On September 21, the National Automatic Merchandising Association (NAMA) led a coalition of employer organizations in sending a letter to the Internal Revenue Service (IRS) and the Department of the Treasury regarding the recent suspension of new claims for the Employee Retention Tax Credit (ERTC) program for the remainder of 2023.
The ERTC program, which has played a pivotal role in preserving jobs and fostering economic recovery throughout the COVID-19 pandemic, has garnered widespread acclaim for its assistance to employers in need. However, the recent decision by the IRS to suspend new ERTC claims has raised significant apprehensions for NAMA’s members and beyond.
The IRS announced this processing moratorium on September 14 in an effort to address fraudulent ERTC claims.
As stated in the letter, NAMA and the other organizations believe the IRS must allow the ERTC program to continue processing claims while effectively managing the threat of illegitimate or fraudulent submissions. This credit is too valuable to employers still recovering from the pandemic to have a months-long lapse in processing new claims, according to the announcement from NAMA.
“In our continued pursuit of economic recovery and the well-being of businesses and employees, we call upon the IRS and the Treasury Department to accomplish the dual goals of preventing fraud and enabling legitimate ERTC claims to move forward,” Bill Meierling, NAMA’s senior vice president, external affairs, said in the announcement. “NAMA is ready to work with the IRS to keep the program accessible to the affected business community.”