The Internal Revenue Service (IRS) issued a News Release on March 28, 2024, discussing its latest efforts to combat paycheck protection program (PPP) and employee retention credit (ERC) fraud. This date was significant because it was the four-year anniversary of the CARES Act, which established both the PPP and the ERC. The IRS’ News Release makes clear that combating PPP and ERC fraud remains a top priority for both it and the U.S. Department of Justice (DOJ), and this makes it important for those who have concerns to speak with an experienced Boston tax lawyer promptly.

Now that Tax Day has come and gone, businesses in Boston need to start preparing for what’s next. For many, this simply means ensuring they are prepared to make their next estimated tax payment on June 17. But, for some, this means preparing for an IRS tax audit. In this article, Boston business tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, explains what local business owners need to know about facing IRS scrutiny in 2024.

With an estimated $2 trillion in fraudulent claims, the Employee Retention Program (ERC) has proven to be one of the most abused federal relief programs in U.S. history. While the ERC was initially intended to provide relief to struggling businesses during the COVID-19 pandemic, the IRS allowed businesses to file claims retroactively through late 2023 (when it imposed a moratorium so that it could focus additional resources on enforcement), and fraudulent promoters convinced many businesses to file claims even though they were ineligible to do so. The IRS is actively targeting ERC fraud in 2024, and for businesses facing audits and investigations, engaging an experienced Boston IRS tax attorney is critical for avoiding unnecessary consequences.

For most people, facing an IRS audit triggers fear of liability for back taxes, interest and penalties. However, IRS audits can also lead to criminal prosecution in some cases. With additional resources at its disposal in 2024, the Internal Revenue Service (IRS) is ramping up its enforcement efforts—and this includes its efforts to hold individual and corporate taxpayers criminally accountable when warranted. Learn more from Boston criminal tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group.

The Internal Revenue Service (IRS) has additional resources at its disposal in 2024, and it is using these resources to ramp up its enforcement efforts. The IRS has specifically signaled its intent to target businesses and their owners, placing particular emphasis on improper business deductions, payroll-related tax violations, Employee Retention Credit (ERC) fraud, and other fraudulent business tax practices. For businesses targeted in IRS tax audits, an informed and strategic approach is critical. This starts with engaging an experienced Boston business tax attorney to work with the IRS on your business’s behalf.