In a recent article for Tax Notes, MMM Partner Barclay Taylor examines the Employee Retention Credit (ERC), a CARES Act provision aimed at helping businesses keep employees on payroll during COVID-19. The ERC provides a refundable payroll tax credit to qualifying businesses based on two main criteria: a partial suspension due to government mandates or a significant drop in gross receipts. While many businesses have benefited from the ERC, Taylor notes that countless claims remain unprocessed, leaving some companies waiting years for their funds.
Taylor also addresses the IRS’ evolving response to potential ERC fraud, which includes processing pauses, a withdrawal program, and two voluntary disclosure programs for businesses to resolve questionable claims. For companies still facing delays, Taylor outlines possible strategies, from reaching out to the Taxpayer Advocate Service to filing lawsuits and expediting claim processing. This article offers businesses essential insights into navigating the ERC's challenges and securing the refunds they may be owed.
Read the full article below.
