Legislation to prevent the Internal Revenue Service (IRS) from processing Employee Retention Tax Credit (ERTC) claims filed after Jan. 31, 2024, was introduced this week by Sens. Joe Manchin (I-WV), Mitt Romney (R-UT) and Thom Tillis (R-NC).
The pandemic-era tax credit has been susceptible to fraudulent claims and has added an estimated $230 billion to the national debt, the senators said.
What they're saying: "In a rare moment of widespread agreement in Washington, almost all members of Congress agree that we should eliminate the ERTC—which has been pervaded by fraud and cost nearly 200 percent more than originally projected," Romney said.
"Stealing from the government is stealing from hardworking taxpayers. Instead of repurposing ERTC funds for future spending programs, we should eliminate this plagued credit now to lower our national debt."
The ERTC, created by the CARES Act in March 2020, was a lifeline to small businesses and nonprofit groups struggling to keep their employees on their payrolls during the COVID-19 pandemic.
This article was provided to OSAP by ASAE's Power of Associations and Inroads.