Breaking News: IRS Takes Bold Action to Protect Small Businesses and Combat Fraudulent Claims

In a groundbreaking move, the IRS is cracking down on fraudulent Employee Retention Credit (ERC) claims to safeguard small businesses. With $230 billion already paid out in ERC claims, aggressive promoters are on the rise, jeopardizing the program's integrity.

The IRS has announced immediate steps to counteract this threat:

  • Moratorium on New Claims: The IRS has pressed pause on processing new ERC claims, effective immediately and set to continue through 2023's end. This move aims to thwart unscrupulous promoters and safeguard small businesses—the true beneficiaries of the ERC.

  • Withdrawal and Settlement Programs: Small businesses misled into making ERC claims will have options to withdraw them, avoiding repayment issues and contingent fees. Additionally, a settlement initiative is in the works to facilitate erroneous credit repayments.

  • Intensive Reviews: Existing ERC claims still awaiting IRS review will face more rigorous scrutiny. The IRS is committed to ensuring that only eligible businesses receive the ERC.

  • Combating Fraud: The IRS is working closely with the Justice Department to tackle fraud in the ERC program, targeting promoters who have flouted the rules.

Small businesses are urged to rely on trusted tax professionals for ERC guidance and to remain vigilant against aggressive promotion tactics. With these measures in place, the IRS is firmly on the side of honest taxpayers.

Stay informed and protect your business—read more about these critical developments hereTop of Form: Moratorium imposed on new ERC Claim Processing to Curb Abuse

More Helpful Links on

  1. ERC Eligibility Checklist - An IRS-provided checklist to help employers quickly determine if they might qualify for the Employee Retention Credit (ERC) or need to address an improper claim.

  2. Updated ERC FAQs - Frequently asked questions (FAQs) about the ERC, including new questions and answers to assist businesses in understanding and claiming credit.

  3. Be Aware of Warning Signs - Information about the warning signs of aggressive promotion related to the ERC and guidance on how to avoid scams.

  4. Reporting ERC Scams - Instructions on how to report scams involving the Employee Retention Credit (ERC).

 

IRS NewsAidan HeltThe Doty Group P.S.ERC, Employee Retention Credit, The Doty Group, Tacoma CPA, Certified Public Accounting