The IRS has introduced a special withdrawal process for businesses that may have filed fraudulent Employee Retention Credit (ERC) claims. This comes in response to widespread fraud and aggressive marketing tactics by some companies pushing businesses to file claims they weren’t eligible for.
Key points:
The IRS has temporarily halted processing new ERC claims filed after September 14th.
The special withdrawal process is available for those who haven’t received payment or haven’t cashed their check yet.
If you’ve already received and spent the money, you’re not eligible for this process.
The IRS is likely to investigate past claims, and if found fraudulent, you’ll need to repay with interest and penalties.
“I didn’t know” or “someone else filed it for me” are not valid defenses.
If you’re concerned about a potentially fraudulent claim:
Request copies of your claim paperwork from the filing company.
Seek a review from a reputable, practicing CPA firm (not the company that filed your claim).
If the claim is found to be fraudulent, prepare to repay and consider setting up a payment plan with the IRS.
Remember, it’s crucial to work with trusted professionals when dealing with tax credits and claims.
