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Important Upcoming Employee Retention Credit Due Dates

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With all the news and updates about the Employee Retention Credit (ERC) over the past few months, we wanted to remind you about several important upcoming ERC due dates.

 

Employee Retention Credit Voluntary Disclosure Program Applications Due March 22

The IRS’s ERC Voluntary Disclosure Program allows organizations to pay back the funds they received after filing ERC claims in error, thereby avoiding potential interest, penalties, and litigation. Organizations that the IRS accepts into the program will be required to repay only 80% of the credit they received.

Program applications must be submitted on or before 11:59 p.m. local time on March 22, 2024. You can learn more about the program and how to apply here.

As a reminder, the IRS has also offered a separate “withdrawal” program for organizations that have applied for the ERC but have not yet received the funds, or have received a check but have not deposited or cashed it. While the IRS originally said this program would be in place through at least the end of 2023, the agency has not yet announced an end date for this withdrawal program.

 

ERC Claims Based on 2020 Wages Due April 15 (Subject to Change)

Currently, eligible employers can claim the ERC based on wages paid in 2020 until April 15, 2024. ERC claims based on wages paid in 2021 are due by April 15, 2025.

However, as we reported in our recent Email Alert, on January 19, 2024, the House Ways and Means Committee voted to approve legislation that, if passed by Congress and signed by the President, would end the timeframe for claiming the ERC on January 31, 2024.

As we noted, while January 31 may not end up being the ultimate end date for the ERC, there is a strong likelihood that the ERC could end at a much earlier date than expected. If your organization believes you have a good faith claim for eligibility for the ERC and are interested in filing a claim, we recommend that you work with a trusted and reliable tax advisor to determine the next steps.

 

Join Us for a Free ERC Webcast on February 15

If one thing is certain about the ERC, it’s that there are frequent changes. Register for our free “Employee Retention Credit Updates for 2024” webcast on Thursday, February 15 at 1 p.m. EST to learn about the latest changes and what they may mean for your organization.

If you can’t attend live on February 15, you can request the recording here.

You can also access a variety of informative ERC resources, including articles, videos, and FAQs, on our website.

Please contact us with any questions or if you would like assistance with the ERC. Our experienced nonprofit tax professionals understand the complexities of ERC claims and IRS audits, and we are here to help no matter what stage of the ERC process your organization is in.

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