The Internal Revenue Service is giving employers a way to rescind inaccurate claims for the Employee Retention Credit if they’ve fallen victim to a scam at the hands of so-called “ERC mills” that aggressively promote the credit to businesses.
Contrary to headlines making rounds in the past weeks – ERC has NOT been eliminated. The IRS moratorium is for ‘processing new claims’ for this quarter, i.e., until 31st December 2023.
Tax practitioners need to be prepared for a shifting landscape in the IRS’s collection efforts in 2026 and beyond. The last several months have made clear that, despite the IRS facing personnel cuts and work stoppages due to the government shutdown, the agency’s collection efforts continue to remain a top priority.
During a pilot phase this spring, 140,000 participants received a total of $90 million in refunds. Nine in 10 users rated the software as “excellent” or “above average,” according to a government survey.
The Internal Revenue Service said Thursday it’s putting an immediate stop to processing of new claims for the Employee Retention Credit after receiving a surge of questionable claims. The immediate moratorium will be in effect until the end of the year.
The IRS has formed a unit that aims to make it easier to quickly resolve tax disputes without litigation, an effort that will include more outreach on avenues available to taxpayers.
As Americans prepare to file their 2023 federal tax returns, the Internal Revenue Service is getting ready to take on one of its biggest challenges: Digitizing all of its paper.
Last year, Congress approved $80 billion in new funding for the Internal Revenue Service — but the bipartisan debt ceiling deal would claw some of that money back.
An IRS initiative that will allow businesses to withdraw questionable employee retention credit claims is being hailed as a positive development that could help taxpayers and the IRS alike.
The IRS is moving forward with issuing tens of thousands of denial/disallowance letters to applicants of the Employee Retention Credit (ERC).