Hey ,
I am bringing to your attention an important development concerning the Employee Retention Credit (ERC) program, as recently announced by the Internal Revenue Service (IRS).
Due to escalating concerns surrounding a surge in improper Employee Retention Credit claims and the risk this poses to taxpayers, the IRS has taken immediate action to protect honest small business owners from falling victim to scams and questionable claims.
IRS Commissioner Danny Werfel has ordered an immediate moratorium on the processing of new ERC claims, effective last week and extending until December 31, 2023.
The IRS's decision stems from growing evidence that many new claims for the ERC, a pandemic-era relief program, are ineligible.
Aggressive promoters and marketers have been pressuring businesses to apply for these credits, placing them at financial risk. The IRS is working diligently to address this issue to
enhance safeguards and prevent future abuse.
It is crucial to note that while the moratorium is in effect, the IRS will continue to
process existing ERC claims; however, processing times are expected to be longer due to heightened compliance reviews.
I strongly
encourage you to review your situation if you have filed an ERC claim or have been pressured by promoters to apply for one. Ensuring that your claim is valid and compliant with the program's rules is essential.
Should you require assistance or have concerns about your ERC claim, I recommend consulting me, a tax professional who understands the complexities of the ERC rules, rather than relying on promoters or marketers.
The IRS is collaborating with the Justice Department to address fraud in the ERC program and pursue promoters who have disregarded the rules and pressured businesses to apply. So this is serious!
Do not hesitate to contact me if this issue affects you. Contact me through the link below or call my office at (202)-618-1297.
