"Combatting COVID-era Program Fraud to Expand Child Tax Credit"

Congress is moving to end the employee retention tax credit program, which was intended to incentivize businesses to retain workers during the pandemic, due to widespread fraud. Lawmakers from both parties agree that the program has been rife with fraudulent claims, with estimates suggesting that 95% of current claims are fraudulent. The program's cost has ballooned to nearly five times the expected amount, prompting calls for its swift closure. Lawmakers aim to use the savings to offset other business tax breaks and a more generous child tax credit for low-income families. The IRS has paused accepting claims for the tax credit due to concerns about fraudulent applications and has initiated criminal investigations involving potentially fraudulent claims.