Intro
In a surprising move, the IRS recently announced an immediate stop to new Employee Retention Credit (ERC) processing, citing suspicions of fraudulent activity. The ERC was established as part of the 2020 Coronavirus Aid, Relief and Economic Security (CARES) Act and was designed to provide financial support to employers during the pandemic. However, the IRS is now concerned that some individuals are taking advantage of the system, leading them to take swift action. This will undoubtedly have an effect on legitimate claimants and further complicate the already complicated ERC process.
Background on the Employee Retention Credit The Employee Retention Credit
ERC was established as part of the 2020 CARES Act to provide financial support to employers during the COVID-19 pandemic. This tax credit was designed to help businesses retain employees by offering a refundable credit against certain employment taxes. The credit amount is based on a percentage of qualified wages paid to employees.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.