In response to a recent article in Politico Tax Pro which revealed that “tax writers are privately considering a crackdown on the Employee Retention Credit to help defray the cost of a long-sought tax bill expanding the child credit,” Casey Clark, president & CEO of the National Association of Professional Employer Organizations (NAPEO), issued the following statement:
“Punishing small businesses for the federal government’s failure to police its own programs is bad policy. Ending the ERTC program before fulfilling obligations to reimburse American small business owners would penalize legitimate claimants for the government’s inability to police its own programs, leaving thousands of small business owners on the hook for liabilities our federal government is obligated to repay. This should raise eyebrows in every congressional district and on both sides of the aisle.
“Retroactively ending this program to fund other government programs is a nonstarter for America’s small businesses, many of which have waited more than three years for the IRS to process their legitimate tax credit filings. The IRS should process the outstanding ERTC claims and work with Congress to ensure that those who have committed fraud or enriched themselves off questionable claims are held accountable.”