A recent report from the Inspector General for Tax Administration (TIGTA) says the IRS should consider reviewing nearly 185,000 employee retention credit (ERC) claims, amounting to approximately $42 billion.
TIGTA estimated that the agency’s attempt to speed up the processing of ERC claims for tax years 2020 and 2021 resulted in payment of $2 billion in erroneous claims.
The IRS partially agreed with the recommendation, saying it would review the claims for potentially erroneous payments under the recapture program. See more TIGTA findings.