There is a fair amount of activity with the IRS-processing Employee Retention (Tax) Credit (ERC) refunds with two announcements this past month. I would call it good news for those who have legitimate claims and bad news for those who filed a not-so-legitimate claim. Actually, not all bad news for the not-so-legitimate claim group. The IRS has reopened the Voluntary Disclosure Program (VDP), which will run through November 22, 2024. As you may recall, this was started earlier this year whereby the IRS allowed you to revoke your claim and return any funds you believe were improperly claimed, keeping 20%…
Posts tagged as “ertc”
Multiple lawsuits have been filed against the IRS, alleging that their lengthy processing time for ERC claims is violating their rights, including one to stop the moratorium that was imposed on new filings made after September 14, 2023. In recent IRS responses to these lawsuits, we have learned new information on how they intend to clear their backlog of 1.4+ million returns they have had as of May 18, 2024. 880,000 of those returns were filed before the moratorium on September 14, 2023, so in essence, the fact there is a moratorium at all, those returns received after that date…
Unlike the Employee Retention Tax Credit (ERC) that came about as the result of COVID-19 and its effect on businesses, the Workforce Opportunity Tax Credit (WOTC) has been around since 1996. It only took ERC about two years to gain popularity, but almost three decades later, the WOTC is still mostly unknown. So what exactly is the WOTC and how can it benefit your business? I am glad you asked. It is a federal tax credit ranging from $2,400 to $9,600 per hire, available to employers who hire workers from a ‘targeted group.’ These are workers who may otherwise face…