Prose by Tax Pros
Author: Hale Sheppard, partner at Eversheds Sutherland
This article was published in Tax Analysts.
Given the long list of enforcement tools already available to IRS, savvy taxpayers understand that most Employee Retention Credit (“ERC”) disputes have not even started yet. Moreover, the duration and scope of these battles are likely to expand significantly if Congress enacts the One Big Beautiful Bill Act in its current state. That proposed legislation contains provisions that would retroactively increase penalties against “ERC Promoters,” extend assessment periods for the IRS, nullify ERC claims filed after January 31, 2024, and more. This article by Eversheds Sutherland Partner Hale Sheppard offers an overview of the four laws that created the ERC, summarizes various reports identifying ERC-related problems, and analyzes three bills designed to overhaul many ERC rules.
