Employers that unwittingly retained the services of an aggressive Employee Retention Tax Credit (ERTC) promoter must submit applications for voluntary disclosure of erroneous ERTC claims to the IRS by March 22, 2024. In December, the IRS announced a voluntary disclosure program to allow employers that already received tax credits to repay 80% of the funds they received. The move followed a crackdown on so-called ERTC mills run by unscrupulous promoters.
Employers that believe they received erroneous credits must provide the names, addresses and telephone numbers of return preparers or advisors who assisted or advised them with the claims, along with details about the services provided. If their applications are accepted by the IRS, employers will not have to pay interest on the original ERTC refund claims and will also not face civil penalties related to the underpayment of employment tax on account of erroneous claims. Employers unable to repay 80% of the credit may be considered for an installment agreement, pending approval.
Additional program details can be found in Announcement 2024-3 and on the ERTC Frequently Asked Questions page on the IRS site. CBIZ continues to monitor congressional updates concerning the ERTC program.
For more information, connect with one of our CBIZ tax professionals today.
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