Small Businesses Struggle with ERC Claims

Small Business Woes: IRS Denies Over $1.1 Billion in Employee Retention Credit Claims

Beware of ERC Scams: IRS Warns of Misleading Claims and How to Fix Mistakes

According to FOOL, The IRS has denied over 14,000 claims for the Employee Retention Credit (ERC), which was meant to help small businesses keep paying their employees during tough times. This means that over $1.1 billion in claims were turned down. Some business owners may have been misled about their eligibility for the credit.

The IRS says that some people have been tricking small businesses into applying for the credit when they don’t qualify. This is causing problems for many business owners. The IRS has set up a way for businesses to fix their mistakes and withdraw their claims.

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Small Businesses Struggle with ERC Claims (PHOTO: GOOGLE)

Common ERC Mistakes to Avoid: Fixing Errors and Staying Compliant

If your business made a mistake on its claim, you may need to fix it. The IRS has a list of signs that something might be wrong with your claim. For example, if you claimed the credit for too many quarters or because of a shutdown order in your area, it might be incorrect. If you think you made a mistake, you can talk to a tax expert or fix it through the IRS website. Business owners need to understand the rules and regulations around the ERC so they can avoid problems.

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