Michael Lodge - The Business Advisor - 424.542.7299 - www.buymeacoffee.com: I have written about the ERC Employee Retention Credit) program passed by Congress was a big problem. There were so many companies out there promoting it to small businesses when the majority of small businesses did not qualify, but applied anyway because these ERC promoters on TV, the internet, email, were pushing the ERC but did not tell businesses if the really qualified or not. Now these small businesses are faced with audits and repayment to the IRS. It was too good to be true.
When IRS Commissioner Danny Werfel met privately with senators recently, the chairman of the Senate Finance Committee asked for his assessment of a startling report: A whistleblower estimated that 95% of claims now being made by businesses for a COVID-era tax break were fraudulent.
Everytime the government gives out free money, small business gets hurt. Nothing is free from Congress. It hurts every time.