Most of the discussion focused on eligibility and how to participate in the ERC Voluntary Disclosure Program. Most of that information can be found in the linked IRS slides on the IRS website through this link. The IRS did not announce changes to the eligibility criteria; nor was there any mention that criminal liability protection could be granted through the ERC Voluntary Disclosure Program (as you will see below, they actually stated something to the contrary). The IRS also announced that the status of the ERC moratorium remains unchanged and still in effect.
A few other noteworthy items were discussed, including:
- The IRS recognizes that the deadline to submit an application is during tax return busy season. There is unfortunately no consideration within the IRS to an extension of the March 22, 2024 application deadline at this time.
- It is possible to participate in an ERC Voluntary Disclosure and not full pay the required 80% ERC payment by the time the closing agreement that resolves the matter is executed by the taxpayer and IRS. The IRS stated: “if payment is impossible by the closing agreement date, you may be considered for an installment agreement. When submitting ERC-VDP application through the document upload tool, you also need to complete and submit a Form 433-B, Collection Information Statement for Businesses, and provide all documentation required to support the Form 433. This additional information is required for the IRS to review and analyze the proposed installment agreement request. And also, depending on your facts, the IRS may request additional information.”
- There are still IRS examiners being trained to work on ERC Voluntary Disclosures. Once those individuals are fully trained, the process of processing disclosures may speed up.
- The IRS specifically stated: “if somebody willfully filed a fraudulent ERC claim, or if they assisted or conspired in such conduct, applying to the ERC-VDP will not exempt them from potential criminal investigation and prosecution.”
- The IRS also stated that the “IRS is working at both the criminal and the civil side of identifying and pursuing aggressive promoters of false, and incorrect employee retention credit. There are dozen -- actually, I think hundreds now of criminal investigations, there's also, quite a few civil investigations that are occurring on active promoters.”
- There is a phone number to check on the status of ERC voluntary disclosures. That number is (414) 231-2222, where callers can leave a message and request a call back.
If you have any questions about the ERC Voluntary Disclosure Program, any other ERC matter, or any other civil or criminal tax matter, please contact me at email@example.com or 214-749-2417.