Probity Tax Recovery is a tax consulting firm specializing in tax credits and incentives for small to mid-sized businesses. We work with business owners and their CPAs to identify tax credits and incentives while saving you time and money. Schedule a free consultation with a member of our team here.

FINCEN FILING: Beginning this year, most small companies have a NEW small business filing requirement with FinCEN call the Business Ownership Information Report, that can be time confusing. Failure to file or erroneous filings can result in jail time and up to $10,000 in fines. Our team can handle the filing for you with minimal effort on your end. To get started, schedule a time to speak with us here.

Tax Policy/News:

October 17: Tax scammers target victims after hurricanes

In the wake of recent hurricanes, tax scammers are exploiting disaster victims by posing as the IRS, offering fraudulent tax relief or demanding payments. 

Scammers use emails, phone calls, and text messages to steal personal information, often claiming to help with disaster relief efforts or tax refunds. 

The IRS has issued warnings, advising people to verify communications and avoid sharing sensitive information. 

Professionals are encouraged to inform clients about these risks and report any suspicious activity to the IRS.

October 17: Bigger IRS role urged to protect taxpayers from Offer in Compromise (OIC) mills

Tax professionals are calling for a stronger role from the IRS to safeguard taxpayers from predatory "Offer in Compromise" (OIC) mills that mislead individuals into thinking they can settle their tax debts for "pennies on the dollar." 

These companies often charge excessive fees and make false promises, exploiting taxpayers seeking debt relief. 

While the IRS’s OIC program is legitimate and offers debt relief for those who qualify, many taxpayers are misled into paying for services they could easily access through the IRS directly. 

Critics argue that the IRS needs to increase enforcement and public awareness efforts to combat these misleading practices and protect vulnerable taxpayers.

October 15: IRS warns taxpayers of charity scams following recent hurricanes

In the aftermath of Hurricanes Milton and Helene, the IRS has issued a warning about scammers who exploit disasters by creating fake charities to steal personal and financial data from well-meaning donors. 

These schemes often involve fraudsters mimicking well-known organizations or using fake websites to solicit donations. 

To combat this, the IRS advises donors to verify any charity using its Tax Exempt Organization Search (TEOS) tool, which helps confirm the legitimacy of tax-exempt charities eligible for deductible donations. 

Additional advice includes avoiding donations via gift cards or wire transfers, safeguarding personal information, and resisting pressure from solicitors pushing for immediate contributions. Taxpayers are also encouraged to report suspicious organizations through the FBI’s resources on charity fraud. 

Economic News/Policy:

October 18: Senate Republicans raise questions after disaster loan funds exhausted

Senate Republicans are raising concerns after the Small Business Administration’s (SBA) disaster loan funds were fully depleted following recent hurricanes. 

The loans, designed to support businesses and homeowners after natural disasters, have run out faster than anticipated, leaving many without needed assistance. 

Lawmakers are pressing SBA Administrator Isabel Guzman for details on how the agency plans to address this shortfall, emphasizing the critical importance of replenishing the funds as climate-driven disasters increase. 

With growing demand for relief, GOP senators are urging immediate action to avoid further economic strain on affected communities.

October 17: Yellen warns Trump's tariff plans are "deeply misguided"

Treasury Secretary Janet Yellen has sharply criticized former President Donald Trump’s proposal to impose sweeping tariffs on foreign imports, labeling them as "deeply misguided" during a speech at the Council on Foreign Relations. 

She warned that these tariffs would drive up consumer prices, increase inflation, and harm U.S. businesses by reducing their global competitiveness. 

Trump’s plan, a key feature of his economic platform for the 2024 election, includes a 20% tariff on all foreign imports and potentially up to 60% on goods from China. 

Yellen argued that isolating the U.S. from global trade partners would not only hurt the economy but also undermine critical efforts like addressing geopolitical issues, including Russia’s invasion of Ukraine. 

While Yellen typically avoids engaging directly in political debates, her remarks were a pointed rebuttal to Trump's protectionist trade approach. 

Technology:

October 17: Treasury Department uses AI to recover $4 billion in fraud

The U.S. Treasury Department has successfully utilized artificial intelligence (AI) to detect and recover over $4 billion in fraud during fiscal year 2024, marking a significant increase from the $653 million recovered the previous year. 

The AI system leverages machine learning to analyze large datasets, identifying fraudulent transactions and patterns that may have been otherwise undetected. 

This technology has been critical in addressing a surge in fraud cases, particularly in check fraud and improper payments, helping the department protect taxpayer dollars. 

Treasury officials noted that these advanced tools have transformed the department’s fraud prevention capabilities and will continue to play a key role in safeguarding financial systems as online fraud risks increase. 

This initiative is part of the broader governmental shift towards AI to bolster regulatory and enforcement measures across various sectors.

October 16: Tech giants turn to nuclear power for AI energy demands

Google and Amazon are ramping up investments in small modular nuclear reactors (SMRs) to meet the soaring energy demands of their AI and data center operations. 

Both companies aim to supplement their existing renewable energy sources with nuclear power, citing the need for carbon-free, reliable electricity. 

Google has partnered with Kairos Power to bring SMRs online by 2030, while Amazon is collaborating with X-energy and Dominion Energy on projects in Virginia and Washington. 

These efforts are part of broader sustainability goals as global electricity consumption by data centers continues to surge. The push for nuclear energy highlights the urgency of finding scalable clean energy solutions, especially as AI and data processing rapidly expand. 

If successful, these initiatives could add over 5,000 megawatts of power by the 2030s, helping tech companies meet their emissions targets while supporting grid resilience. However, the deployment of these reactors depends on regulatory approval and further technological advancements.

October 16: LatticeFlow launches first EU AI Act compliance framework for LLMs

LatticeFlow has introduced the first comprehensive framework designed to evaluate the compliance of large language models (LLMs) with the EU AI Act, a regulation that became effective in August 2024. 

The framework, known as Compl-AI, benchmarks AI models like OpenAI's GPT-4 and Meta's LLaMA across 27 metrics, including fairness, cybersecurity, and the avoidance of harmful content. 

Early results reveal that while most models perform well in avoiding harmful outputs, they struggle with fairness, achieving scores below 50% in key areas such as data privacy and cybersecurity. 

The framework is open-source, allowing developers and researchers to refine and expand it as the regulatory landscape evolves. LatticeFlow's initiative provides a crucial first step for AI developers to align their systems with the EU's stringent AI compliance requirements. 

Energy and Environmental Policy/News:

October 20: Marissa Hummon believes AI will make the power grid greener

Marissa Hummon, CEO of Vibrant Clean Energy, discusses how AI could revolutionize the power grid by optimizing energy distribution and integrating renewable sources like wind and solar. 

She highlights AI’s ability to analyze real-time data, reducing inefficiencies and improving demand forecasting. 

This could create a more flexible, decentralized grid while cutting costs for consumers. 

Hummon stresses that AI, while pivotal, must work alongside human oversight to address infrastructure challenges and security risks, ultimately helping to meet climate targets and modernize energy systems for a greener future.

October 18: Biden administration funds grid resilience

The Biden administration has announced $2 billion in new funding to enhance the U.S. power grid’s resilience against extreme weather events, including hurricanes, wildfires, and winter storms. 

Part of the larger $10.5 billion Grid Resilience and Innovation Partnerships (GRIP) program, the initiative aims to modernize aging infrastructure and ensure the grid can handle increased renewable energy integration. 

Funds will support 38 projects across various states, with a focus on areas most affected by climate disasters, such as Texas, Arizona, and North Carolina. These projects will upgrade transmission lines, strengthen critical infrastructure, and add grid flexibility to reduce outages. 

For example, in Texas, Entergy will use the funding to bolster systems in disadvantaged communities, expected to save $74 million in restoration costs. 

The administration’s efforts are also aimed at accelerating renewable energy adoption and aligning with Biden's broader climate and clean energy goals. With increased federal investments, these initiatives will help secure energy access for millions of Americans while fostering job creation through workforce development programs.

For Fun:

October 17: AlphaFold reveals how sperm and egg hook up in intimate detail

Using the AI tool AlphaFold, scientists have detailed the intricate molecular process that enables fertilization. 

AlphaFold, renowned for its ability to predict protein structures, helped researchers identify three crucial proteins in sperm that work in tandem to attach to the egg, a critical step in reproduction. 

Previously, it was thought that fertilization was governed by just one protein from the sperm and one from the egg, akin to a simple "lock-and-key" mechanism. This new discovery shows that the process is much more complex, involving a trio of proteins on the sperm that ensures successful fertilization in species ranging from zebrafish to mammals. 

The study, published in Cell, demonstrates AlphaFold’s capacity to unravel such biological mysteries, enhancing our understanding of reproductive biology. 

These insights may pave the way for advances in fertility treatments, contraception methods, and research into reproductive health. The findings also raise questions about how this multi-protein interaction evolved across species, offering a richer perspective on the biological mechanisms underlying sexual reproduction. 

Schedule a free consultation with a member of our team