Tax Express Group

Discounted Repayment Program for Invalid ERC Claims

Between now and March 22, 2024, businesses that received employee retention credit (ERC) funds but did not qualify for the credit may apply to repay the credit at a discounted rate. While the ERC program gave vital assistance to many employers during the pandemic, it also became a target of scammers, who lured ineligible business owners into falsely claiming the credit.

Under this new voluntary disclosure program, taxpayers whose applications are approved by the IRS will only have to pay back 80% of the credit amount. The remaining 20% will be forgiven without penalty, since many businesses lost a percentage of their credit to ERC promoters. Note that if a business uses a third-party payroll management service, that third party must submit the application to participate in the discounted repayment program.

The IRS also reminds businesses to act quickly to withdraw pending questionable ERC claims. Taxpayers whose ERC applications have not yet been processed, or who received an ERC refund check but not cashed it, may be able to withdraw their applications (and return the check) without penalty. A business tax professional can help determine whether an ERC claim was valid, and if not, what steps can be taken to try to resolve the issue.

Open Filing Season for 2023 Tax Returns (2/2)

When this year's tax season officially opens on January 29, it will feature several improvements to IRS services. Two key upgrades relate to digital form submission and options for taxpayers to access their IRS account information online.

Enhancements to IRS paperless processing systems include the addition of 20 more tax forms to e-filing platforms, and new ways to respond to IRS letters online. Taxpayers with online IRS accounts will also discover new account features, including options to schedule and cancel future payments, and to securely save bank information for greater convenience.

A tax professional can help you file your tax return and any other required forms electronically, to save resources and ensure the fastest possible refund delivery.

Quarterly Estimated Tax Payments - Reminder

If you are making quarterly estimated tax payments to the IRS, the due date for the September 1st - December 31st, 2023 quarter of year is Monday, January 15th, 2024.

For payments made using IRS Direct Pay, you can make payments until 11:45PM EST, and for payments using a credit or debit card, payments can be made up to midnight on the due date.