When IRS Commissioner Danny Werfel met privately with senators recently, the chairman of the Senate Finance Committee asked for his assessment of a startling report: A whistleblower estimated that 95% of claims now being made by businesses for a COVID-era tax break were fraudulent.
“He looked at his shoes and he basically said, ‘Yeah,’” recalled the lawmaker who posed that question, Sen. Ron Wyden, D-Ore.
The answer explains why Congress is racing to wind down what is known as the employee retention tax credit. Congress established the program during the coronavirus pandemic as an incentive for businesses to keep workers on the payroll.
Demand for the credit soared as Congress extended the tax break and made it available to more companies. Aggressive marketers dangled the prospect of enormous refunds to business owners if they would just apply. As a result, what was expected to cost the federal government $55 billion has instead ballooned to nearly five times that amount as of July. Meanwhile, new claims are still pouring into the IRS each week, ensuring a growing price tag that lawmakers are anxious to cap.
Lawmakers across the political spectrum who rarely agree on little else — from liberal Sen. Elizabeth Warren, D-Mass., to conservative Sen. Ron Johnson, R-Wis. — agree it’s time to close down the program.
“I don’t have the exact number, but it’s like almost universal fraud in the program. It should be ended,” Johnson said. “I don’t see how anybody could support it.”
Warren added: “The standards were too loose and the oversight was too thin.”
The Joint Committee on Taxation estimates that winding down the program more quickly and increasing penalties for those companies promoting improper claims would generate about $79 billion over 10 years. Lawmakers aim to use the savings to offset the cost of three business tax breaks and a more generous child tax credit for many low-income families. Households benefitting from the changes in the child tax credit would see an average tax cut of $680 in the first year, according to an estimate from the nonpartisan Tax Policy Center.
The package was overwhelmingly approved by a House committee last week, 40-3, showing it has broad, bipartisan support.
But passage through Congress is not assured because many key senators have concerns about aspects of the bill. Wyden said a strong vote in the House could spur the Senate into quicker action. Still, passing major legislation in an election year is generally a heavy lift.
Under current law, taxpayers have until April 15, 2025, to claim the employee retention credit. The bill would barsnew claims after Jan. 31 of this year. It also would impose stiff penalties on those who are promoting the employer retention tax credit if they know or have reason to know their advice will lead to an underreporting of tax liabilities.
When Congress created the tax break for employers at the pandemic’s onset, it proved so popular that lawmakers extended and amended the program three times. The credit, worth up to $26,000 per employee, can be claimed on wages paid through 2021.
To qualify, generally businesses must show that a local or state government order related to the COVID-19 pandemic resulted in their business having to close or partially suspend operations. Or the businesses must show they experienced a significant decline in revenues.
Larry Gray, a certified public accountant from Rolla, Missouri, said he had concerns early on about how the program could be abused.
“There was no documentation really to speak” and the IRS just sent out the checks, Gray said. ”They just started printing the checks and I believe Congress was wanting them to print the checks.”
His hunch has proven correct, judging by the filings that he has reviewed. He has even lost clients who didn’t want to hear that they did not qualify when others were telling them they did. Generally, he said, the businesses that don’t qualify are failing to cite the government order that resulted in their closure or partial suspension. They are also routinely citing reasons for reimbursement that don’t meet the program’s criteria. For example, one company said it was struggling to find employees and had to raise wages as a justification for qualifying.
“If I go through the narratives on the filings that I’m looking at, every business in America qualifies,” Gray said.
The IRS paused accepting claims for the tax credit in September last year, until 2024 due to rising concerns that an influx of applications are fraudulent. At that point, it had received 3.6 million claims.
Some fraud has been prolific. For instance, a New Jersey tax preparer was arrested in July on charges related to fraudulently seeking over $124 million from the IRS when he filed more than 1,000 tax returns claiming the employment tax credits.
In an update issued Thursday about the program, the IRS said that it has thousands of audit in the pipeline and that as of Dec. 31, it has initiated 352 criminal investigations involving more than $2.9 billion in potentially fraudulent claims. Separately, it has opened nine civil investigations of marketers that potentially misled employers on eligibility to file claims.
Werfel briefed the Senate Finance Committee recently on the measures that have been put into place to address the fraud, including developing a special withdrawal program for those with unprocessed claims and a voluntary disclosure program for those who believed they were improperly paid. Since then, the IRS has seen an immediate 40% decline in average weekly claims, he said.
Lawmakers emphasize that cutting down on the fraudulent claims should also help the IRS more quickly resolve the legitimate claims that businesses have filed and are still awaiting resolution. In early December, the IRS had a backlog of about 1 million claims.
Congress routinely has difficulty finding offsets to pay for new spending or tax cuts. But in this case, the employee retention tax credit appears to have few friends left on Capitol Hill.
“Well-intentioned, but boy oh boy,” said Sen. Mark Warner, D-Va., in summing up the program.
Nowadays, plagues aren’t a regular occurrence in the United States, and especially not in Florida.
However, the deadliest plague in history once struck the Sunshine State at the start of the 20th century, according to the Florida state archives.
The bubonic plague — nicknamed the “Black Death” — was brought to the state’s panhandle back in 1920, resulting in a local outbreak.
According to the CDC, this plague is brought about by the bacterium “Yersinia pestis,” which can be transmitted to humans through fleas carried by rodents.
It can take anywhere from a couple of days to over a week for symptoms to develop, typically involving fevers, headaches, chills and painful lymph nodes, the CDC explains.
In the 14th century, this plague was responsible for wiping out between 30% and 60% of Europe’s population, where it got its nickname likely thanks to the dark lesions that patients would develop.
However, state records show that the plague didn’t die with this outbreak — it was discovered by a physician in Pensacola in the summer of 1920.
A ship loading lumber in Pensacola Harbor (c. 1900). Due to Pensacola’s position along the coast, it was a common spot for ships and boats, which could have been a source of the 1920 outbreak.
In that case, the patient had become “very suddenly ill and delirious with fever,” developing a swollen gland near his groin.
After the physician reached out to state health officials, it was determined that the plague had indeed come to Pensacola.
Since the disease wasn’t able to spread from person to person, officials eventually figured out that fleas from infested local rats had to be the source.
This 1920 flier urges Pensacola residents to trap rats and take precautions to help end the plague outbreak.
A huge effort was launched to eliminate the rats and mice responsible for the outbreak, with over 35,000 being captured between June 1920 and July 1921. While the average number of fleas per rodent was around 10, officials found a single rat with 211 fleas covering it.
Whenever a rodent infected with the plague bacteria was discovered, crews would find the source where the rodent was found and clean it up to prevent more from being attracted to the location.
This map shows the locations of humans and rodents found to be infected with plague during the 1920-1921 Pensacola outbreak. (U.S. Public Health Service/)
The eradication teams used over 1,200 pounds of cyanide and nearly 2,000 pints of sulphuric acid to fumigate these buildings. Seven houses were demolished, and 280 truckloads worth of trash were taken to the local dumps.
Meanwhile, city leaders passed new ordinances requiring business owners and residents to “ratproof” buildings, and plank sidewalks were replaced with stone, brick, or concrete.
In total, the outbreak tallied up to 10 confirmed cases, out of whom seven people died. The Florida Department of Health lists this as the last reported plague case in the state.
But could it happen again? Health officials say yes — though there’s no need to panic.
According to the CDC, plague infections are still found in rural areas of the western U.S., though they’re far more common in parts of Africa and Asia.
Reported cases of human plague between 1970 and 2020
The FDLE states the possibility remains that animals infected with plague bacteria could be imported into areas of the state where an outbreak could take root.
While the plague is considered an extremely deadly disease, it’s able to be treated with common antibiotics. If a patient is able to receive treatment early enough after infection, they face much better odds of a full recovery.
That being said, anyone showing symptoms who has recently traveled to the western U.S. or any other plague-endemic region is urged to seek health care immediately.
Walgreens has agreed to pay a $275,000 fine to settle allegations that some of its Vermont stores temporarily closed without notice, had untenable working conditions for pharmacists and made medication and vaccination errors during the coronavirus pandemic, the secretary of state announced.
The Vermont Board of Pharmacy approved the fine as part of the settlement between the state Office of Professional Regulation and the national pharmacy chain, Secretary of State Sarah Copeland Hanzas said Wednesday, calling it a “big win for Vermont consumers.”
“I am proud of the work our OPR investigators and attorneys have done to hold Walgreens accountable and to ensure safe conditions for patients and pharmacy staff,” Copeland Hanzas said in a statement.
Walgreens said in a statement Thursday that “it disputes the accuracy of the state’s allegations and admits no liability; however, we are pleased to have reached this settlement.”
The fine follows an 18-month investigation after 70 complaints regarding conditions across Walgreens’ 32 Vermont stores, the secretary of state’s office said.
Walgreens signed a stipulation and consent order earlier this month with the state’s prosecuting attorney. The order said the company has taken steps to improve, including by updating and standardizing policies and procedures for unanticipated pharmacy closings in Vermont; enabling patients to get their prescription filled at another pharmacy if there is a closing; and continuing to provide vaccine training to new and current pharmacy staff.
It’s the winter “sick season” and pediatricians’ offices, urgent care centers, and pediatric hospitals are packed.
Respiratory syncytial virus (RSV), which causes colds and sometimes serious respiratory problems in babies and older adults, “is really surging at a time it doesn’t normally surge,” says Tina Tan, MD, a pediatric infectious disease specialist and professor of pediatrics at Northwestern University in Chicago. “There have been a lot of young infants that have required hospital care, and in multiple states there has been a high level of influenza activity that is occurring.”
The combination of flu arriving early while RSV is surging and COVID-19 is still circulating threatens to overwhelm the healthcare system, says Elizabeth Murray, DO, a pediatrician specializing in emergency medicine at the University of Rochester Medical Center and a spokesperson for the American Academy of Pediatrics.
Still, though it might seem like everyone is getting sick, there are some steps parents can take.
Staying Healthy
There’s no magic way to ensure your kids won’t get sick, but there are a number of strategies to reduce the likelihood of infection and limit the severity of some of the more dangerous viruses.
Keep kids up to date on vaccines. While there is no RSV vaccine yet, they should get their flu vaccine, their COVID-19 vaccines, and when eligible, their COVID-19 booster shots. “Protect yourself against what you can protect yourself against,” Tan says. “We have tools.”
With the flu already spreading, there’s no reason to delay getting a flu shot. And kids can get both their flu and COVID-19 shots at the same time, Keren says.
Wash hands thoroughly and regularly. Make sure your children learn to do so properly when arriving home, after using the bathroom, and before eating a meal or snack, Murray says.
Wear masks when needed. As we have learned during the ongoing COVID-19 pandemic, mask-wearing on certain occasions can help reduce exposure to a number of infections. That’s especially the case when you know you have certain bugs going around a classroom, Tan says—if one kid in a class tested positive for COVID-19, for example. You also may want to consider using masks more often when you know you have an event you don’t want to be sick for, like a performance, track meet, or family holiday celebration, Murray says. Older kids especially can understand that masks are most helpful when in crowded indoor spaces and can often be removed in less crowded or outdoor settings, she says.
Treating COVID-19, Flu, and RSV
No matter what you try, at some point your child’s temperature will rise or he or she will start to cough. Sickness happens, and younger kids typically get eight to 10 colds a year, according to Keren.
Focus on comfort. For viral infections, which include the illnesses mentioned above and other common respiratory bugs, kids generally just need time to heal, Tan says. But you want them to be as comfortable as possible throughout the process. “It’s all about comfort,” Murray says. “Let your child rest, watch movies—screen time rules don’t apply.”
Hydrate, hydrate, hydrate. Hydration is one of the most important things to focus on because dehydration is often what can eventually send a kid to the hospital. This happens particularly frequently with younger kids dealing with RSV, said Katie Lockwood, MD, an attending physician at Children’s Hospital of Philadelphia, at an October press briefing. If necessary, “this is the time to bribe them with sugary beverages like juice or ice pops,” she said. For children over age 1, some honey mixed with warm apple juice or decaffeinated tea can soothe throats, but never give honey to a child under 1 year of age.
Steam up the bathroom. Steam can help break up mucus, Lockwood says. Steam up a bathroom by running the hot shower and then let your child read a book as they breathe the steamy air, not in the tub, just sitting in the room. A cool mist humidifier at night can help, too, as long as you keep it clean and mold-free.
If a child has croup, characterized by a barking cough, taking them outside into the cool air at night can also help relax the throat, Tan says.
Be careful with meds. When it comes to medication, as long as your pediatrician has given the okay, it’s fine to use children’s ibuprofen or children’s acetaminophen to make kids more comfortable or treat a fever. Don’t give cough medicine to kids though, Murray says, because it doesn’t work well for them and can even be dangerous.
Keep kids home when sick. “In the past, we didn’t do things as well as we should have when it comes to appreciating illness and keeping people home,” Murray says. It’s especially important when kids have a fever or a strong cough, so try to have a plan in place to keep them home when they need to be.
When to Go to a Doctor or an ER
Whenever your child is sick or you have a question about their health, it’s worth giving your pediatrician a call just to check in. Right now, with emergency rooms so busy dealing with severe and urgent cases, it’s best to go to your pediatrician or an urgent care center first if you can, Keren says. Many pediatricians can run a quick test to see if an illness is caused by COVID-19, flu, or RSV, for example.
But if you see real emergency signs, you should go to a hospital, Tan says. If your child is very sick, they’ll be prioritized. Here’s what to know about when you should seek care.
Fever: For infants under 60 days old, any fever is an emergency, Murray says. A fever of 105° F is also a medical emergency for any child. Call your doctor about fevers that don’t go down with medicine or that last for longer than a day, and call if a fever goes away for a day or more and then returns.
Dehydration: If your child starts to show signs of dehydration, call your doctor. These signs include a lack of tears while crying and fewer than six wet diapers a day for infants or no urination for 8 hours in toddlers or older kids. If your child seems very sleepy or lethargic along with these signs, go directly to an ER.
Breathing trouble: Signs include breathing much faster than normal and using abdominal muscles to breathe. Other emergency signs include your child’s chest appearing to be sinking under their collarbone or ribs or your child being unable to catch their breath enough to talk. Some kids with breathing trouble may also appear bluish or purplish around the mouth or fingernails. Grunting, nose flaring, and chest pain, which is very uncommon in children, are also signs you should go to an ER, according to Murray.
Trust your gut: If your child is truly in an emergency situation, “you are not going to miss it,” Murray says. “None of these symptoms are subtle; you’re going to know if your child is struggling.” It’s understandable that kids would become more lethargic and easily upset when sick, but you should be able to see when their behavior is significantly different or doesn’t seem proportionate to the symptoms they’re experiencing.
When Does This End?
This crush of illnesses appears to be happening now because a lot of children weren’t exposed to much COVID-19, flu, and RSV for a year or two and are now being exposed again, Murray says.
That’s changing the timing of these illnesses, and it also means that some kids appear to be struggling a bit more than would have been expected. Murray says she’s seen some kids ages 3 and 4 struggling more than expected with RSV, for example, which is usually a simple cold in kids that age but more of a serious issue for infants.
But we don’t yet know the outlook for the full winter cold and flu season, or the role that new COVID-19 variants will or won’t play. “It’s hard to know,” Murray says. “Are we going to peak early and be done, or is it going to be continuously bad?”
In the south and south-central regions of the U.S., where rates of the flu have started to tick up, RSV rates are actually decreasing, said José Romeno, MD, director of the Centers for Disease Control and Prevention’s National Center for Immunization and Respiratory Diseases, on a press call.
In the meantime, “we need to tip the odds in favor of health and success,” Murray says. That means getting kids vaccinated against the illnesses we can protect them from, and keeping them home when they’re sick to stop illnesses from spreading further.
Winter is here, inflicting its usual array of symptoms — coughs, nasal congestion, fatigue and fever — and, this year, a new COVID-19 variant is dominating the scoreboard.
COVID-19 is leading hospital admissions among the respiratory viruses, according to the U.S. Centers for Disease Control and Prevention.
Last week, 25 U.S. states had high or very high levels for respiratory illnesses with fever, cough and other symptoms. That’s down from 37 states the week before, the CDC said.
Since the beginning of October, there have been at least 16 million illnesses, 180,000 hospitalizations, and 11,000 deaths from flu so far this season. The CDC said 47 children have died of flu.
January can be the worst month for these illnesses. With vaccination rates low, what can you do to protect yourself from respiratory viruses, including influenza, COVID-19 and RSV?
BACK TO BASICS
Hand-washing remains crucial to reducing the spread of viral infections. Take your time at the sink. Twenty seconds is recommended. If you feel silly singing “Happy Birthday” twice while you scrub with soapy water, count to 20. Slowly.
Use hand sanitizer with 60% alcohol when you don’t have access to soap and water.
Also, wear a mask in crowded areas. Increase ventilation in your workplace and home.
NOT TOO LATE TO VACCINATE
In the United States, only 17% of those eligible have received the updated COVID-19 vaccine, which provides good protection against the now-dominant JN.1 variant.
It’s not too late to roll up your sleeve. While you’re at it, make sure you’ve had your annual flu shot. Those 60 and older may want to get the RSV vaccine, which also is recommended during pregnancy to prevent RSV in infants.
WHEN YOU HAVE CHILDREN AT HOME
Young children seem to pick up every germ going around. Can their parents avoid getting sick?
This time of year, children are indoors in close quarters with other kids, touching the same toys and surfaces, said Jennifer Sonney of University of Washington School of Nursing in Seattle. Some haven’t learned to cover their coughs and they simply haven’t been exposed to many illnesses, so their immune systems are still developing.
It’s important to take care of yourself if you’re a parent or caregiver of young children, said Sonney who is immediate past president of the National Association of Pediatric Nurse Practitioners.
“We know if you are sleep deprived or dehydrated or experiencing a lot of stress, that can compromise your immune function,” Sonney said.
Having young children is very demanding, “so all of this advice needs to be interpreted within the context of reality,” she said. “Despite doing everything right, kids are still going to get colds.”
A special note if your baby is sick: It’s a good idea to have saline drops and a bulb syringe at home. They can be used to clear mucus from tiny nostrils.
“A couple drops of saline into one nostril and suction it and then do the other side,” Sonney said. “Doing that before eating and sleep is going to help a lot.”
A home kit for children could also include acetaminophen or ibuprofen for fevers, tissues for runny noses and water bottles of sippy cups for staying hydrated.
TEST TO TREAT
If you do get sick, prompt testing can help determine whether you have COVID-19 or influenza. That’s important to see if you need one of the medicines that can help prevent severe illness: Paxlovid for COVID-19 and Tamiflu for flu.
If you don’t have a test kit at home, look for a test-to-treat site at a pharmacy clinic or health center near your. There is also a free home-based test-to-treat program for adults who are uninsured or rely on government health insurance.
___
The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Science and Educational Media Group. The AP is solely responsible for all content.
The worst score Florida received was for substance abuse, which includes the rate of deaths due to alcohol and drug overdoses.
Reports of drug-related deaths in Central Florida has increased in recent years, attributed in large part to a “porous border” and drug-smuggling cartels trying to make their way into Florida.
“The big issue is that everything is now laced with fentanyl,” Volusia Sheriff Mike Chitwood told News 6 in 2022. “You have college kids and high school kids who are buying what they believe to be Adderall or MDA or whatever pills, and what they’re discovering is it’s pressed fentanyl.”
However, the state’s best score was in disease risk factors, such as the rate of deaths due to cancer and diabetes.
