Voluntary Disclosure Program Reopened to Fix Faulty ERC Submissions
The IRS has reopened its voluntary disclosure program until November 22, 2024, to allow businesses to correct over $1 billion in improper Employee Retention Credit (ERC) claims. Up to 30,000 letters will be sent to businesses, offering a chance to amend these claims at a 15% discount without penalties or interest. This move follows the misuse of the ERC program, which was initially designed to support businesses during the pandemic but became the target of aggressive marketing tactics. The IRS urges businesses to reassess their eligibility with the help of a tax professional, as the program applies only to tax periods in 2021.
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