The IRS has issued notice IR-2023-230, targeting businesses that have previously filed for the Employee Retention Credit (ERC) to address possible inappropriate claims and eligibility misconceptions.
This notice signals a significant step in IRS compliance enforcement, intending to notify over 20,000 entities with disallowed ERC claims, particularly focusing on businesses that didn't exist or pay wages during the credit eligibility period from March 13, 2020, to December 31, 2021.
Additionally, it outlines upcoming initiatives, including a voluntary disclosure program for those who erroneously received ERC funds, allowing them to repay without penalties. The notice reinforces the existing option for businesses to withdraw pending ERC claims and confirms the extension of the moratorium on processing new ERC claims until at least the end of 2023.
Freese, Peralez, & Associates offer assistance in reviewing ERC claims, ensuring accuracy and eligibility, and advising on potentially contentious claims to prevent penalties amid the IRS's heightened scrutiny.