Protect Your Business

IR-2023-135, July 26, 2023

WASHINGTON — With the Internal Revenue Service making substantial progress in the ongoing effort related to the Employee Retention Credit (ERC) claims, Commissioner Danny Werfel said the agency has entered a new phase of increasing scrutiny on dubious submissions while renewing consumer warnings against aggressive marketing.

Speaking Tuesday at a special roundtable session of tax professionals in Atlanta, Werfel noted the IRS has shifted efforts after successfully clearing the backlog of valid Employee Retention Credits (ERC) claims. Now, the agency is intensifying compliance work and putting in place additional procedures to deal with fraud in the program.

Werfel told a group of tax professionals dealing with fall-out from aggressive ERC claims that the IRS has increased audit and criminal investigation work on these claims, both on the promoters as well as those businesses filing dubious claim “The further we get from the pandemic, we believe the percentage of legitimate claims coming in is declining,” Werfel told attendees at the IRS Nationwide Tax Forum in Atlanta. “Instead, we continue to see more and more questionable claims… [click here for full article]

Guidance: The IRS has been advising Taxpayers since late 2021 to make sure any ERC claims filed for their business are in full compliance with IRS guidelines. The Service has also warned Taxpayers to avoid aggressive Claim Preparers with too good to be true results. Remember that the Taxpayer is ultimately responsible for any information filed on a tax return. If you are not sure that your ERC tax filing is in compliance with IRS guidelines, contact TAHR Services for a free consult and know your options before the IRS contacts you.

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