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Increased Penalties for ERTC Fraud Promoters and Shortened Refund Deadline.

This bill aims to crack down on fraud related to the COVID-19 Employee Retention Tax Credit (ERTC). It significantly increases financial penalties for individuals and companies that aid in improperly claiming the credit, requiring them to exercise greater due diligence. Crucially for citizens, the bill sets a hard deadline of January 31, 2024, for filing any claim for an ERTC credit or refund, meaning no new claims can be made after this date.
Key points
ERTC Claim Deadline: The deadline for filing any claim for the Employee Retention Tax Credit (ERTC) is set for January 31, 2024. No credits or refunds will be allowed after this date.
Harsher Penalties for Promoters: Individuals and firms promoting ERTC who assist in improper claims face significantly increased penalties (up to $200,000 or 75% of their gross income from that activity).
Due Diligence Requirement: ERTC promoters must comply with due diligence requirements. Failure to do so will be treated as knowledge for the purpose of assessing penalties, with a $1,000 penalty for each failure.
Extended Audit Period: The IRS is granted 6 years (instead of the standard 3 years) to assess amounts related to ERTC claims.
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Additional Information
Print number: 118_S_5079
Sponsor: Sen. Romney, Mitt [R-UT]
Process start date: 2024-09-18
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

ERTC Repeal Act of 2024

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_5079.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2024-09-18.

What are the main provisions?

Key points include:

  • ERTC Claim Deadline: The deadline for filing any claim for the Employee Retention Tax Credit (ERTC) is set for January 31, 2024. No credits or refunds will be allowed after this date.
  • Harsher Penalties for Promoters: Individuals and firms promoting ERTC who assist in improper claims face significantly increased penalties (up to $200,000 or 75% of their gross income from that activity).
  • Due Diligence Requirement: ERTC promoters must comply with due diligence requirements. Failure to do so will be treated as knowledge for the purpose of assessing penalties, with a $1,000 penalty for each failure.
  • Extended Audit Period: The IRS is granted 6 years (instead of the standard 3 years) to assess amounts related to ERTC claims.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Romney, Mitt [R-UT].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

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Taxes Economy