The IRS will resume processing Employee Retention Credit claims submitted between September 14, 2023, and January 30, 2024, after a pause to address fraud concerns, with the agency having denied 28,000 high-risk claims and initiated criminal investigations.
IRS Resumes Processing Employee Retention Credit Claims After Fraud Review Pause
According to The Washington Post, the IRS is resuming the processing of Employee Retention Credit (ERC) claims after a pause due to fraud concerns. This credit, meant to support businesses hit hard by the pandemic, was marred by a flood of suspicious claims. During the pause, the IRS rejected 28,000 risky claims valued at $5 billion and launched 460 criminal investigations.
The IRS will now process claims submitted between September 14, 2023, and January 30, 2024. This step aims to clear the backlog of applications while still keeping an eye out for fraudulent claims. IRS Commissioner Danny Werfel highlighted the importance of sorting valid claims from fraudulent ones to maintain the program’s integrity.
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$28,000 Rejected Claims: $5 Billion in Suspicious Activity – IRS Resumes Processing Employee Retention Credit Claims (PHOTO: CNBC)
IRS Advances Employee Retention Credit Payments for Businesses While Tackling Fraud Concerns
Businesses waiting for their Employee Retention Credit payments will see progress as the IRS works through these claims. The agency’s decision to resume processing shows its commitment to helping businesses that genuinely need support while continuing to address fraud.
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