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Employee Retention Tax Credit

All articles tagged with #employee retention tax credit

business2 years ago

"IRS Launches Voluntary Disclosure Program to Protect Businesses from Pandemic Tax Credit Scams"

The IRS has introduced a "voluntary disclosure program" for businesses that mistakenly claimed a pandemic-era tax credit and wish to repay the funds. The employee retention tax credit (ERC), intended to aid small businesses affected by Covid-19, led to some companies wrongly claiming the credit due to third-party promoters. The new program allows applicants to repay the credits received at a 20% discount to cover promoter fees, but the deadline to apply is March 22, 2024. The IRS is also sending rejection letters to taxpayers who filed dubious ERC claims and those who wrongly received the credit are not eligible for the voluntary disclosure program.

via CNBC|
#business#employee-retention-tax-credit#irs
business2 years ago

IRS Introduces Special Process for Small Businesses to Withdraw Pandemic Tax Credit Claims

The IRS has introduced a "special withdrawal process" for small businesses that may have mistakenly claimed the employee retention tax credit (ERC) during the pandemic. The ERC, designed to support small businesses, has attracted fraudulent or questionable claims, leading the IRS to temporarily halt processing new claims. The new withdrawal option allows eligible small businesses to withdraw their ERC claim if they haven't received a refund yet, helping them avoid future repayment, interest, and penalties. The IRS urges businesses to consult trusted tax professionals rather than marketing companies for guidance on this complex tax credit.

via CNBC|
#business#employee-retention-tax-credit#fraudulent-claims
business2 years ago

IRS Cracks Down on Fraudulent Employee Retention Tax Credit Claims

The Employee Retention Tax Credit, a pandemic-era program that offers businesses thousands of dollars per employee if they can show that Covid-19 was hurting their bottom lines, has become a magnet for fraud, creating a cottage industry of firms that market themselves as tax credit specialists who can help clients reap huge refunds from the IRS. The IRS has already paid out $152 billion in refunds associated with the tax credit since it first became available and has a backlog of about 800,000 applications that it is trying to process. The IRS is concerned that firms that are processing applications for the credit at high volume are overlooking important restrictions in order to rake in bigger refunds and commissions.

via The New York Times|
#business#employee-retention-tax-credit#fraud