Who Should Consider the IRS ERC Voluntary Disclosure Program?
Article by Lisa Ryssel, CPA, Signing Director
While we await the pending legislation, which would change the deadline to file employee retention credit (ERC) claims to (now retroactively 1/31/24), many organizations are also considering a voluntary ERC payback program the IRS rolled out shortly before this legislation was introduced.
ERC- Voluntary Disclosure Program is a program established by the IRS for taxpayers who may have filed an ERC claim and received the credits but were not entitled to the funds. The program allows you to self-identity and repay the ERC funds.
Under this program participants would:
- Apply for the program
- Cooperate with any information requests
- Voluntarily repay 80% of the ERC funds (without penalties and interest)
- Sign a closing agreement
Who should consider the program?
If your organization filed and received ERC refunds, and you are uncertain if you were entitled, you should reevaluate your eligibility. If you do not meet the eligibility criteria, you should consider the VDP program.
Organizations are eligible if they are not under criminal investigation and have not already received notification that the IRS intends to start an investigation.
Participation in the program avoids IRS audit, penalties and interest, and potential criminal investigation and prosecution.
Applications to the ERC-VDP program are due by March 22,2024
See additional details in this recently released CLA article.
Stay tuned for continued updates on the Employee Retention Credit programs and deadlines as we have them.
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