IRS investigating Employee Retention Credit claims and issues warning

THe Internal Revenue Service On Tuesday, the IRS advised taxpayers to read carefully the guidelines for Employee Retention credit before applying for the credit. The warning cited third-party encouragement to claim credit even though they were not eligible as an explanation.

These credit programs are being aggressively promoted by third parties on radio and online. tax season. Most companies charge high upfront fees, or they will vary the fee based on how much one receives in tax refunds. according to An IRS news release.

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“While this is a legitimate credit that has provided a financial lifeline to millions of businesses, there continue to be promoters who aggressively mislead people and businesses into thinking they can claim these credits,” Doug O’Donnell is acting IRS Commissioner.

“Anyone who is considering claiming this credit needs to carefully review the guidelines,” O’Donnell said. “If the tax professional they’re using raises questions about the accuracy of the Employee Retention Credit claim, people should listen to their advice. The IRS is actively auditing and conducting criminal investigations related to these false claims. People need to think twice before claiming this.”

IRS defines the Employee Retention Credit as a tax credit that can be refunded for employees.