Bill > S5079

This bill, the ERTC Repeal Act of 2024, aims to establish special enforcement provisions with respect to claims for the COVID-related Employee Retention Tax Credit (ERTC), a tax credit introduced during the COVID-19 pandemic to help businesses retain their employees. The key provisions of the bill include: 1. Increasing the assessable penalty for ERTC promoters who aid and abet understatements of tax liability, with the penalty being the greater of $200,000 ($10,000 for individuals) or 75% of the promoter's gross income derived from the advice. 2. Treating a promoter's failure to comply with due diligence requirements as satisfying the knowledge requirement for the penalty on aiding and abetting understatements. 3. Imposing a $1,000 penalty on promoters who fail to comply with due diligence requirements in determining ERTC eligibility or amounts. 4. Treating any ERTC as a listed transaction, requiring promoters to disclose information, maintain client lists, and comply with other reporting requirements. 5. Limiting the time period for claiming ERTC credits or refunds to January 31, 2024, and extending the statute of limitations for assessment of ERTC-related tax liabilities. The bill aims to curb potential abuse and ensure the proper administration of the ERTC program.

Budget and Finance

https://www.congress.gov/bill/118th-congress/senate-bill/5079/all-info