Anyone who encounters the nearly nonstop ads for companies promising to help businesses file for the employee retention tax credit might wonder whether the process really works. Well, the Internal Revenue Service has been asking a similar question for nearly a year. And earlier in September, the agency stopped processing claims for the credit citing the need to investigate a high number of questionable filings.
In a statement, the IRS warned that the pandemic-era ERC provision “has been increasingly the target of aggressive marketing to businesses that may not qualify for the credit.” Businesses should be wary of “marketing by nefarious actors,” the agency said.
The processing moratorium is scheduled to end at the end of the year, but review times could stretch from the standard goal of 90 days to 180 days or longer. So what do business owners and executives need to know?
In this edition of NJBIZ Conversations, Gina Perrone – senior tax manager at Sax LLP – explains what’s going on with the ERC, what the IRS is looking for and what businesses should be doing now.