The Internal Revenue Service is examining improper claims businesses have made for the Employee Retention Credit (ERC) a refundable tax credit for certain eligible businesses and tax-exempt organizations were affected during the COVID-19 pandemic. The ERC expired in 2021. Claims filed after mid-September 2023 have been blocked from being processed by a moratorium. “In coming weeks, …
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TheInternalRevenueServiceisexaminingimproperclaimsbusinesseshavemadefortheEmployeeRetentionCredit(ERC)arefundabletaxcreditforcertaineligiblebusinesses andtax-exemptorganizationswereaffectedduringtheCOVID-19pandemic.TheERCexpiredin2021.
Claimsfiledaftermid-September2023havebeenblockedfrombeingprocessedbyamoratorium.
“Incomingweeks,theIRSplanstodenytensofthousandsofclaimsthathadshownthegreatestriskofbeingimproper,theagencysaid,”TheWallStreetJournalreported,adding,“Pop-upfirmsandmarketerscreatedamini-industrythatencouragedafloodofclaimslongafterthepandemic’semergency-phaseended—manyofwhichthe IRShassaidarequestionable.”
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