Employee Retention Credits – Probing the Strength of IRS Penalty Threats


 

The IRS is trying various methods to halt what it considers improper Employee Retention Credit (“ERC”) claims, including penalty threats. Browbeating taxpayers with potential penalties is standard stuff, but it becomes particularly interesting in the ERC context, where the IRS’s ability to carry out its warnings is questionable. This article, the latest in a series, describes the evolving ERC guidance, highlights the recurrent themes of “complexity” and taxpayer “victimization,” reviews relevant penalty-mitigation standards, and suggests that taxpayers considering their next move need to determine how much weight IRS penalty threats really deserve.

Read the full article here.

About Hale E. Sheppard
HALE E. SHEPPARD, Esq. (B.S., M.A., J.D., LL.M., LL.M.T.) is a partner in the Tax Controversy Section of Chamberlain Hrdlicka.  He defends clients in tax audits, tax appeals, and Tax Court litigation, covering both domestic and international issues.

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