tldrdaily.news logo
Tag

Employee Retention Credit

All articles tagged with #employee retention credit

taxation2 years ago

"IRS Urges Businesses to Review VDP and Withdrawal Program Amid Employee Retention Credit Updates"

The IRS is urging businesses to review their eligibility for the Employee Retention Credit (ERC) and is conducting educational sessions for tax professionals to ensure compliance with ERC claims. The agency is intensifying compliance activities to protect against fraud and is offering voluntary disclosure and withdrawal programs for businesses with questionable claims. The IRS has also increased its focus on reviewing ERC claims for compliance concerns, including audits and criminal investigations, and is sending letters to taxpayers regarding disallowed or excessive ERC claims. The agency continues to work closely with the tax community to combat aggressive marketing and misuse of COVID-relief programs and credits.

via IRS|
#compliance#employee-retention-credit#fraud-protection
business2 years ago

"IRS Launches Discounted Payback Program for Questionable Employee Retention Credits"

The Internal Revenue Service (IRS) has launched a new Voluntary Disclosure Program to help businesses repay the Employee Retention Credits (ERC) they received in error. The program allows employers to repay 80% of the claim received and runs through March 22, 2024. The IRS is also sending letters to employers with proposed tax adjustments to recapture erroneously claimed ERC. Employers must apply to the program by March 22, 2024, and provide information about advisors or tax preparers who assisted them with their claim. The IRS continues to accept and process requests to withdraw pending ERC claims.

via IRS|
#business#employee-retention-credit#irs
taxation2 years ago

IRS Cracks Down on 20,000 Improper COVID Tax Credit Claims

The Internal Revenue Service (IRS) is sending over 20,000 letters to taxpayers notifying them of disallowed Employee Retention Credit (ERC) claims, targeting entities that did not exist or did not have paid employees during the eligibility period. This is part of the IRS's efforts to combat misleading marketing campaigns that have targeted small businesses and organizations. The IRS is also launching a voluntary disclosure program for those who received questionable payments to avoid future IRS action. The disallowance letters aim to protect taxpayers from audits, penalties, and interest, prevent incorrect refunds from going to ERC promoters, and save IRS resources. Taxpayers can respond with supporting documentation or file an administrative appeal if they disagree with the disallowance. The IRS is also accepting requests to withdraw pending ERC claims to avoid repayment, interest, and penalties.

via IRS|
#compliance#disallowed-claims#employee-retention-credit
business2 years ago

IRS Introduces Special Withdrawal Process to Address Ineligible Employee Retention Credit Claims and Scams

The IRS has announced a special withdrawal process for businesses concerned about the accuracy of their Employee Retention Credit (ERC) claims. This new option allows eligible employers to withdraw their ERC claim and avoid repayment, interest, and penalties. The withdrawal option was created to assist small businesses that were pressured or misled by ERC marketers into filing ineligible claims. The IRS will treat withdrawn claims as if they were never filed and will not impose penalties or interest. However, those who willfully filed fraudulent claims may still face potential criminal investigation and prosecution. The IRS continues to urge taxpayers to consult with trusted tax professionals rather than marketing companies for guidance on the complex ERC tax credit.

via IRS|
#business#employee-retention-credit#irs
"Is Your Business Eligible for Employee Retention Tax Credit?"
business2 years ago

"Is Your Business Eligible for Employee Retention Tax Credit?"

Small businesses are being bombarded with ads, phone calls, and emails to help them claim the employee retention credit (ERC), a pandemic-era tax credit worth up to $5,000 per employee for 2020 or $28,000 per employee in 2021. However, experts urge business owners to review eligibility with a qualified tax professional, as "ERC mills" have popped up, charging small businesses up to 25% to 30% of the credit received. The IRS has warned taxpayers to be cautious of promoters misleading people and businesses into thinking they can claim these credits.

via CNBC|
#business#employee-retention-credit#irs