In its most recent effort to fight fraudulent and improper Employee Retention Tax Credit (ERC) claims, on December 6, 2023, the IRS announced it will be notifying an initial group of 20,000 taxpayers that it is rejecting their claims. The IRS is issuing these disallowance letters to taxpayers who did not exist or who did not have employees during the eligibility period but still claimed the ERC. In addition, the IRS also announced on December 6, 2023, that it will be establishing a voluntary disclosure program focused on ERC claims, perhaps as soon as January.

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