The employee retention credit (ERC) remains a hot topic as the Internal Revenue Service (IRS) has opened a new window for its voluntary disclosure program, allowing employers to withdraw their claims. While the IRS is processing and paying out refunds for the ERC, it has also introduced new conditions that seem to disqualify certain wages from eligibility. In response, some eligible employers are beginning to take legal action to compel the IRS to address their pending refund claims.

In this episode, Tax Services Partner Brooks Nelson and Tax Director Sarah McGregor are joined by Partner and Tax Credits & Incentives Advisory Practice Leader Martin Karamon. Together, they discuss the complexities of the ERC and the IRS's actions to address both legitimate and dubious claims.

Listen to learn more about: 

• 02:23 – ERC overview
• 04:34 – IRS moratorium updates
• 06:32 – IRS timeline for resuming new claims
• 09:06 – 8/15 ERC voluntary disclosure program 
• 10:58 – Sources for employer VDP info
• 12:48 – IRS 12 signs of incorrect ERC claims 
• 14:56 – ERC claim payment status amid IRS audits
• 15:58 – Trends in employer lawsuits for refunds

Related Insights

• Article: Avoiding the Risk of Incorrect Employee Retention Credit Claims
• Webinar: The Employee Retention Credit: 2024 Updates
• Article: 2024 Most Frequently Asked Questions about the Employee Retention Credit (ERC)
• Article: Understanding IRS’ Voluntary Disclosures Program for Employee Retention Credit (ERC) Claims