Dear Readers,
A major tax and spending bill has advanced through the U.S. House of Representatives and is now under consideration by the Senate. Among other provisions, the bill proposes tax breaks on tips and car loans, but more importantly for our business clients, the bill includes significant changes to the Employee Retention Credit (ERC) that could impact your pending claim.
With Independence Day approaching, we’re also reflecting on how taxation helped shape America’s history—and its drive toward independence.
What Could This Tax Bill Mean for the ERC?
- ERC Claims Filed After January 31, 2024, Could Be Disqualified: A key provision of the bill would retroactively deny ERC claims submitted after January 31, 2024—even those still within the IRS’s original deadlines. This could affect more than one million legitimate claims currently in process.
- Audit Timeframes and Penalties Could Expand: The IRS would have up to six years to audit ERC filings, and new penalties would apply to individuals or businesses that prepared or advised on ERC claims, especially if paid on a contingency basis. These changes would apply retroactively to March 12, 2020.
- Billions in Small Business and Nonprofit Refunds May Be At Risk: Even properly filed claims could be invalidated under the proposed changes, creating financial uncertainty for many employers who relied on the ERC during the pandemic.
Legal experts are already questioning whether these retroactive measures comply with constitutional protections, particularly around due process. If enacted, this bill could end refund opportunities for many businesses and trigger expanded IRS scrutiny.
At Moskowitz LLP, our experienced tax attorneys and CPAs are monitoring these developments closely and are committed to doing everything legally possible to protect your rights and your refund.
Why Do Americans Prefer Coffee Over Tea?
Some say it started on December 16, 1773, when American colonists protested British taxation by boarding three ships in Boston Harbor and dumping 342 chests of tea into the water. This act of defiance, now known as the Boston Tea Party, sparked widespread resistance and a boycott of tea throughout the colonies.
Over time, coffee emerged as a symbol of independence and national identity, and Americans began choosing it over tea as a quiet but daily declaration of their values—liberty, representation, and fairness. That legacy continues today, especially as we approach the Fourth of July.
Moskowitz LLP has moved to a new location!
Effective June 1, 2025, our new office address is:
Moskowitz LLP, 333 Bush St. FL 21, San Francisco, CA 94104
Our new office will allow us to better serve you with improved space and resources while continuing to provide the same high-quality legal services.
Please update your records with our new address. All other contact information, including phone numbers and email addresses, remain unchanged.
We wish you and your family a safe, meaningful, and happy Independence Day.
To discuss how the proposed legislation may affect your ERC claim—or for help with any other tax matter—visit us at moskowitzllp.com or contact us directly at 415.394.7200 or info@moskowitzllp.com.
