IRS Ends Voluntary Disclosure Program, AICPA Highlights ERC Resources

Following End of IRS Voluntary Disclosure Program, AICPA Highlights Resources and Information on ERC

Washington, D.C. (March 26, 2024) - Since 2021, the American Institute of CPAs (AICPA) has spoken out against unscrupulous third-party vendors promoting improper Employee Retention Credit (ERC) claims. The Internal Revenue Service (IRS) has heeded the concerns of CPAs from across the country and taken steps to curb fraudulent ERC claims.

As previously scheduled by the IRS, the voluntary disclosure program has come to an end. Through its various compliance efforts, the IRS has addressed over $1 billion in erroneous ERC claims.

"The AICPA is encouraged by the actions being taken by the IRS to reduce the number of improper ERC claims and ensure that the businesses that are eligible for and need these funds receive them," said Sue Coffey, AICPA's CEO of public accounting. "We support the continued efforts by the IRS to stop dishonest ERC mills and fraudulent claims," she continued.

The AICPA has provided a number of resources to its members and the public to help them identify dishonest vendors and has strongly discouraged dealings with these ERC mills. A key warning sign that businesses should be aware of are vendors that require large contingency fees and/or fail to sign the amended payroll tax returns.

These resources are available to individuals looking for additional guidance and information:

Questions and answers provided by the AICPA Member Insurance Programs and AON to help CPAs working this clients on the VDP: What CPAs should know when dealing with clients and the ERC-VDP

Additional considerations and challenges have manifested with the IRS moratorium on ERC claim processing: Sifting through ERC questions | 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: Employee retention credit and professional responsibilities | Tax Section Odyssey

For additional tools and guidance, visit the AICPA ERC resource center.

About the American Institute of CPAs

The American Institute of CPAs® (AICPA®) is the world's largest member association representing the CPA profession, with more than 415,000 members in the United States and worldwide, and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting. AICPA sets ethical standards for its members and U.S. auditing standards for private companies, not-for-profit organizations, and federal, state and local governments. It develops and grades the Uniform CPA Examination, offers specialized credentials, builds the pipeline of future talent and drives continuing education to advance the vitality, relevance and quality of the profession.

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