Section 4. Procedures for Participants

in the Second ERC Voluntary Disclosure Program

(1) Form 15434, Application for Employee Retention Credit Voluntary Dis- closure Program

Participants in this second ERC Voluntary Disclosure Program must notify the IRS of their election by completing and submitting Form 15434, Application for Employee Retention Credit Voluntary Disclosure Program, on or before 11:59 pm local time on November 22, 2024. Participants must submit Form 15434 and any required attachments electronically via the Document Upload Tool at irs.gov/DUT.

Form 15434 must be prepared under penalties of perjury and: (a) Include the taxpayer’s name, tax payer identification number, current address, and daytime telephone number. If a practitioner will represent the taxpayer, the practitioner must provide a completed Form 2848, Power of Attorney and Declaration of Rep- resentative ; (b) Identify the tax period(s) for which

the ERC was claimed, the form on which the ERC was claimed, and the full amount of the ERC claimed, including both the amounts that were refundable and non-refundable; (c) If the ERC was claimed for the first

or second quarters of tax year 2021, a completed, signed ERC Voluntary Disclosure Program Form SS-10, Consent to Extend the Time to Assess Employment Taxes, for the 2021 Tax Period(s), is required to be submitted with Form 15434; (d) If the ERC was claimed by a third party payer on behalf of the participant, as described in Section 2, the third-party payer must attach a copy of the relevant pages of the Schedule R (Form 941), Allocation Sched- ule for Aggregate Form 941 Filers, that was attached to each Form 941,

Employer’s Quarterly Federal Tax Return, on which the third-party payer claimed the ERC for the participant; and (e) If a return preparer or advisor assisted

with the claim for credit or refund, include the name, address, and phone number of the preparer(s) and advisor(s) who assisted with the claim for credit or refund and a description of services provided by the preparer or advisor. (2) Payment Form 15434 will help a participant calculate how much they will be required to pay to the Department of the Treasury under the terms of the second ERC Voluntary Disclosure Program.

A participant should use the Electronic Federal Tax Payment System (EFTPS) to submit an online payment(s). Payment should be made separately for each tax period upon submission of Form 15434. In EFTPS, participants should select the form they filed their employment tax return on, such as Form 941 (Form 15434 is not an option in EFTPS). Then, participants should select “Audit Adjustment” and “Advance Payment of Tax Deficiency” for “Tax Type.” Participants should not make a single, lump-sum payment for multiple tax periods to ensure such payments are accurately credited to the correct tax period. Full payment of the liabilities under this second ERC Voluntary Disclosure Program should be made by the date the closing agreement described in subsection (3) is executed by the participant. Participants who are unable to remit full payment of the 85% of claimed ERC may be considered for an alternative payment arrangement such as an installment agreement, pending approval.

(3) Closing Agreement After receiving the requested information, the IRS will prepare a closing agreement under section 7121 of the Code in accordance with the terms of the settlement.

The IRS will mail the closing agreement to the participant who must sign and return it to the IRS within 10 days of the date of mailing by the IRS. The IRS may grant an extension for good cause to participants who request additional time

September 3, 2024 582 Bulletin No. 2024–36

within the 10-day period. Full payment of the liabilities under this second ERC Voluntary Disclosure Program should be made by the date the closing agreement is executed by the participant.

As discussed in Section 4(2), participants who are unable to remit full payment of the liabilities under this second ERC Voluntary Disclosure Program may be considered for an alternative payment arrangement such as an installment agreement, pending approval.

(4) Other Matters

(a) Denial of a participant’s request to

participate in this second ERC Voluntary Disclosure Program is not subject to judicial review or administrative appeal. (b) Execution of a closing agreement

under this second ERC Voluntary Disclosure Program does not preclude the IRS from investigating any associated criminal conduct or recommending prosecution for violation of any criminal statute and does not provide any immunity from prosecution.

CONTACT INFORMATION

The principal author of this announcement is Michael Franklin of the Office of the Associate Chief Counsel (Procedure and Administration). If you need help completing Form 15434, have questions on the status of your ERC Voluntary Disclosure Program application, or have other ERC Voluntary Disclosure Program related questions, contact the ERC Voluntary Disclosure hotline at 414-231-2222 (not a toll-free number).

Bulletin No. 2024–36 583 September 3, 2024