IRS Issues Rules on Virus-Related Excess Employment Tax Credits

The IRS clarified how businesses can recapture or correct pandemic-related employment tax credits that were paid in error or refunded beyond the allowable amount.

• The agency issued proposed (REG-111879-20, RIN 1545-BP88) and temporary (TD 9904, RIN 1545-BP89) regulations Friday related to the Families First Act (Public Law 116-127) and the CARES Act (Public Law 116-136).
• The rules affect businesses and tax-exempt organizations that claim certain credits under the two laws.
• The Families First Act requires employers with fewer than 500 employees to pay their employees for sick and family leave related to ...