IRS Intensifies Efforts to Combat Improper ERC Claims
The IRS has announced new measures to aid small businesses and curb improper payments in the Employee Retention Credit (ERC) program. Following concerns about a high rate of incorrect claims due to misleading marketing, the IRS has intensified audits and criminal investigations, resulting in 28,000 disallowance letters, potentially preventing $5 billion in improper payments. Concurrently, 50,000 valid claims are being processed for payment. The IRS emphasizes its careful approach to balance legitimate claims against fraudulent ones and is adjusting processes based on feedback. Businesses whose claims are denied have the right to appeal.
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