AICPA Offers ERC Resources as IRS Voluntary Disclosure Program Ends

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 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.

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