IRS To Resume Processing Of Some ERC Refunds

The Internal Revenue Service (IRS) has taken significant steps to address the processing of ERC claims after a year-long moratorium. The IRS has announced plans to resume processing ERC claims. This decision comes in the wake of fraudulent claims and a failed bipartisan tax deal that could have terminated the ERC program.

The IRS will focus on processing 50,000 valid ERC claims identified as low risk. This processing will focus on the filing period from September 14, 2023, through January 31, 2024. Businesses falling into this category can expect their claims to be processed promptly, with additional payouts likely in the fall.

The IRS also remains vigilant against fraudulent ERC claims. It has already sent 28,000 rejection letters and initiated 460 criminal cases related to improper claims. Additionally, thousands of other claims are currently undergoing audits. Businesses are encouraged to proactively withdraw erroneous claims to avoid legal consequences.

Source: MSN.com