Many tax professionals are familiar with cases where clients were aggressively encouraged to apply for the Employee Retention Credit (ERC), resulting in false claims and penalties. To address this, the IRS has recently published FS-2023-24, temporarily halting the program and providing a procedure to withdraw claims without penalties.
The ERC, established under the CARES Act in response to the COVID-19 pandemic, offers a tax credit to reimburse" qualified wages" paid during periods of economic hardship or business closure in 2020 or 2021. Eligible employers, who experienced a full or partial suspension of business or a reduction in gross receipts due to COVID-19, can claim a tax credit of 50% or 70% of qualified wages, up to certain limits.
Unfortunately, the ERC has been subject to abuse, with ineligible and fraudulent claims made due to aggressive promotion by unscrupulous individuals. The IRS has acted by imposing a moratorium on new claims while continuing to process previously filed claims. Stricter compliance reviews have been implemented, lengthening the processing time.
To address the issue of claims already filed, the IRS has issued FS-2023-24, outlining a process for taxpayers to withdraw their ERC claims. Taxpayers who believe their claims were inappropriate should consult with a qualified tax attorney and follow the withdrawal process outlined by the IRS, which involves filing an amended Form 941.
It is important for taxpayers who may have filed an...
Are they trying to apply for the China national team coach position against each other? The China national team coaching post has been vacant for more than two months. The process of appointing a ...