The Internal Revenue Service (IRS) is urging small business owners to closely examine their Employee Retention Credit (ERC) claims for potential inaccuracies. As the deadline of March 22, 2024, fast approaches, the IRS has highlighted seven warning signs indicating that an ERC claim might be questionable, emphasizing the need for businesses to reassess their eligibility to avoid future complications.
The ERC, designed to support businesses that retained employees during the pandemic, has been subject to misuse, largely due to misinformation spread by certain promoters. These entities have encouraged businesses to claim the credit without proper eligibility, leading to an increase in compliance activities by the IRS.
