IRS Warns of Looming Deadline to Correct Improper Tax Credit Claims or Face Penalties

The Internal Revenue Service (IRS) issued a warning to taxpayers who improperly claimed a pandemic-era tax credit that they face a fast-approaching deadline to apply for a voluntary disclosure program that will let them avoid penalties and interest—and even get a sharp discount on repayments. The IRS warned in a March 15 notice that businesses that were “misled” by predatory promoters into filing improper employee retention credit (ERC) claims have until March 22 to take action to fix the problem. “The window of opportunity is closing for those with questionable claims to fix things before they receive follow-up compliance action,” IRS Commissioner Danny Werfel said in a statement....