Most remaining employee retention credit (ERC) claims show signs of fraud or errors, and the IRS will deny tens of thousands of the most obvious erroneous claims in the coming weeks, the agency said Thursday, June 20.
The IRS also will start a new round of processing ERC claims with the lowest risk of fraud while maintaining a moratorium on reviewing more recent claims.
A review of 1 million ERC claims “provided the IRS with new insight into risky employee retention credit activity and confirmed widespread concerns about a large number of improper claims," the IRS said. Learn more.