PEO Resources
ERC Risk Management Services for PEOs – A Value Proposition
PEO Risk Management: ERC ClaimsERC Strategies for PEOs: Review, Remediate, Defend, & MonetizeERC Audit Defense Services for PEO customersERC Audit Defense warranties made available for PEO customers that claimed ERC. Overview IRS Representation and Defense...
PEO Liability for Faulty ERC Claims
The IRS recently issued memorandum AM 2024-001, clarifying its position on the liability of PEOs for tax underpayments linked to faulty ERC claims.
ERC Legislation – A History
Evolving ERC GuidanceERC Strategies for PEOs: Navigating the History of ERC Program LegislationInformation about the Employee Retention Credit (“ERC”) program, primarily from Congress and the IRS, is a work in progress. Lots of guidance has been released over time....
Government Actions to Address ERC Claims
A compilation of the Administrative, Legislative, and Executive Actions to (i) identify improper ERC claims that have already been filed, (ii) stop the submission of questionable claims in the future, and (iii) punish those supposedly facilitating misconduct.
ERC – Probing the Strength of IRS Penalty Threats
The IRS is trying various methods to halt what it considers improper ERC claims, including penalty threats. Browbeating PEOs and taxpayers with potential penalties is standard stuff, but it becomes particularly interesting in the ERC context, where the IRS’s ability to carry out its warnings is questionable.
Complexity and Victimization
The IRS has issued a considerable amount of data about ERC issues as they evolve, often as information releases, news releases, tax tips, and the like. The content varies, but two recurrent themes predominate. First, the ERC rules are complex and fluid. Second, many taxpayers have been victimized by companies encouraging aggressive or unsupportable positions.
Significance of IRS Guidance
Significance of IRS GuidanceERC Strategies for PEOs: Understanding the Implications of IRS GuidanceThe IRS has issued a considerable amount of guidance about ERC issues. That seems positive in theory, but it has created problems in practice, largely because it is...
ERC Audit Period
Current proposed legislation would significantly extend the ERC claim assessment period from three years to six years from the date on which the relevant ERC claim was actually filed.
Correspondence Audits
The IRS began launching ERC Correspondence Audits in late 2023. Problematically, these audits do not contain the name, title, or phone number of a revenue agent, tax compliance officer, or other IRS employee with whom the taxpayers under audit can communicate directly.
Processing Moratorium
In response to rising concerns about improper ERC claims, the IRS announced in September 2023 that it was placing an immediate moratorium on the processing of new ERC claims. The moratorium is expected continue throughout 2024.