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Started By
Message
IRS is halting processing on all new ERC claims
Posted on 9/15/23 at 2:45 pm
Posted on 9/15/23 at 2:45 pm
As of yesterday, the IRS will stop processing new ERC claims until at least the end of 2023. You can still file them, but they will sit.
Claims that have allready been received are going to undergo enhanced compliance checks, which will mean a much longer processing time.
Also, there is this gem...
This is an absolute mess. There is now so much fraud going on that they are actually going to open a settlement program in the fall, for businesses to come forward and fess up in exchange for reduced penalties.
Claims that have allready been received are going to undergo enhanced compliance checks, which will mean a much longer processing time.
Also, there is this gem...
quote:
The IRS believes many of the applications currently filed are likely ineligible, and tax professionals note anecdotally that they are seeing instances where 95 percent or more of claims coming in recent months are ineligible as promoters continue to aggressively push people to apply regardless of the rules.
This is an absolute mess. There is now so much fraud going on that they are actually going to open a settlement program in the fall, for businesses to come forward and fess up in exchange for reduced penalties.
4
Posted on 9/16/23 at 7:58 am to LSUFanHouston
Yeah but no fraud is occurring in the earned income or child tax credit…
Posted on 9/16/23 at 9:05 pm to LSUFanHouston
Good. The entire program should be rescinded. PPP parts 1 and 2 were more than enough to make any business whole. And then some. ERC was stealth stimulus that has contributed to inflation in a big way. Fiscal policy is an absolute joke and nothing Powell does on the monetary side will fix it. Not without a hard arse landing.
Posted on 9/16/23 at 11:11 pm to TigerDeBaiter
quote:
Fiscal policy is an absolute joke and nothing Powell does on the monetary side will fix it
Pretty much
They actually could address inflation by lowering obstacles to affordable energy. That would help.
We're reeling from inappropriate risk taking fueled by cheap money and inflation from simultaneous government largesse and obstruction.
Posted on 9/18/23 at 7:13 am to LAwolf
quote:
Yeah but no fraud is occurring in the earned income or child tax credit…
Sure it is, but the ERC, per return, is massive compared to the other two. Also, one being full of fraud doesn’t mean they should both go unchecked. You have to start somewhere.
Posted on 9/18/23 at 10:27 am to slackster
quote:
Sure it is, but the ERC, per return, is massive compared to the other two. Also, one being full of fraud doesn’t mean they should both go unchecked. You have to start somewhere.
THIS
Also, not to get all "liberal" or whatever, but the EIC fraud is mainly going to relatively poor people.
The ERC fraud is mainly going to wealth business owners, years after they incured the "expense". Meaning, it is a giveaway in the most pure sense of the word.
Posted on 9/18/23 at 12:32 pm to slackster
Whataboutism is literally the first reponse to every single issue our society faces these days. It's gross.
"Well I would fix my plumbing but my houses electrical wiring also needs to be fixed, so I guess I'll just sit here without either"
"Well I would fix my plumbing but my houses electrical wiring also needs to be fixed, so I guess I'll just sit here without either"
Posted on 9/19/23 at 8:41 am to LSUFanHouston
This should be the easiest budget item to cut in the history of budget cutting. It’s not even a budgetary item requiring a vote to my knowledge. Anyone who calls for fiscal responsibility by the government should be calling their reps about this. However just curious how many are like me - you see the problem but are hypocritical and take the money anyway because you would be an idiot not to (assuming you are honest and did the right things with program).
Posted on 9/19/23 at 8:50 am to Uroblast
It's certainly a very stupid giveaway far too long after the fact. That being said, if I qualified I'd be accepting the money. fricking government takes so much of our money to waste, it would be foolish not to take advantage of the few times they're willing to give a portion back.
Posted on 9/19/23 at 8:54 am to Thundercles
quote:the government shut down businesses and limited their operations. Everyone saying they shouldnt have the ERC do NOT own businesses. Just more jealousy from the worker bees
t's certainly a very stupid giveaway far too long after the fact.
Posted on 9/19/23 at 9:41 am to ChexMix
quote:
the government shut down businesses and limited their operations. Everyone saying they shouldnt have the ERC do NOT own businesses. Just more jealousy from the worker bees
You act like the PPP didn’t exist.
Also, the legitimate ERCs are different than these radio ad companies that are trying to justify anything under the sun.
Posted on 9/19/23 at 9:58 am to slackster
Crap I missed the boat on this. Still apply though?
Got two small PPPs that kept two small businesses alive.
Got two small PPPs that kept two small businesses alive.
Posted on 9/19/23 at 10:36 am to slackster
quote:Completely understand. I have to turn away clients asking to file the ERC for supply chain reasons all the time. If they cannot prove they qualify or provide the documentation, I refuse to file it for them. I cant in good conscience set them up for future fines and penalties just to line my own pockets
Also, the legitimate ERCs are different than these radio ad companies that are trying to justify anything under the sun.
Posted on 9/19/23 at 10:37 am to Meauxjeaux
quote:I can help you if you're serious. They have frozen the refunds, but do accept the filings.
Crap I missed the boat on this. Still apply though?
Got two small PPPs that kept two small businesses alive.
Posted on 9/19/23 at 10:48 am to TigerDeBaiter
quote:
Good. The entire program should be rescinded. PPP parts 1 and 2 were more than enough to make any business whole. And then some.
Yep.
Posted on 9/19/23 at 11:14 am to ChexMix
quote:
Completely understand. I have to turn away clients asking to file the ERC for supply chain reasons all the time. If they cannot prove they qualify or provide the documentation, I refuse to file it for them. I cant in good conscience set them up for future fines and penalties just to line my own pockets
Good for you, I was getting called from any company we worked with before that was handling filing ERC claims. At first, I was interested to know how else we may qualify, and even went into all of the "well if it doesn't work based on revenues, what about these other situations..." conversations. And every time they would try to manipulate what was actually going on and try to force something to get me a quick "eligible claim". I wasn't comfortable with the manipulation and only filed for those quarters where we had legitimate down quarters.
It's crazy to think how many clients they made these filings for, knowing if it was based off of fraudulent information they had those companies sign forms clearing them of any liability
Posted on 9/19/23 at 11:24 am to ChexMix
quote:
the government shut down businesses and limited their operations. Everyone saying they shouldnt have the ERC do NOT own businesses. Just more jealousy from the worker bees
The problem I have with your argument is all of this being driven BECAUSE of the worker bees. You don’t get ERC without them, and you didn’t get PPP.
Oftentimes workers were taking risks staying with companies through Covid as well. Some got furloughed, took pay cuts, etc. Some companies kept on going, even requiring employees to come in, and the impact was minimal.
Self employed and businesses that rely on contracting faced just as much risk with business disruption with much less upside because these programs don’t offer a lot of meat on the bone (or anything at all in some instances) for them.
It’s hard for me to fault anyone for taking advantage of any of these programs, at some point it weakens you competitively not to. But to say it’s some form of unreasonable jealousy by workers that business owners get to keep it all is just not appropriate in my opinion. Business owners reap the reward of profit because of risks they take, the whole point of these programs is risk mitigation.
Posted on 9/19/23 at 11:27 am to Weekend Warrior79
We've gotten so many ERC offers from companies that are filing them on behalf of small businesses. They will do so even if they know you would not qualify. They want their fees and their percentage of any claim that is paid. It is sickening and I hope these companies get hit hard some day for all the false hope they are giving to small businesses that are hurting right now.
Posted on 9/19/23 at 11:30 am to Weekend Warrior79
quote:
It's crazy to think how many clients they made these filings for, knowing if it was based off of fraudulent information they had those companies sign forms clearing them of any liability
It’s true. Most business owners are very naive. I’ve dealt with these types of companies in the past and they add very little value. Prepare this, sign that, here’s your invoice.
Government programs are so inconsistent. Inviting this type of predatory behavior is not good for anyone.
Posted on 9/19/23 at 12:57 pm to ChexMix
quote:
the government shut down businesses and limited their operations. Everyone saying they shouldnt have the ERC do NOT own businesses. Just more jealousy from the worker bees
I don't think anyone has any issues with businesses that had legit issues, getting help.
But all of those businesses were taken care of 2-3 years ago.
It's been three years since any business was shut down due to mandates, and probably two years since any real impacts have been felt.
And yet, some of the claims I'm seeing lately are...
Company buys a box of disposable masks in June 2020. Company was impacted! And these ERC mills are filing claims for that company.
Congress needs to shut down this program today. That's a start.
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