IRS Commissioner Daniel Wuerfel testifies before the House Small Business Committee on July 17, 2013.
James Lawler Duggan | Reuters
The IRS unveiled a “voluntary disclosure program” for companies that claimed existence Tax credit in the era of the pandemic By mistake and I want to return the money.
Worth thousands per employee, and Employee Retention Tax Creditor ERC, is designed to support small businesses affected by the Covid-19 pandemic. The effects of lucrative tax relief a Corporate cottage industry Leading employers to incorrectly claim the credit.
The IRS revealedSpecial withdrawal process“For companies with claims pending in September. The new Voluntary Disclosure Program provides applicants with the opportunity to repay credits received with a 20% discount to cover external promoter fees.
However, it is a “time-limited offer,” IRS Commissioner Danny Werfel said during a press call Thursday. The deadline to apply for the Voluntary Disclosure Program is March 22, 2024.
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“We urge employee retention credit recipients who believe they have been misled by promoters to review these special programs, including either a disclosure program or an opt-out option, depending on their situation,” Werfel said.
The new program comes about two weeks after the IRS announced it was sending more than… 20,000 rejection letters from ERC to taxpayers as part of its crackdown on “questionable” filings.
The IRS is sending another round of letters to companies that received an ERC error and taxpayers will not qualify for the voluntary disclosure program, Werfel said.
“It’s for those who have received the claim, or received their credit, and have not yet heard from the IRS,” he said.
To qualify for the program, businesses must provide the IRS with contact information for any consultants or tax preparers who helped them with the erroneous claim, as well as details about the services.
Businesses can apply for the program by applying Form 15435Which can be filed through the IRS Document upload tool.
Participants will not owe interest or penalties if they pay 80% of the balance when signing the closing agreement. However, interest and penalties will apply to payment through installment agreements.
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