On Fri, 21 Jun 2024 22:44:23 EDT, John Levine wrote:
According to Stan Brown <[email protected]>:
The article left me with a question: can the IRS legally audit
applications that were already approved, and if so how likely is it
to do that?
This press release says, among other things:
Audits: The IRS has thousands of ERC claims currently under audit.
https://www.irs.gov/newsroom/irs-enters-next-stage-of-employee-retention-credit-work-review-indicates-vast-majority-show-risk-of-being-improper
Thanks for the link, John. My question was whether the IRS can audit
_approved_ claims, and if so whether it's going to attempt to claw
back the money paid out. Initially I forgot that "audits" can come
after a return has been accepted and any refund paid.
And the press release answers it explicitly, a little earlier:
"Compliance work on previously processed ERC claims continue [sic],
and work continues on a number of efforts to counter questionable
claims:
"... The IRS has determined that more than 12,000 entities filed over
22,000 claims that were improper and resulted in $572 million in
assessments. This initial round of letters covers Tax Year 2020.
Thousands more of these letters are planned in coming months to
address Tax Year 2021, which involved larger claims. ..."
It's the "previously processed" ones -- "approved", as I would have
said -- that I was curious about.
In hindsight, I have to admit it was a silly question. I had
forgotten: If you file a 1040 that claims more of a refund than
you're entitled to, they may very well pay it initially but then come
back later with an assessment. There's no reason the ERC should be
any different.
--
Stan Brown, Tehachapi, California, USA
https://BrownMath.com/
Shikata ga nai...
--
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