Some firms that improperly claimed employee retention tax credits for their clients are liable for underpayments, the Office of Chief Counsel at the IRS said in a generic legal advice memorandum released Friday.
The memo comes amid continued fraud in the pandemic-era program. IRS Commissioner Danny Werfel told House Ways and Means lawmakers Thursday that the agency is still receiving thousands of employee retention tax credit claims, even after an agency moratorium on the program.
The IRS stance outlined in the memo is not new, but rather explicitly lays out liability for the employee retention credit. The memo is one ...