Last Thursday, IRS ordered an immediate stop to new Employee Retention Credit (ERC) processing amid a surge of questionable claims. ERC is part of the pandemic era subsidy program to incentivize businesses to keep employees on the payroll. The ERC could be up to $5,000 per employee (for 2020) and up to $21,000 per employee in 2021, so long as an eligible business paid qualifying wages. But apparently, there are a lot of frauds and scams going on. As a small business owner, I was getting calls on a daily basis to apply for ERC and the callers promised me it’s easy and free money to get and they will help me amend my tax returns. I hung up on them knowing this could not be true. I am glad that the IRS is now taking action to stop the scammers. In the statement, IRS commissioners said:
9/18/2023: IRS Suspends ERC Processing until 2024
9/18/2023: IRS Suspends ERC Processing until…
9/18/2023: IRS Suspends ERC Processing until 2024
Last Thursday, IRS ordered an immediate stop to new Employee Retention Credit (ERC) processing amid a surge of questionable claims. ERC is part of the pandemic era subsidy program to incentivize businesses to keep employees on the payroll. The ERC could be up to $5,000 per employee (for 2020) and up to $21,000 per employee in 2021, so long as an eligible business paid qualifying wages. But apparently, there are a lot of frauds and scams going on. As a small business owner, I was getting calls on a daily basis to apply for ERC and the callers promised me it’s easy and free money to get and they will help me amend my tax returns. I hung up on them knowing this could not be true. I am glad that the IRS is now taking action to stop the scammers. In the statement, IRS commissioners said: