Employer Retention Credit (ERC)
Voluntary Disclosure Program (VDP)
This Program has Ended
Program Ends March 22, 2024
ERC-VDP
The IRS is cracking down on employers who erroneously claimed ERC funds.
Voluntary participants in this program are required to pay only 80% of the improperly claimed ERC amount without facing penalties or interest charges.
If funds already received, and are determined to be erroneous, the IRS may pose a 75% penalty on top of the return of 100% of the funds.
Am I at risk?
The most common reasons that Employee Retention Credit claims are being found erroneous include aggressive interpretations of eligibility criteria, misinterpretation of the rules, and misinformation, often propagated by third-party promoters. These promoters may have encouraged businesses to apply for the credit even when they did not meet the necessary qualifications, leading to erroneous claims.
- Do you feel like there was an aggressive interpretation of your eligibility?
- Does your claim seem excessive relative to your payroll size?
- Did part or all of your claim use “Supply Chain Disruptions” as a justification?
- Did a third party get you “approved’ with a surprisingly small amount of documentation?
- Did your preparer charge you a fee based on a percentage of your refund amount?
Concerned?
Meinershagen & Co can help. Let us take a professional look at your claim to determine its viability to see if you should be participating in the ERC Voluntary Disclosure Program. The Voluntary Disclosure Program ends March 22, 2024.