The IRS had a backlog of approximately 1.4 million Employee Retention Credit (ERC) claims as of May 2024. This was one of several revelations that came to light when the IRS was forced to respond to a lawsuit challenging its moratorium on new ERC filings earlier this year. In its response, the IRS also made clear that it is processing pending claims “slowly and judiciously” in order to identify potentially fraudulent claims that require further scrutiny.

When facing IRS criminal tax audits, taxpayers need to be very careful to avoid making false statements to the IRS. Knowingly and willfully making false statements to the IRS is a federal crime, and taxpayers convicted of making false statements to the IRS can face both fines and prison time. With this in mind, how can taxpayers protect themselves, and what can they do if it’s already too late to avoid making a mistake? Virginia criminal tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, explains.

Paycheck protection program (PPP) and employee retention credit (ERC) fraud remain top law enforcement priorities for the federal government in 2024. The Internal Revenue Service (IRS) and U.S. Department of Justice (DOJ) are actively targeting PPP applicants and ERC claimants, and the DOJ is pursuing serious criminal charges in many cases. With this in mind, business owners and other taxpayers who have concerns about their PPP or ERC filings should consult with an experienced Virginia tax attorney as soon as possible.

Now that tax season is over, IRS audit season begins. While the IRS audits businesses (and business owners) year-round, the months after tax season are typically when we see some of the highest audit numbers of the year. So, if the IRS audits your business, would your business (or would you personally) be at risk? Learn about some key considerations from Virginia business tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group:

With the Internal Revenue Service (IRS) continuing to aggressively target Employee Retention Credit (ERC) fraud in 2024, it is critical that Virginia business owners who claimed the credit have a clear understanding of the risks involved. As Virginia IRS tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group explains, allegations of ERC fraud can expose business owners to substantial penalties—including criminal penalties in some cases.