The IRS has unveiled a voluntary disclosure program for businesses that claimed a pandemic-era tax credit in error and want to pay the money back.
Worth thousands per employee, the employee retention tax credit (ERC) aimed to support small businesses affected by the COVID-19 pandemic. The lucrative tax break sparked a deluge of firms pushing employers to wrongly claim the credit.
The IRS unveiled a “special withdrawal process” for companies with pending claims in September. The new voluntary disclosure program offers applicants the chance to repay credits received at a 20% discount to cover third-party promoter fees.
This is a limited-time offer, however. The voluntary disclosure program will run through March 22, 2024. To qualify for the program, the employer must provide names, addresses and phone numbers of any advisers or tax preparers who helped with the claim. Learn more.