In a recent move to shield taxpayers from potential scams, the Internal Revenue Service (IRS) has announced an immediate suspension of new Employee Retention Credit claims processing. This decision comes in the wake of a surge in questionable claims and concerns raised by tax professionals.
The IRS has identified aggressive marketing tactics targeting ineligible applicants, which poses a significant risk to both businesses and the broader tax system. To address this, a moratorium on processing new claims will be in place through at least December 31, 2023. This pause will allow the IRS to implement additional safeguards to prevent potential abuse. Furthermore, the IRS is collaborating with the Justice Department to tackle fraud related to the Employee Retention Credit program.
IRS Commissioner Danny Werfel emphasized the agency’s commitment to protecting honest small business owners from scams and predatory marketing strategies. While the IRS will continue to process previously filed claims, businesses should be prepared for longer processing times due to heightened fraud concerns. The IRS is also developing new initiatives to assist businesses that may have been misled by aggressive promoters. This includes a settlement program for those who received improper payments. Taxpayers are encouraged to consult with trusted tax professionals and review IRS guidelines to determine their eligibility for the credit.
Submitted by: Jeremy Fortner