New ERC withdrawal process available for those concerned about ineligible claim

The IRS announces a new Employee Retention Credit claim withdrawal process for taxpayers who filed an ERC claim and are concerned about its accuracy. The new process lets certain businesses withdraw their claims to avoid getting a refund for which they’re ineligible. Withdrawn claims will be treated as if they were never filed. The IRS will not impose penalties or interest.

Businesses can find details about who can ask to withdraw an ERC claim and the steps they need to take in a new ERC withdrawal process fact sheet. It also contains links to other helpful information on this topic.

As a reminder, anyone incorrectly claiming the ERC must pay it back and may owe penalties and interest. The IRS wants to help honest taxpayers avoid this situation.