The IRS has intensified its efforts to investigate and combat deceptive promoters of the Employee Retention Credit (ERC) which specifically targets small businesses. These promoters employ aggressive marketing tactics to lure small businesses, offering assistance in claiming substantial tax credits through the ERC. Unfortunately, their advice is often misleading or exaggerated.
These unscrupulous promoters make bold promises to businesses, assuring them that they qualify for the credit, irrespective of the actual eligibility requirements. Once the unsuspecting businesses file their applications, the scammers vanish, having received an upfront commission based on the exaggerated size of the tax credit.
However, when the IRS reviews the applications, it frequently denies the application due to ineligibility, leaving the businesses not only without the promised credit but also out of the commission they paid to the promoters. In some unfortunate cases, the businesses may have to repay the entire claimed credit to the IRS.
The IRS is determined to protect small businesses from falling victim to such fraudulent schemes and is taking measures to identify and take action against these illicit promoters. The best way to ensure proper eligibility before applying for the ERC is to work with licensed and experienced tax professionals.
A More User-Friendly IRS
As you may know, in recent years the IRS has earned a reputation for often being difficult for taxpayers to communicate with. IRS Management is seeking to change that. The IRS wants taxpayers to experience the same level of functionality with their online taxpayer accounts as they would with an online bank account. Some of the planned improvements include
- Enhanced client management capabilities for tax professionals, allowing them to view and manage payments as well as a secure two-way messaging system.
- The creation of online business accounts which will allow businesses to view balances, make payments online and conduct tax checks.
- The new services will also allow taxpayers to submit several tax forms through their mobile devices in time for the 2024 filing season.
In addition to the new dedication towards taxpayer accessibility, the IRS is ending one of its older and more infamous practices; “The Unannounced Visit.”
The decision to permanently suspend the practice of unannounced visits to homes and businesses with significant unpaid tax debt is immediately in effect. The influx of scammers impersonating agents both online and in person has created much confusion and concerns related to the safety of both taxpayers and IRS agents. The moral is “Beware if someone knocks on your door and claims to be an IRS Agent.” Immediately call your CPA or attorney.
