NEW IRS CRIMINAL INVESTIGATION (CI) EDUCTION SERIES ON THE ERC:
The Internal Revenue Service renewed calls for businesses to review their eligibility for the Employee Retention Credit as the agency’s law enforcement arm, Criminal Investigation (CI), begins a series of educational sessions for tax professionals.
In the latest effort, CI special agents will host a series of educational sessions geared specifically to tax professionals about ERC at its field offices across the country. The sessions will take place in February and are part of a nationwide initiative to ensure that tax professionals have the latest information about ERC claims and understand ERC eligibility criteria. CI special agents will walk attendees through ERC eligibility criteria, documentation requirements to receive ERC claims, and best practices for compliance and accurate reporting.
These events will take place in at least 23 U.S. states and the District of Columbia and are specifically designed for tax professionals who have claimed ERCs for their clients on previous years’ tax returns.
Invitations to attend will arrive by mail through the U.S. Postal Service.
The IRS continues to process ERC claims submitted before the moratorium, but with additional scrutiny and at a much slower rate than before the agency’s approach changed in the summer and fall. Since the IRS announced the moratorium in September, the IRS has more than $1 billion in ERC claims in process.
To help businesses lured into making inappropriate claims, the IRS has several special initiatives underway:
- ERC Voluntary Disclosure Program open until March 22, 2024
- Withdrawal program still available for pending ERC claims
- ERC eligibility information for businesses as an interactive tool to confirm eligibility
- Increased IRS compliance activity: audits, criminal investigations, and targeted notices
