IRS Suspends Processing of Small Business Tax Break Due to Surge in Questionable Claims

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Written By Jennifer Joslyn

🖋 IRS Suspends Processing of Small Business Tax Break Due to Surge in Questionable Claims.

IRS Commissioner Danny Werfel has ordered the immediate suspension of new claims for the employee retention credit (ERC), a pandemic-era small business tax break, due to a surge in questionable claims. The ERC, designed to support small businesses during the COVID-19 pandemic, has attracted fraudulent promoters promising businesses eligibility for the tax break. The processing pause will continue until at least the end of 2023, and existing claims may face extended processing times. The IRS is concerned about honest small business owners being scammed and has initiated investigations into potentially fraudulent ERC claims.

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Jennifer Joslyn
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