDP) for businesses with improper Employee Retention Credit (ERC) claims, providing a limited window to correct errors and avoid future penalties. This initiative, running through November 22, 2024, allows businesses to come forward and correct their ERC claims at a 15% discount, helping them steer clear of audits, penalties, and interest.The IRS has already initiated over 460 false disclosure investigations, but there’s still time to act.Read More

On October 19, 2023, the Internal Revenue Service (IRS) announced a process for businesses to withdraw their Employee Retention Credit (ERC) claims. The announcement comes just over a month after the IRS placed a moratorium on new filings due to concerns about widespread ERC fraud. Washington D.C. tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, explains what business owners need to know:Read More

In 2011, the U.S.-Malta Tax Treaty started a gold rush of sorts. The treaty’s language arguably (and unintentionally) allowed U.S. taxpayers to open personal retirement plans in Malta, contribute appreciated assets, and then systematically take structured distributions without incurring federal tax liability on the plan’s interest or principal. This led to many taxpayers opening Maltese pension plans—with some avoiding tens of millions of dollars in federal income tax liability.Read More