The IRS has opened a second round of the Employee Retention Credit Voluntary Disclosure Program (or “ERC VDP”) for businesses who may have improperly claimed the ERC in the past. The ERC VDP is open now and runs through Nov. 22, 2024. This ERC VDP helps businesses repay credits they received after filing ERC claims in error.
The program allows businesses to correct improper payments at a 15% discount and avoid potential compliance action in the future such as audits, full repayment, penalties and interest. This second round of the program is open for tax periods in 2021. Employers can’t use the second ERC VDP to disclose and repay ERC money from tax periods in 2020.
If your business claimed the ERC, and you fear that the claim may have been in error, please contact our office. We can review your claim and help you determine if the ERC VDP is a good option.