Waiting on Employee Retention Credit claims? The IRS announces it is continuing to process claims, with over 400,000 worth about $10 billion underway.
In an IRS News Release on October 10, 2024, the agency stated that it is working to process claims as quickly as possible, while mentioning that the complexity of the pandemic-era tax credit and the aggressive marketing schemes to claim the credit continue to pose challenges to progress.
The good news is - of the 400,000 estimated claims that are being processed in the latest batch, most are eligible claims. The IRS announced checks are being mailed for these eligible claims and more are on the way.
The IRS also reminded taxpayers in this news release that the consolidated claims process is open to help third-party payers and their clients resolve any improper claims, by allowing them to withdraw improper claims while keeping the claims of qualified businesses.
Finally, the Voluntary Disclose Program (VDP) also remains open to businesses that have already received the ERC but would like to pay some or all the claims back, through November 22, 2024. This program allows taxpayers to resolve incorrect claims without penalties or interest and pay back ERC amounts that were improperly claimed at a 15% discount.
As the IRS continues to increase its investigations into ineligible claims, taxpayers should be aware of the VDP and act quickly if they want to take advantage of the program.
As always, the IRS reminded businesses to review the warning signs of improper claims ERC claims and consult with a trusted tax professional if need be.
