The Employee Retention Credit (ERC) Voluntary Disclosure Program is a key opportunity to rectify improper claims. But who can take advantage of this program and how can they do it?
Who can apply?
Eligible ERC recipients who wish to correct errors on their claims may apply to the program as long as they meet the following criteria:
- – No estar bajo investigación criminal: El empleador no debe estar actualmente bajo investigación criminal ni haber sido notificado de que se encuentra en ese estado.
- – No estar bajo inspección de impuestos sobre el empleo del IRS: El empleador no debe estar siendo inspeccionado por el IRS en relación con el período tributario del ERC para el cual solicita el programa.
- – No haber recibido notificación ni demanda de reembolso del IRS: No haber recibido una notificación oficial del IRS demandando el reembolso total o parcial del ERC reclamado.
- – No haber sido reportado por un tercero por incumplimiento: El IRS no debe haber recibido información de un tercero que indique incumplimiento, ni haber obtenido información directa relacionada con el incumplimiento a través de una acción de cumplimiento.
How to apply
To apply for the program, the employer must complete and submit Form 15434, Employee Retention Credit Voluntary Disclosure Program Application, available at IRS.gov. This form must be submitted through the IRS document upload tool. Employers are expected to pay the full ERC amount, except for the 20% reduction allowed through the program. Those who cannot pay the full amount will have the option to establish an installment payment agreement, as long as they meet certain conditions.
Employers who outsource their payroll
For employers who outsource their payroll responsibilities to third parties, who report, collect and pay the applicable taxes on behalf of the employer using their Employer Identification Number (EIN), the application process changes slightly.
In this situation, it is the third party, not the employer, who must file the specific Form 13454. It is advisable to review the form and its instructions for precise details on how to proceed in this case.
The ERC Voluntary Disclosure Program offers an important option for those wishing to correct improper claims. Meeting the established criteria and properly following the application procedures will ensure effective participation in this program, providing the opportunity to rectify errors and avoid potential legal consequences.
