‘What Is The Agency’s Expected Timeline?’: Ashley Hinson Questions IRS Commissioner On ERC Claims

7 months ago

During a House Appropriations Committee hearing on Tuesday, Rep. Ashley Hinson (R-IA) questioned Internal Revenue Service Commissioner Danny Werfel about the Employee Retention Credit.

Fuel your success with Forbes. Gain unlimited access to premium journalism, including breaking news, groundbreaking in-depth reported stories, daily digests and more. Plus, members get a front-row seat at members-only events with leading thinkers and doers, access to premium video that can help you get ahead, an ad-light experience, early access to select products including NFT drops and more:

https://account.forbes.com/membership/?utm_source=youtube&utm_medium=display&utm_campaign=growth_non-sub_paid_subscribe_ytdescript

Stay Connected
Forbes on Facebook: http://fb.com/forbes
Forbes Video on Twitter: http://www.twitter.com/forbes
Forbes Video on Instagram: http://instagram.com/forbes
More From Forbes: http://forbes.com

Transcript

00:00 You're welcome. Ranking member Hoyer and now we'd recognize Mrs. Henson. Thank you

00:06 Mr. Chairman. Just a brief question Commissioner. Obviously the ERC tax

00:12 credit in your testimony you say that there is still a moratorium on

00:16 processing those claims because of the fraud, high amount of fraud with that and

00:20 I certainly appreciate the efforts there to combat that fraud but I am working

00:26 with a lot of concerned business owners who have those claims pending and those

00:29 are refunds that they are rightfully owed. Some of them, some of these pending

00:33 cases are worth hundreds of thousands of dollars so you can imagine when things

00:36 are tight it's the difference between what they were planning to do and grow

00:40 their business and maybe add some jobs or wait on those dollars. So what is the

00:44 agency's expected timeline Commissioner to continue processing those ERC claims?

00:49 Well for all we're still processing claims received before September 14th

00:55 2023 when the moratorium started. Since the moratorium we've processed more

01:01 than two billion dollars in claims. It's those that received after September 14th

01:07 that we are not currently processing. Do you have a timeline for when you might

01:12 begin? I don't have a timeline. What I had stated earlier was after filing

01:18 season we were going to conduct a or during filing season and leading to

01:24 after filing season conducting an assessment of our inventory to figure

01:29 out the best way to proceed. Unfortunately Congresswoman there is a

01:34 lot of ineligible claims in our inventory and who is suffering for that?

01:39 The eligible claims. There are small numbers but hard to find. One of the

01:45 things that we are doing and I urge your constituents that that may be waiting we

01:49 are working with our taxpayer advocate to move to the front of the line

01:53 hardship cases anything that has become more urgent if you believe you're

01:59 truly eligible. But we've been also urging a lot of taxpayers who who may

02:04 know they're ineligible to withdraw. We've had almost 400 million dollars in

02:12 in withdrawals since we announced the moratorium. Then we've had voluntary

02:19 disclosures for those that receive the payments and that they knew they were

02:23 received an error and that we have 777 million in people who voluntarily come

02:29 close come to us and returned the ineligible credit. Right and some of

02:33 those issues were with outside companies I know that we're also involved. Yes but

02:36 to get to your question I want to work to make sure that those that are the

02:40 most urgent need while we're continuing to sort through what is a very

02:45 challenging situation that we address those quickly. Are you paying interest

02:48 out on those claims? We are required to yes. Okay and do you know what the

02:53 expected cost is because obviously when I when we look about giving you more

02:56 money you know we want to make sure that you're as efficient as possible and

03:00 driving those costs. The cost of the interest? Yeah. It is largely offset by

03:05 the the cost that we save by by holding on to the claim longer so it ends up

03:11 being budget neutral the the the interest cost. I can give you more data

03:15 on that. Well certainly would encourage you not to you know hold back as many of

03:19 these claims as possible. I'm not that's not the intention. The intention is to find the

03:23 eligible ones and process them as quickly as possible. All right thank you.

03:26 I yield back Mr. Chair.

‘What Is The Agency’s Expected Timeline?’: Ashley Hinson Questions IRS Commissioner On ERC Claims

Category

Transcript

Recommended