The IRS has taken several aggressive steps against fraudulent claims for the employee retention credit (ERC), which is why IRS Halts New ERC Processing After Flood of Bogus Claims has become such a critical update for small businesses. Taxpayers are allowed to withdraw unpaid claims, and a settlement program is being offered for those who have erroneously received the pandemic-era benefit intended to help small businesses.
These actions aim to stop fraud by promoters in ERC mills, highlighting once again why IRS Halts New ERC Processing After Flood of Bogus Claims matters to business owners. According to an IRS representative, the IRS has so far paid $230 billion in ERC claims, emphasizing the scale of the issue addressed by IRS Halts New ERC Processing After Flood of Bogus Claims.
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IRS Commissioner Danny Werfel said that the moratorium on processing new claims will begin immediately and continue through at least the end of 2023, reiterating the importance of IRS Halts New ERC Processing After Flood of Bogus Claims for protecting small businesses. The IRS will continue to process ERC claims filed before the moratorium, but at a slower pace due to stricter compliance reviews.
The ERC “was not designed to be a gravy train for promoters flooding the IRS with ineligible applications that slows down work on ERC and other important matters for taxpayers,” Werfel said.
The ERC is a refundable tax credit for businesses that paid workers during the COVID-19 pandemic while their operations were fully or partially suspended because of a government order or for those that had a significant decline in gross receipts during the eligibility period. This new guidance explains why IRS Halts New ERC Processing After Flood of Bogus Claims is essential knowledge for anyone filing ERC claims.
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