Employee Retention Credit (ERC) solutions
Employee Retention Credit (ERC) solutions
Responding to ERC controversy
Connect with an ERC specialistWith frequent changes to the ERC program and an increasing number of ineligible claims, the IRS halted processing new ERC claims and significantly increased scrutiny of existing claims. Businesses have fallen victim to widespread fraud due to aggressive marketing promoters, misinterpretation of guidelines and outright fabrication of facts. However, the Voluntary Disclosure Program (VDP) was implemented as an amnesty program to allow certain parties to withdraw potentially incorrect claims without penalty. Eligible taxpayers had until March 22, 2024, to apply to the VDP.
If you have questions about a claim you filed, contact our ERC specialists to help you navigate the process.
Second ERC VDP now open
The IRS has recently reopened their second iteration of an ERC voluntary disclosure program. Under the terms of this program taxpayers who agree to return 85% of ERC claims paid, on a quarter-by-quarter basis, may keep the remaining 15% and avoid having to file amended income tax returns. This program is only available until Nov. 22, 2024. Voluntary disclosure could potentially be a welcome option for companies that are worried about the recently announced IRS
enforcement, are revisiting eligibility as part of a due diligence process or a change in management or are concerned about the consequences of filing amended income tax returns reducing the wage expenses by the amount of ERC they received. Baker Tilly has significant experience assisting clients with ERC and other voluntary disclosures. For more information, please contact our team.
