Business leaders, brace yourselves for a critical IRS update that could have significant implications for your financial strategy. The IRS has announced the Employee Retention Credit Voluntary Disclosure Program (ERC-VDP), targeting erroneous ERC claims. JoQuin Associates, your dedicated accounting partner, is here to guide you through these changes, highlighting both the opportunities and risks involved.
Understanding the ERC-VDP:
The ERC-VDP is intended for businesses that mistakenly claimed the ERC. Key aspects include:
- Application Deadline: The program requires online submission of Form 15434 by March 22, 2024. This is a strict deadline, and late submissions are not accepted.
- Repayment Terms: Participants must repay 80% of the ERC received, either in a lump sum or through an installment agreement.
- Ineligibility Criteria: Employers under criminal investigation, employment tax examination, or who have received a notice for repayment are ineligible.
The High Stakes of Non-Compliance:
Failing to correctly report ERC eligibility can lead to severe consequences:
- Accuracy-Related Penalties: This involves a 20% penalty on underpaid tax due to misreporting.
- Severe Penalties for Fraudulent Claims: If fraud is uncovered in an audit, penalties can surge to 75% of the underpaid tax.
- Criminal Charges for Tax Evasion: In extreme fraud cases, this could include fines up to $100,000 and imprisonment.
- Failure-to-Deposit Penalties: These penalties apply for late payroll tax deposits, potentially up to 15%.
- Trust Fund Recovery Penalties: This 100% penalty applies to individuals responsible for non-remittance of withheld payroll taxes.
JoQuin Associates offers comprehensive support:
- Accurate assessment and reporting of ERC eligibility.
- Strategic advice on managing potential liabilities.
- Assistance in IRS audits and compliance issues.
- Regular updates on IRS regulations.
Time is critical! Protect your business’s financial health and integrity with JoQuin Associates. We will help you confidently address these challenges while focusing on your core business activities. We ensure compliance with IRS requirements, helping you avoid costly penalties and legal issues. Trust us to navigate this complex landscape on your behalf. Call now to book a consultation and navigate these complex requirements with confidence.