IRS Agents Instructed to Look for Mistakes with FICA During COVID-19

During the pandemic, businesses were able to claim nonrefundable credits for qualified sick and family leave wages, COBRA premium assistance, and the employee retention credit. There is also a non-pandemic-related credit for research activities. A memorandum from the IRS Small Business/Self-Employed Division instructs agents to see that credits were properly claimed and that deferred Social Security taxes were repaid. This memorandum serves as a reminder to review credits claims and to file amended returns where errors were made before the IRS finds the errors. #IdeaoftheDay