Employee Retention Credit Voluntary Disclosure Plan Announced

On December 21, 2023, the Internal Revenue Service launched a Voluntary Disclosure Program that allows employers who received questionable Employee Retention Credits (ERCs) to repay them at a discounted rate. Employers must apply by March 22, 2024.

Employers who are accepted into the program will only be required to repay 80% of the credit they received. The IRS will not charge program participants interest or penalties on any credits they repay.

Employers who are unable to repay the required 80% of the credit may be considered for an installment agreement on a case-by-case basis, following submission of a Form 433-B, Collection Information Statement for Businesses, available on IRS.gov. However, the employer will be required to pay penalties and interest in connection with entering into an installment agreement.