IRS Announces New Voluntary Disclosure Program for Paying Back Erroneous ERC Claims

The IRS has released a new Voluntary Disclosure Program to help businesses who want to pay back the money they received after filing Employee Retention Credit claims in error. Note: This is only for employers who believe they should have not filed as they did not qualify for ERC.

This is part of a larger effort at the IRS to stop aggressive marketing around ERC that misled some employers into filing claims. Applications to the ERC Voluntary Disclosure Program must be submitted by March 2, 2024. Employers accepted into the program will need to repay only 80% of the credit received.

The IRS continues to urge employers with pending ERC claims to consider a separate withdrawal program that allows them to remove a pending ERC claim with no interest or penalty.

To learn more about this new Voluntary Disclosure Program please visit the link below.

https://www.irs.gov/newsroom/irs-new-voluntary-disclosure-program-lets-employers-who-received-questionable-employee-retention-credits-pay-them-back-at-discounted-rate-interested-taxpayers-must-apply-by-march-22