How to Prepare for IRS Scrutiny of the Employee Retention Credit

Unlike most other provisions of the tax code, the employee retention credit (ERC) has reached mainstream consciousness. Robocalls and television ads promise up to $26,000 per employee for businesses that were affected by COVID-19. Perhaps you are an employer who claimed an ERC refund based on one of these ads or after consulting with a tax professional. Whether you anticipated it or not, you are now in the IRS’s sights.

The IRS took the extraordinary step on September 14 of announcing in IR-2023-169 an immediate moratorium on processing new ERC claims, in order “to protect against fraud and revenue loss.” ...