The Employee Retention Tax Credit (ERTC) is back in the news after the IRS announced plans to resume processing 50,000 “low-risk” claims. Last fall, the tax agency announced a moratorium on processing claims submitted after Sept. 14, 2023. A subsequent review during the moratorium allowed the IRS to move into this new stage with more payments and disallowances. The IRS is now going to process claims filed between Sept. 14, 2023, and Jan. 31, 2024. In recent weeks, it has sent 28,000 disallowance letters to businesses whose claims showed a “high risk” of being incorrect. The IRS estimates that these disallowances will prevent up to $5 billion in improper ERTC payments.
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