Overview

• The IRS has suspended a pandemic tax credit for smaller businesses due to widespread fraud and abuse.
• Shady promoters misled taxpayers into making questionable claims for the employee retention credit.
• The IRS placed a moratorium on new claims and is auditing thousands of businesses.
• Existing claims will take twice as long to process as the IRS tries to address the issues.
• The employee retention tax credit aimed to incentivize keeping employees on payroll during the pandemic.