The IRS will deny billions of dollars' worth of claims for a pandemic-era tax break while working to process lower-risk filings.
However, the IRS paused processing new filings in September amid a surge of"questionable claims" and will extend that moratorium.stopped processing new filingsAfter investigating more than 1 million claims worth roughly $86 billion, the IRS said in the release that it identified 10% to 20% of the highest-risk filings, and"tens of thousands" will be rejected in the coming weeks, according to the agency.
During the ERC review period, the agency processed 28,000 claims received before September 2023 worth $2.2 billion and disallowed more than 14,000 claims worth $1 billion, according to the release.
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