The IRS is advising businesses who filed a claim to be sure their claim was legit. Said IRS Commissioner Danny Werfel, “Many businesses were wildly misled about the qualifications, and the IRS is taking a special step to highlight common problems being seen about these claims. The IRS urges ERC claimants to get with a trusted tax professional and review their qualifications before time runs out on IRS disclosure and withdrawal programs. The ‘suspicious seven’ signs released today are clear red flags that ERC claimants should carefully review.”
The deadline for the IRS Voluntary Disclosure program is March 22, 2024. The program is set up to assist those who either mistakenly—or purposefully—filed a claim for an ERC credit. The expiring program allows beneficiaries of ERC payments to repay 80 percent of their claim, rather than the full sum that they already received. The IRS urges those who filed an as-yet unpaid claim to review the validity of their claim and withdraw the claim if they find concerns.
The IRS is highlighting red flags of a potentially ineligible or fraudulent ERC claim. These include:
The ERC offered support to businesses as they struggled to survive during the pandemic. If your company wrongfully or mistakenly took advantage of the program—work with a tax professional to correct the situation on your behalf.
Serving local and international clients, the legal group at Robert J. Fedor, Esq., LLC delivers experienced representation to individuals and business regarding compliance issues, tax litigation, and offshore tax concerns. Call 800-579-0997 or contact us online today.