Employee Retention Credit
Voluntary Disclosure Program NOW REOPENED!
If you are a business owner experiencing a tax issue relating to ERCs, including not receiving funds that you are legally entitled to, Taylor Nelson Amitrano LLP has an experienced team of attorneys available to discuss options that are available to you.
Our firm provides advice and representation relating to Employee Retention Credit (“ERC”) claims filed with the IRS and our representation includes, but is not limited to the following:
- Filing refund suits against the U.S. Government which seek to recovery legally owed ERC funds
- Representing clients administratively before the IRS in any pending examination of claimed ERC amounts
- Assisting clients who wish to avail themselves of the IRS Voluntary Disclosure Program for ERC claims
- Providing advice on ERC claims and how to best navigate the IRS’ complex collection and refund system
Status of ERC Claims for Business Owners
The IRS has been slow to process tens of billions of dollars of ERC claims. In June of 2024, the IRS announced that it was denying billions of dollars of claims. Other claims remain delayed in processing, and many taxpayers are left wondering if, and when, their legally valid refunds will be issued.
It is important to understand that you have the right to take action against the IRS to collect ERC refund amounts. Additionally, where a refund claim is denied, taxpayers should be aware that such a denial typically starts a two-year statute to bring a lawsuit against the U.S. to recover your refund amount. Lawsuits that are not filed within the applicable statute of limitations will be legally time-barred.
Suit Against the United States
Business Owners who file ERC refund claims with the IRS can file suit against the IRS at the earlier of: (1) the date the refund claim is denied; or (2) six months after the refund claim is filed. As such most taxpayers who filed ERC refund claims with the IRS can bring suit against the IRS to recover the refund amounts. Filing a lawsuit may make sense for taxpayers who wish to expedite the resolution of their ERC claim.
It is also important to understand that where an ERC refund claim is formally denied by the IRS, a taxpayer has only two years to bring suit against the IRS. Failure to bring a suit within this time period will result in the suit being legally barred.
Examination of ERC Claims
The IRS continues to review and audit a small portion of the filed ERC claims. These audits often involve complex facts and law, and taxpayers who are found to have filed incorrect claims may be penalized. Our firm regularly represents taxpayers before the IRS in ERC examination matters.
On August 15, 2024, the IRS announced that it was temporarily reopening the Voluntary Disclosure Program (VDP) for ERC claims. Participants of the VDP for ERC matters are required to only repay 85% of the total credits received, and participants avoid audit, penalties, and interest. This program is available through November 22, 2024.
What We Can Do to Help You Get ERC
Taylor Nelson Amitrano LLP is able to assist taxpayers in ERC matters nationwide, and this includes litigating ERC refund claims. If you need assistance or have questions regarding your ERC claim, please contact our experienced team of attorneys, as we are here to support you.