The U.S. House of Representatives has passed a bill aimed at ending the Employee Retention Credit (ERC) and enhancing the federal government’s ability to hold promoters and business owners accountable. While the ERC was a pandemic-era relief program, eligible businesses can still file claims retroactively (although the IRS currently has a moratorium on processing new claims), and the program proved to be a prime target for fraud. Here, Boston tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, explains what business owners in Massachusetts need to know:

Continuing its efforts to target fraud under the pandemic-era Employee Retention Credit (ERC), the Internal Revenue Service (IRS) recently announced that it is opening a limited-time ERC Voluntary Disclosure Program (ERC-VDP). While qualifying businesses can use the ERC-VDP to limit their liability, business owners must work with their counsel to ensure that this is the best option before they file.