​IRS Stops Employee Retention Credit Claims!

CPA​IRS Stops ERC claims!
The Employee Retention Credit (ERC) has gained wide publicity and numerous shops have popped up all over the United States and unfortunately many have been “false advertising” about businesses eligibility and how much money they will receive. We receive at least five calls per week offering to “gets us the money that is owed to us,” and messages that “you could receive up to $26,000 per employee.” These types of claims have caused an unprecedented IRS response. A recent moratorium on the processing of new claims has been enacted, at least through the end of this year.
If you were legitimately eligible for the ERC (employee retention credit) your CPA could have run some computations to help you determine your eligibility.  There were a few hurdles to jump over, and there wasn’t just “free money” out there because you had employees. The credit was refundable and based upon a business’s ability to pay workers through the COVID-19 pandemic even if their operations were fully or partially shut down or for those that saw a significant decline in gross receipts during the eligibility period. The credit was claimed on an amended form 941 (quarterly payroll tax return) generally for the periods of March 31, 2020, to September 30, 2021.
Due to a slew of recent claims within the last 90 days, the IRS Commissioner reacted with the moratorium, because he said, these claims should be dissipating and not increasing. There have been criminal investigations and convictions related to false claims. To learn more, see this article in the Journal of Accountancy:  https://www.journalofaccountancy.com/news/2023/sep/tsunami-of-erc-claims-required-irs-action-halt-fraud-experts-say.html

​submitted my M Hughes CPA & Company, LLC