IRS Places Moratorium on ERC Claims Through 2023
On September 14, 2023, the IRS announced a moratorium on new Employee Retention Credit (ERC) claims in order to combat increasing fraud for this program. The moratorium extends through the rest of 2023 and may possibly extend into 2024. Existing claims will still be processed but at a slower pace as IRS agents examine the legitimacy of these claims.
The IRS is developing and finalizing new initiatives to help businesses who may have been subject to aggressive promotions, including withdrawing an ERC claim that may not be legitimate and an ERC settlement program to allow taxpayers to repay ERC that was received in error without penalties.
The IRS has continuously warned of aggressive promotors through its Dirty Dozens list and other announcements, and the step taken today will help ensure steps are put in place to process legitimate ERC claims.
McGuire Sponsel will continue to provide updates as they become available. If you have any questions, please do not hesitate to reach out.
David Seibel is an engineering principal for the R&D Tax Credit Practice. He combines his knowledge of tax law with his engineering expertise to maximize companies’ research credits and reduce their overall tax burdens.
David ensures clients are receiving studies that meet the highest level of quality. He conducts fieldwork, produces detailed technical calculations, and builds narratives that accurately reflect each company’s research and experimentation activity.