IRS announces pause on Employee Retention Credit processing

The IRS has recently announced it will not process any new employee retention credit claims until the beginning of 2024. Existing claims will be processed at a much slower pace to allow IRS agents to examine the legitimacy of the claims.

The IRS has indicated it is aware of significant fraud risk with many promoters aggressively pushing the ERC to business owners who may not actually qualify for the payroll tax credit. These promoters may not explain the large risks associated with a potential ERC claim audit.

To learn more about this announcement from the IRS check out this article from the Journal of Accountancy.

If you have any questions on this new information from the IRS, please reach out to your Wilkins Miller advisor.