Employee retention credit guidance and resources

The employee retention credit (ERC) is an important part of the COVID-19 relief legislation for small businesses.

The rules to be eligible to take this refundable payroll tax credit are complex. This resource library provides insights on the retroactive 2020 and 2021 credit, the IRS suspension of ERC claim processing and submitting withdrawal claims.

Proposed tax relief bill disallows ERC after January 31

The proposed Tax Relief for American Families and Workers Act of 2024 includes disallowing employee retention credit (ERC) claims filed after Jan. 31, 2024. The ERC provision will offset other items in the bill including restoring Sec. 174 (R&E) expensing, enhancements to the child tax credit and other tax relief provisions. It will also allow the IRS to take meaningful action against the pervasive fraud that has plagued the ERC program. While there is a chance that this tax package will not pass and be signed into law, members may want to consider filing any outstanding claims immediately since there is enough Congressional concern about the ERC program that lawmakers could pass a stand-alone bill to end the program early.

Featured resources

Employee Retention Credit (ERC): Fact or Fiction?

Sep 30, 2023

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Employee Retention Credit (ERC) FAQs

Apr 03, 2024

Female business owner leading project meeting with employees in design studio conference room

Employee Retention Credit Decision Tree

Jun 13, 2023

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IRS Voluntary Disclosure Program ends and processing moratorium continues

The IRS announced the Voluntary Disclosure Program ended as scheduled on March 22, 2024. The withdrawal program is still available to businesses at this time. The processing moratorium on claims filed after Sept. 14, 2023, will continue and the IRS anticipates that they will begin resuming processing in the late spring.

Learn more at irs.gov

ERC library

AICPA advocacy

IRS ends Voluntary Disclosure Program, AICPA highlights ERC resources, April 3, 2024

AICPA Comment Letter regarding the ERC wage reduction and interaction with an S Corp's AAA, Oct. 5, 2023

AICPA releases statement on IRS announcement concerning ERC mills, Sept. 14, 2023

AICPA statement for the record of the employee retention credit hearing held on July 27, 2023, July 28, 2023

AICPA says more guidance needed on the employee retention credit, Feb. 25, 2021

AICPA comments on the interaction of the employee retention credit and PPP loans, Jan. 15. 2021

AICPA request for guidance related to the employee retention credit provisions of the CARES Act, Oct. 9, 2020

AICPA calls for IRS guidance in employee retention credit provisions, April 20, 2020

Resources

What CPAs should know when dealing with clients and the ERC-VDP

These questions and answers provided from AICPA Member Insurance Programs and AON are intended for CPAs to help clients with the ERC-VDP. Included is a sample ERC-VDP engagement agreement.

Employee Retention Credit Client Documentation Memo Template

Download this memo template to assist in the documentation needed for businesses or clients that claim the employee retention credit (ERC).

Employee Retention Credit Decision Tree

Download this resource to help with next steps when your clients are claiming the employee retention credit (ERC).

Employee Retention Credit (ERC): Fact or Fiction?

Many misconceptions surround the ERC eligibility rules and credit calculation. Use this flyer as an educational guide to navigate the complexities.

Employee Retention Credit (ERC) FAQs

Get answers to common employee retention credit (ERC) questions on topics such as shareholder/related-party wages, PPP impacts and aggregation rules.

Summary of American Rescue Plan Act of 2021

Learn about the new recovery rebates, tax-free status of certain unemployment benefits and more tax laws contained in the American Rescue Plan Act of 2021.

Tax Section Odyssey podcast

Sifting through ERC questions | Tax Section Odyssey

The IRS has placed a current moratorium on new employee retention credit (ERC) claim processing. Justin Elanjian, CPA, walks us through the latest developments.

ERC suspended: What happens next | Tax Section Odyssey

Amid a flood of questionable ERC claims, the IRS halts the processing of new ERC claims through at least the end of 2023.

Employee retention credit and professional responsibilities | Tax Section Odyssey

The ERC continues to be on the minds of taxpayers and practitioners. In response to practitioner requests regarding ERC “mills,” OPR provided guidance.

Reconciling ERC claims with reality | Tax Section Odyssey

The ERC has helped many businesses struggling throughout the pandemic, but caution should be taken around firms promoting overly aggressive narratives.

Q&A on ERC, tax legislation and IRS woes | Tax Section Odyssey

Tune in to hear answers to FAQs the AICPA Tax Section receives from members on topics such as the ERC, tax-related legislation and IRS service levels.

Mythbust and maximize the employee retention credit | Tax Section Odyssey

Helping eligible clients successfully apply for and receive the ERC is a once-in-a-lifetime opportunity for CPAs according to Chris Wittich, MBT, CPA.

View more podcast episodes.

News and articles

Despite moratorium, IRS gets 20,000 ERC claims weekly, Werfel says, April 18, 2024
Enforcement, voluntary programs yield over $1 billion from ERC claims, March 22, 2024
The ERC: Practitioners’ responsibilities to amend income tax returns, Feb. 2024
House OKs $78B tax bill with changes to ERC and child tax credits, Feb. 1, 2024
ERC voluntary disclosure program requiring 80% claim payback launched, Dec. 21, 2023
ERC disallowance letters sent to 20K+ taxpayers, Dec. 6, 2023
‘As if they were never filed’: IRS outlines steps to withdraw ERC claims, Oct. 19, 2023
Moratorium imposed on new ERC claim processing to curb abuse, Sept. 15, 2023
Considerations for IRS examinations of ERC claims, July 1, 2023

IRS guidance

Tax Section

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