Taxpayers choosing to participate in the VDP will be required to complete a Form 15434 electronically via the IRS document upload tool. For taxpayers that would like to use the VDP for 2020 claims, a separate ERTC VDP Form SS-10 will also need to be completed.
The taxpayer also must provide the IRS with the names, addresses, and telephone numbers of any advisors or tax preparers who advised or assisted them with their claim and details about the services provided.
If the taxpayer used a third-party payer and the payer’s federal employer identification number, such as an agent under Internal Revenue Code (IRC) Section 3504 or a professional employer organization (PEO), to file their ERTC refund claims, the third-party payer must engage in the VDP process on behalf of the taxpayer.
The IRS will prepare a closing agreement with the terms of any VDP settlement. The taxpayer must sign and return the closing agreement to the IRS within 10 days of the date of mailing by the IRS. Full payment of the liabilities under the VDP should be made by the date when the closing agreement is executed unless the taxpayer is approved for an installment agreement.