To safeguard businesses from potential scams, the Internal Revenue Service (IRS) has just announced a groundbreaking decision. Effective immediately, the IRS has pressed pause on processing new claims for the coveted employee retention credit (ERC) until at least December 31st, 2023. While previously filed ERC claims will be honored, brace yourselves for slightly extended processing times to protect your hard-earned dollars from the clutches of scammers.
IRS’s Commitment To Combat Fraud
The IRS is not just hitting the pause button; it’s gearing up to unveil a series of initiatives to rescue businesses that were victims of aggressive ERC promoter schemes. Among these initiatives, a groundbreaking settlement program will provide you with a lifeline to repay any improperly received ERC payments. In addition, for those who may have filed ERC claims incorrectly, a special withdrawal option is in the works. Stay tuned as the IRS is promising more details on these programs.
What Business Owners Should Know
So, what should business owners do during this critical period? If you’ve already filed and have an ERC claim in limbo, it’s time for a thorough eligibility check. The IRS has noticed an alarming trend of businesses incorrectly citing supply chain issues as grounds for an ERC claim – a tactic that rarely aligns with the eligibility criteria. If you’re on the fence about filing a claim, it’s wise to consult the updated ERC guidelines and consider postponing your submission. The IRS recommends that businesses take advantage of the processing delay to review the ERC guidelines meticulously.
Assistance At Your Fingertips
To aid you in understanding your eligibility, the IRS has taken the initiative to update its ERC FAQs and crafted an eligibility checklist. These resources are available to ensure you make the most informed decisions regarding your ERC claim.
However, during these times of change and uncertainty, it’s time to take it a step further. Have you considered partnering with a professional employer organization (PEO) like GMS? Our HR experts offer advice on ERC eligibility, ensuring compliance with IRS guidelines, and helping you make the most of available tax credits. We not only streamline your HR processes but also act as a strategic partner to ensure that your business thrives amidst these changing dynamics. Together with the IRS, GMS can be your trusted partner in pursuing financial stability and success. Contact us today to learn more.