The IRS on Thursday announced a "special withdrawal process" for small businesses that may have wrongly claimed the so-called employee retention tax credit, or ERC.
Enacted to support small businesses during the pandemic, the ERC, worth thousands per eligible employee, has been a magnet for fraudulent or "questionable claims," according to the IRS.
Many small businesses were misled by ERC promoters, prompting the agency to temporarily stop processing for new claims in September.
Small businesses can use the ERC claim withdrawal process if they meet the following criteria:They claimed the ERC on an adjusted employment return (Forms 941-X, 943-X, 944-X, CT-1X).
Small businesses can learn more about the ERC withdrawal process by visiting IRS.gov/withdrawmyERC.
Persons:
Daniel Werfel, Danny Werfel, Here's, Werfel, haven't, IRS.gov
Organizations:
Revenue, Senate, IRS, ERC, Finance