IRS Reveals Suspicious Signs It Looks For to Flag Incorrect or Fraudulent Tax Credit Claims

The are 7 telltale signs of a bad ERC claim, including claiming it for all available quarters or during periods when pandemic lockdowns weren’t in effect.
IRS Reveals Suspicious Signs It Looks For to Flag Incorrect or Fraudulent Tax Credit Claims
The Internal Revenue Service (IRS) building in Washington on June 28, 2023. Madalina Vasiliu/The Epoch Times
Tom Ozimek
Updated:
0:00

The Internal Revenue Service (IRS) has revealed a series of specific suspicious red flags that could trigger enforcement actions when it comes to mistaken or fraudulent applications for a pandemic-era tax credit.

The IRS indicated in a March 20 notice that there are seven suspicious signs of a bad claim for the employee retention credit (ERC), which is a refundable tax credit designed for businesses that continued paying employees during COVID-19 shutdowns.
Tom Ozimek
Tom Ozimek
Reporter
Tom Ozimek is a senior reporter for The Epoch Times. He has a broad background in journalism, deposit insurance, marketing and communications, and adult education.
twitter
Related Topics