Choosing To Disclose, Cutting Taxes, And Exempting Rounds
ERC voluntary disclosure program sees continued success. IRS national fraud counsel Carolyn Schenck reported that taxpayers disclosed about $1 billion in incorrect employee retention credit (ERC) claims through the voluntary program, which closed March 22. The ERC aimed to encourage companies to continue to pay workers while their businesses were affected by COVID-19. The IRS opened the voluntary disclosure program after aggressive marketing campaigns by firms encouraging businesses to claim the tax break. Schenck told Tax Notes (paywall) that her office is leaving all of its enforcement tools on the table for addressing improper and fraudulent ERC claims.
More tax cuts in Florida. Republican Gov. Ron DeSantis signed a legislative package yesterday that includes summertime sales tax holidays for hurricane preparedness supplies and school supplies. Officials estimate the package will reduce state and local tax revenue by $439.6 million during the 2024-2025 fiscal year.
More spending in Georgia, with tax cuts on the horizon? Amid declining state revenues, Gov. Brian Kemp (R) signed a $36.1 billion budget for the fiscal year starting July 1 that will increase spending on education, health care, and mental health. Kemp noted his plans for the other side of the ledger, too. “We also want to be prepared in the future with our commitment to continue to cut taxes, which we have a plan to take the rate down below 5 percent.”
And in South Carolina, maybe cheaper rounds of golf. A South Carolina House bill has been amended to include an exemption of annual or monthly golf club dues, among other things, from the state’s 5 percent admissions tax. The state Senate is still reviewing the legislation. South Carolina collects the admissions tax from all places of amusement where an admission fee has been charged.
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