In a recent Forbes Tax Breaks newsletter, senior writer Kelly Phillips Erb discusses the prevalence of financial fraud targeting seniors, which resulted in over $3.4 billion in losses in 2023. The scammers often cultivate relationships to gain victims’ trust and convince them to provide financial assistance. Despite efforts to combat fraud, the IRS has initiated a second voluntary disclosure program for businesses to repay erroneously claimed Employee Retention Credits from 2021. The agency has also launched over 460 criminal investigations related to such abuse.
Moreover, recent research suggests that the Earned Income Tax Credit (EITC) may help reduce crime rates by providing financial relief to low- and moderate-income families. In a separate case, a Florida man pleaded guilty to evading nearly $2.4 million in taxes on income from his medical equipment business. Additionally, misconceptions about trusts and their asset protection capabilities were addressed, along with recommendations to improve services for international taxpayers.
The newsletter also covered tax-related rulings, deadlines, and events, including a ruling by the South Carolina Supreme Court that a sales tax exemption for durable medical equipment favored in-state sellers over out-of-state sellers, violating the dormant Commerce Clause. At the federal level, the ABA Section of Taxation submitted comments to the IRS on certain private letter rulings, while the agency updated security guidelines for tax and accounting practices.
Additionally, updates on the tax compliance software provider Avalara, the appointment of Mary O’Carroll as Chief Operating Officer at law firm Goodwin, and the launch of an enterprise-grade pricing feature by TaxBit were highlighted as noteworthy industry developments. Lastly, readers tested their knowledge with trivia on the top source of fraud complaints reported to the FBI’s Internet Crime Complaint Center, with Canada ranking second after the United Kingdom. Attendees were also encouraged to participate in upcoming tax conferences and events.
