ERC Update 09-2024: What’s Going on with COVID Employee Retention Credit Refunds
IRS ERC Claim Update: Red Flags and Next Steps
Are you still waiting on your Employee Retention Credit (ERC) funds? In this video, we'll provide you with the latest updates on ERC claims and discuss the red flags that could lead to your claim being denied.
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Key Points:
Claims on Hold: All claims submitted after September 14, 2023, have been put on hold.
IRS Red Flags: The IRS has identified five warning signs that could indicate an incorrect ERC claim:
Business was fully operational without a significant decline in gross income.
Used wages of family members for the claim.
Included wages already used for PPP loan forgiveness.
Claimed wages for employees who were still working (for large employers).
Incorrect calculations.
IRS Actions: The IRS is increasing audits and criminal proceedings against businesses with fraudulent claims. They have paused claim processing to conduct a study and have disallowed $5 billion in claims.
Next Steps:
If your claim was approved, expect payment by September 2024.
If your claim was disallowed, you may need to return funds and consider appealing.
If you haven't heard about your claim, it may still be under review.
Options for Incorrect Claims:
Voluntary Disclosure Program: Pay back claim minus 15% and avoid an audit.
Withdraw Claim: Avoid penalties and interest.
Amend Return: Correct errors in your claim.