ERTC Claims Processing Suspended: What You Need to Know
The IRS recently stopped processing Employee Retention Tax Credit (ERTC) claims. The ERTC was introduced during COVID as a pandemic-related tax credit that offered money to help employers that retained their employees during the pandemic.
Key Points:
Eligible small businesses: partially or fully-shutdown due to COVID lockdown or restriction, or if impacted with revenue loss
Businesses could amend payroll tax returns and claim a credit against paid payroll taxes. If the credit was larger than the taxes paid, the government would give money back as a refundable tax credit
Why are ERTC claims suspended?
The IRS has decided to stop processing claims for this credit because some firms have been taking advantage of this credit and the IRS is now investigating those claims.
If you’ve already submitted a legitimate claim or amended your return to receive a credit and you received your refund, you have nothing to worry about. If you are not sure if you were truly eligible, please contact a tax professional for their legal advice. You can file to withdraw the claim and return the money if you find that your business was not eligible for this credit.
This information is intended for information purposes only. Any reader understands that Apex Benefit Group is not providing legal advice, tax advice, or professional services in this article. This article serves to offer practical information regarding the subject matter and is not a comprehensive resource.
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