Last September, the IRS issued a moratorium (currently through year end) on the processing of claims for the Employee Retention Tax Credit (ERTC), due to a high volume of fraudulent claims. IRS Commissioner Danny Werfel recently said the agency is continuing to develop processes to help taxpayers that may have fallen for deceptive marketing that led them to improperly receive ERTCs. Specifically, the IRS is working out how taxpayers that improperly received ERTCs can come forward preemptively before the IRS takes collection action against them. Also, Werfel stated the IRS is developing “settlement terms for paying back [ERTCs] in a way we hope works out for those companies economically.”
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