Title: IRS says ‘vast majority’ of 1 million pandemic-era credit claims show a risk of being improper URL Source: https://www.politico.com/news/2024/06/20/irs-says-vast-majority-of-1-million-pandemic-era-credit-claims-show-a-risk-of-being-improper-00164341 Published Time: 2024-06-20T23:23+0000 Markdown Content: [Skip to Main Content](https://www.politico.com/news/2024/06/20/irs-says-vast-majority-of-1-million-pandemic-era-credit-claims-show-a-risk-of-being-improper-00164341#main) Toggle menu[](https://www.politico.com/) * More from Politico * Europe * Pro * E&E News * AgencyIQ Press Escape to close the menu. search for any story ## WASHINGTON & POLITICS WASHINGTON & POLITICS 6 items * 1st item[Congress](https://www.politico.com/congress-news-updates-analysis) * 2nd item[White House](https://www.politico.com/white-house-news-updates-analysis) * 3rd item[Supreme Court and Legal Issues](https://www.politico.com/supreme-court-legal-news-updates-analysis) * 4th item[Magazine](https://www.politico.com/magazine) * 5th item[2026 Elections](https://www.politico.com/2026-elections) * 6th item[Latest on POLITICO](https://www.politico.com/politics) ## STATE POLITICS & POLICY STATE POLITICS & POLICY 4 items * 1st item[California](https://www.politico.com/news/california) * 2nd item[Florida](https://www.politico.com/florida-politics-news-analysis-updates) * 3rd item[New Jersey](https://www.politico.com/new-jersey-politics-news-analysis-updates) * 4th item[New York](https://www.politico.com/news/new-york) ## GLOBAL POLITICS & POLICY GLOBAL POLITICS & POLICY 4 items * 1st item[Brussels](https://www.politico.eu/) * 2nd item[Canada](https://www.politico.com/canada-politics-news-updates-analysis) * 3rd item[United Kingdom](https://www.politico.eu/uk) * 4th item[World Cup](https://www.politico.com/world-cup-news-updates-analysis) ## POLICY NEWS POLICY NEWS 11 items * 1st item[Food and Agriculture](https://www.politico.com/food-agriculture-news-updates-analysis) * 2nd item[Cybersecurity](https://www.politico.com/cybersecurity-news-updates-analysis) * 3rd item[Defense](https://www.politico.com/defense-national-security-foreign-policy-news-updates-analysis) * 4th item[Education](https://www.politico.com/education-news-updates-analysis) * 5th item[Energy and Climate](https://www.politico.com/energy-climate-news-updates-analysis) * 6th item[Tax, Finance and the Economy](https://www.politico.com/tax-finance-economy-news-updates-analysis) * 7th item[Health Care](https://www.politico.com/healthcare-news-updates-analysis) * 8th item[Labor](https://www.politico.com/labor-news-updates-analysis) * 9th item[Tech](https://www.politico.com/tech-news-updates-analysis) * 10th item[Trade](https://www.politico.com/trade-news-updates-analysis) * 11th item[Transportation](https://www.politico.com/transportation-news-analysis-updates) ## NEWSLETTERS NEWSLETTERS 6 items * 1st item[Playbook](https://www.politico.com/playbook) * 2nd item[West Wing Playbook](https://www.politico.com/newsletters/west-wing-playbook) * 3rd item[Inside Congress](https://www.politico.com/newsletters/inside-congress) * 4th item[POLITICO Forecast](https://www.politico.com/newsletters/forecast) * 5th item[POLITICO Magazine](https://www.politico.com/newsletters/magazine) * 6th item[All Newsletters](https://www.politico.com/newsletters) ## COLUMNISTS COLUMNISTS 7 items * 1st item[Alex Burns](https://www.politico.com/tag/column-alex-burns) * 2nd item[Victoria Guida](https://www.politico.com/tag/column-victoria-guida) * 3rd item[John Harris](https://www.politico.com/tag/column-john-harris) * 4th item[Debra Kahn](https://www.politico.com/news/column-debra-kahn) * 5th item[Jonathan Martin](https://www.politico.com/tag/column-jonathan-martin) * 6th item[Nahal Toosi](https://www.politico.com/news/column-nahal-toosi) * 7th item[All Columnists](https://www.politico.com/columnists) ## SERIES & MORE SERIES & MORE 7 items * 1st item[Inside Congress Live](https://www.politico.com/live-updates/congress) * 2nd item[Breaking News Alerts](https://www.politico.com/subscribe/breaking-news-alerts) * 3rd item[Podcasts](https://www.politico.com/podcasts) * 4th item[Video](https://www.politico.com/video) * 5th item[Matt Wuerker Cartoons](https://www.politico.com/news/matt-wuerker) * 6th item[Cartoon Carousel](https://www.politico.com/tag/cartoon-carousel) * 7th item[The POLITICO Poll](https://www.politico.com/polling) ## POLITICO Live POLITICO Live 1 item * 1st item[Events](https://www.politico.com/live-events/) ## Follow us * [X](https://twitter.com/politico) * [Instagram](https://www.instagram.com/politico/) * [Facebook](https://www.facebook.com/politico/) * [LinkedIn](https://www.linkedin.com/company/politico) * [My Account](https://www.politico.com/settings) * [Log In](https://login.politico.com/?redirect=https%3A%2F%2Fwww.politico.com%2Fsettings) # IRS says ‘vast majority’ of 1 million pandemic-era credit claims show a risk of being improper Tens of thousands of claims showing "clear signs of being erroneous" will be denied in coming weeks, the agency said. ![Image 1: A sign outside the Internal Revenue Service building is seen.](https://www.politico.com/dims4/default/resize/630/quality/90/format/webp?url=https%3A%2F%2Fstatic.politico.com%2F2c%2Fc3%2Ff01c0ffd4e218908436dc1c49bf3%2Ftax-audits-60767.jpg) About 10 percent to 20 percent show low risk, and the IRS will begin processing those claims. The first payments for that group should begin later this summer. | Patrick Semansky/AP By Associated Press 06/20/2024 07:23 PM EDT NEW YORK — The Internal Revenue Service said Thursday [a review](https://apnews.com/article/small-business-employee-retention-credit-irs-a2560534540931a2f8c007275bd65d01) of 1 million claims for the Employee Retention Credit representing $86 billion shows the “vast majority” are at risk of being improper. The ERC was designed to help businesses retain employees during pandemic-era shutdowns, but it [quickly became a magnet for fraud](https://apnews.com/article/irs-covid-business-tax-credit-fraud-congress-226ea420bdb2c3a06e135d47ca140a8d). Its complex eligibility rules allowed scammers to target small businesses, offering help applying for the ERC for a fee — even if they didn’t qualify. About 10 percent to 20 percent of the 1 million claims show “clear signs of being erroneous,” and tens of thousands of those will be denied in coming weeks, the IRS said. Another 60 percent to 70 percent show an “unacceptable risk” of being improper and will be further evaluated. “The completion of this review provided the IRS with new insight into risky Employee Retention Credit activity and confirmed widespread concerns about a large number of improper claims,” said IRS Commissioner Danny Werfel. “We will now use this information to deny billions of dollars in clearly improper claims and begin additional work to issue payments to help taxpayers without any red flags on their claims.” About 10 percent to 20 percent show low risk, and the IRS will begin processing those claims. The first payments for that group should begin later this summer. The IRS [stopped processing new claims in September](https://apnews.com/article/small-business-fraud-erc-irs-161fb191d159548949d42a015910e9c2) and it said Thursday that the moratorium on ERC claims submitted after Sept. 14, 2023 will continue. The IRS said businesses can pursue the [claim withdrawal process](https://www.irs.gov/newsroom/withdraw-an-employee-retention-credit-erc-claim) if they need to ask the IRS not to process an ERC claim for any tax period that hasn’t been paid yet. Related Tags * [IRS](https://www.politico.com/tag/irs) * [Business](https://www.politico.com/tag/business) * [National](https://www.politico.com/tag/national) * [Pandemic](https://www.politico.com/tag/pandemic) * [Coronavirus](https://www.politico.com/tag/coronavirus) * [Loans](https://www.politico.com/tag/loans) * [Money](https://www.politico.com/tag/money) * [Fraud](https://www.politico.com/tag/fraud) * [Hide from HP](https://www.politico.com/tag/hide-from-hp) ## [POLITICO Forecast](https://www.politico.com/newsletters/forecast) Global power is in flux. Your daily guide to what comes next. [![Image 2: POLITICO Forecast](https://www.politico.com/dims4/default/resize/100/quality/90?url=https%3A%2F%2Fstatic.politico.com%2F11%2Fe0%2F9b9a825f45cf99c253896f1cfcee%2F20260116-politico-forecast-cms-small-product-logo.png)](https://www.politico.com/newsletters/forecast) Email Employer Job Title By signing up, you acknowledge and agree to our [Privacy Policy](https://www.politico.com/privacy) and [Terms of Service](https://www.politico.com/terms-of-service) . You may unsubscribe at any time by following the directions at the bottom of the email or by [contacting us here](https://www.politico.com/feedback) . This site is protected by reCAPTCHA and the Google [Privacy Policy](https://policies.google.com/privacy) and [Terms of Service](https://policies.google.com/terms) apply. Sign Up * All fields must be completed to subscribe SPONSORED CONTENT [](https://www.outbrain.com/what-is/default/en) * [About Us](https://www.politico.com/about-us) * [Advertising](https://www.politico.com/advertising) * [Breaking News Alerts](https://www.politico.com/subscribe/breaking-news-alerts) * [Careers](https://www.politico.com/careers) * [Credit Card Payments](https://www.politico.com/payment) * [FAQ](https://www.politico.com/faq) * [Feedback](https://www.politico.com/feedback) * [Headlines](https://www.politico.com/politics) * [Photos](https://www.politico.com/gallery) * [Press](https://www.politico.com/press/about) * [Request A Correction](https://www.politico.com/corrections) * [Write For Us](https://www.politico.com/write-for-us) * [RSS](https://www.politico.com/rss) * [Site Map](https://www.politico.com/sitemap) * [Terms of Service](https://www.politico.com/terms-of-service) * [Privacy Policy](https://www.politico.com/privacy-policy) * [Do Not Sell or Share My Personal Information and Opt Out of Targeted Advertising](javascript:window._sp_.usnat.loadPrivacyManagerModal(1238401)) * * * © 2026 POLITICO LLC [](javascript:void(0)) ![Image 3](https://t.co/i/adsct?bci=3&dv=UTC%26en-US%2Cen%26Google%20Inc.%26Linux%20x86_64%26255%261280%261280%268%2624%261280%261280%260%26na&eci=2&event_id=582609b7-2a5d-4aff-bae5-c021828899b5&events=%5B%5B%22pageview%22%2C%7B%7D%5D%5D&integration=advertiser&p_id=Twitter&p_user_id=0&pl_id=339d24fb-39ef-4fef-af54-92644d570034&pt=IRS%20says%20%E2%80%98vast%20majority%E2%80%99%20of%201%20million%20pandemic-era%20credit%20claims%20show%20a%20risk%20of%20being%20improper%20-%20POLITICO&tw_document_href=https%3A%2F%2Fwww.politico.com%2Fnews%2F2024%2F06%2F20%2Firs-says-vast-majority-of-1-million-pandemic-era-credit-claims-show-a-risk-of-being-improper-00164341&tw_iframe_status=0&tw_order_quantity=0&tw_pid_src=1&tw_sale_amount=0&twpid=tw.1783166383881.41185147999861430&txn_id=nyj3v&type=javascript&version=2.3.53)![Image 4](https://analytics.twitter.com/i/adsct?bci=3&dv=UTC%26en-US%2Cen%26Google%20Inc.%26Linux%20x86_64%26255%261280%261280%268%2624%261280%261280%260%26na&eci=2&event_id=582609b7-2a5d-4aff-bae5-c021828899b5&events=%5B%5B%22pageview%22%2C%7B%7D%5D%5D&integration=advertiser&p_id=Twitter&p_user_id=0&pl_id=339d24fb-39ef-4fef-af54-92644d570034&pt=IRS%20says%20%E2%80%98vast%20majority%E2%80%99%20of%201%20million%20pandemic-era%20credit%20claims%20show%20a%20risk%20of%20being%20improper%20-%20POLITICO&tw_document_href=https%3A%2F%2Fwww.politico.com%2Fnews%2F2024%2F06%2F20%2Firs-says-vast-majority-of-1-million-pandemic-era-credit-claims-show-a-risk-of-being-improper-00164341&tw_iframe_status=0&tw_order_quantity=0&tw_pid_src=1&tw_sale_amount=0&twpid=tw.1783166383881.41185147999861430&txn_id=nyj3v&type=javascript&version=2.3.53)![Image 5](https://t.co/i/adsct?bci=3&dv=UTC%26en-US%2Cen%26Google%20Inc.%26Linux%20x86_64%26255%261280%261280%268%2624%261280%261280%260%26na&eci=2&event_id=08c1335a-f212-4356-90e9-be7133eaa0f4&events=%5B%5B%22pageview%22%2C%7B%7D%5D%5D&integration=advertiser&p_id=Twitter&p_user_id=0&pl_id=339d24fb-39ef-4fef-af54-92644d570034&pt=IRS%20says%20%E2%80%98vast%20majority%E2%80%99%20of%201%20million%20pandemic-era%20credit%20claims%20show%20a%20risk%20of%20being%20improper%20-%20POLITICO&tw_document_href=https%3A%2F%2Fwww.politico.com%2Fnews%2F2024%2F06%2F20%2Firs-says-vast-majority-of-1-million-pandemic-era-credit-claims-show-a-risk-of-being-improper-00164341&tw_iframe_status=0&tw_order_quantity=0&tw_pid_src=1&tw_sale_amount=0&twpid=tw.1783166383881.41185147999861430&txn_id=nygpo&type=javascript&version=2.3.53)![Image 6](https://analytics.twitter.com/i/adsct?bci=3&dv=UTC%26en-US%2Cen%26Google%20Inc.%26Linux%20x86_64%26255%261280%261280%268%2624%261280%261280%260%26na&eci=2&event_id=08c1335a-f212-4356-90e9-be7133eaa0f4&events=%5B%5B%22pageview%22%2C%7B%7D%5D%5D&integration=advertiser&p_id=Twitter&p_user_id=0&pl_id=339d24fb-39ef-4fef-af54-92644d570034&pt=IRS%20says%20%E2%80%98vast%20majority%E2%80%99%20of%201%20million%20pandemic-era%20credit%20claims%20show%20a%20risk%20of%20being%20improper%20-%20POLITICO&tw_document_href=https%3A%2F%2Fwww.politico.com%2Fnews%2F2024%2F06%2F20%2Firs-says-vast-majority-of-1-million-pandemic-era-credit-claims-show-a-risk-of-being-improper-00164341&tw_iframe_status=0&tw_order_quantity=0&tw_pid_src=1&tw_sale_amount=0&twpid=tw.1783166383881.41185147999861430&txn_id=nygpo&type=javascript&version=2.3.53)![Image 7](https://sync.intentiq.com/profiles_engine/ProfilesEngineServlet?at=20&mi=10&secure=1&dpi=undefined&iiqidtype=2&iiqpcid=9e55d78a-1fb5-47e3-844a-995909388b0a&iiqpciddate=1783166387254&tsrnd=524_1783166387254&vrref=&jsver=5.082)