Risk Client or Penalties? Tax Pros Stuck Amid Pandemic Credit Fraud (1)

A pandemic-era tax credit is causing handwringing among some tax practitioners helping their clients file amended income tax returns for the 2020 and 2021 tax years.

Practitioners say the onslaught of inaccurate Employee Retention Credit claims prepared by third parties puts them in a tough position—either they turn away their client with a bad claim or risk filing an incorrect amended return with potential discipline from the IRS.

“Am I in a circumstance where now I’ve kind of acquiesced and did a quasi-approval of that claim?” said Tom O’Saben, director of tax content and government relations at the ...