Q&A on ERC, tax legislation and IRS woes

The tax ecosystem is in constant flux given the rotating release of legislation and regulations and reliance upon open communication with, and accessibility to, the IRS.  

On this Tax Section Odyssey episode, April Walker, CPA, CGMA, Lead Manager – AICPA Tax Section, and Lauren Pfingstag, Director of AICPA Congressional & Political Affairs, review frequently asked questions (FAQs) that the AIPA Tax Section receives from members on topics such as the employee retention credit (ERC), tax-related legislation and IRS service levels.

What you’ll learn in this episode

• ERC-related topics (1.11)
  • Potential credit reinstatement possibilities for Q4 2021 (1.22)
  • Aggressive ERC services by third parties (3.08)
  • Timing, salaries and the ERC (5.20)
  • Other potential legislative action possibilities (6.59)
  • Timing of ERC refunds (8.00)
• Tax-related legislation on the horizon (9.43)
  • Tax-related legislative packages most likely to pass (10.12)
  • LIFO relief for certain industries (14.15)
• IRS-related topics (15.53)
  • Erin Collins’s 2023 Objectives Report to Congress (16.05)
  • Additional IRS funding (16.52)
  • Notices (18.56)
  • Proposed regulations related to RMDs (21.52)
• A page from Lauren’s travel journal (26.43)

AICPA resources

• Mythbust and maximize the employee retention credit— Helping eligible clients successfully apply for and receive the ERC is a once-in-a-lifetime opportunity for CPAs according to Chris Wittich, MBT, CPA.
• 2023 Objectives Report to Congress — National Taxpayer Advocate Erin Collins's annual midyear report for fiscal 2023 was released in June. The report reviewed the IRS's performance in the 2022 tax filing season, outlined 14 "systemic advocacy objectives" going forwards and lists internal goals and objectives for the Taxpayer Advocate Service (TAS).
• Relief for Taxpayers for the 2022 Filing Season (Coalition letter) — The coronavirus pandemic has created enormous challenges for taxpayers, tax professionals and the IRS. Implementing reasonable penalty relief measures, that the IRS can offer immediately, are necessary to help not only taxpayers and tax professionals but also the IRS during these challenging times.
• Proposed regulations update RMDs for SECURE Act changes — The Tax Adviser, Feb. 23, 2022.

Other resources

• Where's My Refund? — IRS tool that provides refund information for the 2021, 2020 and 2019 tax years.

Keep your finger on the pulse of the dynamic and evolving tax landscape with insights from tax thought leaders in the AICPA Tax Section. The Tax Section Odyssey podcast includes a digest of tax developments, trending issues and practice management tips that you need to be aware of to elevate your professional development and your firm practices.

This resource is part of the robust tax resource library available from the AICPA Tax Section. The Tax Section is your go-to home base for staying up to date on the latest tax developments and providing the edge you need for upskilling your professional development. If you’re not already a member, consider joining this prestigious community of your tax peers. You’ll get free CPE, access to rich technical content such as our Annual Tax Compliance Kit, a weekly member newsletter and a digital subscription to The Tax Adviser.