July 24, 2020
IRS issues temporary and proposed regulations on recapture of excess employment tax credits
The IRS has issued temporary (TD 9904) and proposed (REG-111879-20) regulations under IRC Sections 3111 and 3221 addressing recapture of excess employment tax credits under the Families First Coronavirus Response Act and the CARES Act. The temporary regulations authorize the assessment of any erroneous refund of the credits paid under the Families First Act, including any increases in these credits under the CARES Act. The text of the temporary regulations also serves as the text of the proposed regulations.