1.  What should an employer (that claimed ERC, but has not yet received the money) do next?

 2.  How to diagnose (as of this point in time) the merits of a prior filed ERC claim?

 3.  Is it worth pouring additional resources into pursuing a refund? How to choose proper counsel moving forward and what should it properly cost?

 4.  If a business filed for ERC and IRS has not paid a refund (though IRS has not yet rejected the refund), what are the business’s choices as to what to do next? By when?

 5.  If a business filed for ERC and IRS has rejected all the refund, what are the business’s choices as to what do next? By when?

 6.  If a business filed for ERC and IRS has paid part and rejected part of the refund, what does the business do next? By when?  

 7.  What to do if you claimed ERC and shouldn’t have? If a business filed for (but did not rightfully qualify for) ERC and IRS paid it, what does the business do next? By when?  

 8.  How have the federal courts interpreted taxpayers’ eligibility for Covid ERC? Do these early cases bode well or poorly for taxpayers? Which criteria are the fed courts following and which are they ignoring? How do these “early indicators” influence a taxpayer’s view as to how to proceed? Which type of cases are a good bet for refund? Which are suspect?

 9.  What do we do now reducing (by ERC) a federal income tax deduction for wages? Is IRS’s recent guidance correct, credible or compelling? Does the Tax Benefit Rule really apply here? Is disclosure required (or recommended) on a current year income tax return?

 10.  How long does IRS have available to go after (and collect against) a taxpayer for an ERC related income tax deficiency? Does the statute of limitations stay open longer against a taxpayer who does not do the right thing?

 11.  How long does IRS have available to go after (and collect against) a taxpayer for an ERC related employment tax deficiency? Does the statute of limitations stay open longer against a taxpayer who does not do the right thing?

 12.  What if the taxpayer quite unfortunately utilized a PEO to claim ERC and the claim is just sitting there in purgatory, what to do to break the pathetic logjam?

 13.  How do protective claims (past day and current day) play into the entire mix?

 14.  Is it too late to file an ERC claim (surprisingly)?  

 15.  How has enforcement (penalties, sanctions, jail time, etc.) gone against practitioners who errantly claimed ERC on behalf of clients?

 16.  Is Covid ERC behind (in the rearview mirror) or in front of us? What do we need to do to put it (else it won’t be) behind us? 

 17.  What do we need to look for on a taxpayer’s IRS transcript to solve the mystery as to how to move forward?

In 2021-2024, Covid ERC was the hottest topic going on. 70-80% of business tax practitioners nationally had a client claiming ERC. Most Covid ERC claims are still sitting out there unresolved (many with imminent current action needed by the taxpayer and/or practitioner). Not much of anyone is paying attention to or helping to resolve Covid ERC unfinished business. 

Covid ERC’s interaction with the federal income tax deduction for wages continues to rock America. Congress wrote a vague rule that the income tax deduction for wages must be reduced by Covid ERC. Chaos broke out over that vague rule. Compliance response was all over the board. IRS continues to meddle and threaten taxpayers in the matter.

Masses of American employers, seeking to survive Covid, filed claims for ERC. IRS has not yet refunded most of those claims. This leaves most companies in a lurch. What to do now in the face of it? Must a taxpayer act soon (now) to protect their rights (else lose them)?

Federal court cases interpreting Covid ERC provisions are beginning to pop. How are taxpayers faring in the early going? How do income tax liability related issues play out in the face of it all? 

"The "filing frenzy" of the COVID-era Employee Retention Credit (ERC) has been replaced by a high-stakes resolution phase fraught with IRS delays, enforcement activity, and looming statutes of limitations. For CPAs and other tax professionals, the challenge has shifted from calculating credits to managing unresolved claims and mitigating professional liability under Circular 230 and IRC Section 6694. This session provides a practical roadmap for navigating the IRS processing moratorium, understanding the impact of early federal court rulings, and correctly applying the IRC Section 280C wage deduction reduction rules. Practitioners will learn to evaluate the merits of pending claims, utilize IRS remediation tools like the Withdrawal Process and Voluntary Disclosure Program (VDP), and protect their practice from the emerging penalty risks associated with "unsupported" claims.

Upon completing this session, participants will be able to:

💣 Evaluate the current status and risks associated with unresolved ERC claims, including IRS processing delays and enforcement activity.

💣 Analyze eligibility and technical merits of previously filed ERC claims using current legal and administrative guidance.

💣 Determine appropriate courses of action for various ERC outcomes, including pending, denied, partially paid, or erroneous claims.

💣 Assess the impact of ERC on federal income tax wage deductions and apply relevant compliance and disclosure considerations.

💣 Identify statute of limitation implications, litigation trends, and procedural strategies to mitigate taxpayer and practitioner risk.

Group Live Internet

Field of Study: Taxes

Level: Intermediate

IRS Crs # IVYPC-T-00010-26-O

CPE 3