Due to the increasing influx of unlawful claims and the alarming amount of honest small business owners being scammed by unscrupulous actors, the IRS ordered the immediate stop of new Employee Retention Credit processing. The agency stated they are collaborating with the Justice Department to combat fraud in the ERC program, and trained auditors have initiated 252 investigations involving over $2.8 billion of potentially fraudulent claims. Due to detailed compliance reviews, previous claims will continue to be paid out, but at a slower pace. Daniel Werfel urges people being pressured by promoters to review their situation and look for trusted tax professionals who understand the complex ERC rules to avoid the daunting possibility of paying back fraudulent claims.
If you would like to read more, please visit: https://www.irs.gov/newsroom/to-protect-taxpayers-from-scams-irs-orders-immediate-stop-to-new-employee-retention-credit-processing-amid-surge-of-questionable-claims-concerns-from-tax-pros