Guidance and Information
Employee Retention Credit
- IRS ERC Information
- IRS ERC Eligibility Checklist
- IRS Red Flags for ERC
- ‘As if they were never filed’: IRS outlines steps to withdraw ERC claims (10/19/23)
- The IRS issued a General Legal Advice Memorandum (GLAM) related to whether an employer can rely on communications from Occupational Safety and Health Administration (OSHA) for determining whether it qualifies for ERC under the full or partial suspension of operations (10/18/23)
- Helping a Client Who Fell for an ERC Scam (10/26/23)
- Understanding the Employee Retention Tax Credit and Preparing Against the Risk of IRS Audit and Tax Litigation (Today's CPA July-August 2023)
- TXCPA Federal Tax Blog Information (9/26/23)
- ‘Tsunami’ of ERC claims required IRS action to halt fraud, experts say (Journal of Accountancy 9-19-23)
- IRS Temporarily Stops ERC Processing (Journal of Accountancy 9-15-23)
The IRS believes the Employee Retention Credit (ERC or ERTC) program is so rife with abuse by "ERC mills" that it has imposed an immediate moratorium on the processing of new claims, at least through the end of 2023.
The Employee Retention Credit is a complex tax credit for businesses and tax-exempt organizations that kept paying employees during the COVID-19 pandemic either when they were shut down due to a government order or when they had a significant decline in gross receipts during certain eligibility periods in 2020 and 2021.
The IRS continues to see aggressive marketing that lures ineligible taxpayers to claim the ERC. While the credit is real, many promoters are aggressively misrepresenting who can qualify for the credit. In many instances, the IRS is seeing businesses and organizations being misled by promoters into thinking they’re eligible when they are not.
Nov. 3, 2023
IRS issued a General Legal Advice Memorandum (GLAM) related to whether an employer can rely on communications from Occupational Safety and Health Administration (OSHA) for determining whether it qualifies for ERC under the full or partial suspension of operations.
- Some taxpayers have argued that OSHA communications constituted an "order”
- GLAM says that OSHA communications weren’t “orders” because they don’t command or mandate specific action
- The GLAM provides two scenarios – refer to the link above
Reminder: GLAM is informal legal advice issued to IRS employees. Not binding guidance/not precedent.
Other Tax Notes:
Nov. 16, 2023
Tax Cuts and Jobs Act sunset
Manage lifetime exemption gifts as we approach TCJA sunset.
SECURE 2.0 technical corrections