The IRS conducted a review to protect taxpayers and small business owners from improper high-risk Employee Retention Credit claims. The review identified between 10% and 20% of claims fall into what the IRS has determined to be the highest-risk group and estimates between 60% and 70% of the claims are at an unacceptable level of risk. Many of these claims will be denied as the IRS continues to search for legitimate claims. The IRS has resumed processing low risk claims that were received before the moratorium began.
The IRS provided guidance on exceptions to the 10% additional tax assessed on early withdrawals from a qualified retirement plan. A taxpayer is permitted to receive a distribution from an applicable eligible retirement plan to meet unforeseeable or immediate financial needs relating to necessary personal or family emergency expenses of up to $1,000. Survivors of domestic abuse can withdraw up to $10,000. The early withdrawals are subject to regular income tax, but not the 10% penalty, and may be repaid to the retirement plan within three years.
The Treasury Department and the IRS finalized the rules on cryptocurrency broker reporting requirements on June 28, 2024. The regulations require brokers to report certain sale and exchange transactions that take place beginning in 2025 on Form 1099-DA.
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