The IRS announced a moratorium on the popular Employee Retention Credit through at least the end of 2023.
Here’s what you need to know about the moratorium.
What Does the Moratorium Do?
Effective immediately, the IRS is halting the processing of new Employee Retention Credit (ERC) claims through at least the end of 2023.
Why the Moratorium?
The moratorium was put into effect “following growing concerns inside the tax agency, from tax professionals as well as media reports that a substantial share of new claims from the aging program are ineligible and increasingly putting businesses at financial risk by being pressured and scammed by aggressive promoters and marketing,“ according to an IRS press release.
We reported on ERC scams earlier this year.
What If You Have an ERC Claim Already In Process?
The IRS continues to process ERC claims that were already filed prior to the moratorium, but warns of slower processing time due to the large volume of claims and increased scrutiny on these claims.
The IRS might require additional documentation to verify that claims are legitimate.
Need Help?
You can read more details here on the IRS website. For help, contact us here or call 800.899.4623.
