Article Date:
February 2024

Word Count:



Improper ERC Claim? Pay Back 80% of the ERC and Keep the Rest

You read that right.


Say you made an improper employee retention credit (ERC) claim, received the improper cash, and put that improper cash in your bank account.


Now, because the claim was wrong, you return 80 percent of the credit to the IRS, and keep the remaining 20 percent, including interest. That’s a good deal.


But it gets even better.


Your 20 percent is tax-free. And you get to keep the interest you received on the 100 percent.


Example. In 2023, you amended some of your 2020 and 2021 payroll tax returns using IRS Form 941-X and collected $200,000 in ERC cash plus $12,000 of interest from ... Log in to view full article.

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