FILE - A sign for the Internal Revenue Service is shown on the agency's building on May 4, 2021, in Washington. The IRS said Thursday, June 20, 2024, a review of 1 million claims for the Employee Retention Credit representing $86 billion shows the"vast majority" are at risk of being improper. of 1 million claims for the Employee Retention Credit representing $86 billion shows the “vast majority” are at risk of being improper..
“The completion of this review provided the IRS with new insight into risky Employee Retention Credit activity and confirmed widespread concerns about a large number of improper claims,” said IRS Commissioner Danny Werfel. “We will now use this information to deny billions of dollars in clearly improper claims and begin additional work to issue payments to help taxpayers without any red flags on their claims.
About 10% to 20% show low risk, and the IRS will begin processing those claims. The first payments for that group should begin later this summer.if they need to ask the IRS not to process an ERC claim for any tax period that hasn’t been paid yet. Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.