Jerrika Anderson of Chamberlain Hrdlicka. (Courtesy photo) It's Your Money and You Need It Now: ERC Refund Anyone?
As the IRS continues its efforts to combat fraud and streamline processing, businesses that have legitimately qualified for the ERC should stay informed about developments and take appropriate actions to secure their refunds.
September 20, 2024 at 10:05 AM
6 minute read
CommentaryFor many businesses grappling with financial strain in the aftermath of the COVID-19 pandemic, the Employee Retention Credit (ERC) has been a tremendous lifeline. This refundable tax credit aimed to incentivize businesses that either faced government-mandated shutdowns or experienced significant declines in gross receipts during 2020 and 2021 to keep employees on their payrolls.
While the ERC's primary goal was to incentivize businesses to retain employees amid unprecedented challenges, the process of applying for and receiving the credit (which often involves tax refund claims) has not been without its complications and controversies. Fraudulent claims and aggressive marketing tactics by those promoting entitlement to these credits have led to significant scrutiny and enforcement efforts by the IRS pushing back on a sizable number of claims and delaying the refund process for validly filed claims.
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