Employee Retention Credit Voluntary Disclosure Program

Forms and Documents

Document Name	Status
Form 15434 Form 15434 Form and Instruction	New
Emergency Justification Memo - ERC VDP.docx Supplementary Document	2023-12-14
ERC Supporting Statement 1545-New.docx Supporting Statement A	2023-12-14

IC Document Collections

IC ID	Document Title	Status
263935	Form 15434 Form and Instruction	New

ICR Details

OMB Control No: 1545-2316	ICR Reference No: 202312-1545-015
Status: Active	Previous ICR Reference No:
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Employee Retention Credit Voluntary Disclosure Program
Type of Information Collection: New collection (Request for a new OMB Control Number)	Common Form ICR:  No
Type of Review Request: Emergency	Approval Requested By: 12/15/2023
OIRA Conclusion Action: Approved without change	Conclusion Date: 12/15/2023
	Date Received in OIRA: 12/15/2023
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	06/30/2024	6 Months From Approved
Responses	5,000	0	0
Time Burden (Hours)	11,800	0	0
Cost Burden (Dollars)	0	0	0

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Abstract: Internal Revenue Service (IRS) Commissioner approved the Employee Retention Credit Voluntary Disclosure Program (ERC-VDP). The ERC-VDP was created in order to provide a streamlined avenue for taxpayers to return funds and be afforded a 20% reduction in the amount to return. The ERC-VDP was created in order to provide a streamlined avenue for taxpayers to return funds and be afforded a 20% reduction in the amount to return. IRS announced the ERC-VDP for taxpayers who improperly claimed the ERC and received the refund. To participate in the initiative, taxpayers must submit information about the improper ERC claimed, refund received, their identifying information, and the identifying information of any preparer/advisor who assisted them with the ERC claim.

Emergency Justfication: The Department of the Treasury and the Internal Revenue Service (IRS) are requesting expedited approval for Form 15434, Application for Employee Retention Credit (ERC) Voluntary Disclosure Program, under emergency procedures in connection with provisions of sections 3134. The Employee Retention Credit, first enacted as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), is a refundable tax credit to encourage employers (businesses and tax-exempt organizations) to retain employees on their payroll during the COVID-19 pandemic if they met certain requirements for eligibility. In general, the credit is allowed against applicable employment taxes for eligible employers, including tax-exempt organizations, that paid qualified wages, including certain health plan expenses, to some or all employees after March 12, 2020, and before January 1, 2022. The Employee Retention Credit – Voluntary Disclosure Program (ERC-VDP) will allow employers who claimed the ERC erroneously to correct their claims. The combination of “ERC Mills” and the IRS’s recent communication and outreach efforts to alert the public of ERC scams has caused an increased interest from the tax community for a voluntary disclosure program. This program will enable the Government to recover ERC claims that were paid erroneously and process the voluntary disclosure from the employer without having to use enforcement or litigation resources. The IRS needs to be able to announce ERC-VDP and make it available to taxpayers through Form 15434 as soon as possible because of the upcoming 4/15/2024 assessment statute of limitations expiration for the employment tax periods that include calendar year 2020. Following normal Paperwork Reduction Act clearance procedures would result in harm to the government as the statute date of 4/15/2024 would pass and not afford taxpayers the opportunity to correct their misfiling. Without immediate OMB approval for the ERC-VDP, the only avenue for IRS to recapture the erroneous credit claims would be during audit. Therefore, due to the extraordinary circumstances and statutory deadlines for assessing the ERC, Treasury and IRS request emergency processing of this information collection request by December 15, 2023. Given the inability to seek public comment during such a short timeframe, IRS also respectfully requests a waiver from the requirement to publish a notice in the Federal Register seeking public comment during the period of Office of Management and Budget review.

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Authorizing Statute(s): US Code: 26 USC 7803 Name of Law: Commissioner of Internal Revenue; other officials
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
Form 15434	15434	Application for Employee Retention Credit (ERC) Voluntary Disclosure Program

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ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	5,000	0	0	5,000	0	0
Annual Time Burden (Hours)	11,800	0	0	11,800	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Miscellaneous Actions

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: This is a new collection.

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Annual Cost to Federal Government: $29,014

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     Yes

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? No

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 12/15/2023

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