In the Headlines
June 17, 2024
A COVID Lifeline for Businesses Has Become a Curse for the IRS
Bloomberg Law
Tax attorney Daniel Strickland was quoted in a Bloomberg Law article about the IRS' struggle to manage the Employee Retention Credit (ERC) program, which was created to help businesses keep employees on payroll during the COVID-19 pandemic. The article highlighted the challenges the IRS faces in processing a backlog of claims, distinguishing between fraudulent and legitimate submissions, and the impact on businesses waiting for refunds. Mr. Strickland commented on the IRS' approach to auditing claims and its conservative stance on eligibility.
"Outside of fraudulent claims that invent payroll, employees or businesses entirely, the only way they're ever going to know whether that's a good claim or a valid claim, is to audit it. The IRS is intentionally taking the hyper-conservative position with the expectation that it's their starting point," he said.
READ: A COVID Lifeline for Businesses Has Become a Curse for the IRS (Subscription required)
"Outside of fraudulent claims that invent payroll, employees or businesses entirely, the only way they're ever going to know whether that's a good claim or a valid claim, is to audit it. The IRS is intentionally taking the hyper-conservative position with the expectation that it's their starting point," he said.
READ: A COVID Lifeline for Businesses Has Become a Curse for the IRS (Subscription required)