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ARTICLE · 25 JANUARY 2024

New Employee Retention Credit (ERC) Program Has A Very Short Deadline

Scarinci Hollenbeck wants its clients to know that if you applied for an ERC and have any doubts about the veracity of your claim, the time to act is now.

United StatesEmployment and HR

Scarinci Hollenbeck wants its clients to know that if you applied for an ERC and have any doubts about the veracity of your claim, the time to act is now. The Internal Revenue Service (IRS) is carefully scrutinizing ERC claims because they have detected considerable fraud caused in part by promoters of this credit. There is currently legislation on the table to end the ERC program at the end of this month (January 2024), rather than the original date in 2025. The legislation also would extend the statute of limitations on ERC audits from five years to six years. Considering the interest and penalty that could accrue over six years, careful consideration should be given to what, if any, action should be taken at this time.

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