AmiSight 1/5: IRS Opens up Amnesty Program for Employee Retention Credit Program

A recent Forbes article explains how the IRS has introduced a voluntary disclosure program for businesses to rectify erroneous Employee Retention Credit (ERC) claims. The program aims to combat fraudulent claims and provides relief to eligible small businesses, allowing them to repay only 80% of the claimed credit without interest or penalties.

Small businesses misled by unscrupulous preparers can benefit from this initiative, and the IRS urges firms to come forward. The disclosure program is open until March 22, 2024, and applicants must provide information about advisors or tax preparers involved in their claims.

The IRS continues its efforts to identify and address questionable ERC claims with ongoing audits and criminal investigations. Businesses receiving letters indicating disallowed ERC claims are encouraged to participate in the disclosure program.