To Combat Fraud, IRS Steps Up ERC Claim Enforcement
To Combat Fraud, IRS Steps Up ERC Claim Enforcement
IRS tackles COVID tax credit fraud to protect businesses and taxpayers.
The IRS and Treasury are addressing rampant fraud in employee retention credit (ERC) claims during the pandemic. IRS Commissioner Danny Werfel mentioned possible congressional action to move up the claim filing deadline and stricter oversight of tax preparers to combat abuse of the ERC program. The IRS has increased audit and criminal investigation work on claims with potential fraud, targeting both promoters and businesses filing dubious claims. As the pandemic recedes, the IRS is receiving more questionable claims and fewer legitimate ones. Over 2.5 million ERC claims have been filed, with most of the backlog cleared by mid-July. The ERC was a refundable tax credit for businesses that paid workers during the pandemic's peak, and promoters with aggressive marketing claims are diverting clients from legitimate tax professionals. The IRS has warned about fraudulent ERC claims and included them in the "Dirty Dozen" list of tax scams. For more information click the link!
