The IRS has reported progress in its efforts to recover funds that were improperly distributed under the Employee Retention Credit (ERC). This loan was intended to help businesses retain employees during pandemic-related shutdowns, but has unfortunately become a target for fraud due to complex eligibility rules.

The IRS received $225 million through a voluntary disclosure program that allowed small businesses that believed they received a credit in error to get their money back. Over 500 taxpayers participated in this program, and 800 submissions are still being processed. In addition, an ongoing program that allows businesses to withdraw outstanding receivables resulted in 1,800 businesses withdrawing $251 million.

Furthermore, the IRS conducted audits of over 12,000 businesses that filed more than 22,000 improper claims, resulting in an assessment of $572 million. IRS Commissioner Danny Werfel expressed concern about the widespread abuse of these claims and emphasized the IRS’s efforts to help misled businesses.

While the IRS stopped processing new claims in September, they anticipate resuming processing in the spring. An additional $3 billion in claims is currently being reviewed by the IRS criminal investigation. These initiatives aim to recover funds that have been fraudulently obtained and to prevent further abuse of the ERC programme.

By Samantha Johnson

As a dedicated content writer at newspuk.com, I immerse myself in the art of storytelling through words. With a keen eye for detail and a passion for crafting engaging narratives, I strive to captivate our audience with each piece I create. Whether I'm covering breaking news, delving into feature articles, or exploring thought-provoking editorials, my goal remains constant: to inform, entertain, and inspire through the power of writing. Join me on this journalistic journey as we navigate through the ever-evolving media landscape together.

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