IRS Slows Processing of ERTC Claims
Out of concern for fraudulent claims, the Internal Revenue Service (IRS) is slowing down it’s processing of the Employee Retention Tax Credit (ERTC). The agency pointed to a significant increase in businesses claiming the credit and concerns about the number of fraudulent claims within the increase. IRS Commissioner Danny Werfel has been adamant about cracking down on the fraud and has expressed that Congress can help by speeding up the deadline for claiming the tax break. While the agency has yet to stop processing these claims altogether, there is a looming question of how the IRS will deal with the special circumstance of audited taxpayers who have been the victim of questionable mills. According to the IRS, as of Aug. 23, the total inventory of unprocessed Forms 941-X was approximately 556,000.