Employment Incentives

Latest News

An Internal Revenue Service new release announced that the IRS would halt processing new Employee Retention Credits (ERC). The moratorium, beginning September 14, 2023, is expected to run through at least the end of the year. The news report stated that the IRS will “continue to work previously filed Employee Retention Credit (ERC) claims received prior to the moratorium but renewed a reminder that increased fraud concerns means processing times will be longer.”...

The IRS has publicly issued several warnings on the aggressive promotion of the Employee Retention Credits, even making it onto their 2023 Dirty Dozen list of tax scams. Many ERC promotions can be based on misleading information related to eligibility and credit calculations. Radio and internet ads promising guaranteed credits should be scrutinized. "… there are promoters misleading people and businesses into thinking they can claim these credits. People should remember the IRS is actively auditing and conducting criminal investigations related to these false claims. We urge honest taxpayers not to be caught up in these schemes," said IRS Commissioner Danny Werfel. ...

Our latest ERC experience includes an assisted living community that was mandating to stop showing its facilities to potential residents and otherwise lost revenues due to COVID-19-related issues. ICS analyzed their eligible wages and calculated their ERC claim for the 2020 calendar year. The total eligible wages were $519,635, which qualified for a total credit of $259,567 for the year 2020....