IRS Reopens Covid-Era Credit Voluntary Disclosure Program (1)

Businesses and tax-exempt organizations are getting more time to return to the IRS the pandemic-era tax credit they wrongly claimed at a smaller discount.

The agency is reopening its voluntary disclosure program through Nov. 22, allowing those that erroneously claimed the employee retention credit to come forward and give 85% of it back, the IRS announced Thursday. In concert, the IRS also said it plans to send a second round of up to 30,000 new letters to recapture potentially $1 billion of improper ERC claims.

“This provides a final window of opportunity for those misled businesses to make adjustments and ...