As we celebrate our country's birth, we can look back and praise those who fought so bravely to create the nation and all it stands for. We also want to recognize our JNR Family of veterans, active military, and first responders who valiantly protect our freedom.

IRS enters next stage of Employee Retention Credit work; review indicates vast majority show risk of being improper

Following a detailed review to protect taxpayers and small businesses, the Internal Revenue Service announced plans to deny tens of thousands of improper high-risk Employee Retention Credit claims while starting a new round of processing lower-risk claims to help eligible taxpayers.

Help for businesses with eligibility questions and those misled by promoters

Some promoters told taxpayers every employer qualifies for ERC. The IRS and the tax professional community emphasize that this is not true. Eligibility depends on specific facts and circumstances.

The IRS has dozens of resources to help people learn about and check ERC eligibility and businesses can also consult us with questions.

Key IRS materials to help show taxpayers if they have a risky ERC claim include:

• ERC Eligibility Checklist (interactive version and a printable guide PDF) includes cautions about common areas of misinformation and links to facts and examples.
• 7 warning signs ERC claims may be incorrect outlines tactics that unscrupulous promoters have used and why their points are wrong.
• Frequently asked questions about the Employee Retention Credit includes eligibility rules, definitions, examples and more.

Please contact us with questions—we are here to help.

Beneficial Ownership Information (BOI)

There is a new reporting requirement known as Beneficial Ownership Information (BOI), which came into effect in 2024. This article will provide you with some general information regarding the new reporting rules as well as the initial steps you should take to address the implications of the Corporate Transparency Act (CTA) to your organization.

Who This Applies To: This reporting requirement applies to corporations, LLCs, and any other entities that were created by filing with the secretary of state or similar office. 

Please contact us with questions and we can help you if you would like assistance filing.

Solar tax credits for businesses

There are two tax credits available for businesses and other entities like nonprofits and local and tribal governments that purchase solar energy systems:

• The investment tax credit (ITC) is a tax credit that reduces the federal income tax liability for a percentage of the cost of a solar system that is installed during the tax year.

• The production tax credit (PTC) is a per kilowatt-hour (kWh) tax credit for electricity generated by solar and other qualifying technologies for the first 10 years of a system’s operation. It reduces the federal income tax liability and is adjusted annually for inflation.

Generally, project owners cannot claim both the ITC and the PTC for the same property, although they could claim different credits for co-located systems, like solar and storage, based on proposed rules issued by the Internal Revenue Service (IRS).

Please read the fact sheet prepared by the U.S. Department of Energy and contact us with questions.