ERC voluntary disclosure program requiring 80% claim payback launched!

Businesses that want to repay money received from questionable employee retention credit (ERC) claims can do so through a new voluntary disclosure program announced Thursday by the IRS (Announcement 2024-3). The program requires qualifying businesses to repay 80% of their ERC claim, the IRS announced. Program participants will not be charged underpayment interest, and the IRS will not assert civil penalties against them for underpayment,

IRS Commissioner Danny Werfel said in a call with reporters, “We could not stand idly by as small businesses were being taken advantage of by promoters trying to get hefty fees,” he said. He later described the 80% figure as “an important incentive to participate in the disclosure program. Participating businesses do not need to repay 100% of the payment they receive.”

Not all Businesses qualify for the program and any Taxpayer audited over the credit and found liable to repay it will pay back 100% of the credit received.

Insight:

Carefully consider the risk associated with having an audit of your ERC filing.  Penalties for non-qualification can be expensive and interest rates are around 8% on underpayments. Contact  Art Chianese, CPA / EA at TAHR Services Inc or schedule a free discovery call today for more information on ERC audits and this new disclosure program.

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