The IRS has released updated guidance regarding the increased possibility of future audits on taxpayers who have claimed the Employee Retention Credits (ERC). If you qualified due to the mandates versus reduced sales, documentation should show what government orders were used to support your credits and how your company was affected by those mandates. Because of the high level of fraud surrounding this incentive, please be certain you have all the necessary documentation to support the refunds you have been told you are eligible to receive (or have received).
IRS has unveiled a separate voluntary disclosure program allowing those who received questionable credits to avoid future IRS action. The deadline to be a part of the voluntary disclosure program is March 22, 2024. If you have any questions in regards to your eligibility or support documentation, please contact your ERC calculation specialist.
The link below discusses the warning signs and the voluntary disclosure program: