We keep you updated with the latest news from Martin Hood and helpful information whenever there is a change to employment or tax laws.
January 25, 2024
During the height of the COVID-19 pandemic, the Employee Retention Credit (ERC) was offered to businesses to provide much-needed relief to both employers and employees. The IRS noticed that the ERC, which expired for most employers by the end of the third quarter of 2021, continued to be claimed retroactively due to aggressive marketing schemes. The IRS stated that many of these claims are invalid.
Employee Retention Credit Voluntary Disclosure Program
We want to make you aware that the IRS recently announced a Voluntary Disclosure Program to help taxpayers who may have claimed the ERC in error. The Voluntary Disclosure Program allows taxpayers who received the ERC to repay only 80% of the claim received.
Other benefits of participating in the program include:
However, participation in the program closes on March 22, 2024, so time is limited to act.
For more information, or to apply for the program please visit the IRS website at https://www.irs.gov/coronavirus/employee-retention-credit-voluntary-disclosure-program.
Employee Retention Credit Withdrawal Program
The IRS also is offering an ERC withdrawal program. If you have submitted an ERC claim, but have not yet received a refund, you may still have an opportunity to withdraw your claim before the claim is processed. For more information, or to apply, visit the IRS website at .
Proposed End to Employee Retention Credit Application
The Proposed Tax Relief for American Families and Workers Act includes a provision that would accelerate the deadline to claim the Employee Retention Credit. The new deadline for applying for the credit would be January 31, 2024. This bill has not passed yet, but we wanted you to be aware of potential changes coming.