Understanding IR-2024-78: Navigating ERC Compliance with Confidence

In the wake of the pandemic, the Employee Retention Credit (ERC) has been a lifeline for many businesses. However, recent IRS actions, particularly the announcement IR-2024-78, have spotlighted compliance issues and the need for accurate ERC filings. Here at Tax Credit Advice, we’re committed to helping business owners navigate these complexities with confidence through our free ERC Health Check and audit defense services.

Key Takeaways from IR-2024-78

The IRS has intensified its efforts to combat erroneous ERC claims, with over $1 billion in protected revenue since last fall. Three significant initiatives have been pivotal in this compliance drive:

1. Voluntary Disclosure Program (VDP): Yielding over $225 million from more than 500 taxpayers, with additional submissions still under process.
2. Claim Withdrawal Process: Enabling businesses with unprocessed claims to retract their filings, thus avoiding potential penalties.
3. Assessment of Improper Claims: Identifying over 12,000 entities that filed improper claims, resulting in $572 million in assessments.

Why Compliance Matters

The IRS’s crackdown on improper ERC claims underscores the importance of accuracy and compliance. Misleading information from aggressive marketers has led to widespread abuse, prompting the IRS to take rigorous actions, including audits and criminal investigations.

How Tax Credit Advice Can Help

1. Free ERC Health Check: We offer a thorough review of your ERC claim to ensure it meets IRS guidelines. Our licensed tax attorneys evaluate eligibility, accuracy, and provide actionable advice to mitigate risks.
2. Audit Defense: If your claim is flagged, our experienced team is ready to defend your position, gather necessary documentation, and guide you through the audit process.
3. Second Opinion Service: Already filed your ERC claim? Our second opinion service offers an additional layer of assurance, identifying potential red flags and advising on corrective actions.

Staying Ahead of Compliance

As the IRS continues its scrutiny, it’s crucial for businesses to stay informed and proactive. The suspension of the VDP after March 22, 2024, and the ongoing claim withdrawal process are pivotal opportunities for businesses to rectify any discrepancies without facing severe penalties.

Conclusion

IR-2024-78 marks a significant shift in the IRS’s approach to ERC compliance. At Tax Credit Advice, we are dedicated to helping businesses navigate these challenges with confidence. Our free ERC Health Check and comprehensive audit defense services are designed to ensure your ERC claim is accurate, compliant, and protected against potential IRS problems. Don’t wait for the IRS to come knocking—take control of your ERC claim today with Tax Credit Advice.

Contact us to schedule your free ERC Health Check and safeguard your business against IRS compliance issues. Let our team of experts help you navigate this complex process with confidence.

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