Federal Tax, Tax

New Statute of Limitations for the Employee Retention Credit

The Treasury Department recently released its annual “Green Book,” which explains proposed items in President Biden’s 2024 budget. These include proposals involving the employee retention credit (ERC), which was enacted early in the pandemic to encourage employers to retain employees. The IRS has stated that some companies are filing returns for businesses claiming the ERC, regardless of actual eligibility. The proposed budget would adopt a five-year statute of limitations to cover all periods for paid leave and ERC tax credits and provide the IRS with at least a two-year assessment period on amended returns that claim these credits. For more details, see page 179: https://bit.ly/3ZP2Ev6.  Any questions? Reach out to Cg.  © 2023