Last week the IRS announced a new option for taxpayers to withdraw pending Employee Retention Credit (ERC) claims. This option is limited to businesses with pending ERC filings with the IRS, or for any refund check that has not been cashed yet. While this new process will likely not apply to any of our clients because of our robust quality control process each file goes through before any credit is filed, read on to learn about our response to this news.
ERC Fraud on the Rise
Due to the rise in fraudulent ERC claims being filed, last month the IRS (formally) announced a pause to the processing of new claims through the end of the year. This moratorium has been put into place to allow the IRS to conduct thorough compliance reviews and to ultimately protect small business owners who may have been scammed by aggressive fraudsters looking to capitalize on ERC. Even though the IRS formally announced this moratorium, hitting “pause” is a common practice by the IRS. We have seen the IRS hit pause on the ERC program previously by slowing claims processing, for example, only without a formal announcement.
The new withdrawal program announced last week was created as a solution for taxpayers who believe they were scammed in order to avoid any future penalty. The withdrawal program is for those who:
- have not received their refund check, or
- received the check but have not deposited it yet
Since this program is new for taxpayers and the IRS alike, now is the time to rely on the expertise at Figure Financial. With our team of tax lawyers with years of experience navigating the often-confusing (sometimes scary!) world of IRS audits and collections, we know how to traverse these waters. Let us be the guide!
Our Process for Withdrawal Inquiries
Since the withdrawal program is intended to be limited to those business owners who believe they were scammed, we don’t anticipate our clients needing to submit to the withdrawal process. We stand behind our work and are confident in our team’s adherence to statutory and IRS rules for the program.
For any clients requesting reassurance about their claim, a call with our leadership team can be scheduled here:
Figure’s Solution = ERC Substantiation
Fortunately for us at Figure Financial, this IRS news is only fuel to the ERC Substantiation fire. With our top-tier team of tax attorneys, CPAs and Certified Tax Coaches, we see this as opportunity to provide value and peace of mind to both new and existing clients by ensuring your ERC eligibility is compliant with IRS rules. Whether it’s ERC Substantiation or Audit Defense services, we are here for the long haul.
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