Bloomberg Tax
Jan. 18, 2023, 11:17 PM

IRS Unit Chief Says Employee Retention Credit ‘Ripe’ With Fraud

Lauren Vella
Lauren Vella

A tax credit meant to encourage businesses to retain their employees during the height Covid-19 pandemic is an area high risk for fraud, an IRS official said Wednesday.

Small Business and Self-Employed Division Commissioner Lia Colbert said although the employee retention tax credit was meant to do good, “this unfortunately has been an area very ripe for fraudulent activity.” She added that the IRS was “very aware” of third parties encouraging employers to claim the credit.

  • The tax credit was included in the CARES Act, a massive Covid-19 relief package passed by former President Donald Trump in 2020. Employers ...

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