IRS Finds Significant Issues on Tax Returns by Companies That Recieve Treasury Cash Grants
The Treasury Inspector General said in a report released in late January that an IRS “compliance initiative project” under which the agency is reviewing tax returns filed by companies that received grants found 50% of 16 large companies and 61% of 83 small companies had “significant issues” on their tax returns, possibly including in some cases claiming tax credits on projects on which they received grants. The grant program is called payments “in lieu of” tax credits. The IRS is expected to continue the compliance reviews through June 2015.
by Keith Martin