IRS Updates on Employee Retention Credit Claims: What Businesses Need to Know
(Lastest Update: October 2024)
The Internal Revenue Service (IRS) accelerates work on Employee Retention Credit (ERC) claims, with approximately 400,000 claims currently under review, representing $10 billion in eligible claims. This program, designed to support businesses during the pandemic, has seen increased scrutiny due to improper and ineligible claims driven by aggressive marketing practices.
Key Updates
- The IRS is processing a mix of eligible and ineligible claims.
- Approved claims will result in refunds, with checks being mailed in the coming weeks.
- Third-party payers managing payroll for multiple employers can now “withdraw” claims for ineligible clients while maintaining those for qualifying ones.
- This measure aims to streamline corrections and accelerate claim processing.
Why This Matters
While the ERC offered much-needed relief, improper claims have created challenges for the IRS and businesses alike. Predatory promoters marketed the credit under misleading names, resulting in high volumes of questionable claims. Businesses are urged to recheck eligibility using the IRS ERC Eligibility Checklist and consult trusted tax professionals to resolve issues promptly.
The IRS is committed to safeguarding legitimate ERC claims while intensifying audits and investigations to address fraudulent activities. Businesses should act now to ensure compliance and avoid future complications.
Navigating ERC claims can be complex. If your claim approval is awaited, keep an eye out for notice from the IRS. Contact our team today for more information and expert guidance in managing your ERC process.
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