News & Events

The Internal Revenue Service (IRS) recently announced that it is entering the “next stage” of Employee Retention Credit (ERC) enforcement after uncovering huge numbers of improper claims. In a June 20, 2024, News Release, the IRS disclosed that it now believes the “vast majority” of ERC claims show signs of being improper, and it is responding accordingly. As Washington D.C. IRS tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, explains, this includes not only denying improper claims but also pursuing civil and criminal penalties as warranted.

While several allegations can lead to criminal charges against individual and corporate taxpayers, some of the most common allegations involve making false statements to the Internal Revenue Service (IRS). Although inadvertently filing a false tax return is not a federal crime, willfully filing a false return is. As Washington D.C. criminal tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, explains, willfully making false statements to the IRS can have serious consequences—and this is true regardless of whether these statements are made before or during a criminal tax audit.

While it has been four years since Congress established the paycheck protection program (PPP) and employee retention credit (ERC) under the CARES Act, pandemic-related fraud remains a prime target for both the Internal Revenue Service (IRS) and the U.S. Department of Justice (DOJ). The IRS’ Criminal Investigation Division (IRS CI) and the DOJ are actively pursuing criminal investigations in 2024, leaving many business owners in need of a highly experienced Washington D.C. tax lawyer.