As of March 3, just over 866,000 companies claimed and received employee retention credits totaling over $152.6 billion, according to the latestCurrently, there's a backlog of Forms 941-X, known as the adjusted employer's quarterly federal tax return, which businesses must use to amend returns to claim the employee retention credit for 2020 or 2021.
Of course, the current backlog of Forms 941-X also includes a lot of "legitimate claims" for the employee retention credit, which have been delayed as the IRS reviews the filings, Collins said. The IRS the agency is working on the inventory at two sites with "trained staff" to review possible Covid-19 credits.If you wrongly claimed the employee retention credit, you may be subject to an
, according to Debra Estrem, managing director of private wealth controversy at Deloitte Tax, who also worked at the IRS Office of the Chief Counsel.," which is typically 20% of the excess amount claimed. But the type of penalty depends on whether the error occurred on the original filing or an amended return.