In a new effort to counter misleading practices related to erroneous claims of the Employee Retention Credit (ERC), this week the IRS introduced a Voluntary Disclosure Program. The program, active until March 22, 2024, allows businesses to voluntarily return money received after filing incorrect ERC claims and offers an 80% repayment option. IRS Commissioner Danny Werfel emphasizes that the program provides relief for employers wanting to correct errors with reduced financial costs, contributing to ongoing efforts to gather information on promoters responsible for misleading claims. To qualify, employers must submit specific details and apply by the deadline, and the IRS will not charge interest or penalties on repaid credits. Employers with pending ERC claims are encouraged to consider a separate withdrawal program, and the IRS plans to provide updates on the moratorium in the new year. If you would like to read more, please visit:

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