News & Events

Category: Offshore Account Update

Proposed Law Would End the Employee Retention Credit (ERC) and Increase the Risks for Businesses and Promoters Targeted for ERC Fraud

Offshore Account Update

Posted in on February 16, 2024

With the Internal Revenue Service (IRS) continuing to target fraud under the Employee Retention Credit (ERC) program, Congress has now proposed a law that would bring the program to an end. The proposed law would also lengthen the statute of limitations for ERC fraud enforcement and enhance the penalties for promoting fraudulent ERC filing schemes. Learn more from Washington D.C. tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group:

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Should You File an Application Under the IRS' ERC Voluntary Disclosure Program?

Offshore Account Update

Posted in on January 31, 2024

The Internal Revenue Service (IRS) has opened a limited-time Voluntary Disclosure Program for businesses that need to correct improper Employee Retention Credit (ERC) filings. Under the IRS' ERC Voluntary Disclosure Program (ERC-VDP), eligible businesses can repay just 80 percent of their improper ERC refunds while avoiding liability for interest and penalties.

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IRS Sends “Initial Round” of 20,000 Disallowance Letters to Businesses That Claimed the ERC

Offshore Account Update

Posted in on January 12, 2024

The Internal Revenue Service (IRS) announced on December 6, 2023, that it is sending an “initial round” of more than 20,000 disallowance letters to businesses that claimed the Employee Retention Credit (ERC). According to the IRS’ News Release, the letters are being sent to “entities that did not exist or did not have paid employees during the period of eligibility,” and they reflect the agency’s “increased scrutiny of ERC claims in response to misleading marketing campaigns that have targeted small businesses and other organizations.”Read More

Banque Pictet’s Settlement with the DOJ Presents Serious Risks for Its U.S. Clients with Offshore Accounts

Offshore Account Update

Posted in on December 29, 2023

On December 4, 2023, the U.S. Department of Justice (DOJ) announced that it had entered into a $122.9 million settlement with Swiss private bank Banque Pictet et Cie SA (Banque Pictet). According to the DOJ’s press release, the settlement comes after Banque Pictet admitted to “conspiring with U.S. taxpayers and others to hide more than $5.6 billion in 1,637 secret bank accounts in Switzerland and elsewhere and to conceal the income generated in those accounts from the IRS.”Read More

ERC Fraud May Have Cost Taxpayers More Than $2 Trillion According to Federal Watchdog Report

Offshore Account Update

Posted in on December 15, 2023

A report from the federal Pandemic Response Accountability Committee (PRAC) estimates that Employee Retention Credit (ERC) fraud may have cost taxpayers more than $2 trillion since 2020. According to the PRAC, flaws in the Internal Revenue Service’s (IRS) processing procedures allowed thousands of fraudulent credit filings to go unnoticed initially. Now, however, the IRS is seeking to hold fraudulent filers accountable—and it is diverting resources from processing new claims to examining previously-filed claims for signs of fraud.Read More

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