The Internal Revenue Service (IRS) has issued Program Manager Technical Advice (PTMA 2025-001) addressing the validity of Employee Retention Credit (ERC) claims submitted by third-party payers (TPPs) on aggregate employment tax returns or claims for refund when the required allocation schedule, Schedule R (Form 941), is not attached. This guidance, dated February 13, 2025, responds to a request for assistance concerning the treatment of these claims, particularly in light of the moratorium on processing Form 941-X, Adjusted Employer’s QUARTERLY Federal Tax Return or Claim for Refund, due to concerns about ineligible ERC claims. This article will detail the facts underlying this advice, the IRS’s analysis of the relevant law, the application of this law to the presented facts, and the resulting conclusions regarding the validity of these ERC claims.

As CPAs in tax practice, while our primary focus may not always be on the Employee Retirement Income Security Act of 1974 (ERISA), understanding its intricacies, particularly concerning retirement plans, is crucial as plans covered by ERISA are often part of tax planning for our business clients. The recent Supreme Court decision in Cunningham et al. v. Cornell University et al., No. 23–1007, decided April 17, 2025, provides significant clarification on the pleading requirements for prohibited transaction claims under ERISA § 1106(a)(1)(C). This article will dissect the facts, the petitioners’ arguments, the Court’s legal analysis, its application to the case, and the resulting conclusions, offering insights relevant to our practice.

As tax practitioners, we are frequently faced with intricate collection matters and the nuances of taxpayer rights when the IRS seeks to enforce tax liabilities. The Supreme Court recently heard oral arguments in Commissioner of Internal Revenue v. Jennifer Zuch, No. 24-416, a case that could significantly impact the scope of Tax Court jurisdiction in Collection Due Process (CDP) proceedings under Internal Revenue Code (IRC) § 6330. This article will delve into the facts of the case, the lower courts’ analyses, and, most importantly, the critical issues raised by the Supreme Court Justices during oral arguments that appear central to the resolution of this dispute.

This article delves into the recent Tax Court Memorandum decision in Joanne Salvi Vanover v. Commissioner, T.C. Memo. 2025-37, offering insights for tax practitioners on the nuances of Innocent Spouse Relief under Internal Revenue Code (IRC) § 6015. The case provides a comprehensive analysis of the statutory requirements and the factors considered by the Tax Court when evaluating a taxpayer’s claim for relief from joint and several liability.

This article discusses the case of United States v. Charles S. Brown, et al., Case No. C24-5021, a decision from the United States District Court for the Western District of Washington at Tacoma, offering key insights for tax practitioners dealing with clients who face both civil and criminal tax consequences arising from the same underlying actions. The court’s analysis clarifies the distinct nature of civil tax liabilities and criminal restitution orders, particularly concerning assessment and the statute of limitations on collection.

This article analyzes the recent Tax Court Memorandum decision in Mark P. Himmel and Deborah W. Himmel v. Commissioner of Internal Revenue, T.C. Memo. 2025-35, which provides valuable insights for tax practitioners navigating the complexities of hobby loss rules under Internal Revenue Code (IRC) § 183 and penalties for failure to timely file under IRC § 6651(a)(1).

This article discusses Notice 2025-23, issued by the Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS), which announces the intention to remove § 1.6011-18 of the Income Tax Regulations (26 CFR part 1), also known as the Basis Shifting Transaction of Interest (TOI) Regulations. This notice also provides immediate relief from certain penalties associated with these regulations and withdraws Notice 2024-54. Understanding the implications of this notice is crucial for tax practitioners advising clients involved in partnership-related party basis adjustment transactions.

This article delves into the recent United States Tax Court Memorandum decision in GWA, LLC v. Commissioner, T.C. Memo. 2025-34, a case with significant implications for tax practitioners advising partnerships and their partners on complex financial transactions, accounting method changes, and the validity of tax elections made by disregarded entities.

This article analyzes the recent United States Tax Court decision in Belagio Fine Jewelry, Inc. v. Commissioner, 164 T.C. No. 7 (2025), which addresses the crucial issue of equitable tolling of the 90-day deadline for filing a petition for redetermination of employment status under Internal Revenue Code (I.R.C.) § 7436. Understanding the court’s reasoning is essential for tax practitioners advising clients facing employment tax controversies.

This article addresses the significant impact of H.J. Res. 25, a joint resolution passed by Congress and signed into law by President Trump on April 10, 2025. This measure utilizes the Congressional Review Act (CRA) to disapprove and repeal the Internal Revenue Service (IRS) regulations outlined in Treasury Decision (T.D.) 10021, which were aimed at imposing information reporting requirements on certain participants within the decentralized finance (DeFi) sector of the digital asset industry. For tax practitioners, understanding the nuances of this repeal and the content of the now-defunct regulations is crucial for advising clients operating in or interacting with the digital asset space.

This article analyzes Internal Revenue Service (IRS) Notice 2025-24, which provides limited relief from penalties under section 6707A(a) and section 6707(a) of the Internal Revenue Code (Code) for participants and material advisors involved in certain micro-captive reportable transactions. This relief is specifically targeted towards those who failed to file timely disclosure statements related to transactions identified as listed transactions or transactions of interest after the initial filing of tax returns or the point at which an advisor became a material advisor. Understanding the scope and limitations of this notice is crucial for tax practitioners advising clients involved in micro-captive arrangements.

This article provides an overview of the recently released Rev. Rul. 2025-9, which details the updated Standard Industry Fare Level (SIFL) cents-per-mile rates and terminal charge for valuing noncommercial flights on employer-provided aircraft under Section 61 of the Internal Revenue Code (IRC). This guidance is crucial for tax practitioners advising clients on the taxation of fringe benefits.

This article provides a technical analysis of the recent Tax Court Memorandum decision, Hampton v. Commissioner, T.C. Memo. 2025-32, which addressed the application of the public policy doctrine to the disallowance of a loss deduction claimed by a shareholder of an S corporation following the forfeiture of the corporation’s assets. This case offers valuable insights for tax practitioners regarding the limitations on loss deductions when those losses are intertwined with illegal activities.

This article analyzes the recent Tax Court Memorandum decision, Zajac v. Commissioner, T.C. Memo. 2025-33, providing a detailed overview of the case for tax practitioners. The case involves a taxpayer, Joseph J. Zajac, III, who contested the Commissioner of Internal Revenue’s (Respondent) determination of deficiencies and accuracy-related penalties for the taxable years 2007 through 2009.

The case of WT Art Partnership LP v. Commissioner, T.C. Memo. 2025-30, offers significant insights for tax practitioners, particularly those advising clients on charitable contributions of high-value art. This memorandum opinion from the United States Tax Court addresses the intricate requirements for substantiating such donations under § 170 of the Internal Revenue Code (IRC), the application of the reasonable cause exception under § 170(f)(11)(A)(ii)(II), the determination of fair market value (FMV), and the imposition of accuracy-related penalties under § 6662. This article will delve into the facts of the case, the taxpayer’s arguments, the court’s legal analysis, its application of the law, and the resulting conclusions.

This article delves into the Tax Court’s decision in Correll v. Commissioner, T.C. Memo. 2025-31, providing a technical analysis relevant for tax practitioners. The case highlights the crucial requirements for claiming a child as a dependent and the subsequent eligibility for the child tax credit, particularly in situations involving separated or divorced parents.

This article delves into a recent decision by the United States Court of Federal Claims in Estate of Robert F. Armitage, Deceased, Robert H. Armitage and Adam M. Green, Executors v. The United States, No. 24-1687, filed April 7, 2025. This case serves as a critical reminder for tax practitioners regarding the fundamental jurisdictional requirements that taxpayers must satisfy before seeking judicial intervention in tax refund matters. Understanding these prerequisites is paramount in advising clients and ensuring the proper pursuit of refund claims.

This article delves into the recent case of ERC Today LLC, et al. v. John McInelly, et al., No. CV-24-03178-PHX-SMM (D. Ariz. Apr. 7, 2025), providing a detailed analysis relevant to CPAs in tax practice who advise clients on Employee Retention Credit (ERC) claims. The case examines the Internal Revenue Service’s (IRS) moratorium on processing ERC claims and its implementation of a "risk assessment model," ultimately leading to the denial of a preliminary injunction sought by tax preparation firms.

This article examines the Office of Tax Appeals (OTA) decision in the Matter of the Appeal of B. Wageman, offering insights for tax practitioners regarding the imposition of personal liability for a corporation’s unpaid sales and use tax obligations under California law. This case highlights the critical factors considered by the OTA, particularly the element of willful failure to pay under Revenue and Taxation Code (R&TC) section 6829 and California Code of Regulations, title 18, section 1702.5.

In the recent Tax Court Memorandum decision, Pierce v. Commissioner, T.C. Memo. 2025-29, filed April 7, 2025, the court addressed a dispute concerning the fair market value of interests in Mothers Lounge, LLC, a baby products company, for federal gift tax purposes. This case provides valuable insights for tax practitioners, particularly CPAs specializing in tax, into the court’s rigorous analysis of business valuation methodologies, the scrutiny of expert witness testimony, and the application of relevant legal principles in the context of closely held business transfers.