IRS Temporarily Halts New ERC Claims
The IRS has temporarily stopped accepting new claims for the employee retention tax credit (ERC)
because of scams. This pause began on September 14 and will continue until at least December 31, 2023. If you’ve already submitted an ERC claim, the IRS will still process it, but they might ask for more proof to make sure it’s legitimate.
It’s now taking longer to process these claims, around 180 days or even more if they need to investigate further. The IRS is checking thousands of claims for potential problems, and they’re also looking into hundreds of criminal cases related to ERC fraud.
The IRS wants to stop fraud and help honest businesses. They’re offering guidance to businesses so they can understand ERC and avoid falling for scams. They’ll also set up a way for people to repay any money they got from improper claims.
If you think you’re eligible for ERC, it’s a good idea to talk to a trustworthy tax professional, not someone trying to scam you. The IRS is working with the Department of Justice to stop fraud and is investigating over $2.8 billion in potentially fake claims. You can find more information on the IRS website, https://www.irs.gov/coronavirus/employee-retention-credit.
Always consult with a tax professional and your investment advisor for personalized advice.
Honorine M. Campisi