WSJ: IRS Struggles to Sort Legitimate From Bogus Tax-Credit Claims

SOME BUSINESSES ARE STILL WAITING FOR LAWFUL REFUNDS UNDER PANDEMIC-ERA EMPLOYEE-RETENTION TAX BREAK

“The agency is sifting through more than one million requests for tax refunds from employers around the country to get the money to the right people—and keep it from going to the wrong people. It has been slow going…

The IRS slowdown creates longer waits for taxpayers. Some employers say they are waiting for a response to valid claims for refunds. The more cautiously the agency works, the less it will pay to people who don’t deserve the money, but it will also owe taxpayers more interest and could cause financial distress to employers with legitimate claims.

Eric Holloway, owner of Signature Furniture Services in New Castle, Del., said getting the nearly $200,000 ERC he requested in June would help the company repay loans. The company, which installs office furniture, lost revenue during the pandemic when many people stopped going to work in person…”

Read the full article by Richard Rubin here.