IRS says ‘vast majority’ of 1 million pandemic-era credit claims show a risk of being improper

IRS to reject billions of dollars in ‘improper’ pandemic-era small business tax credit claims

The IRS will deny billions of dollars' worth of improper employee retention credit claims. Here's what small businesses need to know.

IRS to Reject Billions of Dollars of Pandemic-Era Tax Credit Claims

The Internal Revenue Service (IRS) plans to deny billions of dollars worth of improper claims for COVID-19 pandemic-era tax credits, it announced on June 20. The agency said in a press release that the planned rejections follow a detailed review that confirmed “widespread concerns about a large number of improper claims,” and provided new insight into what it defined as “risky” ERC activity. During the review process, IRS agents analyzed more th…

IRS Freezes Pandemic-Era Tax Credit Claims amid Widespread Fraud - The Michigan Star

IRS Freezes Pandemic-Era Tax Credit Claims amid Widespread Fraud

IRS to Reject Covid Employer Tax-Credit Claims

“The Internal Revenue Service is planning to deny billions of dollars of what it says are improper claims for a popular pandemic-era tax credit, while starting to gradually pay out some claims that have been sitting at the tax agency for more than nine months,” the Wall Street Journal reports. “The IRS, following a long review of the employee retention tax credit, plans to maintain a moratorium on processing claims filed since mid-September 2023…

IRS Looking At Improper Claims For COVID Tax Credit

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, the IRS plans to deny tens of thousands of claims that had shown…

IRS says 'vast majority' of 1 million pandemic-era credit claims show a risk of being improper

By MAE ANDERSON AP Business Writer NEW YORK (AP) — The Internal Revenue Service said Thursday a review of 1 million claims for the Employee Retention Credit representing $86 billion shows the “vast majority” are at risk of being improper. The ERC was designed to help businesses retain employees during pandemic-era shutdowns, but it became a magnet for fraud. Its complex eligibility rules allowed scammers to target small businesses. About 10% to …