IRS ERC Voluntary Disclosure Program Explained

The Employee Retention Credit (ERC) program, introduced during the COVID-19 pandemic, is now being offered as the ERC Voluntary Disclosure Program (ERC-VDP) by the IRS. This program allows employers to repay the credit at a reduced rate, waiving penalties and interest. Employers who claimed and received an ERC refund for a quarter but were not eligible can now opt for the ERC-VDP. The IRS is also issuing letters proposing adjustments to tax for 20,000 employers.