The Internal Revenue Service is notifying 20,000 taxpayers by mail that it is disallowing their claims for the Employee Retention credit. The effort is part of a crackdown on bogus ERC claims.
The first round of letters is going to two categories of claims. The first involves entities not in existence during period of eligibility between March 13, 2020, and Dec. 31, 2021. The other category involves claims in which there were no paid employees during the eligibility period.
Additional letters are being planned, involved a voluntary disclosure program involving ERC claims.
Taxpayers can also submit a request to withdraw their complaint by January 1 if they have filed a claim but have not received a refund.
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards. Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that. A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind