A new reminder from the Internal Revenue Service has been issued. This IRS warning is for American businesses with an incorrect Employee Retention Credit claim. The Agency claims that there is a simple way to avoid interest and penalties.
The IRS recommends applying to the second Employee Retention Credit Voluntary Disclosure Program. However, there is not much time left to do so. Time is running out and you should act quickly.
When is the IRS deadline for the second ERC Voluntary Disclosure Program?
According to the IRS, the deadline for the second ERC Voluntary Disclosure Program is November 22, 2024. This reminder is particularly important for a business that has received ERC payments to recheck eligibility requirements and consider the second ERC VDP.
In fact, this will be the best way to sort out incorrect claims. By doing so, businesses will avoid both penalties and interest rates. What is more, it will help a business correct improper payments at a 15% discount.
Not to mention the fact that you will avoid a future audit for this reason and any other expensive penalties or interest. If you own a business with questionable claims, take advantage of this measure.
IRS’s claim withdrawal program
Another thing the Internal Revenue Service reminds taxpayers of is the fact that the claim withdrawal program also remains open for businesses that need it. For example, if your business Employee Retention Credit claims have not been paid yet.
In order to support businesses that find themselves in this situation, the Internal Revenue Service urges them to review eligibility requirements and warning signs.
Sometimes it is best to hire a trusted tax professional the IRS recommends. Making use of the Employee Retention Credit Eligibility Checklist may also be helpful so the IRS can suggest next steps. For more details, visit the official website:
- https://www.irs.gov/newsroom/irs-accelerates-work-on-employee-retention-credit-claims-agency-currently-processing-400000-claims-worth-about-10-billion