The Internal Revenue Service is examining improper claims businesses have made for the Employee Retention Credit (ERC) a refundable tax credit for certain eligible businesses and tax-exempt organizations were affected during the COVID-19 pandemic. The ERC expired in 2021.
Claims filed after mid-September 2023 have been blocked from being processed by a moratorium.
“In coming weeks, the IRS plans to deny tens of thousands of claims that had shown the greatest risk of being improper, the agency said,” The Wall Street Journal reported, adding, “Pop-up firms and marketers created a mini-industry that encouraged a flood of claims long after the pandemic’s emergency-phase ended—many of which the IRS has said are questionable.”
The Journal noted that the government has doled out roughly $230 billion for the program.
“The IRS remains deeply concerned about how many taxpayers have…
