The IRS has decided to temporarily halt a tax benefit meant for small businesses due to a significant increase in what it deems as dubious claims. This suspension will remain in effect at least until the conclusion of 2023.
The employee retention credit, initially established by Congress in 2020 to safeguard jobs during the pandemic, has garnered a staggering 3.6 million claims thus far, potentially amounting to as much as $26,000 per employee. The IRS has expressed growing concern over the exploitation of honest small business owners by unethical entities, particularly after the aggressive promotion of credit application services by new, fly-by-night companies.
The attorneys at Outside Legal Counsel LLP are available to small businesses to help them review agreements and do their due diligence before engaging services of companies that might lead to liability. Please reach out to us to schedule a consultation.
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