In a recent Tax Notes article, Juan F. Vasquez, Jr., shareholder and Co-Chair of Chamberlain Hrdlicka’s Tax Controversy & Litigation practice, Tania Albuja and Victor Viser, associates in our Houston and San Antonio Tax Controversy & Litigation groups, discuss the IRS’s plans to step up enforcement of improper Employee Retention Credit (ERC), following the passage of the Inflation Reduction Act, which will provide $80 billion of funding to the agency and the need for employers to evaluate their eligibility and credit amount now, before they face IRS’s scrutiny.
ERC is one of the most popular relief measures implemented in response to the COVID-19 pandemic. However, it has recently been the source of significant confusion among employers, due to various changes made to the legislation once the measure was implemented, which have resulted in unclear eligibility rules and retroactive changes.
