Regret Claiming That Pandemic Employer Tax Credit? IRS Now Lets You Take It Back
Tax attorney Daniel Strickland was quoted in a Wall Street Journal article about the Internal Revenue Service's (IRS) recent decision to offer an escape route for employers with pending claims for the pandemic-era employee retention credit. The move aims to reduce fraudulent claims by allowing employers that have not received funds to withdraw their claims without penalties or interest. Mr. Strickland discussed the nuances of eligible claims and offered insights on potential disputes, grounding his analysis on the premise that an eligible employer must have altered its operations in response to a governmental order.
"The critical point here is that an order requires action and that if you don't do the action of the governmental order, no matter what it's called, there's a penalty. The key here is to look for the teeth," he said.
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