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IRS Keeps Hold On Employee Retention Credit Claims to Protect Small Businesses from Fraud
Over the past year, the Internal Revenue Service (IRS) has discovered billions of dollars in potentially fraudulent Employee Retention Credit (ERC) claims. Due to the high number of claims from ineligible employers, the IRS put an immediate hold on processing new claims for the ERC in September 2023. The moratorium, which the IRS says may be lifted later this spring, was put in place to protect small business owners from aggressive promoters and scams that put businesses at financial risk. While the IRS has new ERC claims on pause and works to investigate possible fraud, business owners still have the opportunity to protect themselves from potential civil and criminal penalties.
ERC Background and Rise of Scams
The ERC was signed into law in 2020 as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act to help employers struggling during the COVID-19 pandemic. Eligible businesses affected by COVID-19 could receive a refundable tax credit of up to 70% of the wages they paid to employees in 2021. To be eligible, a business's operations must have been fully or partially suspended due to the pandemic, and the business must have experienced a corresponding significant decline in its gross receipts in 2021. The IRS has issued an ERC eligibility checklist to help businesses understand eligibility requirements.
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Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
Judge Rules Shaquille O'Neal Will Face Securities Lawsuit for Promotion, Sale of NFTs
A federal district court in Miami, FL, has ruled that former National Basketball Association star Shaquille O'Neal will have to face a lawsuit over his promotion of unregistered securities in the form of cryptocurrency tokens and that he was a "seller" of these unregistered securities.
Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It
Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?
Blockchain Domains: New Developments for Brand Owners
Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.
'Insurable Interest' and the Scope of First-Party Coverage
This article reviews the fundamental underpinnings of the concept of insurable interest, and certain recent cases that have grappled with the scope of insurable interest and have articulated a more meaningful application of the concept to claims under first-party property policies.