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The ERC Voluntary Disclosure Window has Closed: Will It Reopen?

By Jeffrey M. Glassman on March 25, 2024

Last Friday, March 22, the IRS ERC Voluntary Disclosure program ended. So technically, there can be no more ERC Voluntary Disclosures.

Interestingly the IRS announced that the program could potentially open at a later date. In a news release here, from last Friday, the IRS stated:

  • The IRS may reopen the VDP at a future date depending on whether Congress extends the statute of limitations for ERC claims. The Treasury Department has proposed extending the statute of limitations to give the IRS additional time to address unscrupulous ERC claims.
  • Currently, the statute of limitations for claims processed for Tax Year 2020 will expire on April 15. Assessments on Tax Year 2020 claims will cease after this date. However, compliance activities regarding Tax Year 2021 ERC claims will continue since that statute does not expire until later.
  • “The IRS continues to closely monitor discussions in Congress regarding ERC and the need to extend by statute critical tools to protect against improper claims,” Werfel said. “In any scenario, the IRS will continue working on a wide range of ERC issues, including the larger dollar 2021 erroneous claims.”
  • If the VDP is reopened at a future date, the terms will be no better than the current program, which offers a special 20% discount.

So, at this point, it is a wait-and-see exercise for employers who may be candidates for a future ERC voluntary disclosure program. Regardless, there are still steps that employers can take who may have questionable claims.

If you have questions about the ERC, or any other civil or criminal tax matter, please contact me at 214-749-2417 or jglassman@meadowscollier.com.