IRS Stops New Pandemic-era Tax Credit Claims to Curb Scams (1)

The IRS will immediately stop processing new claims for the pandemic-era employee retention tax credit at least through the end of the year in an effort to combat fraud.

The ERC is a refundable tax credit designed to encourage companies to keep employees on their payroll. The relief was passed as part of the CARES Act 2020 to help US businesses and employees stay afloat during the pandemic.

But there has been a boom of third-party companies creating aggressive marketing campaigns to con taxpayers into claiming relief they don’t qualify for.

“We are doing this in the interest of small ...