SALT LAKE CITY, UTAH – When it comes to the Employee Retention Credit (the “ERC”), it seems like every time I start a multi-part analysis of the ERC something changes. Yesterday, the IRS published a notice informing taxpayers that the IRS has imposed a moratorium on processing new claims for the ERC through year’s end so that the IRS can add more safeguards to prevent future abuse and to protect businesses from predatory tactics. In addition, the IRS announced that it will be working with the Justice Department to pursue fraud fueled by aggressive marketing. Here is the link to the IRS Notice: 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
The IRS has stated that it will continue to work previously filed ERC claims received prior to September 14, 2023. The IRS also provided a renewed reminder that because of increased fraud concerns processing times will be longer. In addition, the IRS has shifted its focus to review ERC claims for compliance concerns, including intensifying audit work and criminal investigations on promoters and businesses filing dubious claims. In its September 14, 2023 Notice the IRS announced that it is currently investigating hundreds of criminal cases and that thousands of ERC claims have been referred for audit.
Payouts for already submitted claims will continue during the moratorium period, but at a slower pace for detailed compliance reviews. This means that standard processing goals of 90 days will be increased to 180 days; and as I have been blogging about incessantly the IRS is requesting additional documentation to ensure the legitimacy of the claims being made. This is where we step in, we can review your ERC claim and help you prepare for a potential ERC audit so that the IRS will not catch you flat footed.
Tax problems are legal problems, and we solve both. If you or someone you know has an issue with paying their federal or state taxes and needs help to end their IRS nightmare, please contact Kent Brown at Strong & Hanni by either phone at (801) 532-7080 or email at: kbrown@strongandhanni.com or go to https://activerain.com/profile/kbrowndad for additional information, or my personal Strong & Hanni webpage at: https://strongandhanni.com/attorneys/attorney-kent-brown/
