Erroneous claims for the Employee Retention Credit have topped $1 billion, the Internal Revenue Service said recently.The totals stemmed from three IRS programs aimed at reducing ERC claims. This included the ERC Voluntary Disclosure Program which has drawn submissions from 500 taxpayers with more than $225 million claims. Another 800 submissions are being processed. While this program was suspended after March 22, the IRS said it could potentially reopen.
The claim withdrawal processed has led to 1,800 entities withdrawing $251 million in claims. The IRS has determined that 22,000 improper claims were filed by more than 12,000 entities. The IRS has issued $572 million in assessments stemming from these.
The IRS Criminal Investigation unit is reviewing another $3 billion in claims.
