On Wednesday, the Internal Revenue Service (IRS) launched a crackdown on questionable Employee Retention Credit (ERC) (employee retention credit claims). They sent out over 20,000 disallowance letters to individuals and entities that either did not exist or lacked employees during the eligibility period.
As part of an expanded effort to combat fraudulent claims, the IRS, on Wednesday, announced its intensified scrutiny of these claims, identifying numerous cases where taxpayers failed to meet the credit’s basic criteria. Those found ineligible will receive Letter 105 C this week, signifying the disallowance of their claim. In October, the IRS revealed ongoing criminal cases and audits for “thousands” of ERC claims, specifically targeting entities not existing or lacking paid employees during the eligibility period. To address this, the IRS introduced a program for business owners to voluntarily withdraw inaccurate claims to avoid further actions. For business owners who unknowingly submitted ineligible claims and are still awaiting payment, the IRS encourages you to submit a withdrawal request for any unprocessed ERC claims.
This proactive step will help you sidestep future repayment obligations and potential penalties.
Good. All you scammers should be prosecuted. I did it the proper way and am repaying it. HEY MORONS! Fed money isnt free. TAXPAYERS ARE PAYING IT. Stupid phucks.