Employee Retention Credit - Withdrawal Program

Concerned that you may have applied for the Employee Retention Credit (ERC) but it might be improper? For a limited time, the IRS has announced a program for businesses who would not like to withdraw their ERC claims. Filing an ERC withdrawal can save a business huge amounts in penalties and interest as well as headache.

The ERC withdrawal program is for business that have filed an ERC claim and now believe that their ERC claim was improper but have not yet been paid a refund or have not yet cashed their refund check. If a business has already received a refund check from an ERC claim, then the ERC Voluntary Disclosure Program (ending March 22, 2024), may be a good option to consider.

To qualify for the ERC Withdrawal Program, you must meet four criteria:

• Have filed an adjusted employment tax return (Forms 941-X, 943-X, 944-X, CT-1X).

• The only adjustment on the return was for the ERC.

• You want to withdraw the full ERC claim.

• The IRS has not paid the ERC claim or the check has not been cashed

Depending on where a business is in the process, there may be different ERC withdrawal procedures. For a complete review of your ERC situation from a tax attorney please contact us to discuss your options. You may also call (917)-746-2211.