Congressman Valadao Requests Answers for Central Valley Small Businesses

Fecha de publicación: 11/10/2024
Fuente: California Agriculture Today
Today, Congressman David G. Valadao (CA-22) sent a follow-up letter to IRS Commissioner Danny Werfel regarding delays in processing Employee Retention Tax Credit (ERTC) claims, a program created during the COVID-19 pandemic to help businesses keep people employed. In January of this year, Congressman Valadao wrote to Commissioner Werfel requesting answers and expressing concerns over the IRS’ significant issues with processing and payment of ERTC claims.
Congressman Valadao highlighted the lack of communication from the IRS that has frustrated many small business owners:
“Businesses with legitimate ERTC claims deserve prompt processing and payment of their claims. Unfortunately, the IRS has not yet communicated the status of these claims or outlined the process for the analysis needed to complete their processing and payment,” Congressman Valadao wrote.
While the IRS has made progress since the Congressman’s initial letter to investigate fraud and pay eligible claims, there are still thousands of small businesses waiting for their claim to be processed and paid:
“The ERTC program was designed to provide crucial relief to businesses during the pandemic. While the steps the IRS has taken in recent months are essential for addressing these claims, I am concerned that the IRS response has been inadequate,” Congressman Valadao wrote.
Congressman Valadao requested answers from the IRS on the current steps they’re taking to address these claims, including:

Will the IRS consider extending the 30-day period for taxpayers who received a disallowance letter to submit a protest? If not, why not?
How is the IRS reviewing the 60 to 70 percent of claims that have moderate level of risk? How is the IRS communicating the status of these claims with taxpayers?
In August, the IRS announced that 50,000 low-risk claims were moving into processing. Of these claims, how many have been paid?
Is the IRS working through ERTC cases that the Taxpayer Advocate Service is sending?

Read the full text of the letter here.
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