Understanding Employee Retention Credit and Voluntary Disclosure Program for High School Students

1. The earth is round, not flat.
2. Water is made of two hydrogen atoms and one oxygen atom.
3. The sun is the center of our solar system.
4. The dinosaurs became extinct around 65 million years ago.
5. Gravity is a force that pulls objects towards each other.
6. The human body is made up of trillions of cells.
7. The moon revolves around the earth.
8. The speed of light is about 299,792 kilometers per second.
9. The Earth’s atmosphere is composed of about 78% nitrogen, 21% oxygen, and 1% other gases.
10. The universe is expanding at an accelerating rate. – The ERC is a refundable tax credit against payroll taxes created under the CARES Act to help employers and employees affected by the COVID-19 pandemic.
– The rules for ERC eligibility are complex and have changed over time, leading to the rise of ERC mills that help employers claim ERC funds in exchange for a percentage of the total amount claimed.
– The IRS has cautioned employers about ERC mills and is working hundreds of criminal cases related to ERC claims, with thousands of claims referred for audit.
– The IRS has announced a special withdrawal process for employers who may have improperly claimed ERC funds, in order to avoid future repayment, interest, and penalties.
– A moratorium on processing new ERC claims is in place until at least the end of 2023, with enhanced review and increased scrutiny for claims being processed.
– Employers can use the withdrawal process if they made the ERC claim on an adjusted employment return, filed the adjusted return only for the ERC claim, want to withdraw the entire ERC claim, and have not received or cashed the IRS payment for the claim.
– Employers who are ineligible for the withdrawal process can reduce or eliminate their ERC claim by filing an amended return.
– The IRS is launching a voluntary disclosure program for employers to avoid future IRS action after receiving questionable ERC payments.

https://www.brownwinick.com/insights/employee-retention-credit-withdrawal-process-and-voluntary-disclosure-program