Skip to Content

IRS claws back money given to businesses under fraud-ridden COVID-era tax credit program

By MAE ANDERSON
AP Business Writer

NEW YORK (AP) — The IRS says it’s making progress with initiatives to claw back money improperly distributed under the Employee Retention Credit. The ERC was designed to help businesses retain employees during pandemic-era shutdowns, but it quickly became a magnet for fraud. Its complex eligibility rules allowed scammers to target small businesses, offering help applying for the ERC for a fee — even if the business didn’t qualify. The IRS said it received $225 million from a voluntary disclosure program that let small businesses that thought they received the credit in error give back the money and keep 20%. The program ended on March 22.

Article Topic Follows: AP National News

Jump to comments ↓

Associated Press

BE PART OF THE CONVERSATION

KTVZ NewsChannel 21 is committed to providing a forum for civil and constructive conversation.

Please keep your comments respectful and relevant. You can review our Community Guidelines by clicking here

If you would like to share a story idea, please submit it here.

Skip to content