The IRS Suspends Processing of ERTC Claims
The announcement was made last week
Last week, in the face of a flood of illegitimate claims for the Employee Retention Tax Credit (ERTC), the Internal Revenue Service (IRS) announced it had imposed an immediate moratorium through at least the end of 2023 on processing new claims for the credit.
The reason the IRS cites for the move is the risk of honest small business owners being scammed by unscrupulous promoters who submit questionable claims on their behalf.
The fraud problem
The ERTC is a refundable tax credit intended for businesses that 1) continued paying employees while they were shut down due to the pandemic in 2020 and 2021, or 2) suffered significant declines in gross receipts from March 13, 2020, to Dec. 31, 2021. Eligible employers can receive credits worth up to $26,000 per retained employee. The ERTC can still be claimed on amended returns.
Please select this link to read the complete article from OSAP mission partner Clark Schaefer Hackett.