On August 15, 2024, the Internal Revenue Service (IRS) announced that it is reopening the Employee Retention Credit (ERC) Voluntary Disclosure Program for a limited time. The ERC Voluntary Disclosure Program previously closed in March 2024, with the IRS reportedly receiving more than 2,600 voluntary disclosures involving more than $1.09 billion in improper ERC credits and refunds. As Boston tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, explains, for business owners who are thinking about submitting a voluntary disclosure this time around, there are some important changes to keep in mind.

The Internal Revenue Service (IRS) is continuing to prioritize Employee Retention Credit (ERC) fraud in Massachusetts and other states across the country. On August 8, 2024, the IRS issued another News Release highlighting its ERC enforcement efforts, with this one noting that the agency is “intensifying audits” focused on uncovering fraudulent ERC claims. Learn more from Boston tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group.

As we discussed last month, the Internal Revenue Service (IRS) has determined that the “vast majority” of Employee Retention Credit (ERC) claims show signs of fraud. Now, the IRS has shed additional light on its findings, identifying 12 specific “warning signs” for fraudulent ERC claims. With the IRS continuing to prioritize ERC fraud enforcement, Massachusetts businesses that claimed the credit should work with an experienced Boston tax attorney to reassess their eligibility and determine whether remedial action is warranted.

The Affordable Care Act (ACA) requires that many businesses provide health insurance coverage to their employees. While there are tax credits available to help offset the costs of providing this coverage (and while alternatives are available in some cases), covered businesses need to prioritize compliance—and they need to be prepared to demonstrate compliance when necessary. As Boston IRS attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, explains, the Internal Revenue Service (IRS) is prioritizing ACA compliance, and businesses targeted in penalty audits can face steep consequences for non-compliance.