The IRS’ Office of Promoter Investigations is focused on uncovering and prosecuting Employee Retention Credit (ERC) fraud in 2024. According to the IRS, its Office of Promoter Investigations “has received hundreds of referrals from internal and external sources,” and since the COVID-19 pandemic, the IRS has largely blamed promoters for the billions of dollars in fraudulent claims filed under the ERC program. Do you have concerns about facing an ERC-related investigation? If so, keep reading to learn more from Boston IRS attorney Kevin E. Thorn, Managing Partner of Thorn Law Group.

On August 15, 2024, the Internal Revenue Service (IRS) announced that it is reopening the Employee Retention Credit (ERC) Voluntary Disclosure Program for a limited time. The ERC Voluntary Disclosure Program previously closed in March 2024, with the IRS reportedly receiving more than 2,600 voluntary disclosures involving more than $1.09 billion in improper ERC credits and refunds. As Boston tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, explains, for business owners who are thinking about submitting a voluntary disclosure this time around, there are some important changes to keep in mind.

The Internal Revenue Service (IRS) is continuing to prioritize Employee Retention Credit (ERC) fraud in Massachusetts and other states across the country. On August 8, 2024, the IRS issued another News Release highlighting its ERC enforcement efforts, with this one noting that the agency is “intensifying audits” focused on uncovering fraudulent ERC claims. Learn more from Boston tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group.

As we discussed last month, the Internal Revenue Service (IRS) has determined that the “vast majority” of Employee Retention Credit (ERC) claims show signs of fraud. Now, the IRS has shed additional light on its findings, identifying 12 specific “warning signs” for fraudulent ERC claims. With the IRS continuing to prioritize ERC fraud enforcement, Massachusetts businesses that claimed the credit should work with an experienced Boston tax attorney to reassess their eligibility and determine whether remedial action is warranted.