"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.
