The IRS is Cracking Down on Business ERC Claims, Offers One-Time Opportunity to Correct ERC Claim Filing

The IRS has just reopened its Voluntary Disclosure Program (VDP), offering businesses a limited-time opportunity to correct improper Employee Retention Credit (ERC) claims before facing severe consequences. Available until November 22, 2024, the program allows businesses to amend their ERC filings at a 15% discount, helping them avoid future audits, penalties, and interest. The IRS has already initiated over 460 false disclosure investigations, but there’s still time to act. If your company is among those that may have inadvertently claimed the ERC incorrectly, now is the time to act.

ERC Fraud? The IRS is Letting You Fix It

The IRS is coming for improper ERC claims, and they are not holding back. With the reopening of the VDP, the IRS is sending a clear message: fix your ERC issues now or face the repercussions later. This announcement follows the agency’s ramped-up efforts to combat ERC fraud, which have already led to hundreds of criminal cases against businesses and their owners. These enforcement actions highlight the seriousness with which the IRS is treating improper ERC claims (as we reported earlier this month), and the VDP represents a final chance for businesses to come forward voluntarily and resolve any issues under more favorable terms.

The urgency is underscored by the IRS' plan to mail up to 30,000 new letters to businesses suspected of making improper ERC claims. These letters, part of the IRS' broader compliance strategy, aim to reverse or recapture more than $1 billion in questionable payments. This is in addition to the thousands of letters already sent and the many more expected to go out this fall. The message is clear: the IRS has stepped up its game, and businesses that have made errors in their ERC claims should take this opportunity seriously.

If you need to know more about your ERC-related options, we invite you to get in touch. The IRS' enforcement efforts are not going away—they are intensifying. With thousands of audits underway and over 460 criminal cases already initiated, non-compliance risks are higher than ever. This isn’t just a warning; it’s a reality many businesses face.

Request a Confidential Consultation with Boston IRS Tax Lawyer Kevin E. Thorn

At Thorn Law Group, we understand the complexities of ERC claims and the significant impact that an IRS audit or criminal investigation can have on your business. Our team, led by Boston IRS tax lawyer Kevin E. Thorn, is here to help you navigate this challenging landscape. We offer confidential consultations to review your situation and determine the best course of action. Don’t wait until the IRS knocks on your door—call 617-692-2989 or inquire online today. Kevin E. Thorn is a former IRS attorney practicing for over 25 who can help you!