IRS extends freeze on Pandemic-Era Tax Credit due to widespread fraud

(CNN)– If you just put in an application for the Employee Retention Tax Credit Program, you might be waiting a while to hear back from the IRS.

Yesterday, the agency announced it is expanding its freeze on new claims for the program, after internal analysis found up to 90% of claims are potentially fraudulent.

The program was created in 2020, during the Covid-19 pandemic.

It allowed businesses to collect up to 26 thousand dollars for each employee on its payroll.