The Internal Revenue Service (IRS) has introduced a special withdrawal process to assist small businesses and organizations that have filed an Employee Retention Credit (ERC) claim and are worried about its accuracy. This option lets eligible employers who filed an ERC claim, but haven’t received a refund yet, withdraw their submission to avoid future repayment, interest, and penalties, even if their claim is still being processed.

Employee Retention Credit Voluntary Disclosure Program – Guidance for taxpayers who have received an ERC refund to pay back those claims that may not be eligible for the credit. Read more about the ERC-VDP.

Source: IRS (2023, Oct 19). “IRS announces withdrawal process for Employee Retention Credit claims; special initiative aimed at helping businesses concerned about an ineligible claim amid aggressive marketing, scams”. https://www.irs.gov/newsroom/irs-announces-withdrawal-process-for-employee-retention-credit-claims-special-initiative-aimed-at-helping-businesses-concerned-about-an-ineligible-claim-amid-aggressive-marketing-scams