The IRS continues to focus on combating perceived fraudulent claims relating to the COVID-19 pandemic-era Employee Retention Credits (ERCs). On Oct. 19, the IRS announced a special process allowing taxpayers to withdraw certain previously filed ERC claims. That announcement follows enhanced IRS scrutiny of potentially fraudulent ERC claims that resulted in the IRS suspending processing new ERC claims at least through the end of 2023. [6]Considerations for M&A TransactionsGiven the heightened scrutiny and the scope of perceived fraudulent claims, several considerations arise in connection with M&A transactions involving companies that submitted ERC claims. [2] IRS News Release, IRS opens 2023 Dirty Dozen with warning about Employee Retention Credit claims; increased scrutiny follows aggressive promoters making offers too good to be true (Mar.

Source: Washington Post November 16, 2023 19:36 UTC