Businesses: Signs your Employee Retention Credit claim could be wrong; check before March 22 deadline

Notice: Historical Content

This is an archival or historical document and may not reflect current law, policies or procedures.

March 8, 2024

Some promoters have shared misleading info with well-intentioned businesses about the Employee Retention Credit. You have limited time to fix an incorrectly filed ERC claim without penalties and interest.

Signs your claim may be wrong:

  • Claiming ERC for an entire quarter when your business was only suspended for a portion.
  • Claiming ERC for more wages per employee than allowed.
  • Relying on documents that are not government orders.
  • Citing supply chain issues.
  • Believing promoters who say there’s nothing to lose.

Options to resolve incorrect ERCs:

  • Voluntary Disclosure Program: Available through March 22, 2024, to repay improperly claimed ERC. This program lets you repay just 80% of the claim, among other benefits.
  • Claim withdrawal: Ask the IRS not to process a pending claim.