In a recent News Release, the Internal Revenue Service (IRS) strongly encouraged business owners to file under the Employee Retention Credit Voluntary Disclosure Program (ERC VDP) before the March 22 deadline if they improperly claimed the ERC during or after the COVID-19 pandemic. The ERC VDP provides a limited-time opportunity for eligible businesses to resolve their invalid ERC claims by repaying 80 percent of their refund. But, as Washington D.C. tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, recently discussed, filing under the ERC VDP will be risky for some businesses. As a result, informed decision-making is key, and business owners should seek advice before the March 22 deadline expires.

With the Internal Revenue Service (IRS) continuing to target fraud under the Employee Retention Credit (ERC) program, Congress has now proposed a law that would bring the program to an end. The proposed law would also lengthen the statute of limitations for ERC fraud enforcement and enhance the penalties for promoting fraudulent ERC filing schemes. Learn more from Washington D.C. tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group:

The Internal Revenue Service (IRS) has opened a limited-time Voluntary Disclosure Program for businesses that need to correct improper Employee Retention Credit (ERC) filings. Under the IRS' ERC Voluntary Disclosure Program (ERC-VDP), eligible businesses can repay just 80 percent of their improper ERC refunds while avoiding liability for interest and penalties.