The IRS has announced new measures to safeguard the integrity of the Employee Retention Credit (ERC) program, a tax credit introduced to support businesses during the COVID-19 pandemic. The agency is accelerating payments for valid claims while intensifying efforts to root out fraudulent claims, following a significant increase in improper submissions due to misleading marketing tactics.
**Key Updates from the IRS:**
1. **Accelerated Payments for Valid Claims:** The IRS is expediting the processing of 50,000 valid ERC claims, with payments expected to begin in September 2024. This step is part of the IRS’s broader strategy to ensure that legitimate businesses receive the financial support they are entitled to.
2. **Crackdown on Fraudulent Claims:** The IRS has disallowed 28,000 claims, potentially preventing up to $5 billion in improper payments. The agency is also conducting thousands of audits and has initiated 460 criminal investigations, targeting fraudulent claims and those who promote them.
3. **ERC Claim Withdrawal Program:** In response to the increased scrutiny, over 7,300 entities have voluntarily withdrawn claims amounting to $677 million. The IRS is also reviewing the claims filed during the moratorium period and will judiciously process high- and low-risk claims submitted between September 14, 2023, and January 31, 2024.
4. **Ongoing Compliance and Monitoring:** The IRS continues to analyze and audit ERC claims while gathering information about potentially abusive tax promoters. Businesses that have had their claims denied can appeal the decision through the IRS’s administrative appeals process.
### How Rockerbox Can Help Mitigate Liability
Given the complexities and increased IRS scrutiny surrounding ERC claims, businesses must be vigilant in ensuring their claims are accurate and compliant. This is where Rockerbox can play a crucial role.
**For Non-Rockerbox Clients:**
Rockerbox offers a free ERTC audit for businesses that have utilized other ERC providers. This audit can help identify any discrepancies or errors in previously submitted claims, potentially mitigating liability and avoiding the risk of penalties or disallowances by the IRS. With the IRS intensifying its audits and criminal investigations, it’s more important than ever for businesses to ensure their ERC claims are above board.
**Why Choose Rockerbox?**
Rockerbox is committed to helping businesses navigate the complex landscape of ERC compliance. By offering a thorough, no-cost review of your ERC claims, Rockerbox can provide peace of mind and help safeguard your business from potential IRS actions.
In the current environment, where the IRS is closely monitoring and enforcing compliance, partnering with a trusted advisor like Rockerbox can make all the difference. Ensure your business is protected by taking advantage of Rockerbox’s free ERTC audit today.