Insight on the IRS’s moratorium on new claims for the employee retention credit (ERC)
Due to an increase in the employee retention credit scams and fraud, and to protect honest business owners and tax preparers, the IRS has stopped processing new employee retention credit (ERC) claims for the foreseeable future.
The National Association of Tax Professionals (NATP) recently published a video explaining the moratorium and how it affects taxpayers and tax professionals for the upcoming tax season.
Viewers will also hear NATP’s director of Tax Content and Government Relations Tom O’Saben give an overview of NATP's role in the development of the IRS' new guidance, how to complete the agency’s ERC checklist and what might happen to those who received the credit but shouldn't have.
“It’s critical tax pros and taxpayers understand where the IRS stands on these claims, especially as we go into 2024,” O’Saben said. “Rules and regulations are still being established when it comes to returns fraudulently claiming the credit, and until those are figured out, preparers should use extra due diligence when preparing a return that claims the credit, as they may also be held liable.”
The moratorium means the IRS won’t process new claims until at least Dec. 31, according to IRS Commissioner Danny Werfel, but the agency will continue processing the roughly 600,000 unpaid ERC claims it has already received, with increased scrutiny.
The discussion, part of NATP’s Taxes Today series, can be viewed by anyone with a free NATP account.
The National Association of Tax Professionals (NATP) is the largest nonprofit organization that works exclusively for tax professionals. We serve members through education, advocacy and community, providing the tools they need to navigate the tax code and the insights the media can trust.
Looking for a tax expert? Tom O’Saben, EA, director of tax content and government relations at NATP, is available for phone or video interviews to discuss federal tax topics, including tax law change and its implications, taxpayer issues, tax preparer regulation and more. To schedule an interview with O’Saben, contact [email protected] or [email protected].