In a bid to protect small businesses from potential scams, the IRS has unveiled a special withdrawal process for those who filed Employee Retention Credit (ERC) claims and are concerned about accuracy. This option allows certain employers to withdraw their ERC claims, avoiding future repayment issues. The IRS aims to assist businesses pressured by ERC marketers into filing ineligible claims.
The ERC, designed to support businesses during the pandemic, is subject to heightened compliance reviews and a moratorium on new claims. The withdrawal process is part of the IRS strategy to curb fraud. Eligible employers can find withdrawal instructions on the IRS website.
A webinar on November 2 and interactive tools on the IRS website provides additional resources. The IRS emphasizes consulting trusted tax professionals and warns against relying on marketers for ERC guidance. Employers are urged to stay informed and consider the withdrawal option if needed to ensure compliance.
To take advantage of the claim withdrawal procedure, taxpayers should carefully follow the instructions at https://www.irs.gov/newsroom/withdraw-an-employee-retention-credit-erc-claim