The U.S. Internal Revenue Service (IRS) is accelerating work on processing a pandemic-era credit program for businesses while weeding out ineligible claims.
Approximately 400,000 Employee Retention Credit (ERC) applications are being analyzed, which includes both “eligible and ineligible claims, with the vast majority in this tranche being processed for approval,” the agency said in an Oct. 10 press release. “The total value of eligible claims represents about $10 billion. Checks are being mailed for eligible claims with refunds, with more planned in the weeks and months ahead.”
ERC was instituted during the COVID-19 pandemic and offered a refundable tax credit for businesses that paid employees when they shut down as a result of lockdowns and other restrictions. However, the program was increasingly manipulated by scammers who mischaracterized eligibility rules and pushed business owners to claim ERC even when they were not eligible….