IRS announces special withdrawal process for employee retention credit claims
Details of a special withdrawal process to help those who filed an employee retention credit claim and are concerned about its accuracy
IRS announces special withdrawal process for employee retention credit claims
The IRS today announced the details of a special withdrawal process to help those who filed an employee retention credit (ERC) claim, but have not yet received a refund, and are concerned about the claim’s accuracy.
According to today’s IRS release—IR-2023-193 (October 19, 2023)—the new withdrawal option allows certain employers that filed an ERC claim but have not yet received a refund to withdraw their submission and avoid future repayment, interest, and penalties. The IRS created the withdrawal option to help small business owners and others who were pressured or misled by ERC marketers or promoters into filing ineligible claims. Claims that are withdrawn will be treated as if they were never filed. The IRS will not impose penalties or interest.
The IRS stated it would be introducing the new withdrawal process in its September 14, 2023 announcement of an immediate moratorium through at least the end of the year on processing new ERC claims to give the IRS time to add more safeguards to prevent abuse and protect businesses from predatory tactics. Read TaxNewsFlash
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.