TEW Magazine

  The Internal Revenue Service (IRS) announced on Thursday that it is taking action to address the misuse and abuse of a pandemic-era employer tax benefit known as the Employee Retention Credit. This tax credit, designed to aid businesses during the COVID-19 pandemic, has become a target for fraudulent claims, costing the federal government billions of dollars. The IRS is taking steps to curb these abuses and has placed a moratorium on new claims for the credit. The agency has also taken the initiative to investigate thousands of claims for the Employee Retention Credit, with over 250 criminal investigations launched, involving nearly $3 billion in potentially fraudulent claims. This reflects the seriousness of the issue and the need to protect federal funds from being wrongly disbursed. Demonstrate the impact of the pandemic The Employee Retention Credit was established as part of the initial $2 trillion pandemic relief legislation in response to the economic fallout from the pan...