![]() qualified as a recovery startup business PDF for the third or fourth quarters of 2021.Īs a reminder, only recovery startup businesses are eligible for the ERC in the fourth quarter of 2021.experienced a significant decline in gross receipts during 2020 PDF or a decline in gross receipts during the first three quarters of 2021 PDF, or.sustained a full or partial suspension of operations due to orders from an appropriate governmental authority PDF limiting commerce, travel or group meetings due to COVID-19 during 2020 or the first three quarters of 2021,.To be eligible for the ERC, employers must have: Eligible taxpayers can claim the ERC on an original or amended employment tax return for a period within those dates. The ERC is a refundable tax credit designed for businesses who continued paying employees while shut down due to the COVID-19 pandemic or who had significant declines in gross receipts from March 13, 2020, to Dec. Improperly claiming the ERC could result in taxpayers being required to repay the credit along with penalties and interest. Taxpayers are always responsible for the information reported on their tax returns. If the business filed an income tax return deducting qualified wages before it filed an employment tax return claiming the credit, the business should file an amended income tax return to correct any overstated wage deduction.īusinesses should be cautious of advertised schemes and direct solicitations promising tax savings that are too good to be true. People and businesses can avoid this scheme, and by not filing improper claims in the first place. The IRS Office of Professional Responsibility is working on additional guidance for the tax professional community that will be available in the near future. Tax professionals note they continue to be pressured by people wanting to claim credits improperly. The IRS has been warning about this scheme since last fall, but there continue to be attempts to claim the ERC during the 2023 tax filing season. People need to think twice before claiming this." The IRS is actively auditing and conducting criminal investigations related to these false claims. If the tax professional they're using raises questions about the accuracy of the Employee Retention Credit claim, people should listen to their advice. "Anyone who is considering claiming this credit needs to carefully review the guidelines. ![]() "While this is a legitimate credit that has provided a financial lifeline to millions of businesses, there continue to be promoters who aggressively mislead people and businesses into thinking they can claim these credits," said Acting IRS Commissioner Doug O'Donnell. And the promoters may not inform taxpayers that wage deductions claimed on the business' federal income tax return must be reduced by the amount of the credit. These promoters charge large upfront fees or a fee that is contingent on the amount of the refund. The IRS and tax professionals continue to see third parties aggressively promoting these ERC schemes on radio and online. Microsoft has led the charge on expanding use cases of ChatGPT, integrating it with Bing and Office 365, after signing a $10 billion deal with OpenAI.WASHINGTON - The Internal Revenue Service today issued a renewed warning urging people to carefully review the Employee Retention Credit (ERC) guidelines before trying to claim the credit as promoters continue pushing ineligible people to file. The power, promise and potential pitfalls of artificial intelligence burst on the scene in recent months amid an explosion in the use of AI-powered image creating tools like Midjourney and the rapid adoption of the OpenAI’s large language model ChatGPT. Yudkowsky says there is too much ignorance on just how self-aware and powerful new AI systems really are, which alone suggests developers should stop immediately and determine how to implement measures to safeguard the technology and protect life on Earth.Ī group of more than 1,000 AI experts, researchers, backers as well as tech entrepreneurs including Elon Musk signed the open letter calling for a pause on AI development. ![]() “If somebody builds a too-powerful AI, under present conditions, I expect that every single member of the human species and all biological life on Earth dies shortly thereafter.” Rather, he says it’s the obvious outcome. Yudkowsky says he’s not talking about a small or even a statistically significant chance that AI would wipe out humanity. “ Many researchers steeped in these issues, including myself, expect that the most likely result of building a superhumanly smart AI, under anything remotely like the current circumstances, is that literally everyone on Earth will die.” He says he did not sign the letter because he believes it does not go far enough. Yudkowsky points to an open letter from the Future of Life Institute that calls for an immediate pause on AI development. ![]()
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