Protecting Small Businesses from Pandemic Fraud Schemes – IRS Addresses Employee Retention Tax Credit Abuse
IRS Cracks Down on Tax Credit Abuse Practices Exploiting Small Business Support – Revamping ERC Eligibility Criteria
According to Honolulu Star-Advertiser, the IRS is working hard to fix a big problem with the Employee Retention Credit (ERC). The ERC was supposed to help businesses keep their employees during the pandemic. But some Americans took advantage of the rules to cheat small businesses. They tricked them into applying for the tax credit even if they didn’t qualify.
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$1 Billion Tax Credit Takeback: IRS Cracks Down on Pandemic Relief Abuse! (PHOTO: Boyer & Ritter LLC)
Ensuring Pandemic Relief Reaches Legitimate Small Businesses – IRS Recovers Over $1 Billion Tax Credit in Wrongful Employee Retention Credit Payments
The IRS is making progress in getting back the money that was wrongly given out. They had a program where businesses could admit they got the money by mistake and give some of it back. Over 500 businesses did this giving back $225 million. Another program helped small businesses take back claims they hadn’t processed yet getting back $251 million. The IRS also checked over 12,000 businesses and found $572 million in wrong claims. The head of the IRS, Danny Werfel said they’re serious about fixing this problem. They stopped taking new claims in September but will start again soon. They’re also looking at another $3 billion in claims that might be wrong. The IRS wants to make sure relief programs are fair and help real businesses in need.
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