The IRS is acting against scammers and promoters of the employee retention credit (ERC) by sending out more than 20,000 disallowance letters.
In September, the IRS declared a moratorium on processing new ERC claims after receiving a flood of claims pushed by "ERC mills."
The agency found that many taxpayers did not meet the basic criteria for the tax credit. Starting the week, taxpayers who are ineligible for ERC will receive copies of Letter 105 C, Claim Disallowed.
Later this month, the IRS plans to send additional letters and is finalizing plans for a special voluntary disclosure program. Read more.