IRS Issues New Warning Against Businesses Filing Incorrect Tax Credit Claim

The agency estimated that more than $2.8 billion worth of credits on these applications could be fake.

The IRS building in Washington, on Oct. 16, 2023. Madalina Vasiliu/The Epoch Times

The IRS published a list of warning signs for businesses to help them identify whether they are eligible to claim a pandemic-era employee credit program.

The Employee Retention Credit (ERC) was instituted during the COVID-19 pandemic to encourage small businesses to retain their employees on payroll. It offered a refundable tax credit for entities that paid employees while shut down due to lockdowns and other restrictions.