The Employee Retention Tax Credit Is the Biggest Covid Scam

null By The Editorial BoardDec. 27, 2023 6:48 pm ETWonder Land: Covid-19 disrupted people’s private lives. Biden addressed concerns with a $6 trillion spending spree that's had little effect on them. Images: SMG/Zuma Press/AFP/Getty Images Composite: Mark KellyIt’s hard to feel sorry for the Internal Revenue Service, but cleaning up for Congress is never fun. The Covid employee retention tax credit is turning into a classic case of government waste and fraud. Congress created the mess, leaving it to the IRS to mop up. Pandemic transfer payments and student-loan forbearance ended this year, but the employee retention tax credit (ERC) is a Covid giveaway that keeps on giving. The government has paid $230 billion in claims, including about $120 billion this year. The taxpayer bill will keep growing since employers have until April 2025 to claim the credit on wages paid through 2021.Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8Sponsored O

A person who loves writing, loves novels, and loves life.Seeking objective truth, hoping for world peace, and wishing for a world without wars.

Opinion Dec 28, 2023 Add to Reading List

The Employee Retention Tax Credit Is the Biggest Covid Scam

null

The Editorial Board

Dec. 27, 2023 6:48 pm ET

Wonder Land: Covid-19 disrupted people’s private lives. Biden addressed concerns with a $6 trillion spending spree that's had little effect on them. Images: SMG/Zuma Press/AFP/Getty Images Composite: Mark Kelly

It’s hard to feel sorry for the Internal Revenue Service, but cleaning up for Congress is never fun. The Covid employee retention tax credit is turning into a classic case of government waste and fraud. Congress created the mess, leaving it to the IRS to mop up.

Pandemic transfer payments and student-loan forbearance ended this year, but the employee retention tax credit (ERC) is a Covid giveaway that keeps on giving. The government has paid $230 billion in claims, including about $120 billion this year. The taxpayer bill will keep growing since employers have until April 2025 to claim the credit on wages paid through 2021.