To increase the penalties applicable to persons facilitate fraud with respect to any COVID-related employee retention credit, and for other purposes.
Latest Action
Referred to the House Committee on Ways and Means.
Official Summary
Official summary has not been imported yet.
GovScope Watchdog™
AI Government Intelligence™This bill, introduced in the 118th Congress as H.R. 9738, aims to increase penalties for individuals who facilitate fraud related to the COVID-related employee retention credit. The bill was referred to the House Committee on Ways and Means but did not advance further and is currently classified as failed or expired. The bill falls under the taxation policy area and focuses on enhancing enforcement measures against fraudulent claims or facilitation of fraud concerning a specific tax credit designed to support employers during the COVID-19 pandemic.
H.R. 9738 sought to strengthen penalties for fraud facilitators connected to the COVID employee retention credit but did not progress beyond committee referral and is now expired.
- The bill targets increased penalties for persons facilitating fraud related to the COVID employee retention credit.
- It was introduced in the House and referred to the House Committee on Ways and Means on September 20, 2024.
- The bill did not advance beyond committee referral and is currently classified as failed or expired.
['The U.S. Treasury and Internal Revenue Service (IRS) through potentially improved enforcement and deterrence of fraud.', 'Taxpayers and employers who comply with the COVID-related employee retention credit rules by reducing fraudulent claims.']
["The bill's failure to advance may reflect challenges in legislative prioritization or consensus on enforcement measures.", 'Without the full bill text, details on the scope and scale of penalty increases and enforcement mechanisms are unavailable, limiting assessment of implementation feasibility.', 'Potential administrative costs or resource needs for enforcement agencies to apply increased penalties are unknown.']
The bill was introduced during the 118th Congress and referred to the House Committee on Ways and Means, a key committee for tax legislation. The COVID-related employee retention credit has been subject to scrutiny for fraud risks, prompting legislative efforts to address enforcement. However, this bill did not progress beyond committee referral and is now considered failed or expired, indicating it did not receive further legislative action or floor consideration.
Hidden impact flags detected: 2
GovScope reviewed 2 policy-risk categories. Hover for a quick definition. Click detected flags for bill-specific details.
['Potential deterrence of fraudulent claims related to the COVID employee retention credit if similar legislation is reintroduced and enacted.', 'Possible increased administrative burden on IRS and enforcement agencies if penalties are raised and enforcement is intensified.', 'Employers and tax professionals may exercise greater caution in claiming the credit to avoid penalties.']
The absence of a bill summary and full text limits detailed analysis of specific penalty increases and enforcement mechanisms. The bill's failure to advance beyond committee referral suggests limited legislative momentum. Transparency regarding the exact nature of penalty enhancements and oversight provisions would be critical for assessing the bill's potential impact on enforcement and compliance.
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