The IRS has been going on a rampage recently, auditing many claims for the COVID Credit for Sick and Family leave (FFCRA) credit.
- mo4644
- Mar 5
- 1 min read
The IRS has been going on a rampage recently, auditing many claims for the COVID Credit for Sick and Family leave (FFCRA) credit.
I think they have gone quite a bit overboard on this.
People who were legit self employed are being denied the credit, along with penalties for erroneous claims, unless they comply with an onerous requirement for documentation.
On the way, the IRS has also been denying and auditing the child tax credit if it was also claimed in that return.
Just like with the ERC, the bad actors are spoiling it for everyone.
From the IRS:
"Credits for Sick Leave and Family Leave: This specialized credit is available for self-employed individuals for 2020 and 2021 during the pandemic; the credit is not available for later tax years. The IRS is seeing repeated instances where taxpayers are using Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals, to incorrectly claim a credit based on income earned as an employee and not as a self-employed individual.
Bogus self-employment tax credit: Social media advice continues to circulate about a non-existent “Self-Employment Tax Credit” that’s misleading taxpayers into filing false claims. Promoters market it as a way for self-employed people and gig workers to get big payments for the COVID-19 pandemic period. Similar to misleading marketing around the Employee Retention Credit, there is inaccurate information being circulated that suggests many people qualify for the tax credit and payments of up to $32,000 when they actually do not."
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