Shortly after the IRS imposed a moratorium on new claims for the tax credit due to a surge in fraudulent claims, Republican members of Congress are seeking explanations regarding the backlog in processing claims for the Employee Retention Credit (ERC). In a letter sent last Tuesday to the IRS Commissioner Daniel Werfel, Chairman Jason Smith, and chairman David Schweikert ask how the IRS plans to address fraud during the current moratorium. They are soliciting the agency to give legislative proposals to combat fraud in the program, also information on the processing speed for existing claims, and data that led to the moratorium. They also want to know the total amount of refunds processed and when the IRS expects to clear the ERC claims backlog, pointing out discrepancies in the IRS’s statements regarding this issue. The lawmakers expressed concerns that the moratorium would lead to longer wait times, worsen the existing backlog, and hinder legitimate claimants from receiving payments.

If you would like to read more, please visit: