The Internal Revenue Service (IRS) recently issued frequently asked questions (FAQs) addressing Employee Retention Credits (ERC) under the ERC compliance provisions of the One Big Beautiful Bill Act (OBBBA). Although not final guidance, “a taxpayer who reasonably and in good faith relies on these FAQs will not be subject to a penalty that provides a reasonable cause standard for relief, including a negligence penalty or other accuracy-related penalty, to the extent that reliance results in an underpayment of tax.”

Read more about recent IRS guidance and relevant tax matters in McDermott Will & Schulte’s latest IRS roundup.