Brager Tax Law Group Announces Key IRS Update

Friday, August 21st, 2024

Attention Business Owners: The IRS has launched a second round of the Employee Retention Credit (ERC) Voluntary Disclosure Program, offering an essential opportunity for businesses to address any improper ERC claims without facing penalties or interest. This program is open until November 22, 2024, and provides a strategic avenue for businesses to correct mistakes and avoid costly future audits.

At Brager Tax Law Group, we urge our clients who have received ERC payments to revisit their eligibility criteria and consider whether the new ERC Voluntary Disclosure Program (VDP) might be a suitable option for them. With this program, businesses can resolve erroneous ERC claims at a 15% discount and secure protection from future compliance actions, including audits and repayment demands.

• Discounted Repayment: Businesses accepted into the program will only need to repay 85% of the received ERC, with no penalties or interest.
• Audit Protection: Participation in the program can safeguard your business from future audits and associated financial liabilities.
• Flexible Repayment Options: If immediate repayment is challenging, the IRS may consider installment agreements on a case-by-case basis.

Many businesses were inadvertently led to file incorrect ERC claims due to misleading marketing from aggressive promoters. If you suspect that your ERC claim might be questionable, now is the time to act. The IRS has intensified its compliance efforts, and addressing any issues proactively through the VDP can save your business from potential penalties and interest.

Before attempting to navigate this new program, we strongly recommend that you seek the advice of one of our experienced tax attorneys at Brager Tax Law Group. Understanding the complexities of the ERC and ensuring compliance is critical, and our team is here to provide the expert guidance you need.

We recommend that you review the IRS’s ERC Eligibility Checklist and consult with a trusted tax professional—like those at Brager Tax Law Group—to determine the best course of action. Our team is here to guide you through the VDP application process and help ensure your business remains compliant.

• Eligibility: This program is available for tax periods in 2021 only. Claims related to 2020 are not eligible.
• Application Deadline: Interested businesses must apply by November 22, 2024.
• Application Process: Businesses must file Form 15434 via the IRS Document Upload Tool. For those unable to repay the full amount immediately, installment agreements are available.

If you outsourced your payroll, the third party responsible for your employment tax reporting must apply on your behalf. The IRS will provide detailed instructions during the application process.

Once your application is submitted, an IRS representative will contact you to discuss your case. Upon approval, you will receive a closing agreement detailing the repayment terms. We strongly encourage businesses that may struggle with repayment to explore financing options to avoid penalties and interest associated with installment agreements.

We believe your business may benefit from the ERC Voluntary Disclosure Program. At Brager Tax Law Group, we are committed to helping our clients navigate these and other complex tax issues.

Call 310-208-6200 to speak to one of our knowledgeable tax attorneys today to discuss your situation and take the first step toward resolving any ERC-related concerns or visit our website at www.bragertaxlaw.com.