WASHINGTON, DC – The American Institute of CPAs (AICPA) has strengthened its support for recent Internal Revenue Service (IRS) measures to combat fraudulent Employee Retention Credit (ERC) claims. The IRS’s voluntary disclosure program, part of its compliance efforts to address the issue, ended after identifying more than $1 billion in misstatements.
The AICPA’s managing director of public accounting, Sue Coffey, expressed approval of the IRS’ actions to ensure that ERC funds reach the intended legitimate businesses. In light of the program’s end, the AICPA is highlighting resources and information to assist members and the public in recognizing and avoiding dishonest sellers, sometimes referred to as “ERC mills.”
The AICPA has consistently warned against partnering with third-party vendors who charge substantial contingency fees or refuse to sign amended payroll tax returns, which are red flags for potential fraud. To support accountants and their clients, the AICPA and AON provided a question-and-answer session on the Voluntary Disclosure Program (VDP), and the AICPA Tax Odyssey Section offered guidance on how to address the moratorium on processing ERC claims and on professional responsibilities relating to ERC requests.
The AICPA, representing more than 415,000 members globally, continues its mission to serve the public interest and uphold ethical standards within the CPA profession. The organization also offers resources through its ERC Resource Center to further assist professionals in addressing ERC-related issues.
This move by the IRS, supported by the AICPA, is intended to protect the integrity of the ERC program, which has been a significant consideration for taxpayers and accounting professionals. The information is based on an AICPA press release.
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