The IRS has set a deadline of November 22 for businesses to participate in the second round of the Employee Retention Credit (ERC) Voluntary Disclosure Program. This program is specifically for employers who need to repay improperly claimed ERC credits for the 2021 tax period. Unlike the initial round, this phase does not cover any ERC claims from 2020.

Under the program, eligible businesses can correct their ERC overpayments with a 15% reduction in repayment and avoid potential compliance actions, such as audits, penalties, and interest. Employers can also withdraw any pending or processed ERC claims, allowing them to avoid compliance issues if a refund hasn’t been cashed.

To participate, businesses should ensure they meet the program requirements and can consult the IRS’s checklist and FAQ section for guidance. Employers who use third-party payroll providers should have their provider submit Form 15434 on their behalf to streamline the process and confirm eligibility.