IRS to Reject Billions of Dollars of Pandemic-Era Tax Credit Claims

The Internal Revenue Service (IRS) plans to deny billions of dollars worth of improper claims for COVID-19 pandemic-era tax credits, it announced on June 20.

The agency said in a press release that the planned rejections follow a detailed review that confirmed “widespread concerns about a large number of improper claims,” and provided new insight into what it defined as “risky” ERC activity.

During the review process, IRS agents analyzed more than 1 million Employee Retention Credit (ERC) claims representing more than $86 billion.

“We will now use this information to deny billions of dollars in clearly improper claims and begin additional work to issue payments to help taxpayers without any red flags on their claims,” IRS Commissioner Danny Werfel said.

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