VRS Succeeds in Obtaining Large IRS Tax Abatement for Client
VRS recently obtained a $400,000 penalty abatement from the IRS Office of Appeals for a client who had been assessed penalties of approximately $525,000 for failing to properly file annual forms reporting minimum essential coverage by an employer as required under Affordable Care Act tax provisions. Consistent with the penalty abatement, the IRS also applied the remaining Employee Retention Credits (“ERC”) to the outstanding penalty amount, thereby completely eliminating the remaining penalty tax liability. Additionally, the very substantial reduction in the penalty amount was applied by the IRS against previously reduced ERC tax credits that had been applied against the penalty amounts, resulting in a refund of approximately $450,000 for the penalty years once the penalties were reduced.
If you have any issues with taxing authorities or questions regarding your rights and obligations with respect to ERC claims or audits by the IRS, VRS is able to assist you.