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According to a TIGTA report, some small businesses are improperly claiming the Qualified Small Business Payroll Tax Credit. The report revealed that 40 ineligible businesses claimed this credit for 2023, despite the IRS's efforts to prevent such occurrences. "While most businesses that claim the Payroll Tax Credit are eligible, incorrect claims can have far-reaching effects," the report stated. The IRS has received around 11,400 Forms 941 with $382m in credits for 2023. Although the IRS has implemented new controls, some ineligible claims continue to slip through. TIGTA has recommended that the IRS review these cases and recover any erroneously claimed credits. Lia Colbert, commissioner of the IRS's Small Business/Self-Employed division, acknowledged the issue but noted that only a limited number of cases were affected.
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