AICPA releases statement on IRS announcement concerning ERC Mills

Following an announcement by the Internal Revenue Service (IRS), the American Institute of CPAs (AICPA) released its response.
AICPA President and CEO, Barry Melancon, CPA, CGMA, says, the latest initiative by the IRS takes a multi-pronged approach to taper ERC fraud by further scrutinizing ERC claims already received, pausing the processing of additional claims, and defining processes for taxpayers to handle claims they now feel are in error.
“While drastic, these measures are necessary to protect small businesses by putting a stranglehold on the unscrupulous ERC practices of credit mills. We are pleased with the IRS’s announcement of the additional measures they are taking to push back against the dishonest credit mills taking advantage of unsuspecting small businesses. While there are still valid claims to be processed, these bold measures are necessary to combat widespread ERC fraud.”
Following a recent hearing convened by the Oversight Subcommittee of the House Ways & Means Committee on July 27, 2023, AICPA submitted a written statement for the record expressing concerns with the increase of dishonest ERC mills and recommendations to address the issue.

The AICPA has provided resources and information to its members to warn their clients of red flags that could indicate that a vendor is dishonest and discourage dealings with these ERC mills. Among the warning signs, businesses should be wary of vendors that require large, contingency fees and those who fail to sign the amended payroll tax returns.

The following free resources are also available to individuals looking for additional guidance and information:

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