The IRS has implemented a temporary moratorium on processing Employee Retention Tax Credit (ERC) claims until the end of the year, aiming to clear a backlog, educate taxpayers on eligibility, and enforce rules more strictly, which may lead to delays for new ERC claims filed after September 14, 2023; existing deadlines for 2020 and 2021 remain unchanged.
This pause comes in response to a surge in ERC claims, some of which are suspected to be fraudulent, prompting potential Congressional hearings. The IRS argues that the pause is essential to protect honest small businesses from misleading claims and aligns with calls for stricter oversight. The IRS intends to introduce “safe harbor” provisions during the pause, allowing businesses to correct false claims before facing audits and penalties. Given this situation, seeking a second opinion from tax experts, like Freese, Peralez, & Associates, is crucial to ensure accurate eligibility and airtight claims.
If you're considering or have filed an ERC claim, consulting qualified experts is advised. For more information click the link!