What's Happening With the Employee Retention Credit and the IRS?

Fraud involving the employee retention tax credit has received much attention lately from the IRS and Congress. What does that mean for your business?

image of IRS sign with red traffic light in the foreground
(Image credit: Getty Images)

The IRS continues efforts to tackle erroneous Employee Retention Tax Credit (ERC) claims. The agency says it has protected over $1 billion in revenue by increasing enforcement surrounding questionable ERC claims driven by aggressive and misleading marketing.

IRS Commissioner Danny Werfel highlighted the agency’s commitment to safeguarding small businesses against widespread abuse of the ERC program, stating in a release, “We are encouraged by the results so far of our initiatives designed to help misled businesses, and the IRS will continue our broader compliance work given the aggressive marketing we’ve seen with this credit.”

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Kelley R. Taylor
Senior Tax Editor, Kiplinger.com

As the senior tax editor at Kiplinger.com, Kelley R. Taylor simplifies federal and state tax information, news, and developments to help empower readers. Kelley has over two decades of experience advising on and covering education, law, finance, and tax as a corporate attorney and business journalist.