Can You Withdraw or Repay Your ERC Claim?

The IRS says certain businesses can withdraw potentially fraudulent employee retention tax credit claims.

Employee retention tax credit written on form next to notebooks on a desk
(Image credit: Getty Images)

The ERC Voluntary Disclosure Program allowed eligible businesses to repay incorrect ERC claims at a discounted rate of 80%. The IRS suspended the program on March 22, 2024. However, the agency has stated that it may reopen the program in the future, and other options to fix incorrect claims remain available.

When claimed properly, the ERC (or ERTC) is a complex refundable tax credit available to certain employers who paid employees during the COVID-19 pandemic. However, abusive tax promoters have encouraged small businesses to file fraudulent claims for the credit.

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Katelyn Washington
Tax Writer

Katelyn has more than 6 years’ experience working in tax and finance. While she specializes in tax content, Katelyn has also written for digital publications on topics including insurance, retirement and financial planning and has had financial advice commissioned by national print publications. She believes that knowledge is the key to success and enjoys helping others reach their goals by providing content that educates and informs.