Share
Getting your Trinity Audio player ready...
|
Congressman David Valadao wants to know why special pandemic-era tax credits are taking so long to reach small businesses.
The federal Employee Retention Tax Credit — ushered in during the pandemic — was meant to help small businesses retain employees. The program’s aim was for businesses to keep paying employees, whether the company stayed open or not.
Valadao, R-Hanford, says the IRS “has experienced significant issues with the processing of legitimate ERTC claims.”
Last September, the IRS issued a moratorium through at least the end of last year “following growing concerns … that a substantial share of new claims from the aging program are ineligible and increasingly putting businesses at financial risk by being pressured and scammed by aggressive promoters and marketing.”
Radio and television ads from marketers and others claiming that businesses can reap windfalls in ERTC credits via their guidance continue to flood the airwaves.
Valadao sent a letter on Tuesday to IRS Commissioner Daniel Werfel, wanting to know why legitimate claims are not being processed.
“While I am pleased with the agency’s focus on identifying potentially fraudulent claims and investigating bad actors, I am concerned that honest small business owners, many of whom have made financial decisions based on the availability of this tax credit, have been kept in the dark about the status of the ERTC program,” Valadao wrote.
Responding to a GV Wire request, the IRS sent several news release links about the program and moratorium. Existing ERTC claims, the IRS said, would take 90 to 180 days to process.
“The IRS is increasingly alarmed about honest small business owners being scammed by unscrupulous actors, and we could no longer tolerate growing evidence of questionable claims pouring in,” Werfel said last September.
Business Groups Applaud Valadao’s Action
Several Central Valley business groups supported Valadao’s efforts in asking the IRS why issues remain with processing ERTC claims.
Clint Olivier, CEO of Central Valley BizFed, applauded Valadao for “fighting for the interests” of the district.
“What the Congressman is trying to do is to get the IRS to show some accountability. And if they are held accountable, it will benefit the business owners and everyone else here in the Central Valley,” Olivier said.
Scott Miller, CEO of the Greater Fresno Chamber of Commerce, said several members benefited from the ERTC.
“The ERTC has been over the past couple of years, a real lifeline in the aftermath of COVID,” Miller said.
RELATED TOPICS:
Sweet Lola on the Mend, Ready for a Forever Home
22 hours ago
Clovis Daytime Burglary: 2 Suspects Arrested, 1 at Large
2 days ago
Trump Stalled California Wildfire Aid? Ex-Aide Reveals Political Motive
2 days ago
Russia Urges Citizens to Leave Israel as Tensions with Hezbollah Escalate