On Friday, July 26, the IRS issued five new warning signs that a business had filed an incorrect claim for the pandemic-era employee retention credit (ERC).
The IRS issued the new warning signs to give businesses and tax professionals additional time to prepare for an upcoming announcement involving the agency’s next steps to counter improper ERC claims.
The IRS said it plans to announce new steps soon to counter improper claims, including reopening the voluntary disclosure program.
The agency is also scrutinizing hundreds of thousands more claims that show the risk of being incorrect and starting additional processing of low-risk claims to those with eligible claims. Read more.