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Management Took Actions to Address Erroneous Employee Retention Credit Claims; However, Some Questionable Claims Still Need to Be Addressed

Audit · Treasury Inspector General for Tax Administration · 2024-09-30 · about Internal Revenue Service

Report

Title
Management Took Actions to Address Erroneous Employee Retention Credit Claims; However, Some Questionable Claims Still Need to Be Addressed
Submitting OIG
Treasury Inspector General for Tax Administration
Component agency
Internal Revenue Service
Type
Audit
Publication date
2024-09-30

Recommendations (4)

#StatusText
1ClosedOn February 28, 2024, we alerted the ERC Team Lead of our concern and recommended that the IRS review the 997 tax returns we identified and consider them for post-refund compliance review to recover potentially erroneous ERC paid.
2ClosedOn February 28, 2024, we alerted the ERC Team Lead of our concern and recommended that the IRS review the 139,993 and 44,930 Tax Years 2020 and 2021 returns and consider them for post-refund compliance to recover any potentially erroneous ERC paid.…
3ClosedThe Commissioner, Small Business/Self-Employed Division, should ensure that the 923 entities we identified receive a disallowance letter to prevent erroneous ERC claims from being paid.
4ClosedThe Commissioner, Small Business/Self-Employed Division, should ensure that any subsequent analysis to identify businesses for recapture letters uses accurate wage data and takes into consideration lessons learned from the Tax Year 2020 recapture…

Source

Authoritative
oversight.gov report page
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