PSA – Key Deadline Fast Approaching in Employee Retention Credit Voluntary Disclosure Program

PSA: Key Deadline Fast Approaching in Employee Retention Credit Voluntary Disclosure Program

If you claimed the employee retention credit (ERC) and maybe you should not have then you may want to consider taking advantage of the IRS’ voluntary disclosure program.

You have to act fast though. The deadline is March 22, 2024!

I have talked in a prior blog post about this voluntary disclosure program (link here) so here is a quick recap: if you claimed the ERC and do not qualify at all then you can pay 80% of the improper credit and the remaining 20% will be forgiven, along with any interest the government paid. You also do not need to pick this forgiven 20% up as income. Finally, you do not need to pay any interest or penalties on the 80% that is repaid if you pay it in full upon acceptance into the voluntary disclosure program.

The IRS put on a webinar recently about the voluntary disclosure program and the presenter said that this is the best deal the IRS is going to offer to taxpayers. The IRS has no intention of offering another such program. After the deadline, if the IRS adjusts your ERC then you will have to repay 100% of the balance due, along with interest and penalties.

Act now if you have a potential improper ERC claim. You have only until March 22nd of 2024 to apply! Once the clock strikes midnight this deal goes away! If you need help considering your options or assistance with preparing a package to submit to the IRS than give us a call.

Just remember that ERC claims are a huge area of fraud right now and the IRS is actively pursuing companies and tax preparers. If you have an ERC claim, you should talk with your tax adviser or someone who handles ERC claims to make sure you are not at risk of an IRS audit (or worse IRS criminal prosecution).

James D. Wade, Esq.
Beacon Tax Advocates, LLC
57 Portland Road, Ste. 3
Kennebunk, ME 04043