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1 min read

IRS Releases 2025 Inflation Adjustments for HSAs, HDHPs, HRAs

By NAIFA on 5/15/24 1:39 PM

On May 9, the Internal Revenue Service (IRS) released Revenue Procedure 2024-25, listing the 2025 inflation-adjusted amounts applicable to health savings accounts (HSAs), high deductible health plans (HDHPs), and excepted benefit health reimbursement arrangements (HRAs). The inflation adjustments take effect, generally, in 2025 or for plan years beginning in 2025.

Topics: Health Savings Accounts IRS
1 min read

IRS Proposes New, Narrower CRAT Rule

By NAIFA on 4/15/24 2:33 PM

On March 19, the Internal Revenue Service (IRS) proposed a new rule governing charitable remainder annuity trusts (CRATs). The new rule, if finalized, would curtail the use of CRATs as a tax avoidance mechanism.

Topics: Taxes IRS
2 min read

IRS Announces “Warning Signs” of Incorrect ERTC Claims

By NAIFA on 3/15/24 3:59 PM

Last month, the Internal Revenue Service (IRS) announced seven warning signs that Employee Retention Tax Credit (ERTC) claims may be in error and urged businesses with ERTC claims to revisit their eligibility status. They said businesses should resolve any issues prior to March 22, the deadline for the agency’s voluntary disclosure program.

Topics: Legislation & Regulations IRS
2 min read

IRS Issues Guidance on Pension-Linked Emergency Savings Accounts

By NAIFA on 2/15/24 11:19 AM

On January 12, the Internal Revenue Service (IRS) released initial guidance on implementation of SECURE 2.0 pension-linked emergency savings accounts (PLESAs). The guidance is in Notice 2024-22.

Topics: Legislation & Regulations IRS SECURE 2.0
3 min read

ERTC Faces More Scrutiny

By NAIFA on 1/16/24 3:24 PM

Treasury and the Internal Revenue Service (IRS) have announced increased enforcement in connection with employee retention tax credit (ERTC) claims. The agencies are warning about more scrutiny as a result of what they call massive fraud in the pandemic-era tax rule. Now, some in Congress are pushing back, concerned that legitimate claims are not being paid as a result of this increased scrutiny. In addition, Congressional tax writers are looking at the ERTC as a possible source of offsetting revenue for the emerging tax bill (see story below).

Topics: Legislation & Regulations Taxes Congress IRS
1 min read

Government Ratchets Up Pressure on Fraudulent ERTC Claims

By NAIFA on 12/15/23 1:40 PM

Treasury and the Internal Revenue Service (IRS) continue to ratchet up pressure on employee retention tax credit (ERTC) claims that they say show evidence of fraud. That, in turn, puts pressure on ERTC claims that, while not necessarily fraudulent, may contain errors and thus attract the attention of government officials cracking down on ERTC claims.


Topics: IRS
2 min read

Treasury Releases Proposed Regulations on Long-Term Part-Time Employees

By NAIFA on 12/15/23 1:29 PM

On November 24, the Treasury Department and the IRS issued proposed regulations implementing the rules of the provision in the SECURE retirement laws that qualifies long-term (those who have worked two years or more for an employer), part-time (those who work at least 500 hours/year) employees to participate in an employer-sponsored retirement savings plan.


Topics: Retirement 401(k) Congress IRS
2 min read

IRS Releases Retirement and Benefit Plan Inflation Adjustments

By NAIFA on 11/15/23 12:20 PM

On November 1, the Internal Revenue Service (IRS) released inflation-adjusted retirement and benefits plan contribution limits for 2024. Next year, 401(k) savers will be allowed to contribute $500 more than they can in 2023.

Topics: Retirement 401(k) IRS
1 min read

IRS Announces Criteria for Evaluating Eligibility for ERTC

By NAIFA on 11/15/23 11:26 AM

On October 18, the Internal Revenue Service (IRS) announced its criteria for evaluating a business’ eligibility for the pandemic-era employee retention tax credit (ERTC). In their memo on how the agency will be examining still-pending ERTC claims, the IRS said that ERTC eligibility required an order from the Occupational Safety and Health Administration (OSHA) to prevent spreading COVID-19 to qualify for the credit. Reliance on guidance only would be insufficient, the IRS said.

Topics: IRS
2 min read

IRS Announces Moratorium on New ERTC Claims, Enhanced Program Scrutiny

By NAIFA on 10/16/23 12:37 PM

On September 14, the Internal Revenue Service (IRS) announced it had stopped processing all new coronavirus-era Employee Retention Tax Credit (ERTC) claims, and that claims submitted prior to September 14 will be subject to enhanced examination and considerable delay before payment of those claims it determines to be valid. The IRS actions are in light of reports of rampant fraud among those seeking to claim the ERTC.

Topics: Legislation & Regulations IRS
2 min read

Roth Rule Catch-Up Contribution Notice Resolves Some Effective Date Issues

By NAIFA on 9/15/23 2:08 PM

In Notice 2023-62, the IRS and Treasury clarified that many catch-up contributions for 2024-2025 will not have to be Roth contributions for taxpayers earning $145,00/year or more.

Topics: Retirement Legislation & Regulations Federal Advocacy IRS SECURE 2.0
1 min read

Treasury/IRS Propose Cryptocurrency Tax Reporting Rules

By NAIFA on 9/15/23 1:59 PM

On August 29, Treasury/the Internal Revenue Service (IRS) proposed rules expanding tax reporting of cryptocurrency transactions. Generally, the proposed rules would require cryptocurrency exchanges to disclose detailed information on their clients’ transactions starting in 2026.

Topics: Taxes IRS
2 min read

Effort to Delay Roth Catch-Up Contribution Rule Continues

By NAIFA on 8/14/23 3:28 PM

The Treasury Department has still not decided whether it will/can delay the effective date of the SECURE 2.0 rule that requires plan participants earning more than $145,000 to make their catch-up contributions on a Roth basis (i.e., after-tax contribution, tax-free withdrawals).

Topics: Retirement Planning Legislation & Regulations IRS Individual Retirement Accounts
1 min read

IRS Issues Final Rules on Repayment of Excess Employment Tax Credits

By NAIFA on 8/14/23 3:00 PM

On July 24, the Internal Revenue Service (IRS) issued a final rule concerning required repayment of overpaid employment tax credits. Generally, the final rule will treat amounts paid by the government that were in excess of the correct amount as amounts that must be repaid as late payments of taxes due, subject to the usual interest and penalties rules.

Topics: Small Business Taxes IRS
1 min read

House Ways & Means Subcommittee Explores ERTC Delays, Fraud

By NAIFA on 8/14/23 2:56 PM

On July 27, the House Ways & Means Committee’s Subcommittee on Oversight held a hearing on delays in processing employee retention tax credit (ERTC) claims, and on reports of widespread fraudulent claims for the pandemic-era tax credit.

Topics: Taxes Congress IRS
1 min read

IRS Announces Inflation-Adjusted Limits for HSAs

By NAIFA on 6/15/23 5:00 AM

On May 16, the Internal Revenue Service (IRS) announced the health savings accounts (HSA) contribution limits, as adjusted for inflation, for 2024. Also included in the announcement were inflation adjustments to minimum permissible deductibles under a high deductible health plan (HDHP), and maximum out-of-pocket costs allowable under an HDHP. The 2024 limits are:

Topics: Legislation & Regulations Health Savings Accounts IRS
1 min read

DOL Issues Advice Memo on Cafeteria Plan Substantiation Rules

By NAIFA on 5/15/23 5:00 AM

On May 3, the Internal Revenue Service (IRS) released an advice memo (Memorandum Number 202317020) making clear that expenses to be paid from cafeteria plan funds must be documented. If they are not, the memo states, the funds used to pay unsubstantiated expenses will not be shielded from income or employment taxes.

Topics: Legislation & Regulations IRS