IRS Responds to Requests for Relief from Penalties

ERTC Filing wants to notify our customers of a response that the IRS has given in regards to relief from IRS Penalties related to claiming the ERTC and the effect on the businesses income taxes. Please see their notice below.

Department of Treasury and IRS have received requests for relief from penalties arising when additional income tax is owed because the deduction for qualified wages is reduced by the amount of a retroactively claimed employee retention tax credit (ERTC). In these cases, the taxpayer is unable to pay the additional income tax because the ERTC refund payment has not yet been received. This situation may arise due to the IRS backlog in processing adjusted employment tax returns on which the taxpayers claim ERTC retroactively. Consistent with the relief from penalties for failure to timely pay noted in Notice 2021-49, taxpayers may be eligible for relief from penalties for failing to pay their taxes if they can show reasonable cause.

If you have any questions or concerns or would like to speak to ERTC Filing regarding this matter, please call us at (888) 678-4269 or schedule a consultation with us here.