GAO says tax pros helped shape IRS response to ERC issues
March 04, 2026
The Government Accountability Office (GAO) recently stated that recommendations from tax practitioners may have reduced improper employee retention credit (ERC) payments.
In a February report to Congress, the U.S. Government Accountability Office (GAO) attributed several changes that the IRS made in dealing with the ERC to recommendations by tax professionals.
They included a two-part voluntary disclosure program (VDP); an updated website, including an ERC eligibility tool; and a bulletin in March 2023 detailing how tax practitioners could meet professional responsibilities when preparing returns claiming the ERC.
The VDP, the website update, and professional responsibility guidance are examples of the IRS “using lessons learned stemming from stakeholder input,” the report said. Read more.