IRS opens new round of ERC voluntary disclosure ending November 22
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On August 15, 2024, the IRS released Announcement 2024-30 informing taxpayers of a second round of the Employee Retention Credit Voluntary Disclosure program (ERC-VDP).
The ERC-VDP is a program developed by the IRS aimed at assisting employers who received but were not entitled to employee retention credits (ERC) to self-identify and repay that ERC.
Here’s what you need to know about this program to rectify ERC-related eligibility errors before the second round ends on November 22, 2024:
ERC-VDP second round overview
Many parts of the second round disclosure are similar to the first round disclosure which ended on March 22, 2024. A few key differences are that the repayment percentage was increased from 80% to 85% and only ERC claims for 2021 can be submitted.
A taxpayer who used a third-party payroll agent to submit ERC claims is eligible to participate in the second ERC-VDP, but the application must be submitted by the third party on the taxpayer’s behalf.
Key points of the program include:
Eligibility criteria |
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Benefits of participation |
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ERC disclosure process |
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How Wipfli can help
The second ERC-VDP offers employers another opportunity to rectify ERC-related eligibility errors. By voluntarily disclosing discrepancies, employers can help ensure compliance and benefit from the intended tax relief.
Wipfli can help. We apply our extensive tax experience and knowledge of the ERC to help you assess whether using ERC-VDP is the right decision for your business.