Recently, the IRS halted processing of claims for the Employee Retention Credit (ERC), due to a high volume of fraudulent claims. The moratorium is through at least the end of 2023. ERC claims that were already filed are now subject to longer processing, including heightened scrutiny to weed out fraud. The IRS is creating a path that businesses can use to withdraw unprocessed claims if they determine they are invalid. One motivation to withdraw a claim is the IRS’s erroneous refund policy, by which the agency may seek the return of a refund. An erroneous refund that isn’t returned may lead to interest, penalties and a lawsuit within two years of the payment. For more: https://bit.ly/48Yp5TH
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