IRS Covid-Era Employee Tax Credit Delays Snarl Deal Closings

Deals are being held up as businesses wait to hear from the IRS on the pandemic-era credit at the heart of the agency’s war against fraud.

Many businesses that claimed the employee retention tax credit still haven’t received their refund while the IRS overhauls the program. Others that incorrectly claimed the credit haven’t heard whether they were accepted into the program that would require them to pay back part of the credit received. This uncertainty and unknown timeline on when businesses would expect to hear from the IRS is creating more risk for potential buyers.

“That buyer is waiting to ...