IRS - IRS Presents Payback Scheme To Employers For Pandemic Tax Rebate | Benzinga
In a recent Internal Revenue Service (IRS) announcement, employers who claimed the pandemic-relief tax credit can return 80% of the funds to reduce IRS scrutiny significantly.
What Happened: As reported by the Wall Street Journal on Thursday, this repayment plan is the government’s newest strategy to counteract fraudulent and ineligible claims of the employee retention tax credit (ERC). The ERC was introduced to support employers in maintaining their payroll during 2020 and 2021, providing up to $26,000 per worker.
The IRS has initiated thousands of audits and hundreds of criminal prosecutions linked to the ERC. Now, it is presenting employers with an opportunity to avoid civil penalties and is calling for aid in investigating third-party firms that recommended businesses to claim the credit.
After receiving the credit, employers who doubt their eligibility can return 80% of the funds. The IRS ...