2023-50: New Employee Retention Credit Voluntary Disclosure Program

The IRS has announced a new Employee Retention Credit (ERC) Voluntary Disclosure Program, under which eligible taxpayers can repay only 80% of the gross amount of credit erroneously claimed and received, while retaining the remaining 20%. (IRS Announcement 2024-3)

Taxpayers that want to participate in the Voluntary Disclosure Program must file Form 15434, Application for Employee Retention Credit Voluntary Disclosure Program, on or before 11:59 pm local time March 22, 2024. Form 15434 must be submitted to the IRS through its Document Upload Tool at:


Eligible taxpayers must meet all four of the following requirements:

  1. The taxpayer cannot be under criminal investigation and they cannot have been notified that the IRS intends to commence a criminal investigation;
  2. The IRS has not received information from a third party alerting the IRS to the participant’s noncompliance, nor has the IRS acquired information directly related to the noncompliance from an enforcement action;
  3. The taxpayer is not under an employment tax examination by the IRS for any tax period for which the taxpayer is applying for the ERC Voluntary Disclosure Program; and
  4. The taxpayer has not previously received a notice and demand for repayment of all or part of the claimed ERC.

Taxpayers whose ERC claims were filed by third-party payers, such as an agent or a professional employer organization, must apply for the Voluntary Disclosure Program through the third-party payer.

For more information on how this voluntary disclosure program works, sign up for Spidell’s 2023/24 Federal and California Tax UpdateClick herefor details.

Sign up for Spidell’s Flash E-mail — Get breaking news delivered to your inbox, plus other free analysis and information for tax professionals. Join our community and stay at the top of your game. Click here to sign up.