ERTC Repeal Act of 2024
Latest action · Sep 18, 2024 Read twice and referred to the Committee on Finance.
Progress
Where this bill reached, and when. A stage with no date was not reached; one that failed a vote and later carried shows the date it carried.
- IntroducedSep 18, 2024
- Passed SenateNot reached
- Passed HouseNot reached
- To the PresidentNot reached
- Became lawNot reached
Summary
ERTC Repeal Act of 2024
This bill increases the penalty for aiding and abetting the understatement of tax liability with respect to the employee retention tax credit (ERTC) by a COVID-ERTC promoter, extends the time period for assessing and collecting tax attributable to the understatement, and disallows the ERTC after January 31, 2024.
Under the bill, a COVID-ERTC promoter may be liable for the greater of $200,000 ($10,000 for a natural person), or 75% of the amount derived from the aid, advice, or assistance related to a COVID-ERTC document that understates a taxpayer’s tax liability. Under current law, the penalty for knowingly aiding and abetting in the understatement of tax liability is $1,000 for an individual return or $10,000 for a corporate return.
The bill defines a COVID-ERTC promoter as any individual, trust, estate, partnership, association, company, or corporation that provides aid, assistance, or advice related to a COVID-ERTC document for a contingency fee and with gross receipts derived from providing aid, assistance, or advice related to a COVID-ERTC document exceeding a specified threshold.
A COVID-ERTC document is any return, affidavit, claim, or other document associated with a ERTC claim related to COVID.
The bill extends the time period for assessing and collecting any tax liability associated with an understatement of tax liability related to the ERTC from five to six years.
Finally, under this bill, claims for the ERTC related to COVID must be filed on or before January 31, 2024.
Cosponsors 2
Members who signed on, in the order they did. All signed on Sep 18, 2024.
| Seat | Cosponsor | Signed on | |
|---|---|---|---|
| I-WV | Joe Manchin III | Original | Sep 18, 2024 |
| R-NC | Thom Tillis | Original | Sep 18, 2024 |
Actions 2
Everything that happened, newest first.
- Sep 18, 2024Introduced in Senate
- Sep 18, 2024Read twice and referred to the Committee on Finance.
Related bills 2
Companion bills and other measures the record links to this one.
| Bill | Title | Relationship | Latest action |
|---|---|---|---|
| HR 7024 | Tax Relief for American Families and Workers Act of 2024 | Related bill | Aug 1, 2024 |
| HR 9738 | To increase the penalties applicable to persons facilitate fraud with respect to any COVID-related employee retention credit, and for other purposes. | Related bill | Sep 20, 2024 |
Subjects
Assigned by the Library of Congress. Policy area: Taxation.
Text 1
Each version as it was printed, newest first.
- Sep 18, 2024Introduced in Senate
Everything here is as published by Congress: the summary is the Congressional Research Service's, the action wording is the clerks', and the subjects are the Library of Congress's. How far it got is read from the actions themselves, taking the most recent one of each kind, so a bill that failed a vote and later passed is shown as having passed. Records come from this bill on Congress.gov and govinfo.gov.