So, we have an ERTC update – we’ve been doing some reading, and the IRS has put a pause on accepting new claims for the Employee Retention Tax Credit(ERTC) until the end of the year.

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IRS and ERTC – What you need to know

They’ve seen a lot of sketchy claims come in, fueled by some over-the-top marketing, and they’re stepping in to tighten up the rules to prevent scams and make sure only the right businesses get help.

Processing Claims Slower – ERTC Update

They’ll keep processing the claims they’ve already received, but things are going to move slower because they’re taking a closer look at each one.

They’re also setting up a new plan to help businesses that might have gotten funds they shouldn’t have, with more details expected later this fall.

IRS is looking out for businesses

There’s a way for businesses to pull back their pending claims if they think something might be off, to avoid any future headaches. In the meantime, the IRS is suggesting that businesses really make sure they understand the rules or talk to someone trustworthy before applying. It’s all about making sure the help gets to the folks who truly need it without any funny business.

Here are two websites for the newest IRS info:

From Jan 25, 2024: Continued IRS Work on Employee Retention Credit – https://www.irs.gov/newsroom/irs-continues-work-on-employee-retention-credit-new-irs-ci-education-sessions-come-as-agency-urges-businesses-to-review-vdp-withdrawal-program-for-questionable-claims

From September 2023: IRS News Release on ERC Moratorium –
https://www.irs.gov/newsroom/to-protect-taxpayers-from-scams-irs-orders-immediate-stop-to-new-employee-retention-credit-processing-amid-surge-of-questionable-claims-concerns-from-tax-pros