Employee Retention Credit

IRS opens new process for payroll companies, third-party payers to help clients resolve incorrect claims for the Employee Retention Credit

WASHINGTON — The Internal Revenue Service announced that the agency is opening a supplemental claim process to help third-party payers and their clients resolve incorrect claims for the Employee Retention Credit. Third-party payers report and pay clients’ federal employment taxes under the third-party payer’s Employer Identification...

22 November, 2024

IRS enters next stage of Employee Retention Credit work; review indicates vast majority show risk of being improper

WASHINGTON — Following a detailed review to protect taxpayers and small businesses, the Internal Revenue Service announced plans to deny tens of thousands of improper high-risk Employee Retention Credit claims while starting a new round of processing lower-risk claims to help eligible taxpayers. “The completion of...

12 July, 2024

Review Warning Signs and Resolve Incorrect Employee Retention Credit Claims Soon

The IRS shared seven warning signs of incorrect ERC (Employee Retention Credit) claims and is urging businesses to revisit their claims and apply to the ERC Voluntary Disclosure Program before the March 22, 2024, application deadline. The program helps employers repay their ERC at a...

08 March, 2024

IRS orders immediate stop to new Employee Retention Credit processing

Amid rising concerns about a flood of improper Employee Retention Credit claims, the Internal Revenue Service announced an immediate moratorium through at least the end of the year on processing new claims for the pandemic-era relief program to protect honest small business owners from scams. IRS...

22 September, 2023

Warning signs for misleading Employee Retention scams

WASHINGTON — As aggressive marketing continues, the Internal Revenue Service renewed an alert for businesses to watch out for tell-tale signs of misleading claims involving the Employee Retention Credit. The IRS and tax professionals continue to see a barrage of aggressive broadcast advertising, direct mail solicitations...

02 June, 2023

Top 4 Myths About ERTC

Since the Employee Retention Tax Credit (ERTC) was introduced in 2020 as part of the CARES Act there have been many updates and expansions. Luckily for business owners, these updates have made the ERTC more accessible to businesses that are struggling to get back on...

09 January, 2023

Employee Retention Credit: Over but Not Done

The federal government's Employee Retention Credit proved to be a lifeline for many businesses and their employees. The eligibility rules were complex and changed over time, as noted in an extensive IRS chart. Not all owners may have been able to figure out whether they were...

16 September, 2022

IRS reminds employers of penalty relief related to claims for the Employee Retention Credit

WASHINGTON — The Department of the Treasury and the Internal Revenue Service have received requests from taxpayers and their advisors for relief from penalties arising when additional income tax is owed because the deduction for qualified wages is reduced by the amount of a retroactively...

13 May, 2022