IRS Warns of Looming Deadline to Disclose Wrongly Received Tax Credits or Face Penalties

The IRS has issued an alert to taxpayers who erroneously claimed a pandemic-era tax credit and face a fast-approaching deadline to take steps to avoid penalties

The IRS building in Washington on Jan. 4, 2024. Madalina Vasiliu/The Epoch Times

The IRS is urging businesses to promptly review their eligibility for a pandemic-era tax credit and take action before a March 22 deadline or face potential penalties.

The tax agency on Jan. 25 renewed calls for employers to assess their qualifications for the Employee Retention Credit (ERC), a refundable tax credit designed for businesses that continued paying employees during COVID-19 shutdowns.