The IRS has imposed a moratorium on new Employee Retention Tax Credit (ERTC) claims until the end of the year due to concerns over fraudulent activity and aggressive marketing tactics targeting businesses. While claims filed before the moratorium will continue to be processed, heightened scrutiny may lead to extended processing times, and businesses are urged to consult with knowledgeable tax professionals.

Understanding the ERTC Moratorium 

The Essence of the Moratorium

To safeguard U.S. businesses, the IRS to target abusive ERTC claims, has halted new ERTC claims processing until year’s end. This initiative directly responds to concerns about potential fraudulent activity and unethical marketing strategies targeting innocent businesses.

Implications for Ongoing Claims

Although new claims are paused, the IRS diligently reviews those filed before the moratorium. Given the heightened scrutiny, businesses should anticipate prolonged processing times.

Companies that are ethically helping businesses file their claims continue operating and preparing to file when the IRS opens the window.

This should be eye-opening for businesses that didn’t act promptly and now feel they missed out. We urge businesses to move forward but work with the right ERTC specialists.

Deciphering the IRS’s Stance

Rigorous Compliance Measures

Increasing fraud alarms prompted the IRS to reinforce its audit mechanisms and conduct thorough criminal investigations of questionable ERTC claims. The IRS is committed to maintaining the program’s integrity with increasing cases being probed.

Payouts and Reviews

During this moratorium, the IRS ensures legitimate claims receive their dues. However, intensive compliance checks may extend the time frame for disbursements. Providing supplementary documentation upon request is pivotal for those undergoing this scrutiny.

Commissioner’s Insight on ERTC Claims

Addressing Rising Concerns

IRS Commissioner Danny Werfel voiced concerns about the malicious players exploiting the ERTC. He emphasizes the need for businesses to remain cautious, especially when approached by aggressive marketing entities.

A Plea for Diligence

For businesses contemplating ERTC claims or facing marketer pressure, Werfel advises a thorough review. He suggests consulting with knowledgeable tax professionals and remaining wary of those pursuing significant contingency fees.

Tools and Guidance for U.S. Businesses

Accessible Resources 

The IRS offers detailed guidelines and tools to help businesses determine their ERTC eligibility. Newly introduced resources like FAQs and Q&A guides serve as platforms to dispel doubts.

Addressing the Plight of Misguided Businesses

Recognizing that some businesses may have been misled by aggressive marketing, the IRS is launching initiatives that include a settlement program. More information on these support structures will be unveiled soon.

IRS’s Broader ERTC Compliance Strategy

Collaborative Efforts Against Fraud

In its mission to root out fraudulent ERTC claims, the IRS has partnered with the Justice Department. This collaboration aims to tackle fraudulent claims and the promoters advocating such behaviors.

An Overview of Investigations 

The IRS’s Criminal Investigation division has been proactive in unearthing pandemic-related fraudulent activities. With billions suspected in fraudulent claims, the IRS is taking a stand against those seeking to exploit the system. Be sure to follow all IRS rules and regulations, which won’t impact your business.

Federal Tax Credits ERC Assistance

Have you had difficulties determining if your business qualifies for the Employee Retention Credit or Employee Retention Tax Credit?

Federal Tax Credits ERC

Federal Tax Credits ERC is here to answer any of your questions, offer assistance, and even provide a complimentary ERC Qualification Check.

Our team of ERC Experts offers white glove service for tax filing, amending returns, determining eligibility, and how to file for the ERC program.

The time is now to get your Employee Retention Credit while the tax credits are still in place. The program is still available but won’t be around for too much longer.

Get the tax credit your business is entitled to and receive game-changing money back to be used for whatever you choose. Remember, this is not a loan and does not need to be paid back.

Contact Federal Tax Credits ERC now, and let us help you receive your business tax credits.

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FAQ’s Concerning the IRS to Target Abusive ERTC Claims

Why has the IRS initiated a moratorium on new ERTC claims?

   – Due to a surge in potentially fraudulent claims and aggressive marketing tactics, the IRS has imposed a moratorium to ensure the program’s integrity and protect U.S. businesses.

How will this affect businesses that have already filed an ERTC claim?

   – While the processing of new claims has been paused, previously filed claims will still undergo review. However, due to heightened scrutiny, there may be extended processing times.