IRS Focuses on Employee Retention Fraud
Posted on Wednesday, August 02, 2023
ShareHas your organization received the Employee Retention Credit (ERC)?
Are you sure you met the requirements? Anyone who improperly claims the ERC must pay it back, possibly with penalties and interest. Many organizations received large credits and having to pay it back could be detrimental to the organization's future.
In a recent News Release, the IRS Commissioner noted that they are "intensifying compliance work and putting in place additional procedures to deal with fraud in the program." The program was originally implemented during the pandemic to help organizations that were forced to shut down or had a significant reduction in gross receipts. Many organizations benefited from the credits as the program was intended; however, many ERC mills popped up claiming to help. These ERC mills may file claims for organizations that do not meet the requirements and require an up front fee or a large percentage of the credit received for their assistance.
Please read the following IRS News Release discussing the ERC, the proper way to make the claim, and what to be aware of -
Businesses can typically continue to file claims for the credit until April 15, 2025 so if you haven't submitted a claim, and properly qualify, there is still time. But be aware for ERC scams and make sure you meet the requirements. If unsure, please contact your CPA.
Contributed by: Carrie Minnich, MAcct, CPA | Partner | DWD CPAs & Advisors
Posted in Mission Minded Nonprofits
Disclaimer: The information contained in Dulin, Ward & DeWald’s blog is provided for general educational purposes only and should not be construed as financial or legal advice on any subject matter. Before taking any action based on this information, we strongly encourage you to consult competent legal, accounting or other professional advice about your specific situation. Questions on blog posts may be submitted to your DWD representative.