As the IRS continues to process employee retention credit (ERC) claims, Commissioner Danny Werfel said the agency has entered a new phase of increased scrutiny on dubious submissions.
After clearing the backlog of valid ERC claims, Werfel said the IRS is intensifying compliance work and enacting more procedures to deal with fraud in the program.
At a recent roundtable session with tax professionals in Atlanta, Werfel said the IRS increased audit and criminal investigation work on the potentially fraudulent ERC claims.
The agency has growing concerns about scams within the ERC program given the increase in false and misleading marketing campaigns, Werfel added.