At a recent payroll conference, an IRS director, Daniel Lauer, advised employers to review eligibility guidelines before claiming the expired COVID-19 employee retention credit (ERC). He stated that ERC fraud is common, particularly with IRS Form 941-X, which is filed to make adjustments or corrections to Form 941. If your business claimed the ERC and is audited, know that examiners may make substantial document requests. These include Form 941 worksheets, a list of employees paid wages during the ERC period, an accounting of health plan costs and information about any Payroll Protection Program or Small Business Administration loans.
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