IRS compliance efforts around erroneous Employee Retention Tax Credit (ERTC) claims topped more than $1 billion in six months. Another $3 billion in claims is being reviewed. The revenue is the result of three initiatives: 1) A Voluntary Disclosure Program, which ended on March 22 and allowed taxpayers to pay back money incorrectly received, 2) an ongoing claims withdrawal process that allows taxpayers to halt unprocessed claims, and 3) tax assessments of more than 22,000 improper claims. The IRS stated these businesses were victims of “promoters that shared misleading information or misrepresented eligibility rules and lured businesses to apply for the ERTC when they didn’t qualify.”
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