IRS Provides Relief for Misguided ERC Claims with Special Withdrawal Process

In response to the flood of ineligible claims associated with the ERC scams, the IRS has introduced a special withdrawal process to assist small businesses and organizations that are worried about the accuracy of their claims. This withdrawal option allows certain employers who have filed ERC claims but have not yet received refunds to withdraw their submissions, avoiding future repayment, interest, and penalties. The goal is to help those who may have been pressured or misled into filing ineligible claims by ERC marketers or promoters. In that way, if a claim is withdrawn, it is as if it was never filed, and the IRS will not impose penalties or interest. However, this does not exempt those who willfully filed fraudulent claims from potential criminal investigations.

If you would like to read more, please visit: https://www.irs.gov/newsroom/irs-announces-withdrawal-process-for-employee-retention-credit-claims-special-initiative-aimed-at-helping-businesses-concerned-about-an-ineligible-claim-amid-aggressive-marketing-scams